8 financial mistakes to avoid in 2025 – Newstrends
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8 financial mistakes to avoid in 2025

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8 financial mistakes to avoid in 2025

Managing your money is more crucial than ever as 2025 approaches. Although Nigeria’s economy is unpredictable, you might go from barely making ends meet to actually flourishing by avoiding common financial mistakes.

Here are eight financial mistakes to avoid in 2025.

1. Taking unnecessary loans

Although taking out a loan can seem tempting, doing so can eventually make you take on more debt. High interest rates and undisclosed costs are some of the features of loans, which may quickly add up and make repayments difficult. Before taking out a loan, always consider whether it is necessary and make sure it fits with your financial situation. Consider whether you truly need anything before taking out a loan.

2. Mixing personal and business finances

Combining your personal and business money in a single account could lead to confusion. Keep them separate to ensure transparency and accountability. If your business generates your major income, pay yourself a salary and keep separate accounts for personal and business spending. This can help you keep organised and avoid money problems down the road.

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3. Investing without proper understanding

Investing is an intelligent way to build wealth, but putting your money in projects you don’t completely understand might cause harm. Whether it’s stocks, real estate, or mutual funds, take the time to study the dangers and benefits while seeking professional counsel. Do not fall into “get-rich-quick” schemes and instead use technology to enhance your knowledge. And, as you invest carefully, avoid making reckless lifestyle decisions that strain your budget. These decisions have the potential to undermine your progress toward financial stability.

4. Confusing saving with investing

Savings accounts provide security and access to funds, but they typically fail to keep up with inflation. Investing, on the other hand, can help you create wealth through earnings that compound. Distribute funds for suitable investment options, such as equities or mutual funds, for long-term goals like retirement or owning a home. Seek advice from financial professionals to create a diverse portfolio.

5. Neglecting an emergency fund

Without an emergency fund, unexpected expenses such as car maintenance, medical expenses, or sudden job losses may arise. These unforeseen expenses might throw you off if you don’t have an emergency fund. Aim to accumulate 12–18 months’ worth of living costs in liquid funds in a different account. Having this reserve will help you feel more at ease and prevent you from depending on loans when things get hard.

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6. Living pay cheque to pay cheque

If you spend every naira as soon as it arrives, leaving little provision for emergencies or savings, you risk becoming overly reliant on each pay cheque for everyday costs. Identify and reduce nonessential spending, such as eating out or unused subscriptions, and set aside some funds for savings. If possible, search for ways to supplement your income, such as freelancing or converting a pastime into a side hustle.

7. Ignoring budgeting

It’s simple to lose track of your finances without a budget, which can lead to both excessive spending and insufficient savings. Make a thorough budget that breaks down your sources of income so that you can save for fixed costs like your child’s school, a down payment on a home, or retirement while prioritising necessities like rent, food, and medical care. Put your earnings and outlays in writing, then create a strategy that you can follow. Budgeting is about maintaining control, not about limiting oneself.

8. Forgetting about inflation

The money you have now will not purchase as much tomorrow due to inflation. To beat inflation, make sure your money holds its value by investing in assets like stocks or real estate that can grow faster than inflation. Making money work harder is necessary to maintain its worth; simply preserving money is insufficient.

Financial management can be stressful, but avoiding these costly mistakes can help significantly. Financial growth takes time, so be patient with yourself and maintain consistency. In a challenging economy, every wise decision counts. Let 2025 be the year you take control of your finances and begin creating the future you want.

8 financial mistakes to avoid in 2025

Railway

Cargo train: NRC targets April for 100% Lagos-Kaduna dry port movement 

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Cargo train: NRC targets April for 100% Lagos-Kaduna dry port movement 

The Nigerian Railway Corporation (NRC) has fixed the beginning of second quarter 2025 for full operations of its cargo train movement from Lagos to Kaduna Inland Dry Port.

This was disclosed in a video clip shared on the official X (formerly Twitter) account of the NRC on Saturday.
Managing Director of the NRC, stated in the video that while logistical operations had been put in place, some non-logistical issues needed to be addressed to ensure the seamless movement of goods via both narrow and standard gauge rail lines.
“There are little issues which are not related to logistics that needed to be cleared out.
However, bearing all circumstances, we are determined that the Nigerian Railway Corporation will ensure that the movement of goods along both narrow and standard rail lines is at maximum. “So, we are committed to ensuring that the movement of goods from Lagos to this dry port is achieved somewhere at the beginning of the second quarter,” Opeifa said.
He added, “We believe that all other issues related to other agencies of government would have been resolved and working with them should be able to ramp up, not to 70% but to 100%.”
Managing Director of Inland Containers Nigeria Limited, Omotayo Dada, also featured in the video and expressed optimism that within a few quarters, productivity at the Kaduna Inland Dry Port would increase significantly.
“We are optimistic that within a couple of quarters, before the year runs out, productivity would even increase by about 70%,” Dada said.
The Kaduna Inland Dry Port, commissioned in 2018, was established as a major logistics hub for exports, particularly agricultural products.
However, it has been operating below capacity, handling fewer containers than initially expected.
Over the years, container movement between Apapa Port and the Kaduna Inland Dry Port has been intermittently suspended for various reasons. Notably, in September 2020, operations were halted due to the rehabilitation of railway tracks, disrupting freight transport.
In a broader effort to improve freight connectivity between the southwestern seaports and inland regions, the Federal Executive Council (FEC) recently approved a $45.3 million contract for a feasibility study and engineering design of a new rail corridor.
The planned alignment will extend from Badagry Deep Sea Port through Tin Can, Apapa, and Lekki Seaports, reaching Ijebu-Ode and Kajola, where it will integrate with the Lagos-Kano-Maradi Railway Modernization Project.

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N’Assembly approves N14.3tn for debt service out of N45.9tn 2025 budget

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N’Assembly approves N14.3tn for debt service out of N45.9tn 2025 budget

 

The National Assembly on Thursday passed N45.9 trillion as budget for the 2025 fiscal year, setting aside N14.317 trillion for debt servicing.

Both chambers of the assembly agreed to jerk up the budget by N719.5bn over what the executive submitted for approval.

President Bola Tinubu had initially proposed a N49.7 trillion budget but later revised it to N54.2 trillion before seeking legislative approval.

A breakdown of the N14.317 trillion total debt servicing showed that N7.191 trillion is for domestic debts (including Ways and Means), N6.749 trillion is for foreign debts, and N377.299 billion is for sinking funds to retire maturing promissory notes.

Newstrends discovered from a document of the Federal Ministry of Finance that Nigeria’s total debt as of the second quarter of 2024 “grew in naira terms to N134.3 trillion ($91.3 billion) from N121.7 trillion ($91.5 billion) in Q1 2024, driven mainly by exchange rate devaluation.”

Apart from debt service, the approved budget also showed N3.645 trillion for statutory transfers, N13.64 trillion for recurrent expenditure, and N23.963 trillion for capital expenditure (development fund), with a fiscal deficit put at N13.08 trillion.

Under the statutory transfers, National Judicial Council gets N521.626 billion, Niger Delta Development Commission gets N626.533 billion, South East Development Commission gets N140 billion, North West Development Commission gets N145.607 billion, South West Development Commission gets N140 billion, South-South Development Commission gets N140 billion and North Central Development Commission gets N140 billion.

The Universal Basic Education Commission gets N496.842 billion, National Assembly gets N344.853 billion, Public Complaint Commission gets N14.460 billion, Independent National Electoral Commission gets N140 billion, National Human Rights Commission gets N8 billion, North East Development Commission gets N240.988 billion while Basic Health Care Provision Fund gets N298.421 billion, respectively.

From the recurrent (non-debt) expenditure, Presidency gets N111.094 billion, Ministry of Defence gets N2.510 trillion, Ministry of Police Affairs gets N1.226 trillion, Ministry of Interior gets N658.586 billion, National Security Adviser gets N335.975 billion, Ministry of Education gets N1.159 trillion, Ministry of Youths gets N442.271 billion, Ministry of Foreign Affairs gets N286.887 billion, Information and National Orientation gets N75.887 billion, among others.

Under the Capital expenditure, Presidency gets N144.485 billion, Ministry of Defence gets N604.917 billion, National Security Adviser gets N316.864 billion, Secretary to the Government of the Federation gets N155.812 billion, Ministry of Agriculture and Food Security gets N1.201 trillion, Ministry of Finance gets N892.939 billion, Ministry of Works gets N2.045 trillion, Ministry of Water Resources and Sanitation gets N578.398 billion, FCTA gets N229.625 billion, Ministry of Education gets N953.931 billion, Ministry of Health and Social Welfare gets N1.154 trillion, Ministry of Humanitarian Affairs and Poverty Alleviation gets N291.548 billion, among others.

Under the Multilateral/Bilateral loan funded projects, Ministry of Power receives N1.307 trillion; Ministry of Interior, N400.630 billion; Ministry of Communications, Innovation and Digital Economy, N400.630 billion; FCTA N235.369 billion; Ministry of Finance N236.657 billion; Ministry of Agriculture and Food Security, N208.466 billion; Ministry of Education, N193.098 billion; Ministry of Health and Social Welfare gets N56.489 billion, among others.

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MTN apologises, says 200% data price increase a mistake

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MTN apologises, says 200% data price increase a mistake

MTN, Nigeria’s largest telecom operator, has issued a public apology to its customers following widespread complaints about a sudden 200% increase in the price of its popular 15GB data package.

The price increase, which requires internet subscribers to pay N6,000 for a 15GB weekly data plan, a 200% increase from the previous N2,000, surprised many customers and sparked fury on social media on Wednesday.

In a message posted on social media on Thursday, MTN acknowledged its customers’ unhappiness in an informal, conversational tone and sought to address the rising anger among users who had become accustomed to the previously given low prices.

The message read, “To our 15G digital bundle lovers. You are vexed. We know. We know how upsetting it must have been to suddenly wake up to a 200% increase on your favorite digital bundle.

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“We could share several reasons and provide explanations, but omo, all that one is a story. We don’t cast. We get it and admit it. Let’s just say it was a mistake.”

MTN extended its apologies by imploring consumers not to be unhappy, adding, “In this love season, don’t stay furious with us. Kindly forgive and forget. You are important to us, and we will never stop showing you that. Let us continue our relationship.

“Thank you for your understanding.”

For the time being, only MTN has raised its tariffs, but Airtel and Globacom are anticipated to follow suit after the Nigerian Communications Commission approved a 50% tariff increase in January.

However, the Nigeria Labour Congress (NLC) has slammed telecommunications companies’ execution of a 50% pricing hike, seeking an immediate reversal.

 

MTN apologises, says 200% data price increase a mistake

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