In part 1, we laughed, cried, and side-eyed the naira together. But now it’s time to get practical. Because while we can’t stop the naira’s wild ride, we can at least make sure it doesn’t leave us stranded. Whether you’re a young professional eyeing dollar gigs online or a retiree looking for secure cooperative investments, there are options for everyone.

No one strategy is fool proof, but by combining small, steady investments, you can start to dig your way out of a hole. So, while part 1 of this article may have felt like financial survival, part 2 is all about taking control. It’s time to make your money work for you, even in naira. You can build a hedge against the naira’s unpredictability.

So, how do you hedge against inflation and naira devaluation in today’s Nigeria without feeling like you need Jeff Bezos’ wallet to get started? Let’s get into it.

Warning: Seek the services of a professional financial adviser when considering your investment strategy. Any names of companies or apps shared are only intended to be examples for illustration, rather than recommendations.

1. Earning in FX is the ultimate currency hedge

Let’s start with a game-changer: earning foreign exchange (FX) income. Forget gold bars or offshore investments, earning in dollars or euros is the ultimate currency hedge. And no, you don’t need to pack your bags and head for Heathrow. Thanks to the wonders of technology, remote work is booming, and Nigerians are getting hired by international companies more than ever before.

Think about it, if you’re a software developer, graphic designer, digital marketer, or even a virtual assistant etc., there’s a global market hungry for your skills. Young Nigerian professionals, have you audited your skills set or talents lately to see which ones can be monetised? Websites like Upwork, Fiverr, where people look to higher high-quality freelancers are growing, and even LinkedIn are full of opportunities to earn in hard currencies while living right here in Nigeria. Having an FX income stream is the closest thing to financial sanity, and the ultimate financial cheat code.

2. Consider some real estate investments, even if you’re starting small

Real estate is always presented as the holy grail of investments. But if someone tells you to invest in a ₦100 million Lekki plot and your bank account laughs in response, it’s time to get creative. The truth is, you don’t need to break the bank to get into property.

Instead of going for  flashy high-rise apartments, start with smaller, more affordable locations. Think out of the box: Ogun. Oyo etc, or the outskirts of Lagos . These areas are growing fast, and land values are increasing steadily.. Some plots of land outside Lagos or in developing states across Nigeria are still affordable and provide a decent return in the long run. But make sure the due diligence around your purchase is watertight.

And if buying property outright is still too much, you could explore real estate cooperatives or co-investing. These co-ops pool funds from multiple investors to buy land or develop property, making it easier for everyday Nigerians to get in on the real estate game.

3. Play the local game with global impact through stock market investments

Stocks sound intimidating  if you’re a newbie. However, If real estate feels like too big a leap, investing in the NGX can give you exposure to some of the biggest local companies without the huge upfront cost.

Even better, you can target companies with international revenue streams. Think about companies that have significant foreign earnings, meaning their income isn’t just tied to the naira. This is crucial because companies with FX revenue are often better positioned to weather local economic storms and protect your naira-based investments. You don’t need millions to start, either; investing apps (happy to provide recommendations offline) let you invest with small amounts and buy fractional shares of both local and international companies.

4. Digital assets are an option for funds you can afford to lose

Now, this is a controversial one, but I’d be doing you a disservice if I didn’t mention cryptocurrency. Yes, regulators previously cracked down on it, but there is now an emerging spew of REGULATED and LICENSED crypto services and Nigeria's Securities and Exchanges Commission (SEC), earlier this year announced its plans to develop and launch a regulatory framework for crypto. Plus, let’s be honest: Nigerians are still finding ways to invest in digital assets, even if broad. For those who want to take on a bit more risk, crypto can offer a way to hedge against inflation by holding assets that are not tied to any specific currency.

But a word of caution; please do your homework. Digital assets can be highly volatile, and while you can make good returns, they can also take a nosedive. Remember to invest only what you can afford to lose. You should ideally not be spending your children’s education funds or your rent on speculative digital assets.

5. Diversify your income streams

We all know Nigerians are the kings and queens of the side hustle, and in this economy, it’s almost mandatory. Whether it’s selling on Jumia, freelancing, or starting a small-scale business, having multiple streams of income is one of the most effective ways to hedge against inflation.

However, try to have at least one side hustle that earns you dollars, but ensure there is no conflict with your 9-5. Even if your main job is in naira, something as simple as teaching English online (through platforms like Cambly or Preply) can give you access to foreign currency, or even dropshipping, where you sell goods to international customers without holding inventory.

The truth is, if you have only one source of income in Nigeria today, you’re walking a tightrope.

6. Don’t sleep on agriculture

With inflation driving up food prices, investing in small-scale farming, whether it’s fish farming, poultry, or even vegetable farming, can be a smart move. You don’t need to own acres of land to start. You can lease land in rural areas or even find and  join platforms like that allow you to invest in farms and earn returns.

In a country where food inflation is rampant, investing in agriculture doesn’t just protect your pocket, it contributes to food security. Plus, with more Nigerians turning to local produce due to import costs, it’s a sector poised for growth.

7. Gold and precious metals are not just for the wealthy

While gold might sound out of reach, you don’t need to buy a kilo to get in on the action. Platforms like RiseVest allow Nigerians to invest in fractional gold assets, so you can put in small amounts and still hedge against inflation.

Gold remains one of the best long-term hedges against currency devaluation, and with fractional ownership, you don’t need to have oil tycoon money to benefit.

8. Dollar accounts to keep your FX safe, but don’t hoard.

If you’re lucky enough to earn or have some FX savings, keep it safe! Domiciliary accounts in Nigeria allow you to hold dollars, euros, or pounds in your local bank. These accounts act as a natural hedge against the naira’s rollercoaster ride, preserving your wealth in stronger currencies.

Even if you’re not earning in FX, you want to consider converting small amounts of naira into dollars (when possible) and saving it up, but with a clear strategy for deployment such as in a eurobond or domestic USD bonds. You can also use platforms that allow you to access dollar-based investment funds, giving you exposure to global markets without needing to leave Nigeria.

9. Cooperative societies and rotating savings for those with low-incomes or at bottom of the pyramid

Let’s get old school. Cooperative societies and Ajo/Esusu (rotating savings schemes) are time-tested methods for hedging against inflation. These systems aren’t just for market traders, they often offer a practical way to pool resources, avoid relying too heavily on the naira, and protect your purchasing power. Cooperative societies, for example, often offer members access to low-interest loans or group investments in tangible assets, such as land or small businesses.

For retirees or those with fixed incomes, joining a cooperative can provide financial security and returns without needing to directly invest in high-risk ventures. These savings methods also provide the added benefit of a community-based support system, which is helpful in tough times.

Caution: Due diligence, and an understanding of the dynamics around, and promoters of these platforms, are a must

10. Investing in high-yield savings plans or fixed deposits may be better for retirees

For older Nigerians who prefer more traditional and low-risk investments, high-yield savings accounts or fixed deposit accounts at trusted financial institutions can offer better interest rates than the typical savings account. While inflation might still outpace these returns, they provide a safe and predictable income stream without the volatility of stocks or real estate.

Some banks offer special senior citizen plans with higher interest rates or tiered fixed deposits, which increase your returns the longer you leave the funds untouched. This is a relatively straightforward way for retirees to ensure their money grows steadily, even if it doesn’t beat inflation outright, offering them stability and peace of mind.

11. Cut the excess and prioritise needs

One of the most underrated but effective strategies to hedge against inflation and naira devaluation is simply practising prudent spending. It’s easy to focus on investment strategies without realising that controlling how much you spend is just as important. Start by auditing your current spending habits. Are there any expenses you can cut without compromising your quality of life? Whether it's reducing subscriptions, avoiding impulse purchases, or cooking more at home, small savings add up over time.

In today’s inflationary environment, needs must take priority over wants. While it’s tempting to keep up appearances, the reality is that mindful budgeting can prevent financial strain. Implementing a minimalist approach, purchasing only what you need and cutting out excessive spending on luxuries, can free up cash for more meaningful financial goals, like saving in FX or investing in assets with better returns. A little financial discipline now will save you from future headaches as prices continue to rise.

This approach can help create a buffer that will allow you to ride out inflationary pressures without feeling the pinch too much

Conclusion: The Key is Diversification and Starting Small

The above list is hardly exhaustive, and it’s possible that you’ve been there and done that. Good for you, and I really do hope you’re seeing the results.

For those who have not quite figured it all out, please remember that navigating inflation and naira devaluation isn’t about making one big, bold move. It’s about small, consistent steps. Whether it’s starting a legitimate side hustle, buying fractional shares, or saving up in foreign currency, the key is diversifying your income streams and investments.

The naira might have a mind of its own, but with these strategies, you can protect your finances and keep moving forward. And remember, you don’t need to be a millionaire to make smart financial moves. Just start where you are, with what you have.

Ultimately, the name of the game is flexibility, and as Nigerians, we’ve been winning at that for generations.

In part 3, which is the final instalment of my pounds to naira journey of shock, survival and adaptation, I step back to take a broader look at the intersection of economic survival, leadership, and governance in Nigeria.

Stay tuned!

[Culled from LinkedIn]