This week on Vale’s Finance Compass, we are diving into the art of building financial confidence and why it is a game-changer for your money journey. Do you ever feel like money controls you instead of the other way around? Maybe you hesitate before making a purchase, unsure if you will regret it later. Or you find yourself avoiding conversations about money because it feels like you are the only one not getting it right. You are not alone, many people struggle with financial confidence, and it is nothing to be ashamed of. However, building financial confidence is not just a nice-to-have. It is a must-have for anyone who wants to thrive, not merely survive, in today’s world.
Financial confidence is about more than knowing how to balance a budget or save for a rainy day. It is about trusting your ability to make decisions that align with your goals, values, and long-term plans. It is about stepping out of the cycle of fear and second-guessing and into a place where your money works for you, not the other way around. You owe it to yourself to level up in this area, and doing so could unlock opportunities you didn’t even know you were missing.
Now, let’s talk about the signs that might indicate it’s time for a financial confidence boost. Do you avoid checking your account balance because you’re scared? Do you constantly compare yourself to others who seem to have their financial lives together? Or maybe you feel paralyzed when you think about making big decisions, like investing or starting a savings plan. These are all red flags that your confidence might need some work. And the truth is, if you do not address these issues, they can hold you back in more ways than one, affecting not just your finances but your mental health, relationships, and even career opportunities.
On the flip side, let’s talk about what happens when your financial confidence improves. You will start to notice small but significant changes in how you interact with money. For one, you will stop making decisions based on fear and start making them from a place of clarity. You will feel a sense of control, knowing where your money is going and why. Conversations about money, whether with friends or a partner, will become less intimidating and more constructive. You will begin to see that mistakes do not define you. They are simply lessons that help you grow stronger and wiser.
When your financial confidence is up, you will also notice how your goals suddenly feel more achievable. That dream of taking a big vacation or even retiring early will no longer feel like a fantasy but a plan you are actively working toward. And the best part? You’ll stop comparing yourself to others because you’ll be so focused on your own progress and what truly matters to you.
So, how do you get there? It starts with small steps. Commit to learning more about your finances, whether that is reading up on personal finance topics or using tools like budgeting apps to track your spending. Challenge yourself to face the areas of your finances that make you uncomfortable and take them on one piece at a time. Celebrate every little win, whether it is sticking to a budget for a month or finally starting that savings plan you have been putting off.
The road to financial confidence is not about perfection. It is about progress. The more you engage with your money, the more comfortable you will feel managing it, and the more empowered you’ll become to make decisions that align with the life you want. Don’t wait for confidence to magically appear, it grows every time you take action, even in small ways.
Remember, you are not in this alone. Everyone starts somewhere, and the fact that you are willing to take steps to improve says a lot about your resilience and determination. So go ahead, take that first step, and watch how leveling up your financial confidence transforms not just your money but your mindset and your future. You’ve got this.
NOW TO THE NEWS
Foreign holdings drop $13bn on naira slump, corporate exits
Foreign holdings in Nigeria dropped to $12.8 billion between 2022 and 2023 due to naira woes and corporate exits in the nation.
Foreign holdings in Nigeria fell from $86.2 billion in 2022 to $73.4 billion in 2023, according to the World Investment Report 2024.
Nigeria’s outward foreign direct investment (FDI) stock also slightly declined in 2023 to $17.7 billion from $18.3 billion as of 2022.
Foreign holdings, or foreign direct investment (FDI) inward stock, is the total value of foreign investments held within the country at a specific time. It reflects the cumulative value of investments made by foreign investors, including ownership of businesses, property, or other assets. It can be measured through equity capital, reinvested earnings, and intra-company loans between foreign investors and their local affiliates.
NDIC urges Nigerian financial institutions to deploy AI for fraud detection
The Managing Director and Chief Executive Officer of the Nigeria Deposit Insurance Corporation (NDIC), Mr. Bello Hassan, has called for the integration of artificial intelligence (AI) technologies to bolster fraud detection in financial institutions.
Speaking at the Risk Management Roundtable organized by FITC, he emphasized the growing inadequacy of traditional fraud detection methods that rely on manual verification and human analysis.
Mr. Hassan described AI technologies like Machine Learning (ML), Natural Language Processing (NLP), and Anomaly Detection as revolutionary tools capable of enhancing the efficiency and accuracy of fraud prevention efforts.
FG raises loan access for MSMEs to N5 million at 9% interest rate in 3 years
The Nigerian government has announced a significant boost to its loan offerings for small businesses, raising the maximum amount accessible under single-digit interest loans to N5 million.
The initiative, aimed at fostering inclusive economic growth, was unveiled by the Bank of Industry (BoI) Managing Director, Dr. Olasupo Olusi, during a town hall sensitisation event in Lagos on Friday.
Speaking on behalf of Olusi, Umar Shekarau, Executive Director for MSMEs at BoI, highlighted the government’s commitment to supporting Micro, Small, and Medium Enterprises (MSMEs). The initiative is underpinned by a N200 billion Presidential Intervention Fund, with N75 billion specifically earmarked for MSMEs.
Senior Special Assistant to the President on Job Creation and MSMEs, Temitola Adekunle-Johnson, confirmed that the increase in loan size—from the previous cap of N1 million to N5 million—aims to address the financial and infrastructural challenges confronting small businesses.
“The loan is 9% three-year tenure. A single MSME can collect up to N5 million single digits,” said Adekunle-Johnson.
“This scheme is expected to create thousands of direct and indirect jobs nationwide.”
Nigerian court unfreezes N89 million in bank accounts previously indicted for illegal crypto dealings
The Federal High Court in Abuja has lifted the freezing order on six bank accounts previously indicted by the Economic and Financial Crimes Commission (EFCC) for conducting cryptocurrency exchanges between naira and other currencies at rates detrimental to Nigeria’s financial system.
On Monday, Justice Emeka Nwite lifted the preservatory order on the following accounts: Awe Microfinance Bank (N2,367,624.45), Olalekan Sibiku Adesugba (N3,375,435.41), Ad Ishola Farms (N10,104,482.91), H. Ishola Multibiz Int’l (N16,505,822.74), Microtech Investment Services (N3,545,660.73), and HML Business Ventures (N53,585,649.77).
This decision came after the EFCC filed an affidavit on November 25, 2024, stating that its investigation revealed the funds in these accounts, totaling N89,484,694.01, were not linked to any unlawful activities.
And that will be all for this week’s financial market round-up, see you in the next one.