Save 15% of your take home pay – Ibidapo-Obe

Professor Oye Ibidapo-Obe is a former Vice-Chancellor of the University of Lagos and is currently the Vice-Chancellor of Federal University,  Ndufe-Alike, Ebonyi State. In this interview with Okechukwu Nnodim, he says youths should learn to save at least 15 per cent of whatever they earn

In your own words, what is money to you?

Money to me is simply a convertible instrument for achieving ‘desires’.

Money has negative influence on people; how can Nigerians live above or overcome this influence?

The underlying issue is avoidance of negative desires; the morality of the nation must be raised beyond corruptible influences. Nigerians must live above the negative influence of money and this will impact on our nation positively.

What are your three key investment principles?

Minimum risk, optimum returns and charity – a system that incorporates giving back to the less privileged in the society. People should learn to support the less privileged in the society. Investing in people is gainful and pays. That is why I consider it very important and I think people should be encouraged to always assist the less privileged.

Does the government have any responsibility to provide money for its citizens?

Government has the responsibility for providing the infrastructure that will generate money for its citizens. Government must at all times protect its citizens from hardship and make life more abundant. Government has to live up to expectations. Providing adequate infrastructure is vital to ensuring development. The government has a lot of work to do and it is important they meet their tasks so as to better the lives of Nigerians.

There is nothing wrong with the system. We only need good leadership as well as good follower-ship to make things work. It is the innovation in scientific breakthrough and other sectors of the economy that can bring about prosperity in the economy and make life more abundant for Nigerians. There is an urgent need for the government to give more opportunities to indigenous companies and improve on what we have now so that the nation can make adequate breakthroughs in various sectors.

Is it easy to make money in Nigeria as some people, especially foreigners, always claim?

It may be easier to make money in Nigeria because of the population that provides the market, the import dependent syndrome and penchant for overseas goods and services, the zero value-addition to oil and gas import and corruption from lack of enforcement of rules and regulations. This is why the government and Nigerians in general need to do what is right. Corruption has to be reduced to the barest minimum in this country.

What was your first salary? What year was it earned and please kindly tell us where you worked at the time, if you don’t mind?

I earned £1400 per annum in 1971 and I worked at British Petroleum Nigeria Limited Lagos.

Was that amount enough for you at the time? Were you able to save from what you earned then?

The salary was more than enough and I had appreciable savings at that time. So, I saved enough because the pay was good.

What advice would you give Nigerian youths on personal finance?

My advice is that whatever you earn – you should save up to 15 per cent of your take home pay and invest in property related instruments whenever there is opportunity to do so. Resist the attempt to borrow and live within your income. This will help you as you grow and it is a good step for youths. They must cultivate the ability to save, because it may be difficult to know what will happen in future. Youths should set aside a percentage of whatever they earn and should try and invest it gainfully.

The attitude of eating up all you earn should be stopped. Parents must teach their children that it is important to save and they should let them know that it is not rosy all the time. There are times when one will be confronted with financial challenges and if you do not have something saved somewhere, you may have yourself to blame at such times. So, saving 15 per cent of you take home pay and investing it in meaningful investments is vital.

Who is your money mentor?

I believe my father (and all parents who do the same), because he was able to pay for our (the children) education, clothe and feed us as well as providing a non-mortgaged roof over our heads. So, he is my money mentor.

Kindly feel free to state whatever you think will help readers understand personal finance better.

Knowledge of the economic environment will improve the stability and sustainability of a virile personal finance strategy. You have to achieve a personal finance strategy through prudent expenditure and wise investment. By understanding and applying this, I think you will be able to manage your finances brilliantly.