Although unfavourable, an economic recession is a natural stage in the life cycle of an economy. During periods of economic growth, it is easy to dismiss the possibility of a recession which is the reality or foreboding of an economic downturn is often met with Mania.
Recently, Nigeria’s economy was said to have dived into another recession – her second wave in the past years. This was bound to happen given the economic and social climate of the country but another look at the state of the country, one would agree that there was little the citizens could do to be immune to the consequences of the economic downturn. Since it affected their currency, it didn’t matter how much was earned, so long as it was in Naira, the diminishing value affected their purchasing power.
600 Naira pic.twitter.com/tTJ8sLvD35
— Allen Akinkunle (@allenakinkunle) November 27, 2020
This development has led to a lot of conversations about the futility of earning, saving or investing in Naira. The general consensus has been to earn, save or/and invest in dollars. This makes sense on surface-level till you begin to look at the reality. The acclaimed poverty capital of the world has an impressive rate of unemployment and even within the employed spectrum, the rate of underemployment is staggering. It also doesn’t help that the citizens do not have the exposure or skills to snag a dollar-paying job and since the exchange rate is so high, it takes a whole lot of comfort to part with so much of what they earn for the sake of a financially-secure tomorrow because, let’s face it, it takes a certain level of comfort to save and invest.
What then is the solution to protecting their wealth? Well, one might consider an avenue where they explore more stable but not too expensive currencies. One that comes to mind is the Ghanaian Cedi which currently goes for 83 Naira/Cedi. While it might not seem like a lot, investing with a more stable currency is a good way to start. You never have to worry about the value of your investments and whatever returns you earn might just propel you into investing in a more lucrative investment.
Not many investment platforms allow you to invest in Cedis but you can check out Cofundie’s investment offering. You get a good rate for every slot you buy. With investment suites that range from 12 months to 5 years, you get to sponsor the construction of homes in Africa and enjoy returns from sale or rent regardless of your income level. All that is needed is a little dedication and a little money of course.
Visit www.cofundie.com to learn more about their services.