It’s a well-known fact that Nigeria suffers from debt crisis. Why will most residents die in debt? What needs to be done to overcome this problem? Read and find out!
It’s not a secret to anyone that Nigeria’s economy is having hard times right now. Nigerian national debt (FDI stock) is $1.1 trillion, according to the statistics of 2014.
As for Nigeria external debt, it’s not much better - $9.7 billion. The debts are one of the most displeasing things that can happen to a person – especially when they don’t have an ability to pay back.
The consequences people have to meet are truly devastating. And that might sound terrifying but most Nigerians will die in debt and there are a lot of reasons why. First of all, we all suffer from Nigeria debt crisis.
And even though most of us blame the government which is pretty reasonable, we should admit that we are also guilty. The debt is overwhelming and it seems almost impossible for the majority of people to get out of it.
The mentality of Nigerians
First of all, most Nigerians have debt problems because of their desire to be not worse than the others. They want to look wealthy so that the people around them respect them.
Therefore, they decide to take new loans even before the old ones are paid. Of course not everybody is like that – it’s just a tendency of many residents in Nigeria. Obviously, it’s a very bad habit.
If you are one of those people, just think about it! Do all these goods make you happy when you know that you might not be able to give the money back before you die?
Is the opinion of you friend/family member/neighbour really worth it? This is the problem that a lot of Nigerians have to deal with. What they don’t realize is that they just need to stop worrying about what others think.
In case you really want to buy a certain good it would be a better idea to save up for it. Being in debt isn’t the solution – it’s just another problem.
So before making a decision to ask for loan make sure that you will be able to pay all of it back.
When you take money from the bank but don’t give it back it doesn’t only affect you, it also makes the economical condition of the country worse.
Keep track of your expenses!
If you want to have stability you need to reconsider your expanses. You should make a plan where you’ll write the things you need right now and the things you can’t afford but really want or need to get.
This way you will know the amount of money you can spend. The simplest rule is that you need to spend less than you earn. Sounds really basic but a lot of people forget about it or pretend that this rule doesn’t exist.
The planner is a really great idea – you should write how much money you spent on certain things and the date when you did it.
It will give you the idea how much you usually spend and what can be changed if you want to save up.
Do you have realistic expectations?
That’s a simple question everyone needs to ask themselves. A lot of Nigerians and people in general tend to get stuck in debts because they don’t think about the expenses and consequences.
Many of them see something they like and buy it immediately – without considering whether it was really worth it or not. They want things right now and it seems impossible for them to wait.
If you are that person, try to calm yourself down when you feel like you really need to buy that beautiful dress right now. Come back home, drink some tea and think about it. Do you really need it?
How often are you going to wear it? You might realize you don’t even need it. It might seem really hard at first. But as you learn to control yourself you will see that you are slowly moving towards financial stability.
Another benefit of this way of thinking is that you will become more productive and it will give you a chance to earn more! You might be surprised but success starts with the right mindset.
Poverty in Nigeria
If you look at Nigerian debt profile, it might be shocking. And one of the consequences of the crisis is obviously poverty.
According to the statistics, even though the society and the economical situation must have been improved by now, nothing has actually changed.
The debt is going only worse and worse and people in certain areas of Nigeria won’t stop suffering. The income of most people is still very low but the prices are only going higher.
And there are certain regions in the country where people don’t even have access to good quality food and medical service. However, it’s quite weird that the country itself isn’t poor – Nigeria is world’s biggest oil exporter.
How is that even possible? Because of the issues like corruption people can’t reach equality and don’t have an opportunity to live a good life.
Unfortunately, it doesn’t seem like the situation is getting better even though the authorities say that they are doing everything to fight the economical problems in Nigeria.
If we compare the state of affairs now and back in the 1970s we won’t see much difference.
What is more, the unemployment rate is really high. Every economist will say that in order for economic situation to get better there needs to be a flow of money.
Therefore, the government needs to create more job opportunities for everyone. Moreover, the level of productivity isn’t that high in Nigeria.
A lot of people simply don’t have the motivation to work because the amount of money and the working conditions are too bad. All these issues lead to poverty and, therefore, to economical crisis and the rising debt.
Even though the average Nigerian can’t influence this global situation, you can at least try to avoid debts yourself.