“Nigeria Naira Not as Usual, Setting Up My Japa Plans”: Nigerian Banker Earning 250k Monthly Laments
- A Nigerian banker who is struggling with the economic crisis caused by inflation, currency depreciation, and fuel subsidy removal speaks
- Alade shares how he has been coping with the high cost of living and financial insecurity in the country
- He tries to save for relocation, access quality health care and maintain his social and cultural ties
Mr. Alade*, a 28-year-old marketing staff at a popular Nigerian bank, wakes up every morning with a sense of dread.
He lives alone in a rented apartment in Ondo State, Nigeria's southwestern region. He earns N250,000 a month, which used to be enough to cover his basic needs but not anymore, he told Legit.ng.
Source: Getty Images
“The inflation has really hit my power to purchase basic things and I have had to either resort to lower quality materials or buy miniature quantity of same products to keep up."
Economic erosion
Nigeria, Africa’s largest economy and most populous country is facing its worst economic crisis in decades. The inflation rate has soared to over 18 percent, the highest ever, eroding the purchasing strength of millions of Nigerians.
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The Tinubu-led government has also ended fuel subsidies, causing the price of petrol to increase by more than 50 percent. The exchange rate of the naira has depreciated by over 30 percent against the dollar in the past year, making imports more expensive and foreign debts harder to repay.
For Mr. Alade, these macroeconomic indicators translate into a daily struggle to survive. He told Legit.ng that he is currently doing everything to stay afloat.
His expenditure at a glance
Mr. Alade's yearly rent is N400,000 , he said, yet he spends N100,000 monthly on food, N45,000 on transportation, N20,000 on utilities, N15,000 on health care, and N10,000 on communication. He tries to save what is left for emergencies and investments, but he said it is insufficient:
“To be honest, saving has become a little more difficult. But I try to keep up using saving apps like PiggyVest.:
PiggyVest is one of the many fintech platforms offering digital savings and investment options for Nigerians. Mr. Alade said he uses PiggyVest to save for his future goals such as traveling abroad.
“Planning for the future has been reduced to more of setting up a japa plan. However I have had to think more about creating multiple sources of income and businesses to cushion the effect of an evident continuation in the decline in security and certainty,” he said
But his plans are often disrupted by the uncertainty and economic crisis in the country. Nigeria is facing multiple challenges, such as rising poverty, unemployment, corruption, violence, and terrorism.
According to the World Bank, the poverty rate in Nigeria increased from 40 percent in 2020, meaning that 100 million Nigerians are living on less than N1000 a day. The unemployment rate is also on the high side.
Mr. Alade said he is constantly worried about his future and survival. He tries to cope with the psychological and emotional stress caused by the economic hardship by seeking support from his family and friends:
“By personal obligation I believe in providing for family and friends. They are the reason the country is still bearable to live in. I have tried to maintain a realistic expectation so that I am only expected to do just what I have the ability to. I support with the little I can. And I come clean when I do not have, just ensure I do not overpromise. I do not lend. I only give the little I can, when I can.”
*Name withheld for sake of privacy
I can no longer save: Nigerian man earning 200k monthly cries out
Meanwhile, Legit.ng earlier reported that 29-year-old man who works as a marketer at a private media company is complaining about his survival.
He earns N200,000 a month, but he said it is not enough to cover his needs.
He went onto talk about how the economic crisis is affecting him.
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Source: Legit.ng
