The Days Ahead, How Prepared are you?
When the price of gas rises,
it impacts how people travel, how goods are shipped and how people formulate
their budgets.
When various goods have become more expensive because their components also
cost more, people have to make difficult choices on what to buy. The Central Bank of Nigeria
recently further devalued the naira with the excuse that they want to
discourage importers of business men from bringing in toothpick as if people
only bring in toothpick.
Some weeks
back, Nigeria’s Minister of Finance, Dr Ngozi Okonjo-Iweala, asked Nigerians to tighten their belts, as the
government has started putting measures in place to check the effect of
crashing price of crude oil.
As much as this has continued to happen, oil companies in
Nigeria have continued to reap Nigerians off, still selling fuel and other
petroleum products at the normal price.
My surprise is that most media houses have concentrated
on the effect of the drop in crude and not on the plight of the common man.
Paying the same amount means huge money for persons
selling these products in Nigeria and this sheer man’s inhumanity to a fellow
man.
As much as this is not to
question any government policy but for people to know the implication of what
is happening; how this affect the common man and child, how this can permanently
change the economic status of many as we try to stabilize the New Year.
Even though, Nigeria is
moving towards a producing or an industrialized economy, we are yet to get
there. This means we are not yet an economy ripe for devaluation of her
currency (Naira). One Time CBN Governor, Prof. Charles Soludo tried
strengthening the naira through Currency redenomination.
Currency redenomination is the process where a new unit of money
replaces the old unit by knocking off zeroes with a target ratio. Benefits of
redenomination naira includes: driving coins back to circulation, making
pricing more efficient, as a ‘Reference Currency’ for Africa, it will ease conversion
to other currencies, reducing the risks of carrying large physical cash, over pampering
naira due to its high-value and reducing the cost of printing and distributing
currency and other benefit like taking the Naira into any market with the
assurance of buying something substantial. That step or proposal took
him out of the office.
The decision of the CBN to
further devalue the Naira reduced the power of purchase of Nigerians. This
means, if you were earning N150, 000,
your N150, 000 automatically becomes
say, N125, 000.
Doing a mental calculation
of about 10 things you bought the last time you went shopping, you will realize
you can hardly mention 5 things that are locally made. This means Nigerians
have been made poorer by this single move.
Most people put their trust
in the government, in the economy with the hope that things will change. People
believe savings will be the answer to their financial fluctuations without the
slightest idea that our currency cannot be held as a form of investment.
The only way saving alone
will make you wealthy is if you have a very good income, very low expenses, and
the tenacity and ability to save over a long period of time.
For example, if you're 25
and plan to save until age 65 (40 years) and can manage to put away N121, 550 per month and achieve a 5%
compound return after tax on your money, you'd have a retirement pot of almost N187million or $1 million. While this is
commendable, it's certainly not clever and takes an extraordinary amount of
time and effort. Also, while N187
million may sound like a lot it really isn't, especially in 40 years from now.
In fact, with 3% inflation your N187million
will be worth about N56.1 million and
produce an annual income of about N4,
020,500 in today's money. Not a very wealthy retirement!
Now the question is, what
steps are you taking towards strengthening your security; financial, health and
safety in a country you don’t know where to turn to? I can remember when a
friend called me after the Wuse II EMAB plaza bomb blast and his words were
like, “what are you still doing in Abuja?
Please relocate”, with a smile, I “said it is well”. Few weeks letter, we
heard the first case of Ebola was recorded in Lagos, Nigeria.
Just on the 28th
December, 2014 we heard the first case of Ebola was recorded in Scotland, the
United States as I write is yet to be declared free of the same. Yet the
average man put h/her trust in the government, in location and their senses.
Where next will you run to?
Naomi lost everything in the
land of Moab. In Ruth 1:20, she exclaimed; "Don't call me Naomi,"
she told them. "Call me Mara, because the Almighty has made my life very
bitter. She lost her husband and her Two soon because she
sought out a better life in another land.
People are moving and relocating,
going in search of a place they believe will be safe.
An average man’s power of
purchase will continue on the downward trend in Nigeria with this development
but that average man can rise even in this austerity if h/she does something
about it.
Jesus said in John 16:33, “I have told you these things,
so that in me you may have peace. In this world you will have trouble. But take heart! I have overcome the world.”
Psalm 46:2 and 3 said, Therefore will not
we fear, though the earth be removed, and though the mountains be carried into
the midst of the sea; 3 Though the waters thereof roar and be troubled, though the mountains shake with the swelling thereof. Selah.
Where lies your trust; in your
money, government or your senses? God reigns and rules in the affairs of men,
He will take care of His own at all times.
Are you his own?
Do you belong to him?
What if...can you guarantee
you’re making it?
What will the days, months and
years ahead holds for you?
If your answer to these questions
is no, then you will need to say the following prayers;
Lord Jesus, I come to you in the totality of myself. I ask for
your help, have mercy on me; I believe you died for my sins and rose up on the
third day for my justification. Come and take control of my life and endeavours
from this day on. Thank you Lord Jesus.
If you said that prayer, please look for a bible believing church
where you can worship with the people of God.
Congratulations.
