The Naira seems to be on its merry way down to the bottom of the ocean. Many people believe that earning in dollars while spending their local currency will fix all the currency devaluation problems they’re experiencing.
Is this true? We spoke to Daniel Abayomi, a Nigerian living in Nigeria, about his experience and thoughts about this.
Hey Daniel, please tell me about yourself.
My name is Daniel Abayomi. I live in Lagos, Nigeria. I’m a product designer, currently at Meta. I like to watch basketball, play FIFA, or just sleep. I’m an introvert, so you’d hardly find me in public gatherings.
What’s your inflation story?
I was living in Yaba at the time, and I needed to pay rent. The landlord informed everyone that our rent would be increased by 20%; It was annoying because I knew how difficult it was to save up for it.
This was when I knew I needed to earn more, but I couldn’t demand more from my Nigerian employer at the time because Inflation was affecting both employees and the company. I started saving much more than I had planned.
Ugh. That must have been annoying.
Yeah, It was.
Would you say Inflation affects you more because you live in Nigeria?
As a young person living in Nigeria, it’s pretty tough. I can’t necessarily complain cause I’m relatively comfortable. But it’s the basic things like rising data costs, higher grocery prices, fuel scarcity, etc.
I naturally enjoy helping others, so I’ve learned to show greater compassion during this time. I’m currently cautious with my spending since I’m continually worried about what might happen if things worsen. We are being pushed to the limit, but I hope things will turn around.
Lol. All we can do is hope, tbh. Would you say earning in dollars spares you from the currency devaluation?
A bit, but Inflation will eventually catch up with you. Sometimes, I see people earning FX enthused about the dollar-Naira rate without considering how it will affect the prices of things.
Chances are you’re either spending more or saving less. It’s been very hard. I still try to save in dollars/pounds; It provides me with some measure of protection.
Well, that’s true.
There are benefits to earning foreign currency and spending in Nigeria. Because of the interest accrued due to the Naira’s depreciation, saving only in foreign currencies has so far shown to be a wise investment. However, as I previously stated, unless your income (in FX) has exponentially increased, it will catch up.
Fair. How did you feel the first time you got paid in FX?
I could barely sleep when I got my first credit alert because I was so excited. A foreign company hired me for a new position and paid me in dollars. At one time in my career, I was aware that I needed to boost my earning capacity- I had bills to pay, and since I was paid in Naira, saving money was difficult. The best option was to find a better job because earning money in foreign currency made more sense.
Happy for you! Are there tips you’d love to share for people looking to get remote jobs that pay them in dollars?
If you feel it’s the best option, go for it. LinkedIn is an excellent place for this, and here is a good resource I found by The Resolved Cent. Also, ensure your CV is up to date and reach out to recruiters.
Sign up on Accrue to earn daily interest in dollars; every day for 365 days – Playstore, Appstore.