It’s no longer news that CBN has devalued naira.
And official naira to dollar rate is now (N380, from N354) to commercial banks.

The devaluation came as a result of huge reduction in the price of crude oil per barrel. It’s now $27/barrel. Meanwhile, our 2020 budgeted revenue figure was projected using $57/barrel. That gave room for huge budget deficit and the FG through the ministry of finance could not do anything than to review the 2020 budgeted figures.

Now that Naira is devalued, the question should be how does it affect you and I.

As we all know that devaluation comes with economic impacts, I would like you to prepare your mind towards a greater double digit inflation.

Nigerians like foreign products and in fact 90% of our economic activities depends on forex. Hence, cost push inflation from raw materials will go a long way in affecting our individual economic budgets.

However, the devaluation of naira would have recorded some advantages through exportation of products from Nigeria to other countries but the truth is Nigeria doesn’t produce for exportation.

In conclusion, kindly revisit your 2020 individual budget and do the needful to correct the imbalance.

Abikoye Adebowale
Principal Partner
Adebowale Abikoye & Co. (Chartered Accountants)/Chartered Tax Practitioner
08037066467