How to Cope with the Rising Cost of Living

As the cost of living continues to rise in Nigeria, mastering the art of financial management becomes crucial as individuals strive to navigate through increasing expenses.
According to the National Bureau of Statistics, Nigeria’s headline inflation surged to 22.41 percent in May 2023 from 22.22 percent in April, a new 17- year high.
An analysis of this report revealed that inflation disproportionately affects household expenses, with the most significant contributions to headline inflation coming from food and non-alcoholic beverages, followed by housing, water, electricity, gas, fuel, clothing, and transportation.
Some factors responsible for the rising cost of living in Nigeria
One of the primary factors contributing to this situation is undoubtedly linked to the recent naira devaluation and fuel subsidy removal by the current administration exacerbate Nigerians living conditions.
With the new reforms, fuel prices across the country rose by over 180 percent, causing additional increase in prices of goods coupled with naira depreciation.
Recent report from the World Bank shows that seven states in northern Nigeria are facing food crisis due to high levels of insecurity and armed conflict.
The states identified include Borno, Adamawa, Kaduna, Katsina, Yobe, Sokoto, and Zamfara.
Last year, the World Bank said Nigeria’s accelerated inflation growth had eroded the N30, 000 minimum wage by 35.5 percent and widened the poverty net with an estimated five million people in 2022.
Recently residents of Kano, Niger, Lagos and some other parts of the country took to the streets to protest over economic hardship

To cope with the rising cost of living, here are some tips :
- Create a budget that outlines your income and expenses. Prioritize your needs and limit your spending on discretionary items.
- Reduce non-essential expenses by Cutting down on unnecessary expenses such as eating out, entertainment, and luxury items. Focus on purchasing essentials only.
- Set aside a portion of your income for savings. Even small amounts can accumulate over time and provide a safety net for emergencies.
- Find affordable housing: Consider living in more affordable areas or sharing accommodation to reduce costs.
- Use public transportation: Owning a car can be expensive due to fuel costs and maintenance. Utilize public transportation or carpooling to reduce transportation expenses.
- Seek discounts and deals: Look for promotions, and deals when shopping for groceries, clothing, or other items. Compare prices before making any purchases.
- Search for alternative sources of income: Consider taking up a side job or freelance work to supplement your income.
- Negotiate prices: Don’t be afraid to negotiate prices when purchasing goods or services. Sometimes, vendors are willing to lower their prices if you negotiate effectively.
- Seek expert advice and explore investment options that can provide long-term returns. This can help you grow your wealth and mitigate the impact of the high cost of living.
- Remember, managing the high cost of living requires discipline, careful planning, and making conscious decisions about your spending habits. Prioritize your needs and focus on saving and growing your income to ensure financial stability.