elections in Nigeria

Look Beyond the Elections; Things you should expect in the new year 

3 min read

2023, arguably the most anticipated year is here!  

There are so many hopes for the year – for Nigeria as a country and for each individual Nigerian. Like previous election years – the ones that came with uncertainties, inflation, etc. – the year 2023 is laced with economic threats. We can only hope to get through it unscathed.    

In the light of this, we have put together some thoughts on how you can survive the year without literally struggling through it. 

What to Expect? 

History shows that tightly contested elections in Africa typically lead to socioeconomic instability and low economic growth. The years 2003 and 2019 are the only election years in the last six election cycles where Nigeria did not record a drop in the GDP growth rate. We should assume that 2023 will not buck this trend. If it does not, then here’s what you should look out for:  

  1. Slower economic growth or an economic contraction 
  2. Hike in the price of commodities and the cost of living (including transportation) 
  3. More uncertainties for investors  
 What to Do?  
1.  Partner up  

Bearing the financial load alone can be burdensome, especially when the cost of living is on the rise. This year, if you have an option to share expenses with your spouse, siblings, friends, flat mates, etc., don’t hesitate to do so. You can do this without hassle by creating an account for this purpose.   

To learn more about the benefits of collaborating on your finances with others, see here.  

2.  Invest smarter 

A look into the trends of each election year (and preceding year) shows a negative or positive performance in equities and bonds. In 2015 and 2019 for instance, investor confidence was low in both years. 2023 will likely be similarly fraught for investors. Regardless, here’s what you can do if you’re looking to invest.   

Stick to a long-term strategy, which is longer than any election cycle, as returns in the capital market are made over a full business cycle, which may be longer than even one presidential term. If you’re an investor with low risk tolerance, the safety of bonds can put your mind a little bit at ease.  

Also, you should aim at maintaining a reasonable level of liquidity in your portfolios. Take advantage of money market instruments to grow emergency funds. You can get started here.  

Finally, you can protect your portfolios by switching from sectors that are most vulnerable to foreign exchange fluctuations and invest a proportion of your portfolio in currencies more stable than the naira¹. 

3.  Augment your income 

If you’re a 9-5er, you should look for ways to earn more. And if you’re a business owner, it is advisable to seek more ways to augment your business. Learn more here.   

4.  Minimize expenses 

Finally, as much as possible, avoid spending so much on what you don’t need. To learn more ways to track and reduce your expenses, see this.   

Amidst all of these, with a positive mindset, a good strategy, and the support of friends and family, 2023 can be a good year! Get Vested and get planning. Partner up, invest smarter, save that extra income, and track your expenses here now. 


¹ This should not be taken as an investment advice. Before taking any investment decisions, consult with your financial adviser.



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