The removal of fuel subsidy by President Bola Tinubu, last year, has led to skyrocketing of fuel price with ripple effects on prices of goods and services causing economic hardship for the people. PAUL OKAH speaks with a cross section of Nigerians on how they are coping with the situation.
I embraced cost-saving methods
I am one of those who have personal experiences and faced economic challenges. However, I have been adopting different measures to survive, so I can provide information and strategies to help Nigerians navigate economic hardship.
Many Nigerians have shown remarkable resilience in the face of economic challenges. This is why it is often said you can survive anywhere in the world if you can survive.
It is either you are not paid enough salary if you work for the government or private organisation; or you are not making enough due to operational costs as a self-employed person. Therefore, it is necessary in these trying times to consider diversifying income streams like freelancing for organisations and embracing different side hustles.
It is also pertinent to consider reducing unnecessary expenses, especially cutting back on non-essentials, engaging in subsistent or commercial agriculture by growing your own food and selling to others or engaging in petty trading.
One can also use technology to access financial services like mobile banking, instead of spending money on transportation to go to your bank to facilitate low volume transactions.
In a nutshell, to survive the present economic hardship, anyone in business must consider innovating and adapting business models, diversifying products and services, expanding online presence, reducing operational costs and seeking funding opportunities like grants and loans.
…Peter Chijioke, civil servant
Diversification of income helpful
Indeed, we are facing harsh economic realities in this country and no one needs to be told about it. Even the child in the womb knows that all is not well in this country. Everything can be traced to the removal of fuel subsidy by President Tinubu, which exacerbated a precarious situation initiated by others before him.
Therefore, what I have done to survive the situation and to make sure I help my husband to provide food for our family is to create multiple channels of income.
Apart from working for an organisation, where my pay cannot even take me home, I have to engage in affiliate marketing or what is commonly called drop-shipping. Through that, I buy items for people on the internet and sell to customers. For instance, I post clothes and household items on my social media pages like Facebook and Instagram for my followers to buy. Anyone they like, they will contact me for negotiation of the price. When they pay for the item, I will then buy from the seller and deliver to my clients.
I can make from N5,000 to N20,000 as profit for each sale I make. It is not easy though as many people often feel reluctant to buy items from people on social media because of the prevalence of scammers. Therefore, it needs building a client base and trust-based on track record of successful transactions. It also requires being steady on social media and having the patience to interact all manner of inquiries.
If not for my pushing extra hard and creating multiple channels of income, including adroitly and subtly selling items in the office, the economy would have been harsher than it is to me because my salary is ridiculous.
We are now in a situation whereby women work to support their men, so there is no excuse to be lazy and die of hunger in these trying times, especially if you have children to cater for.
…Juliana Ochono, entrepreneur
I withdraw my children from private school
How I cope with the present economic situation is to adopt cost-saving measures and cut off extra expenses. It was painful, but I had to withdraw my children from private schools they were studying in and enrolled them in public schools because the schools kept on increasing their fees. I can’t say I blame the schools because they have to stay afloat in business.
However, I could no longer afford paying for the high fees. Matters came to a head in August when the school sent information that the new fees for the term starting in September would be N140,000, N162,000 and N208,000 for my three children. I didn’t bother again. I changed school for my children.
There has not been an increment in my salary in the organisation I am working. In fact, the management is considering downsizing, so I have to save the little salary I earn. Though it took time for my children to adjust in their new schools, they have no alternative. By enrolling them in public schools, I have saved myself the financial pressure that comes with frequent demands by private schools.
Again, I have told my wife to engage in bulk purchases in the market, instead of buying little items at high prices from traders in our neighbourhood. When she goes to the market, she can buy items that will last the house for two weeks, at least, instead of buying salt, pepper, and other items from those selling in our neighbourhood. This is because I realised that people pay higher when they buy little items.
Fortunately, we live in our own house, so paying rent is out of the question. I am now working on the idea of starting up a small farm in our backyard so that we can cultivate some common crops and vegetables. Every penny saved is important in this economy.
I won’t join those concentrating on blaming the government, when the economic situation has been worsening over the years and does not show any sign of getting better in the nearest future. So, it is advisable for one to take measures and hope for the best.
…Clement Adeboye, accountant
Cutting unexpected expenses
Once upon a time, I used to carry the problem of my extended family on my head and even bail out friends from financial situations, but there is nothing like that anymore. I have told everyone bothering me for money that it is also not easy for me. In the present economy, people are struggling to survive. It is not easy for anyone.
Granted that I have a well-paying job, but I spend a lot on fueling my car and other expenses. Presently, I spend over N70,000 weekly on fueling my car to get to work. I now even carry passengers to be able to recoup my fuel expenses. I no longer give free rides to people. Before, I would carry passengers for free, but now they have to pay whether I am going to work or coming back from work.
I have also cut off buying items I don’t need. I prioritise my purchases and scrutinise things before I pay. I have cut off all unnecessary expenses in order to maintain financial stability.
Though I am now a bad person to those I usually help when they call from the blues with sob stories needing financial assistance, I like it that way because it has made me realise that many people are scroungers who will only be your friend as long as they can get something from you. Since I started denying them help, the calls have reduced. All of us are managing. No one should look up to others to solve their problems for them.
All of us have problems, so let’s all look for ways to survive the economy and not transfer our financial burdens to other people. Insha Allah, we will overcome the bad economy and things will get better.
…Musa Abdullahi, data analystoio