In 2020, ₦360 could buy one US dollar. By early 2025, it will take over ₦1,500, a staggering 300% depreciation in just five years.
For millions of Nigerians, watching their hard-earned savings lose value feels like running on a treadmill, expending energy but going nowhere. You’re doing everything right: setting money aside, avoiding debt, planning for the future. Yet food prices triple, rent doubles, and last year’s savings now seem insignificant.
This isn’t misfortune. It’s the economic reality of currency depreciation and persistent inflation. The good news? Cowrywise has developed innovative, accessible solutions to help you protect and grow your wealth despite Nigeria’s challenging economy.
Let’s explore how Cowrywise is changing the savings game for Nigerians.
The Currency Crisis: Why Naira-Only Savings Are Vulnerable
According to data from the Central Bank of Nigeria, the Naira has experienced one of its steepest declines in recent history. Financial experts at the Lagos Business School confirm this trend represents a fundamental shift rather than a temporary fluctuation.
Consider this alarming perspective: a ₦1 million emergency fund saved in 2020 now has the purchasing power of less than ₦300,000 in dollar terms—a 70% loss in real value.
This erosion extends beyond exchange rates to everyday life. According to the National Bureau of Statistics, consumer goods have seen price increases of 18-45% annually since 2022.
Inflation: The Silent Wealth Destroyer
The Nigerian National Bureau of Statistics reported inflation hitting 23.18% in February 2025, one of the highest rates in Africa.
When inflation outpaces interest rates, saving becomes lost. If inflation is 23.18% and your bank’s savings account pays 4-7%, you lose 15-18% of your purchasing power annually.
This mathematical reality explains why traditional Naira savings accounts cannot preserve wealth and why Cowrywise has developed alternative solutions focused on value preservation.
Beyond Numbers: The Human Cost of Devaluation
While economists discuss percentages, real Nigerians experience tangible consequences:
Dreams deferred. Oluwaseun Adeyemi from Lagos saved for three years to start a small import business, only to discover his capital could now import less than half the inventory he had projected.
Future uncertainty. “I saved ₦4 million for my children’s education over five years,” shares Amina Ibrahim from Kano. “Now it’s barely enough for one semester abroad.”
Retirement insecurity. Retirement planning becomes nearly impossible when currency value is unpredictable decade to decade.
These stories represent thousands of Nigerians whose financial discipline isn’t being rewarded—until they discover currency diversification through Cowrywise.
The Cowrywise Solution: Smart Currency Diversification Made Simple
Cowrywise has pioneered accessible dollar-based investments for everyday Nigerians, removing the complexity and high barriers that previously limited these options to the wealthy.
1. Cowrywise Dollar Mutual Funds: Professional Management, Low Entry Point
Cowrywise’s dollar mutual funds provide professionally managed exposure to dollar-denominated assets with remarkably low entry barriers:
- Start with as little as ₦1,000
- SEC-regulated funds managed by experienced professionals
- Automated contributions for consistent growth
- No complex paperwork or minimum balance requirements
- Easy access through the user-friendly Cowrywise app
2. Cowrywise Eurobond Funds: Stability with Income Potential
For those seeking both currency protection and steady income, Cowrywise’s Eurobond funds offer compelling advantages:
- Investment in dollar-denominated sovereign and corporate bonds
- Regular interest payments in dollars
- Higher stability compared to equity investments
- Professional risk management by seasoned fund managers
- Complete transparency on holdings and performance
3. Smart Automation: The Power of “Set and Forget”
Cowrywise’s automation features transform occasional saving into consistent wealth building:
- Automated weekly or monthly contributions
- Dollar-cost averaging to optimize entry points
- Automatic reinvestment of earnings
- Smart goal tracking to visualize progress
- Scheduled notifications to encourage increases over time
4. Cowrywise Goal-Based Planning: Purpose-Driven Investing
Cowrywise’s innovative goal-based planning feature helps match your financial goals with appropriate currency strategies:
- Emergency Fund: Balanced Naira/Dollar allocation for both accessibility and value preservation
- Education Savings: Dollar-dominated portfolio for international education goals
- Future Home: Mixed portfolio based on your timeframe
- Retirement: Long-term dollar-weighted savings to maintain purchasing power
- Travel Plans: Dollar savings that maintain value against global currencies
Common Questions About Cowrywise’s Dollar Solutions
How safe are Cowrywise’s dollar investments?
Cowrywise prioritizes security through multiple layers of protection:
- SEC registration and regulatory compliance
- Separation of customer funds from operational accounts
- Bank-grade encryption and security measures
- Professional fund management by licensed partners
- Regular audits and transparent reporting
Your investments are held by regulated trustees, not Cowrywise itself, providing crucial separation and protection.
How quickly can I access my money if needed?
While dollar mutual funds are designed for medium to long-term saving (ideally 6+ months), Cowrywise provides liquidity options:
- Withdrawal requests typically process within 3-5 business days
- No penalties for withdrawals after the minimum holding period
- Transparent fee structure with no hidden charges
- Convenient in-app withdrawal process
For emergency needs, Cowrywise recommends maintaining a portion of savings in their Naira options for immediate accessibility while growing your dollar portfolio for longer-term value protection.
How does Cowrywise compare to opening a domiciliary account?
Cowrywise dollar mutual funds offer several advantages over traditional domiciliary accounts:
- No monthly maintenance fees that erode savings
- No minimum balance requirements (dom accounts often require $100-$500 minimum)
- Professional investment management for potential returns
- Automated contribution features
- No need for dollar cash deposits or complex wire transfers
- User-friendly mobile experience
Take Action: Protect Your Wealth from Naira Depreciation Today
Nigeria’s economic realities require new approaches to savings and wealth preservation. While currency depreciation and inflation present genuine challenges, Cowrywise has created accessible solutions for every income level.
Don’t allow another year of hard-earned savings to lose significant value. Take a small, decisive step today:
Download the Cowrywise app, create your account in minutes, and start your dollar investment journey
