The Money Wheel| Episode 14|Layo loses her last funds in unfortunate investments.

Layo tucked aside the voice cautioning her that it would likely go the same way the land-selling business had. She sent Sister Tosan the fifty thousand naira she made from Ibrahim.

The school’s principal had summoned Layo, and she wondered what trouble she could be in. The woman, Mrs Ojo, had a grim look on her face when Layo walked in. “We have a problem.” The school was going bankrupt. With inflation biting hard on the economy, many parents were owing or pulling their children out of the school. Layo had noticed a decline in enrolment, but she didn’t know things were this bad.

“Our board of directors has been speaking with some financial advisors. They said we need to invest our profits and cut down on expenses. So, before the next school year, we have to restructure the business. That means we have to give some people new leadership opportunities, and we have to let others go.” “What do you mean, ma?” “In a nutshell, we need to promote some people and fire some others.” Layo went cold. “Are you firing me, ma?” “No! I can’t fire you. You’re one of our best teachers,” she murmured. “If you leave, some parents might actually leave.” Layo felt flattered, but she wondered why she was being told this. Mrs Ojo read her mind. “I need you to help me figure out who to fire.”“I can’t do that, ma. I can’t…” “We must fire the right people or the school will be no more. So please, go and think of the people we need for this school to thrive and the people we need to let go. Give me this list in one month.” “Will you give them a severance…?“With this inflation, I don’t know what they will do. Just get me that list so we can have a job.” As soon as Layo got out of the principal’s office, she called Sister Tosan.

“My sister, please I need that fifty thousand naira back.”

“Ah, my sister. I can’t send it back o. I’ve sent it to the company.”

“But I just sent it two days ago.”

“Two days is a long time in business. You should know that.” She chuckled. “Oh, sorry, you’re not a business person, so you may not know it.” Layo was confused. “But I haven’t even collected the product…”

“They’re processing your request. Sorry, once you pay, you can’t get your money back. But don’t worry, they’ll give you the ten thousand naira and another five thousand naira when you bring another person to join the business.” “What if I don’t sell the products? Will they give me my money back?” Sister Tosan laughed for a while. “Sister Layo, you’re really not a business person. I will bring your products to you on Sunday. I will go and pay for them by tomorrow.” “I thought you said you’ve sent the money to the company’s account?”

“Yes, that’s the money for registration.” “But what if I can’t sell the products?”

“I won’t lie to you. This inflation has hit everyone hard. People are not really buying like they used to, and they’ve increased the price of the products. So, I advise you to find customers who will be loyal no matter what.” Layo wondered where she would find such customers. There was an awkward silence between them. She couldn’t get over what Sister Tosan had said. “If you knew I wasn’t a business person, why did you sell this idea to me?”

“It’s the hustle, my sister. You try your luck everywhere and see who will drop money.”

In that moment, Layo remembered Saheedat’s words: When people are not informed, they make mistakes and they cannot be financially free. She knew what she had to do. Later that evening, she knocked on Saheedat’s door with a dish of vegetable soup in her hands. When the door opened, she held it up. “Good evening, my sister. Please, I have made a mistake.

You were right; I need information.” Saheedat smiled and invited her in.



Inflation is defined as the rise in the general level of prices. It is often expressed in percentages. It also refers to a decline in the purchasing power of a given currency over time due to a rise in praices across the economy. This means that a unit of currency effectively buys less than it did in prior periods. It implies that more money will be required to pay for goods (like a loaf of bread) and services (such as getting a haircut or braids at the salon). Inflation is referred to as the number one killer of savings. It makes your hard-earned money smaller and smaller with the passage of time. Inflation is measured regularly (usually on monthly basis) to know the state of the economy. The inflation rate in Nigeria is measured by the National Bureau of Statistics

(NBS). Now, let’s talk about the major effect of inflation Inflation reduces the value of money. With the general prices of goods and services persistently increasing, it goes without saying that money loses its value. Now, when the value of money reduces and people’s incomes remain the same, the standards of living will fall. Inflation can be a source of concern because it makes money saved today less valuable tomorrow. So, inflation technically reduces the

value of your money; however, a good investment helps preserve the value of your money.

Did you know if you invest at a return lower than the inflation rate, you will be getting a negative real return? A negative real rate of return occurs if inflation exceeds an investment’s gain/return. If you are to invest in any asset, the minimum interest you should ask for is the inflation rate; otherwise, your money is losing its value. It’s not enough to work hard; it’s expedient that you

make your financial resources work smartly as well.

How to beat inflation

One of the ways to beat inflation is to invest in asset classes that yield above the inflation rate. If you invest in such assets, you will get consistent returns above the average inflation rate, which helps preserve the value of your money over time. There are various asset classes that give returns above inflation such as equities, commodities, real estate et al.

Let’s use an illustration to drive home the point. Rose gave birth in January, she decided to start off her baby on ABC formula which cost ₦1,000 per can. Ten months later, the same can of formula sells for ₦1,300. This means Rose will now require more money to buy the same

quantity of items, thereby reducing her purchasing power. This will undoubtedly impact her cost of living.