Five Ways To Survive High Cost of Living in Nigeria

Nigeria, Africa’s largest economy, is facing an unprecedented economic challenge. The recent hike in fuel price has exacerbated the already high cost of living, leaving many struggling to make ends meet. With inflation rates soaring and purchasing power dwindling, Nigerians are forced to adapt and find innovative ways to survive.

The fuel price hike has far-reaching consequences, affecting every aspect of life in Nigeria. Transportation costs have increased, food prices have skyrocketed, and businesses are struggling to stay afloat. The average Nigerian’s disposable income has shrunk significantly, making it difficult to afford basic necessities.

Below are five short-term strategies one could adopt for survival.

1.Budgeting and Prioritization: Review your expenses, prioritize essential needs over wants, and allocate resources accordingly. By allocating resources efficiently and focusing on essential expenses, individuals can minimize the impact of the fuel price hike and high cost of living.

For budgeting, experts recommend 50 percent for necessities like housing, utilities, food, transportation, and minimum debt payments, 30 percent for discretionary spending like Entertainment, hobbies, travel, and lifestyle upgrades and 20 percent for savings and debt repayment; emergency fund, retirement savings, and debt repayment.

2.Cutting Costs: Reduce non-essential spending, cancel subscriptions, and negotiate bills with service providers.
Cutting costs is a vital strategy for surviving the harsh economy. By reducing non-essential spending, canceling subscriptions, and negotiating bills with service providers, individuals can free up resources for essential expenses.

Those non-essential expenses depending on individuals include dinning out or ordering takeaways, subscription services, entertainment; movies, concerts, events and expensive hobbies.
Others are clothing and accessories, travel and vacations, gadgets and electronics and luxury items like jewellery, designer goods.

By implementing cutting cost strategies, individuals can reduce financial stress, increase savings, improve financial resilience and achieve long-term financial goals

3.Cooking at Home: Prepare meals at home instead of eating out or ordering takeaways.
Cooking at home is an effective way to save money on food expenses, especially in Nigeria where eating out can be costly. By preparing meals at home, individuals can reduce food expenses by up to 50 percent, eat healthier, balanced meals, control food portions and ingredients, save time and develop cooking skills and confidence.

4.Car Pooling and Public Transport: Share rides or use public transportation to reduce fuel costs.
Car pooling and public transport are excellent alternatives to driving alone, reducing fuel costs, and mitigating Nigeria’s high cost of living. Car pooling means sharing rides with colleague, friends and neighbours.
They help to reduced fuel costs (split among passengers), lower vehicle maintenance (less wear and tear) and decreased traffic congestion. It will also increased social interaction and also reduced carbon emissions.

5.Energy Conservation: This is crucial in Nigeria, where power outages are frequent and energy costs are high. Implementing energy-saving measures reduces energy consumption, lowers bills, and contributes to environmental sustainability.
Simple energy conservation tips include; switching off lights, appliances, and electronics when not in use, using energy-efficient LED bulbs, adjusting thermostat settings; air conditioning and refrigeration and unplugging chargers and devices on standby.

For long-term strategies, one can invest in alternative energy, engage in backyard farming or invest in agricultural projects to increase food security, develop in-demand skills to boost earning potential, explore business opportunities in sectors less affected by the fuel price hike and joining or forming cooperatives to share resources and expertise.