There is an age-long saying that January is usually dry in terms of economic viability and free flow of money. Is this a myth or a reality? TOPE SUNDAY asks in this report.
As Nigerians bid farewell to the festivities of December, they brace themselves for a new year, hoping for better days. However, there is a widely held belief that January is a month associated with economic downturns and financial toils. This perception has become ingrained in the collective consciousness, leading many to wonder if it is just a myth or a stark reality.
Historically, January has been a challenging month economically for various reasons. One of the main factors contributing to this perception is the aftermath of the December holiday season, which is seen as a time of excessive spending and indulgence. Large expenses such as gifts, travels, parties, and family gatherings often strain budgets, leaving individuals and households with limited resources as they enter the New Year.
Also, companies and organisations tend to scale down their operations during the holidays, resulting in reduced business activities in January. As a result, many workers face delays in payment or even retrenchment, further exacerbating the financial strain experienced by individuals and families.
School resumption
Another contributing factor is the timing of school resumption. With the resumption of schools after the Christmas break, parents are faced with additional expenses such as school fees, textbooks, uniforms, and other related costs. This added financial burden can lead to a feeling of economic stress for many households.
However, it is essential to recognise that not all Nigerians experience a January slump. While some may encounter financial challenges during this month, others manage to maintain their economic stability. For instance, those involved in agriculture often enjoy a higher demand for their products during this period, as the harmattan season favors certain crops, increasing their market value. Additionally, individuals in sectors such as healthcare, technology, and banking often experience consistent income streams throughout the year, making January just like any other month for them.
Mixed reactions
While January does pose economic challenges for some Nigerians, it is vital to acknowledge that these struggles are not universal. The notion of a nationwide economic downturn during this month can be considered more of a myth than a reality, as some industries and sectors remain resilient.
Speaking with Blueprint Weekend, a taxi driver that plies the Maitama District, Abuja axis, Mr. Steven Paul, said “this is not a myth because people usually travel, and if one considers the economic situation people should go broke.”
“People usually travel during December for the yuletide and considering the economic situation in our country, it is difficult to recover what they spent during December last year. So, it is not a myth but a reality. There is a tendency for people to spend a lot during the festive season, leading to a feeling of scarcity in the following month. It is not necessarily a reflection of lower income in January, but rather a consequence of holiday spending habits,” he said.
Continuing, he said, “As the New Year unfolds, a common narrative emerges – January is a dry month, characterised by financial situations and low income for many. But is this perception rooted in reality or just a myth fueled by post-holiday blues? There is real evidence suggesting that people often feel the pinch in their wallets in January.
Desmond Luga, another resident of the FCT, said “it depends on people’s lifestyles; for me, it is a myth, but for others, it could be a reality.”
He said: “However, for some households whose source of livelihood depends on daily routine, January can pose financial challenges due to various factors, such as delayed salary payments, increased bills, and unexpected expenses. The pressure to fulfill New Year resolutions, including fitness memberships and self-improvement programmes, can also threaten budgets.
“Despite these challenges, January is not supported by broader economic trends, and it is not as difficult as people tend to let us believe. December that precedes it is a month that we should have adopted a proactive budgeting strategy, and set realistic financial goals.
“During the yuletide should have avoided unnecessary expenditures, and cultivated a savings mindset that will help alleviate financial stress during the traditionally perceived tough month. So, while individual circumstances may differ, labelling January as a universally low-income month appears to be more of a myth than a reality.”
For PoS operator at the NICON Junction, Maitama, Abuja, Deborah John, this year’s January is better compared to the last January. According to him, people are spending money at will without any hindrance.
Deborah remarked that 2024 January “is a clear departure from 2023’s; by this last year, Nigerians experienced scarcity of the Naira which forced some of them to experience untold hardships.”
She said: “This year’s January is particularly good and when we are talking about the possibility of January as a season of the economic downturn, I would say it is a myth because judging from what we experienced last year, the insinuation is a myth.
“Last year, you may recall it was a period where we had a scarcity of Naira when we could not have access to money and we were unable to exchange naira freely. Now, although we are in January people are having cash and some of those who travelled have returned to their base.
“By this time last year, some of them were stranded and confined to their various villages. So, saying that January is normally decried for cash in-flow, I will rather say it is a myth judging from my experience last year’s experience. The belief that January is dry is not generally acceptable.
“Lack of proper planning and adequate savings during the previous year and lavish spending during yuletide, coupled with unnecessary travels are the major factors making January very hard for some Nigerians.’’
Meanwhile, experts are of the view that Nigerians should deploy ways of generating additional incomes to overcome the financial challenges associated with the first month of the year.
According to them, instead of accepting a narrative of economic downturn, it is important for Nigerians to explore innovative avenues and strategies to maintain stability throughout the year.
