7 ways to survive CBN’s new MPR rate

Reactions are trailing the latest Monetary Policy Rate (MPR) released by Nigeria’s apex bank, the Central Bank of Nigeria (CBN).

OpporTechies recalls that on May 21, the CBN increased by 150 basis points (bps) to 26.25 percent.

Reacting, Financial Planner and founder of popular online platform, Nairametrics, Ugochukwu Obi-chukwu, shared tips on how to survive in the country following the increase of the MPR.

He said:

1. Pls if you have any loans go and repay it, except your business is generating higher returns to cover interest rates.

2. If you want to borrow money, reconsider your options. I don’t see how your business covers the cost of borrowing in this economy, except you control the market.

3. The streets are not friendly at the moment. Seeking investors will be difficult and selling investments even harder. After all, risk free money is over 20%.

4. If you have money to place in fixed deposits don’t go for less than 18%. As stated, risk free government securities even go for higher.

5. If you have dollars, keep too close to your chest. It’s worth more than gold.

6. If you are a speculator, be careful. CBN just offered FPIs extra icing on the cake. You could get burned.

7. Finally, as I often state. Spend now, save later.

Reacting to the last tip, an X user said, Mofeola said, “Boss @ugodre please explain this “spend now, save later” Make I no go chop spend my future.”As I said weeks ago, spend now, save later. Replying, Obi-chukwu said referring to an earlier post,”Most companies are yet to reprice products, so expect more upward price adjustment. IF YOU NEED TO BUY SOMETHING AND HAVE THE MONEY, DO IT NOW NOT TOMORROW.”