When Everyone Wants It, Do You Want It Too?
Have you ever found yourself wanting something you had barely thought about until everyone started talking about it? Maybe it was a phone, a fashion item, or a product people on social media could not stop talking about. Perhaps someone you know bought it and had nothing but good things to say. The more you heard about it, the more appealing it became. Suddenly, something you wouldn’t have considered became something you wanted to try.
Psychologist Robert Cialdini explored this behavior in his work on persuasion, identifying social proof as one of the principles of persuasion. It describes our tendency to look at what other people are doing when deciding what to do ourselves, particularly when we are unsure. Seeing others make a particular choice can give us useful information, but it can also make us follow the crowd without asking whether that choice makes sense for us. When we start following what others are doing without thinking through whether it is the right decision for us, that is herd behavior
This influence extends to our finances, too. It can affect what we buy, what we save for and the investments we consider. Take the excitement around the Dangote Refinery IPO. Seeing people discuss buying shares and owning a piece of the company might spark your own interest. Perhaps you had not considered the offer until it started coming up in conversations. That is not necessarily a bad thing. Sometimes, other people’s interest brings an opportunity to our attention that is worth exploring.
The real question is whether the crowd’s interest is where your decision begins or where it ends. There is a difference between hearing about an opportunity from other people and choosing it simply because other people are choosing it. You might discover the Dangote Refinery IPO through the buzz around it, but you still need to decide for yourself whether it makes sense for your financial goals.
So, when other people’s choices start influencing what you want to do with your money, here are a few things to consider before making a decision:
- Does it fit my financial goals? Whether you are buying something, saving for a goal or investing, consider what you want your money to help you achieve. Do not abandon your priorities just because something else is getting attention.
- Can I afford it right now? Consider your income, essential expenses, existing financial commitments and other needs before spending or committing money. Something being popular does not automatically make it affordable for you.
- Have I done my own research? Do not rely solely on recommendations, social media conversations or other people’s experiences. Find out what you are paying for, saving towards or investing in, and understand the relevant terms and risks.
- What happens if things do not go as expected? Before making a financial commitment, consider the possible downsides. Could a purchase leave you short of money for essentials? Could an investment lose value? Think beyond the best-case scenario.
- Am I making this decision because I want to, or because I feel left out? There is a difference between discovering something useful through other people and feeling pressured to join in. Give yourself room to decide without rushing to keep up.
- Is this the right time for me? An opportunity can be worth considering without being right for you at this particular moment. You can learn about it and decide to wait if your circumstances do not support it now.
These questions are particularly useful when an opportunity attracts a lot of attention. The person recommending it may have different financial responsibilities, goals, and tolerance for risk. What works for them may not work for you, and even when their decision turns out well, it may not guarantee the same outcome for everyone.
This does not mean you should avoid something simply because it is popular. The crowd might be paying attention to a genuinely worthwhile opportunity. The point is to let that interest prompt you to do your own research rather than make the decision for you.
If you are considering the Dangote Refinery IPO, review the offer, understand its risks, and consider whether it fits your financial goals before deciding whether to invest. If you decide it is right for you, you can buy the Dangote Refinery IPO through Vale.
You can learn from what other people are doing without feeling pressured to do the same. Let other people’s choices introduce you to possibilities, but let your own goals, financial situation and informed judgement guide your decisions.
NOW TO THE NEWS
IMF Backs CBN’s Rate Cut, Says Monetary Policy Remains Tight
The International Monetary Fund (IMF) has backed the Central Bank of Nigeria’s (CBN) decision to cut its benchmark interest rate to 23%, citing progress in reducing inflation while stressing that monetary policy remains tight.
Speaking at the IMF-World Bank Annual Meetings in Thailand, the IMF’s African Department Director, Zeine Ould Zeidane, said the rate cut should not be mistaken for a shift towards an accommodative monetary policy. He added that future decisions must be guided by economic data, with priority given to bringing inflation towards the CBN’s target.
At its September meeting, the CBN’s Monetary Policy Committee cut the Monetary Policy Rate by 350 basis points to 23% from 26.5%. Nigeria’s headline inflation eased to 15.39% in August 2026 from 15.43% in July, extending the disinflation trend for a third consecutive month.
However, the IMF warned that central banks must remain vigilant against inflation risks, noting that further monetary tightening may still be necessary in many African economies. Further rate adjustments in Nigeria will depend on whether inflation continues to moderate and the gains recorded so far can be sustained.
Banks’ CBN Deposits Top N6trn After N2.41trn OMO Repayment
According to the Central Bank of Nigeria’s (CBN) daily liquidity reports, banks’ deposits with the apex bank rose above N6 trillion for three consecutive days following N2.41 trillion in Open Market Operations (OMO) repayments.
Net placements through the Standing Deposit Facility (SDF) increased from N3.86 trillion to N6.08 trillion, representing a 57.65% rise. The increase followed the OMO repayment, with no new OMO sales recorded during the period.
Meanwhile, Treasury bill sales absorbed only part of the released liquidity. The Debt Management Office allotted N269.06 billion from subscriptions of approximately N1.03 trillion at its latest auction, rejecting about 74% of bids. After accounting for primary-market repayments, the recorded securities transactions resulted in a net liquidity release of approximately N2.25 trillion.
The sustained rise in SDF placements suggests that banks continued to hold substantial surplus funds with the CBN rather than immediately deploying them elsewhere. However, the figures do not establish that the funds released through OMO repayments directly accounted for the increase in SDF deposits.
Cardoso Says $55.1bn Reserves Provide Buffer Against Global Economic Shocks
The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said Nigeria’s record foreign exchange reserves are helping shield the economy and ordinary Nigerians from global economic shocks.
Speaking at the IMF-World Bank Annual Meetings in Bangkok, Thailand, Cardoso said the country’s stronger reserves position, alongside relative naira stability and efforts to reduce inflation, would help limit the impact of external pressures, including geopolitical conflicts and international trade tensions.
Nigeria’s gross external reserves stood at $55.1 billion as of October 13, their highest level in 18 years. Cardoso said the stronger buffer had reduced the country’s vulnerability to global disruptions, adding that Nigeria could have faced more severe consequences without it.
He also highlighted the naira’s relative stability and easing inflation as important benefits of the country’s economic policies. He noted that lower inflation was particularly significant for low-income households because rising prices erode their purchasing power.
Nigeria’s reserves rose from $53.90 billion at the beginning of September to $54.93 billion by the end of the month, before climbing further in October. Cardoso urged Nigerians to recognize the progress recorded, arguing that stronger reserves and improved currency stability could help reduce the economy’s exposure to external pressures.
