Inflation can be really annoying as the cartoon below portrays. I remember the food stuff price situation in Nigeria over the last 3 months especially for rice and tomatoes. It must have really gotten under a lot of skins, right? That’s by the way.

I would have posted this article in May when the National Bureau of Statistics announced that headline inflation rate for the month of April, 2016 was 13.72%. But I needed to protect my position before commercial banks, investment banks, real estate firms and other organisations began to use it as a means to scare people into investing their idle cash with them.

Take this truth for example
“At a continuous inflation rate of 13.7% per annum, the N100,000 in your savings account will be worth N50,000 in 5 years, 4 months, 23 days and 12 hours.”
I for one would have been gripped with fear before thinking of a way out and start yearning for a solution or some salvation from this plague called inflation. Check out these options;
“Invest N100,000 in my firm today and I’ll ensure that the real value of your money in 5 years, 4 months, 23 days and 12 hours, remains N100,000.” or
“Invest N100,000 in my firm today and I’ll pay you back N200,000 in 5 years, 4 months, 23 days and 12 hours.”

While I’d like to know which option you would buy into. In truth, both packages are technically the same thing.

My Anger
Unfortunately, 2 months have passed since then and I have heard nothing from these top-notch organisations. At least some form of threat would have been nice to start with. Or maybe I have not been reading the papers and listening to the news very often. Though I feel a bit disappointed. Or maybe investment firms have more on their hands to grapple with or can’t provide a financial solution that would protect investor’s funds from the impact of inflation or at least reduce their losses.

My Opinion
Well, if you ask me, I’ll tell you real estate, landed property. I’d also mention some fixed income security that may reduce your losses. A well diversified mutual funds may suffice. If your co-operative isn’t investing in like manner or isn’t helping you get good deals, then the loan opportunity and light terms are the only benefit I see in it.
However, if you keep lots of idle funds in your savings account, inflation eats into its value, and then add all the magnificent bank charges that have been increasing in recent times.

My Threat
NBS announced a 15.6% inflation rate for the month of May 2016. If this rate continues, every N100,000 in your savings account will be worth N50,000 in 4 years, 9 months, 11 days, 7 hours, 45 minutes and 49 seconds from today. Make a wise investment today.

Note: Inflation rate is not necessarily going to be constant. Expectations may vary from month to month or year to year. The assumptions used are based on the consistence of such constant rate over several periods.

Of course you understand.