The Invisible Drains on Your Money
There is a familiar scene we have all played out in our heads. You have made a list, checked it twice, yet somehow the numbers do not add up. You are not alone in this, many of us unknowingly lose money from places we rarely check. It is not the big expenses that derail most budgets, it is the small ones. Those invisible drains have a way of sneaking in unnoticed, siphoning off money you thought you were saving.
Start with your bank account. Did you know many people unknowingly pay for services they have stopped using? That gym membership you promised yourself you would cancel. The subscription you tried out six months ago and forgot about. Then there are the bank charges the little deductions labeled maintenance fees. You might overlook and ignore it as part of the system, but they add up to something more significant over time.
Lifestyle Creep: The Silent Upgrade
Have you ever celebrated a pay raise or bonus by upgrading your life just a little? It starts with one thing, a more expensive data plan than the usual. Then it grows. You trade in your perfectly good phone for the latest model, buy that extra pair of shoes because “you have earned it, or opt for premium car services because, why not?
Lifestyle creep is deceptive. It feels good in the moment, almost justified. After all, you’re making more money, right? But here’s the kicker: those incremental upgrades often outpace your income. What was once a comfortable balance becoming a strain, and you find yourself wondering why your financial cushion has disappeared.
What Do You Do About It?
You could start by looking at your spending habits, not to judge them, but to understand them. The subscriptions you barely notice? Cancel the ones you have not used in the last three months. You could also create reminders to review them every quarter. The small bank charges that quietly build up? Check with your bank and you could switch to a provider that aligns with how you use your money like Vale that allows you to save towards a target, invest, spend and playbills effortlessly without the unnecessary charges you always get.
But the real challenge is keeping lifestyle creeps at their lowest. When you find yourself reaching for an upgrade, pause. Is it truly a necessity, or is it a want disguised as a need? That pause, that moment of reflection, could save you so much money over time.
Some expenses are seeds that grow into abundance, like investments or a well-timed purchase that saves you later. But others? They are weeds, thriving quietly and taking away from the resources that could nurture something meaningful.
Start small. Look at your expenses from 2024 not as numbers. What do they say about your priorities? Are you happy with what they reveal? If not, make a change. Small, consistent actions are how you reclaim your financial power.
It is not about denying yourself the good things in life. It is about ensuring the good things you choose don’t come at the expense of your peace of mind.
Nigeria’s FX reserves drop by $832.6m amid rising debt servicing
Nigeria’s foreign exchange reserves have fallen by $832.62 million in two weeks – between January 6 and January 21 – hurting the country’s reserves that have enjoyed relative stability and growth for about five months, as per data from the Central Bank of Nigeria (CBN).
Data from the apex bank show that Nigeria’s FX reserves stood at $40.92 billion on January 6, 2025. However, by January 21, the figure had declined to $40.09 billion, representing a 2.03 percent decrease in a fortnight.
This is as BusinessDay reported on the 15th of January that the country’s foreign currency reserves decreased by $320 million, representing a 0.8 percent drop, plunging from $40.88 billion on January 2, 2025, to $40.56 billion.
This sharp decline highlights the pressures on Nigeria’s reserves amidst ongoing currency market challenges and macroeconomic uncertainties.
Analysts have attributed this decline to two main factors – international debt servicing obligations and foreign exchange interventions by the CBN.
Typically, such interventions aim to stabilise the naira by supplying dollars to meet demand. Yet, given the recent depreciation of the naira, it appears unlikely that significant interventions have taken place.
Instead, the weak supply and high demand for foreign exchange may indicate minimal intervention, leaving debt repayment as the more probable cause of the current decline.
That said, it is essential to contextualise these fluctuations. A decline over a few days does not necessarily signify a sustained trend. Ehinmosan aptly advises caution, suggesting that a clearer picture would emerge after observing reserve movements over a more extended period.
World Bank, IMF advocate for coordinated inflation control in Nigeria
The World Bank and the International Monetary Fund (IMF) have called on the Central Bank of Nigeria (CBN) to remain steadfast in its efforts to control inflation.
Nigeria’s inflation rate increased to 34.8 percent in December, up from 33.6 percent in November. During a panel session, World Bank’s Senior Economist for Nigeria, Sameer Matta, emphasized the importance of the CBN’s focus on curbing inflation.
Christian Ebeke, Nigeria’s representative at the International Monetary Fund (IMF), reiterated the need for coordination between fiscal and monetary authorities to effectively combat inflation.
He praised the commitment of both the central bank and fiscal authorities to strengthen coordination, which has helped reduce inflationary pressures.
He also stressed the importance of addressing the distributional consequences of reforms, such as the removal of fuel subsidies and Naira reforms, to protect the most vulnerable populations. He highlighted the role of fiscal policies in complementing monetary efforts and the need for social protection measures.
He commended the CBN and fiscal authorities for their efforts to curb deficit monetization and improve financial conditions while emphasizing the importance of transparent liability management and the benefits of securitization in spreading out maturities.
Inflation to drop to 24.7%
The Nigerian Economic Summit Group (NESG) has projected that inflation will drop to 24.7% in 2025.
The group also forecasts that the foreign exchange rate will stabilize at an average of N1,300 per US dollar, driven by anticipated improvements in fiscal and monetary policy alignment.
The report credits the anticipated reduction in inflation to better coordination between fiscal and monetary policies. By aligning government spending with targeted monetary interventions, policymakers aim to curb the inflationary pressures that have plagued the Nigerian economy in recent years.
Inflation is projected to decline to 24.7 percent, signaling an improvement in the country’s macroeconomic stability.
“The exchange rate is projected to strengthen, averaging N1300/US$1 in 2025 under the ideal stabilization pathway.
“The effective coordination of fiscal policies with monetary policy measures will drive this anticipated reduction in the inflation rate,” NESG noted.
In its analysis, the NESG highlighted key measures responsible for this projected improvement. These include disciplined government spending, strategic interventions in critical economic sectors, and measures to mitigate the effects of global economic uncertainties on Nigeria’s domestic economy.
Cash withdrawal chaos frustrates Nigerians as ATMs fail and POS operators struggle
Frustrations continue to rise among Nigerians as they face persistent challenges accessing cash due to limits on ATM withdrawals and Point-of-Sale (POS) operations.
Despite the Central Bank of Nigeria’s (CBN) measures to ensure cash flow, the unavailability of cash remains a significant issue, affecting ordinary Nigerians and businesses alike.
The situation has led to inflated charges on everyday bank users.
On the other hand, POS services, an alternative for cash withdrawals and other transactions sustainability are threatened by high operational costs and regulatory caps.
Many Nigerians have voiced their concerns, citing the financial and emotional toll of the cash crunch.
Dinma Okonkwo, a Lagos resident who works in Opebi, is one of many Nigerians grappling with the daily challenges of accessing cash. She shared her frustrations, explaining how she could only withdraw N2,000 at a time from an ATM near her workplace.
