Around the world, cities like San Francisco, Singapore, London, Zurich, Oslo and Mumbai that were once celebrated for their prosperity now top the charts for global cost of living. Skyrocketing rents, rising food prices and falling purchasing power have become the new reality. Africa has also not been spared. From Nairobi to Lagos, Johannesburg to Accra and Cape Town to Addis Ababa, the story is the same: inflation is deteriorating the quality of life, leaving citizens struggling to survive.
As a professional accountant, I have reflected deeply on this unsustainable trend, especially considering Lagos' inclusion in the top ten most expensive cities in Africa. Lagos, Nigeria's commercial heartbeat, is home to immense opportunities – but also growing difficulties. So, the question now is not why costs are rising, but rather how individuals and families can adapt and survive amid this economic turmoil.
Bitter reality of inflation
The cost of living crisis in African cities is multifaceted. Prices of food and household goods have soared, and electricity rates continue to rise. Transport costs have increased following the removal of fuel subsidies, and fares have become unaffordable for the average worker.
According to the National Bureau of Statistics (NBS), headline inflation in Nigeria is projected to rise to 33.7 percent in September 2025, while food inflation remains above 40 percent. The ripple effect is severe: purchasing power has collapsed, consumer spending has declined, and business costs are rising.
Companies are struggling to cope with rising interest rates and falling demand, leading to job losses. Access to health care, education and decent housing is becoming beyond the reach of many families. And with rising levels of poverty, with over 63 percent of Nigerians now considered multidimensionally poor, financial survival has become a daily battle.
Why does financial discipline matter now more than ever?
When prices rise faster than income, the only lasting defense is financial discipline. Inflation is not just an economic challenge; It's a test of personal accountability, lifestyle adjustment, and long-term planning.
Financial discipline means managing one's financial resources with prudence, guided by principles that promote fiscal responsibility and sustainability. It's not just about cutting costs – it's about making intentional financial choices that are in line with one's goals and realities.
Practical Steps Towards Financial Discipline
Budget and Priority:
Develop a clear monthly budget. Identify essential expenses like food, rent and transportation and separate them from non-essential ones. Budgeting provides visibility into your financial life and helps control impulsive spending.
Adopt expenditure control:
Living within your means is not deprivation; This is knowledge. Practice self-restraint while spending, avoid unnecessary luxuries and get into the habit of saving before spending, not the other way around.
Manage debt responsibly:
Avoid high-interest loans and unproductive borrowing. Debt is not inherently bad, but in times of inflation, it increases vulnerability. Always assess your repayment capacity before taking on new liabilities.
Diversify Income Streams:
Inflation reduces the real value of income. To stay afloat, individuals must explore multiple income sources: side businesses, consulting, small-scale farming, or digital skills. Financial flexibility comes from diversification.
Save and Invest Wisely:
Inflation destroys idle cash. Direct savings into assets that maintain or increase value over time, such as real estate, agriculture, or stable investment funds. Even small, consistent savings can provide a safety net.
Adopt a simple lifestyle:
Simplicity is strength in difficult times. Reducing lifestyle costs by turning to cheaper housing, cooking at home, or carpooling can free up money for savings or investments.
Plan for emergencies:
Establish an emergency fund that can cover at least three to six months of expenses. This cushion can prevent financial collapse during sudden job loss, illness or market shocks.
Financial discipline as a national mindset
Beyond individual households, the principle of financial discipline should extend to national and corporate governance. Nigeria's economic instability is, at its core, a reflection of weak fiscal control: excessive borrowing, poor prioritization and wasteful spending.
If households are tightening their belts while governments continue to live beyond their means, inflationary pressures will persist. Both citizens and policymakers must embrace discipline, accountability, and long-term planning as the foundation of recovery.
Benefits of Practicing Discipline
A culture of financial discipline generates measurable rewards:
Goal Attainment: Clarity of financial objective leads to long-term stability.
Stress Reduction: Controlled spending prevents debt-induced anxiety.
Improvement in financial condition: Credit improves when obligations are fulfilled.
Enhanced wealth creation: Continuous saving and reinvestment leads to wealth creation.
Economic resilience: The ability to absorb shocks and adapt to changing realities.
the way forward
Nigeria and most of Africa are in the midst of a historic economic test. Inflation has exposed weaknesses not only in policy but also in individual money management. Yet, a crisis always presents an opportunity for improvement, discernment and growth.
Financial discipline is not a one-time task; It's a lifestyle. This requires patience, patience and foresight. Those who practice this will not only survive the storm but will also emerge stronger.
As individuals, families, and nations, we must accept this truth: Prosperity is not only earned by how much we earn, but preserved by how well we manage it.
About the author:
Dr. Kingsley Ndubueze Ayozie, FCA, FCTI, is a Public Affairs Analyst and Chartered Accountant based in Lagos.
