Naira Devaluation: What It Is And How To Protect Yourself

Rise Vest
April 16, 2020

What is Naira Devaluation?

What is Naira Devaluation?


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!

Sponsored by
Rise Vest

Join The Conversation

Bring a friend.

You'll like this


Now on Zikoko

April 30, 2020

First, we asked you to identify the capitals of all 54 African countries, and you guys killed it. Then, we asked you to identify those same countries by their flags alone, and you struggled a bit. Then, we gave you the toughest one yet: matching African countries to their currencies. Now, we are back with presidents of African countries […]

April 29, 2020

Ladies, see our lives on these streets… Just two months ago, we were the cream of the crop, nails done, hair done, everything did. Getting bi-weekly pedicures,waxes and deep conditioning treatments was such a given, the idea that it would be taken away from us seemed almost laughable, and yet, again: We spoke to 6 […]

Recommended Quizzes

common entrance questions
April 15, 2020

For unknown reasons, we gathered very real Common Entrance past questions to see if you’re smarter than the average JSS 1 student. There are 10 English questions, 5 Science questions, 5 Social Studies questions and 10 Mathematics questions in this quiz. Show yourself: Here are more quizzes you might like: QUIZ: Do You Know African […]

November 19, 2019

Regardless of what society has tried to tell us, enjoying sex is not something to be ashamed of. So, in a bid to celebrate our generation’s sexual agency, we’ve created a quiz that will accurately (again, keep your complaints to yourself) infer how many people you’ve spelt with. Try it out:

October 30, 2019

Kemi Adetiba’s King of Boys movie got a lot of things right, especially casting, so yes, it was a monster hit. Now, we know you may not have put much thought to this, but the personalities of some of the characters closely match yours, and we would like to help you find the perfect match. […]

November 1, 2019

Twitter is buzzing right now, bringing a new conversation to the concept of cool vs not-so-cool, especially in relationships. If you’ve been thinking about how much of a red flag you are, why don’t you let this quiz help you decide once and for all?

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

April 28, 2020

“Money slow to enter, but money quick to go” – M.I These are the lyrics to one of the greatest songs to grace the Nigerian airways. It’s apt because everyone on some level can relate to a money struggle. Whether directly or indirectly. According to Marty Byrde – Money at its essence is a measure […]

April 21, 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’s “A Week In The Life” is *Pelumi, a prison […]

April 15, 2020

The world may be on lockdown but it doesn’t mean that everything has come to a halt. If anything, the lockdown is forcing more companies to adopt online tools ensure that work continues smoothly. One of the implications is that instead of in-person interviews, we are seeing a shift to virtual interviews. This is stressful […]

April 14, 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 *Agnes, a nurse currently caring for Covid patients. She tells […]


Trending Videos

Zikoko Originals

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.
April 9, 2019
HER is a bite-sized show that focuses on girls and women across Africa with interesting and inspiring stories.
April 8, 2019
Zikoko Creators highlights dope people, doing and creating great things that make a difference.
April 8, 2019
UNDERGROUND is a performance series showcasing emerging musicians we believe you should pay attention to.

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.