Naira Devaluation: What It Is And How To Protect Yourself

Rise Vest
April 16, 2020

What is Naira Devaluation?

What is Naira Devaluation?

Brethren!

We hate to be the bearers of bad news (or to be super dramatic by quoting Shakespeare’s Macbeth) but something potentially wicked this way comes. The thing in question is called Naira Devaluation and from the looks of it, it’s going to kick everyone’s asses.

DUN DUN DUUUUUNNNNNN Meme Maker - Dun-Dun-Duuuuunnnnnn | Meme on ME.ME

That being said, don’t worry. We’re here to tell you about the different ways you can protect yourself from this potentially terrible thing. We’ll get to that in a minute. But first:

What is Naira Devaluation?

This is the deliberate downward adjustment or official lowering of a currency’s value relative to another currency or group of currencies. In the case of Nigeria, it would mean the deliberate downward adjustment of the Naira relative to the dollar.

What is Naira Devaluation?

Because of how the coronavirus is ravaging the known world and slowing down global economic growth, there has been a dip in oil prices, draining Nigeria’s foreign reserves and leaving the Central Bank unable to maintain the Naira’s value much longer.

What is Naira Devaluation?

The devaluation of the Naira will make the goods we export look cheaper to foreigners, leading to an increase in demand for exports, which in turn means more revenue for Nigeria. However, devaluation is the exact opposite effect on the goods we import. Imported goods will become expensive because the Naira will have lost value when compared to the exchange rate.

This will lead to an increase in demand for homemade goods – because they’ll be cheaper than the imported stuff we’re currently used to. This doesn’t seem so bad until you remember that without the usual competition, Nigerian industries might become less efficient, causing them to produce sub-par products because they know the people have no choice and will buy them anyway.

The gist of this is that Naira Devaluation may lead to inflation. Also, this:

What is Naira Devaluation?
What is Naira Devaluation?

The answer is the tweet screenshot above. Anyone still holding on to Naira assets at this point is going to get screwed when the devaluation hits. E.g people who have Naira lying about savings accounts, etc. However, people who have investments in things like real estate, stocks, Eurobonds, domiciliary accounts etc (all foreign asset classes) are the ones who will escape the effects of the Naira devaluation.

This is where RISE VEST comes in.

RISE is an investment app that lets anyone put their money in safe dollar investments around the world. Through RISE, you can invest in US Real Estate, US, and Fixed Income. RISE is secure and offers a unique experience with long-term returns. If you want a safe place to invest your money in USD, you’d be wise to invest with RISE. It doesn’t get much safer elsewhere.

Here’s a tweet that puts this in perspective:

The RISE app is available for both Android and Apple devices. Click here to download and start investing today.

What’s up, Zikoko Fam? It would mean the world to us if you spared a few minutes to fill this Reader Survey. It’s so we can bring you the content you really want!

You'll like this

March 31, 2020

“A Week In The Life” is a weekly Zikoko series that explores the working-class struggles of Nigerians. It captures the very spirit of what it means to hustle in Nigeria and puts you in the shoes of the subject for a week. Today’s subject is *Yemi, a 27-year old sex worker who tells us how […]

Sponsored by
Rise Vest

Join The Conversation

Bring a friend.

Watch

Now on Zikoko

October 24, 2020

There has been a wave of the discovery of Covid-19 palliatives all across Nigeria. This is coming just after the wave of the recent #EndSARS protests. But while many state governments say that the discovered palliatives are for the poor and vulnerable people and that they were meant for onward distribution to other states, some […]

October 22, 2020

Let’s start here: On the 20th of October, 2020, armed men of the Nigerian army allegedly shot at peaceful protesters in the recent #EndSars movement. It is estimated that at least twelve people were killed in Lagos, and hundred more were injured around Nigeria. In light of this unfortunate and avoidable incident, we decided to […]

Recommended Quizzes

December 5, 2019

We already tried to guess how much you have in your account and your current net worth, and we think we did a pretty great job (keep any complaints to yourself). Now, we’re going to try and guess your monthly salary based on your relationship with money. Oya, take the quiz: 11 Quizzes For Nigerians […]

November 28, 2019

There are so many talented and stunning Nollywood actors that make it hard not to fall in love with them. So, while we all know the likelihood of us ending up with any of them is super low, it’s still fun to imagine a world where we actually stood a chance, and that’s why this […]

November 27, 2019

Do you have a face that could make angels jealous, or should you really be walking around with a nylon bag over your head so you don’t scare children? Well, this quiz is here to answer that by telling you exactly how good-looking you are. Take and find out: 11 Quizzes That’ll Separate The Ajepakos […]

What are you like in a relationship?
February 7, 2020

Your taste in music can say a lot about you, and this time, it’s going to reveal what you are like in a relationship. So, pick a few of your favourite Nigerian love songs, and we’ll let you know if you’re typically a distant, passionate or unbothered partner. Here you go:

More from Money

October 19, 2020

Tell me about your oldest memory of money. Hmm, I didn’t acknowledge the existence of money till I was in secondary school. Prior to that, whatever I needed was always provided. I’m not saying that this changed in secondary school, but there was a stark difference between what my mates had and what I had. […]

October 13, 2020

“A Week In The Life” is a weekly Zikoko series that explores the working-class struggles of Nigerians. It captures the very spirit of what it means to hustle in Nigeria and puts you in the shoes of the subject for a week. The subject of today is Femi, a writer at Zikoko. He talks about […]

October 8, 2020

If you’re one of those people who like to hide their money from family and friends, then this list is for you: 1) Deflect comments and compliments. Some examples: “Don’t whine me.” “It’s not like that.” 2) Always say “we thank God.” Person: How are things? You: We thank God. Person: How will you buy […]

September 28, 2020

Tell me about the day you knew something wasn’t right.  I woke up in the middle of the night feeling funny. I’d slept like two hours earlier, but something woke me up. I decided to check my blood pressure  – I’m hypertensive.  Wait, how old are you?  27 soon. Anyway, I checked my BP, and […]

September 24, 2020

Being a corps member has to be one of the most stressful phases in the life of a Nigerian youth. And you know what makes it all the more stressful? The money aspect. It is never enough. 1. The struggle of waiting for allowance every month. Especially when it’s already 20-something on the calendar and […]

Watch

Trending Videos

Zikoko Originals

June 22, 2020
'The Couch' is a Zikoko series featuring real life stories from anonymous people.
June 22, 2020
Hacked is an interesting new series by Zikoko made up of fictional but hilarious chat conversations.
June 4, 2020
What happens when a group of chatty young Nigerians talk about things they're passionate about? You get Nigerians talk. A show that discusses very familiar struggles for the average Nigerian. From relationship deal breakers to sex education with Nigerian parents to leaving Nigeria, be prepared for a ride.
June 2, 2020
Quickie is a video series where everyone featured gets only one minute to rant, review or do absolutely anything.
May 14, 2020
Isolation Diary is a Zikoko series that showcases what isolation is like for one young Nigerian working from home due to the Coronavirus pandemic.
March 12, 2020
Life is already hard. Deciding where to eat and get the best lifestyle experiences, isn't something you should stress about. Let VRSUS do that for you.
February 6, 2020
Who doesn't want to find love? In our bid to help, we paired up a bunch of single Nigerians, sending them on an all-expense paid date, and interviewing them before and after they met.
January 27, 2020
Nigerians Talk is what happened when a motley crew of young Nigerians were put in front of a camera and asked a bunch of apparently random questions about life, love, money and more.
September 24, 2019
A group of Zikoko staff go on a road trip to every mainland country in ECOWAS West Africa

Z! Stacks

Here's a rabbit hole of stories to lose yourself in:

Zikoko amplifies African youth culture by curating and creating smart and joyful content for young Africans and the world.
X