Time to face reality

I have observed that there seem to be fewer SUVs on the roads compared to months ago. I thought I was the only one that noticed this until I came across an article in the Vanguard of May 31, 2016, with the title ‘Fuel price: Are SUVs disappearing from the roads?’ Some days ago, I also came across an article in the Punch of May 21, 2016, with the title ‘Fuel price hike: Nigerians dump personal cars for public transport, car-sharing, bicycles’.

It is gradually beginning to dawn on some of us that our current lifestyle is not sustainable. The facade of affluence is not backed up by requisite cash flow. In dollar terms, Nigeria is a poor country.

We have lied to ourselves for a long time that we are a rich country. We have been bamboozled by image affluence that is not backed by sound fundamentals. You can be ‘asset’ rich but cash poor. You can drive a Range Rover with less than one thousand naira in your pocket and ten thousand naira in the bank. If your cash flow cannot support your lifestyle, it is time to downsize. Nigeria is rich in human and natural resources no doubt, but that is yet to reflect in actual cash flow. It terms of income, many multinationals earn more than Nigeria.

Short men casting long shadows

Before the stock market crash of 2007/8, a lot of interesting things were going on. The bulls were on a rampage, every stock suddenly became a good buy (a ‘financial expert’ actually advised clients to put money on any banking or insurance stock). Due diligence went out the window as everyone became an expert on the stock market overnight, PE ratios shot through the roof and folks were borrowing from banks to invest. The handwriting was on the wall for those who could read. According to a saying ‘when short men cast long shadows, the sun is about to set’. It was an accident waiting to happen.

You see short men casting long shadows when the tenant looks more affluent than the landlord when nonproducers consume more than producers when the tail wags the dog. Anything that is not sustainable always gives way. It is simply a matter of time.

Over the years, an SUV has become a ‘must have’ for the average Nigerian family despite the high maintenance cost (like changing tires, shock absorbers, etc). I friend once told me years ago that the smallest pointer in a Range Rover costs N70,000 hence he is always very careful when driving. That was when the naira to the dollar was 155. My electrician just announced to me gleefully that he is expecting the delivery of his Lexus SUV after finishing a job.

When I did not respond, he asked if I am not going to congratulate him. I told him frankly that I would rather extend my sincere condolences because the cost of maintaining an SUV can swallow him alive. Acquiring a liability is one thing, being able to maintain it is another ball game entirely. By the time I spelled out to him what it takes to maintain an SUV, he became sober. He confessed that his wife pointed it out too and that he had to scrape together money to make up the transport fare to respond to my call.

There are families living from hand to mouth, praying to God for a car. They diligently gather their life savings to put on a secondhand car of questionable maintenance history, hence beginning a long love affair with their mechanic. It hardly crosses the mind that they cannot afford a car. As long as the neighbor has one, it is shameful to be given a lift or wait at the bus stop for public transport.

Our excesses are well documented online, so there is no point in going over them. What has happened has happened. The question is, where do we go from here?

Stop lying to yourself. Get real

One of my lecturers in my final at the University told us something I will never forget – you can allow others to deceive you, but never deceive yourself. Change starts to happen when we gather up enough courage to finally tell the truth to ourselves – tell it as it is. Like someone said ‘it is not too bad is already bad’. There is bad hanging in there somewhere.

If you dug yourself into a pit, the first thing you do is stop digging. If a fire is fed by fuel, before you start fighting the fire, turn off the fuel. If a bucket is leaking badly, rather than try to pour in water faster, plug the leak first.

This current challenge can turn out to be a blessing in disguise if we are willing to learn and not repeat the same mistake when things improve in the future. It affords us the opportunity to stop all manner of pretense and simply find our level. ‘All fingers are not equal’ as the saying goes. Societal norms are man-made. There is no law that says a family must own two cars (or a car). There is no law that says your child must go to a private school, live in a high-class estate, etc. You have the power to choose. Stop punishing yourself if you cannot afford it and get real. If you cannot afford something now, let it go. It does not mean you will not be able to afford it tomorrow. It simply means it is not yet time.

Delay is not denial. If your family cannot afford to maintain that car, let it go. If you cannot afford a foreign holiday, go local. If you cannot afford a foreign university, send your children to the one you can truly afford next door. Success in life does not depend on the school you went to. If you doubt me, take a look at the Forbes Rich List, among others. Expensive things are nice, but if you cannot afford them, why kill yourself to impress people who don’t care?

Our circumstances are largely created by our decisions. If you are under financial pressure, look at what you are doing. Are there other options? Each time you catch yourself going to borrow from friends, chances are you cannot afford that thing. If you can afford it you won’t need to borrow. Why should someone borrow to pay children’s school fees? How long do you have to pay back before the next term’s fee falls due in 3 months?

It is good to dream, but once in a while, carry out a reality check.