Planning financially for the new year as a Nigerian requires more than setting resolutions. With inflation, policy changes, and rising living costs, a realistic financial plan helps you stay out of debt, save wisely, and still enjoy your life. Whether you are a student, worker, entrepreneur, or managing a household, these steps will help you prepare better for the year ahead.
Understand the Economic Reality and Inflation
Before setting any financial plan, you must consider inflation. In 2023, Nigeria’s inflation rate averaged around 24.66%. By the end of 2024, inflation rose sharply and peaked at about 34.80%, increasing the cost of food, transport, rent, and utilities. Inflation has eased recently and is currently lower, with projections around 16.05% this year due to economic reforms. However, inflation is still high enough to affect everyday spending. This means your budget for the new year should not rely on today’s prices alone. Always plan with the possibility of price increases in mind.
Factor in the Pre-Election Economy
Nigeria is approaching a pre-election period ahead of 2027. Historically, the year before elections often comes with economic uncertainty, higher government spending, policy shifts, and price volatility. When planning, assume costs may rise rather than fall. This mindset helps you save more aggressively and avoid long-term financial commitments you may struggle with later.
Understand Your Income After Tax Changes
New tax reforms may affect how much you take home each month, especially for salaried workers and small business owners. While low-income earners may pay little or no personal income tax, higher earners could see changes in deductions and rates. It is important to review your pay slip carefully and stay updated through official government tax announcements and employer communication. For deeper clarity, you can read our article on the new tax laws here or visit Federal Inland Revenue Service (FIRS) for verified information.
Set Realistic Financial Goals
Define what you want to achieve financially in the new year. This may include saving money, renewing rent, traveling once, paying off debts, or building an emergency fund. Your goals should reflect your income level and Nigeria’s economic realities, not pressure from social media or peers.
Create a Flexible Monthly Budget
A good budget prioritises essentials such as rent, food, transport, electricity, data, and healthcare. Because prices can change quickly in Nigeria, leave room for adjustments. Avoid fixed expenses that take up too much of your income and leave you financially stretched.
Save and Invest Intentionally
Saving is important, but savings alone may lose value due to inflation. Start by building an emergency fund using trusted savings platforms like PiggyVest, Moniepoint and the likes. Beyond that, consider investments such as government bonds, mutual funds, or stocks through platforms like Bamboo or Trove. Combining savings and investments helps protect your money and grow it over time. Also you can read our article on investing and having multiple streams of income here.
Plan for Major and Seasonal Expenses
Food prices in Nigeria are seasonal, so buying non-perishable items when prices are lower can reduce costs. Also plan ahead for rent renewal, school fees, medical expenses, and travel so they do not push you into debt.
Budget for Enjoyment and Well-Being
Financial planning is not only about bills. Set aside money for dates, outings, self-care, and rest. Planned enjoyment supports good mental health and helps you stay disciplined with money.
Review Your Plan Regularly
Inflation, income, and responsibilities can change. Review your finances monthly and adjust early when needed.
Planning financially for the new year as a Nigerian means being intentional, flexible, and informed. When you account for inflation and local realities, your money works better for you throughout the year.
Written by Favour Akinyeye
An 88Lately Staff Writer
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