Tag Archives: Naira Devaluation


Introducing Money Basics

Most of the news channels, beer parlours, and pepper soup joints in Nigeria are abuzz with gist about falling crude oil prices and the recent formal devaluation of the Naira.  The real questions on the minds of most people, however, revolve around their specific individual scenarios and how to save themselves from financial destruction.  In order to be able to answer these questions, and generally calm down the heart palpitations some of us experience when we start thinking about our personal financial situations, we need to properly understand the following about money:

  • what it actually is;
  • how to track it;
  • how it can be made;
  • how it can be saved;
  • how it can be made to work;
  • how to avoid being a slave to it;
  • how to avoid losing it;
  • etc.

This is where Money Basics with Bash B, acronym MBwBB :-), comes in.  There will not be information on how to double money overnight – if I knew that secret, I would have since bought an island :-D; what would be availed is information that will facilitate optimal money-related decisions, i.e. would maximise how much money comes into your pocket and minimise how much money leaves your pocket – this is what we all want, no :-)?  There would be links to useful established resources.  MBwBB would also attempt to respond to specific enquiries that would increase everyone’s knowledge base, and you know what they say about knowledge? KNOWLEDGE IS POWER!

So, I look forward to reading from you as we learn and share.  If you would prefer to send a private message to keep things confidential, you can send an email to comments@finomics101.com.


CBN and The Nigerian Economy: A Short Story

A very detailed and easy-to-understand breakdown of recent economic happenings.


If you have an M.Sc in Finance or a degree in economics, you can skip this piece. The point of it is to try to explain what the CBN did today at the MPC meeting and how it all relates to the wider Nigerian economy.

The communique they released is here

Larry Summers, I think it was, who once said that it is not so easy to understand how the economy works. And Summers has more than one brain. Everything below is a simplification to get the basic points (as I understand them) across.

Increase the MPR by 100bps from 12% to 13%

First thing to know – 100 basis points equals 1%. It really is as simple as that – the CBN increased the Monetary Policy Rate (MPR) by 1%. But what is MPR anyway?

Every Central Bank in the world has a broad goal that it seeks to…

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