One of the ways nations are adjusting to the tough times is to introduce policies that could help the economy sail through the storm. Nigeria is not left out, with President Bola Tinubu lowering the people’s purchasing power.
President Tinubu’s policy reforms; whether related to taxation, trade, or labour laws, can significantly impact the cost of living, or a person’s purchasing power.
If a policy change is reducing your ability to afford essential goods and services, it is important to take proactive steps to mitigate the impact.
Here are some tested and effective strategies that can help you navigate such financial challenges:
1. Assess The Impact On Your Finances
Really, anyone in Nigeria should have, by now, analyzed how the policy reform is affecting his/her income and expenses.
If you have not, it is time to review your budget and identify which areas are most impacted, such as food, housing, or transportation.
For many there is a huge link between what they are facing and the removal of subsidy that happened in May 2023.
2. Adjust Your Budget Amidst Lowering Of Purchasing Power
The second thing you have to do right away is prioritise essential expenses and look for areas where you can cut back.
This may involve reducing discretionary spending, seeking cheaper alternatives for everyday needs, or renegotiating bills and subscriptions.
For instance, you may want to reduce how often you take your beverage with milk just so you could extend the time of replacement a little forward.
3. Increase Your Income
This is the most important thing to do if you find that the economy of your nation is under pressure.
If possible, explore ways to boost your income through side gigs, freelancing, or seeking a higher-paying job.
One way to increase income is to upskill or seek additional qualifications. These improve employment prospects and in the long run bring in more cash.
4. Take Advantage Of Government Or Community Support
In situations were reforms are harsh, like we have in Nigeria, the government at intervals roll out palliatives.
You will not know about these government programmes if you are not searching for them.
Research available government programmes, subsidies, or assistance that can help offset increased costs.
Community organisations and charities may also offer support for essential needs like food and housing.
5. Stay Informed And Engage In Advocacy
Understanding the policy changes and their long-term implications is crucial.
For instance the World Bank had said that Nigerians would begin to see the effect of the policy reform in 15 years.
Furthermore, stay updated through credible news sources, and consider engaging in community discussions or advocacy efforts to voice concerns and push for reforms that protect purchasing power.
6. Consider Alternative Financial Strategies
Explore cost-saving strategies such as bulk purchasing, cooperative buying, or investing in cost-efficient solutions like energy-saving appliances.
Adjusting financial strategies can help maintain stability during economic shifts.
7. Seek Financial Advice
Consulting a financial expert can provide personalised guidance on managing expenses, investments, and financial planning.
Also Read: Focus: 10 Things You Must Not Do In 2025
A professional may help identify opportunities to safeguard and grow your financial resources.
8. Find Reasons To Still Give
One of the principles that govern earning is giving.
When we say giving, most people think of giving and not getting anything in return. it is said, give and it shall be given unto you….
Do you know that in forming the habit of giving you learn to also give value and even products which people could pay for.
If you are often in the habit of shying away from giving, when you decide to offer something, you will lack the confidence required to approach people to sell the product or service.
Take Away
Indeed, policy reforms can present financial challenges, but proactive adjustments and strategic planning can help maintain stability.
By staying informed, adapting spending habits, exploring new ways to increase income and seeking support, individuals can better navigate economic shifts and preserve their purchasing power.