Financial discipline: The antidote to surviving inflationary times
Across the world, cities once celebrated for their prosperity, San Francisco, Singapore, London, Zurich, Oslo, and Mumbai, now top the charts of global living costs. Skyrocketing rents, surging food prices, and declining purchasing power have become the new reality. Africa has not been spared. From Nairobi to Lagos, Johannesburg to Accra, and Cape Town to Addis Ababa, the story is the same: inflation is eroding the quality of life, leaving citizens scrambling for survival.
As a professional accountant, I have reflected deeply on this unsettling trend, particularly the inclusion of Lagos among Africa’s top ten most expensive cities. Lagos, the commercial heartbeat of Nigeria, is home to immense opportunity—but also mounting hardship. The question, therefore, is no longer why costs are rising, but how individuals and households can adapt and survive amid this economic turbulence.
The harsh reality of inflation
The cost of living crisis in African cities is multi-dimensional. Prices of food and household items have soared, and electricity tariffs continue to rise. Transportation costs have spiked following fuel subsidy removals, and rent has become unaffordable for the average worker.
In Nigeria, headline inflation rose to 33.7 percent in September 2025, according to the National Bureau of Statistics (NBS), while food inflation sits above 40 percent. The ripple effect is severe: purchasing power has collapsed, consumer spending has plummeted, and business costs are spiralling.
Job losses are mounting as firms struggle to cope with rising interest rates and dwindling demand. Access to healthcare, education, and decent housing is increasingly beyond reach for many families. And with rising poverty levels, over 63 percent of Nigerians are now considered multidimensionally poor, financial survival has become a daily battle.
Why financial discipline matters now more than ever
When prices rise faster than income, the only sustainable defence is financial discipline. Inflation is not just an economic challenge; it is 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 stability. It is not merely about cutting costs—it is about making intentional financial choices that align with one’s goals and realities.
Practical steps toward financial discipline
Budget and prioritise:
Develop a clear monthly budget. Identify essential expenses, such as food, rent, and transportation, and separate them from non-essentials. Budgeting provides visibility into your financial life and helps control impulse spending.
Embrace expenditure control:
Living within your means is not deprivation; it is wisdom. Practise self-restraint in spending, avoid unnecessary luxury, and cultivate 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 inflationary times, it compounds vulnerability. Always assess your repayment capacity before taking on new obligations.
Diversify income streams:
Inflation reduces the real value of income. To stay ahead, individuals must explore multiple income sources: side businesses, consulting, small-scale farming, or digital skills. Financial resilience comes from diversification.
Save and invest smartly:
Inflation erodes idle cash. Direct savings into assets that retain or grow value over time, such as real estate, agriculture, or stable investment funds. Even small, consistent savings can provide a safety net.
Adopt a simpler lifestyle:
Simplicity is strength in hard times. Reducing lifestyle costs, by moving to cheaper accommodation, cooking at home, or carpooling, can free up funds for savings or investment.
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 must extend to national and corporate governance. Nigeria’s economic instability is, at its core, a reflection of weak fiscal control: excessive borrowing, poor prioritisation, and wasteful expenditure.
If households are tightening their belts while governments continue to live beyond their means, inflationary pressure will persist. Both citizens and policymakers must embrace discipline, accountability, and long-term planning as the foundation for recovery.
The gains of practising discipline
A culture of financial discipline produces measurable rewards:
Goal attainment: Clarity of financial purpose leads to long-term stability.
Reduced stress: Controlled spending prevents debt-induced anxiety.
Improved financial standing: Creditworthiness improves when obligations are met.
Enhanced wealth creation: Consistent saving and reinvestment build assets.
Economic resilience: The ability to withstand shocks and adapt to changing realities.
The path forward
Nigeria and much of Africa are in the middle of a historic economic test. Inflation has exposed weaknesses not only in policy but also in personal money management. Yet, a crisis always presents an opportunity for reform, for prudence, and for growth.
Financial discipline is not a one-time act; it is a lifestyle. It calls for patience, restraint, and foresight. Those who practise it will not only survive the storm but also emerge stronger.
As individuals, families, and nations, we must accept this truth: prosperity is not only earned by how much we make but preserved by how well we manage it.
About the writer:
Dr Kingsley Ndubueze Ayozie, FCA, FCTI, is a public affairs analyst and chartered accountant based in Lagos.
