5 Easy Ways to Invest in Nigeria
— The key to being financially free is by developing healthy habits that will help you climb the ladder of financial freedom, one step at a time...
For a lot of us, when we hear the word “Investing,” we imagine young men in smart suits sitting around in cubicles, talking loudly on the phone and watching a large timer count down or an old man with protruding belly and layers of folds for a neck saying over the phone, “I just sent you N200 million for my next investment.”
Hollywood movies like the Wolf of Wall Street and Nollywood ones like Abuja Boys did not help this stereotype.
We are here to tell you: You don’t need to be the Wolf of Wall Street or the Shark of Abuja to start investing. It is fine if you have just a few thousands to spare. You can start investing and compounding your wealth for the future.
The key to being financially free is not Ponzi schemes or Forex trading, it is by developing healthy habits that will help you climb the ladder of financial freedom, one step at a time.
There are investment opportunities that give good returns, are more consistent and very reliable. Once you start making money from these good investments you would never want to go back to those get rich schemes that make you lose your money.
All you need is a little cash to start. With as little as N10,000, you’re fully capable of becoming an investor in Nigeria. With so many options, investing in Nigeria has become easier than ever and all you need to do is sit back and relax while your money works for you.
Here are the top five investment opportunities in Nigeria.
1. Savings with Interest
Saving money and investing money go hand-in-hand. For you to have money to invest, you need to keep some of your earnings aside.
If you’ve never been a saver, you can start by putting 10% of your income aside. If you earn N50,000 a month, that’s N5,000 every month and by the end of the year, you have N60,000.
Start cultivating the habit of living on a little bit less than you earn and start saving money. Begin with small amounts and then you keep increasing as you go on. In local speak, “Na from clap e dey enter dance.”
We have made it possible for you to save effectively with our Smart Investor Account which gives you access to credit after six months of consistent savings. We reward you for your consistency.
2. The Nigerian Stock Exchange
The Nigerian Stock Exchange is a very good place to consider when thinking of investing in Nigeria. A stock is a unit of the share of a company that is traded on the floor of the Nigerian Stock Exchange (NSE).
Every publicly listed company has shares which they can sell to willing investors. They are a good way to diversify your investment portfolio.
However, investing in stocks involves some amount of technical know-how.
You need to be able to understand the annual reports of companies, their growth trajectory and predict the market movement based on this information.
That’s why you need to have a stockbroker(s) who can buy and sell on your behalf and make money for you in your absence.
We have an excellent team of dedicated stockbrokers that are always watching the market and making informed decisions from what it says.
Want to start investing in Nigerian stocks? Start here
3. Mutual Funds
Mutual Funds are a special kind of investment that allows you pool funds with other investors and invest them in different securities such as stocks, treasury bills and money market instruments.
The most popular kind of mutual fund is the Money Market Fund (MMF). Money Market Funds provide you with a steady stream of income as your interest is added to your money daily.
The interest rate changes daily too and is more beneficial if you invest for up to a year.
This kind of investment is perfect for a first-time investor. You can start with as low as N10,000 and can keep adding to the fund as you go.
There’s also the sweet spot of diversification. Everyone knows that the more diversified your investment portfolio, the better for you.
Join thousands of other investors in our Money Market Fund and start cruising to financial freedom.
4. Fixed Deposits
A fixed deposit is a type of short-term financial investment sold by banks and other financial institutions to its depositors.
In a fixed deposit investment, you invest your money with a finance organization in exchange for a fixed interest rate after a predetermined period.
Fixed deposits can be for one month, three months, six months and one year. The money is secure and almost risk-free.
In return for giving them your money, the organization pays you a higher interest rate than your regular interest from your bank account.
The rates for fixed deposits differ from organization to organization so you have to look for the most favourable rates before you invest your funds.
Our fixed deposit rates are one of the best in the country and there are provisions for your funds ranging from N100,000 to N100,000,000 and above. Click here to learn more about our fixed deposit rates.
5. Treasury Bills
Treasury Bills are simply a record of debt from the government.
The Federal Government issues treasury bills as a way of getting funds from individuals. The funds help to pay for short term expenses while the government repays the individual after an agreed period.
Mostly for 91 days, 182 days and 364 days at the primary market auction held fortnightly by the Central Bank of Nigeria. For the best part, you do not pay tax on treasury bills and the yields are usually higher when compared to fixed deposits.
We have provided our clients with an easy way to invest in treasury bills without any stress.
In conclusion, please remember that these options aren’t going to turn you into a millionaire overnight but you will gradually build your financial muscle. After a while, you will look back and realize how much you’ve achieved, and you will be proud of yourself.
Reach out to us for any questions about finance and investments. We are always a click away.