Updated November 2026: this post has been refreshed with current information for readers in Nigeria. It is general information, not financial, legal or immigration advice.
This post first appeared in 2015, a hard year when falling oil prices, inflation and naira pressure squeezed ordinary Nigerians. Many of those pressures feel familiar today. Inspired by the original Smart Money with Arese column, here is an updated, practical survival guide for anyone who is not a millionaire and wants to stay afloat and get ahead in a tough economy.
1. Know exactly where your money goes
You cannot fix what you cannot see. For one month, write down every expense, including small transfers, data, transport and "small chops". Then group spending into needs, wants and savings. Most people find at least one leak, often subscriptions, impulse online shopping or frequent eating out.
2. Build a budget that fits real life
- Pay yourself first: move a fixed amount to savings the day your salary lands.
- Cover essentials next: rent, food, transport, school fees, health.
- Give yourself a small "enjoyment" amount so the budget is sustainable.
- Review monthly, because prices change quickly when inflation is high. The National Bureau of Statistics (NBS) publishes official inflation data.
3. Build an emergency fund
An emergency fund stops one hospital bill or job loss from pushing you into debt. Start with one month of essential expenses and grow it over time. Keep it in a safe, accessible account at a CBN-licensed bank or a low-risk money market fund.
4. Cut costs without cutting your life
- Buy food staples in bulk with friends or family and share.
- Compare data plans and drop subscriptions you do not use.
- Plan meals and cook more at home.
- Negotiate: rent, school fees payment plans, and service charges are often negotiable.
5. Avoid expensive debt
Instant loan apps can charge very high fees and use aggressive recovery tactics. If you must borrow, use a regulated lender, read the total cost, and borrow only for needs. The Federal Competition and Consumer Protection Commission (FCCPC) regulates digital lenders and publishes guidance for consumers.
6. Protect your money from inflation
Idle cash loses value when inflation is high. Low-risk options such as Treasury bills, FGN Savings Bonds (see the Debt Management Office (DMO)) and SEC-registered money market funds can help your savings keep up better than a current account. For long-term goals, consider equity funds or your pension's voluntary contributions. Check the latest rates rather than relying on old numbers.
7. Grow your income
Cutting costs has a limit; earning more does not. Ideas that do not need large capital:
- Turn a skill into a service: tutoring, catering, graphic design, writing, hair or makeup.
- Learn an in-demand digital skill and take on freelance work.
- Ask for a raise or new responsibilities backed by results.
- Sell items you no longer use.
8. Protect what you have
Health insurance (including your employer's HMO or state health schemes), basic insurance for your shop or car, and a will may seem like luxuries, but they protect your family from one bad event wiping out years of effort.
9. Avoid "get rich quick" traps
Tough times attract Ponzi schemes promising fixed high returns. If an offer sounds too good to be true, it usually is. Check whether a company is registered with the SEC before sending money.
Frequently asked questions
How much should I save each month?
Start with any amount you can keep up consistently, even a small percentage of income, and increase it as your income grows.
Where can I keep my emergency fund?
A savings account with a CBN-licensed bank or an SEC-registered money market fund that lets you withdraw quickly.
Is it better to pay off debt or save?
Build a small emergency buffer, then focus on clearing high-interest debt before investing for growth.
How do I beat inflation?
No option is guaranteed, but investing in regulated instruments usually protects savings better than leaving cash idle.