By Janet Ogundepo

Currently, the country’s economy is tainted with gloom. The economic indices are biting deep into the pockets and finances of families, business owners and organisations.

The skyrocketing prices of goods and foreign exchange are making life hard for many people. Sadly, those without jobs or a pay cut are not exempted from the pinching market prices. The situation, according to economists, has brought about an increase in the poverty situation in the country.

The immediate past Director General of the Lagos Chamber of Commerce and Industry and economist, Dr Muda Yusuf, highlights eight inexhaustible ways individuals, families and organisations can cope during this period.

Adjust spending priorities

There are a thousand and one things people need money for. It is, therefore, a tough one to let go of some things we love but the current situation call for serious adjustments in the way people spend.

The economist says, “Focus should be on the essential and basic needs a family or individual needs to survive. When we talk about basic needs, we talk about food, and healthcare, especially for those who have medical conditions and transportation. So the basic needs ought to be prioritised in terms of spending.” He also advises that apart from personal needs, payment of bills and fees should be given priority.

Reduce purchase of luxurious items

It’s not that luxurious items are bad in themselves but as a proverb notes, desperate times call for desperate measures. The present time calls for a reduction in the purchase of luxurious items. If they are needed items, if possible, buy a non-designer or expensive model that will still be effective.

Yusuf advises, “This is not the time to be spending on luxurious items because a friend is buying an item. This is not the time to be buying aso ebi (ceremonial attire) and other things. People need to face their realities and not worry about what Mr A or B will say.’’

Avoid imported items

It is clear as day that imported items will be the first to be affected by the slightest United States dollar increase. However, the increase also affects other products. To handle this, Yusuf advises, “Avoid as much as possible things that are imported because imported goods are more vulnerable to the shocks because of the exchange rate situation.”

Buy foods in bulk

To handle the stress of high market prices and panic during the next market visit, the economist adds that bulk buying can save the day.

At the family level, Yusuf explains, “When you buy things in bulk, you can be able to manage the home economy better rather than buying in bits and pieces. The more you buy in bulk, the more you can bargain properly and the cheaper the things that you buy. People can come together, buy things in bulk and share.”

Be open to other family members

Openness about the current economic realities to other members of the family will help foster understanding and reduce less needed demands and expectations.

This situation calls for a lot of sacrifices from those involved, hence the need for communicating with key stakeholders about the situation.

Avoid Ponzi schemes, loans

Due to the dire situation of things, there is a high temptation of engaging in a Ponzi scheme. Recently, there was a report of an employee who died by suicide after reportedly placing a bet with the salaries of his colleagues given to him by the boss, with the hope of replacing it after winning.

The economist warns, “Many fraudulent things are increasing now. Some people keep dreaming of how they can break through when they have not worked for it. But these schemes are too good to be true. So the temptation to get involved in those things is something one must guide against.”

Also, with the zeal of trying to meet up payment of bills, the urge to borrow might be high.

On this, Yusuf notes, “as much as possible, one should avoid going into debt, unless there is a clear capacity to repay the loan. If you must borrow, you must know what you are borrowing for and the type you will engage in because the interest rate of some loans is so high and that will put one under much pressure. Show a lot of discipline and avoid internet loan companies. If you are a salary earner, borrowing from your company’s cooperative is understandable.”

Rethink use of expensive products

The price of diesel has tripled. Yusuf advises small business owners and homeowners who use diesel-powered generators to switch to smaller and non-diesel generators. Yusuf states, “General management of energy cost is vital.”

Prioritise health, manage emotions

Yusuf advises the need to prioritise health and manage emotions and not allow the current economic situation to degenerate into a medical problem such as hypertension.

He added, “At the family level, we need to show understanding. Sometimes, because of this, some spouses can be intolerant and that can create tension in the family. People should show love even amid these challenging situations. It will not last forever.”