Are you interested in investing money in Nigeria and thinking of possible ways to do so? Then this article is for you.
I have highlighted here various platforms where you can invest money in Nigeria legally. Also contained in this article are easy guidelines that should help you key into these investment platforms that can potentially build wealth for you.
What are the various means of investing money in Nigeria?
Some of the means of investing money in Nigeria include:
Technology in Nigeria is the new gold-mine. About 77 million Nigerians use the internet, either for commercial or personal purposes.
Also, our research shows that as a result of the COVID-19 pandemic, most businesses which used the traditional means of doing business only (that is on-site business) were temporarily or permanently shut-down.
The 2020 pandemic also created a new wave of tech-businesses, as many companies established new means of doing business online by creating websites or applications.
More so, people use tech tools to manage their business or decide to invest in artificial or other tech related businesses such as e-commerce, FinTech, e-learning, blogging, consultancy, IT support, Internet research companies, etc. This makes it a very attractive sector for investment.
Start investing in this sector by taking the following steps:
Investing in Nigeria's petroleum industry is considered as one of the most lucrative means of generating more income as the country is blessed with a large land mass of crude oil reserves.
Below are easy steps to get you started
However, your choice of investment depends on your cash flow. It is important for you to research and analyze the market, that is to know how the business operates before making any decision on the above choices.
Real estate is another means of investment you should consider because of the rapidly growing population of the country and the demand for shelter.
Also, the influx of people to major cities in Nigeria, like Lagos, Abuja, Port-harcourt and other states, has led to a rapid increase in the purchase of landed properties.
One of the advantages of investing in real estate is that the value of lands and buildings appreciates steadily over time in Nigeria.
The following is a kick off guide to start investing:
It is most advisable to leverage online marketing.
This form of investment provides quarterly interest payment and capital payback at maturity. They are debt securities of the Federal Government of Nigeria.
The FGN savings bonds are mostly directed at retail investors. The purpose is to encourage low-income earners to partake in the debt market.
It is a means of providing financial support to the Federal Government of Nigeria for a limited time when you purchase the FGN savings bond.
This means of investment is also secured because it has the support of the federal government of Nigeria.
You can invest in government bonds by purchasing the same from the Debt Management Office (DMO), through primary debt market or secondary debt market.
Primary Debt Market: FGN Bonds Auctions Exercise is carried out by the DMO on a monthly basis. Primary Dealer Market Makers (PDMMs) empaneled by the DMO in 2006, responsible for submitting bids for themselves and on behalf of their clients at the Auctions.
Secondary Debt Market: Trading in FGN Bond is done on a daily basis in the Secondary debt market by licensed broker-dealers (banks and stockbrokers) on the floor of the Nigeria Securities Exchange (NSE) and on FMDQ OTC Securities Exchange.
The PDMMs are obligated to provide a two-way quote for FGN Bonds. This means that you can buy or sell your FGN Bonds whenever the need arises.
How can I purchase government bonds?
You can purchase government bonds by taking these steps:
You should also understand that the amount of money invested in the bonds and the time frames determines the amount of interest it will yield.
Visit:https://www.cbn.gov.ng/rates/GovtSecurities.asp to understand the various subscription amounts.
This is another means to invest money in Nigeria. It is a short-term security, usually issued by the Central Bank of Nigeria (CBN)
Treasury bills are backed up by the Federation government and they are mostly issued by the government when the need arises to borrow funds for a period, with a maximum maturity period of 365 days.
Follow the steps below and start investing in treasury bills
Some of the banks you can purchase treasury bills from are: Stanbic IBTC Bank, Unity Bank, FCMB Bank, Zenith Bank PLC, Guaranty Trust Bank (GTB), First Bank, Sterling Bank, Access Bank, etc.
More information on bidding rates and returns is provided on: https://www.cbn.gov.ng/rates/GovtSecurities.asp
This is one of the most secured means of investment in Nigeria.
Stocks are securities that can be bought from the Nigerian stock exchange market (NSE). Although you must consider the mode of operations of the Nigerian Stock exchange market.
You can purchase stocks from the Nigerian stock exchange market. The NSE market is a public marketplace for issuing and selling stocks that can be traded on the NSE.
This market operates on what is called an automated trading system (ATS) which is a computer program that allows for an effective trading platform.
Stocks can be purchased from either the primary market or the secondary market.
The primary market is where the organisations set up their stock or shares for sales through what is called an initial public offer (IPO). While the secondary market is a place where you can buy stocks that are existing and being traded.
A stockbroker is usually appointed or authorised to execute, buy or sell stocks on an investor's account.
Start investing in the stock exchange sector by following the steps below:
All transactions with the exchange are executed by your stockbroker. This can happen in one of two ways: either you can send trade instructions to your broker, usually by mail or your broker provides an online trading platform that allows you to execute transactions yourself.
Agriculture is another means of investmenting money in Nigeria.
It is a fact that the country is blessed with a large mass of fertile land spaces, which makes agriculture not just a lucrative means of investment but also an important sector of the country’s economy with high potentials for food security, poverty reduction and job creation.
The federal government of Nigeria has put in place policies which are aimed at encouraging more commercial and merchandised farming.
These policies leverage Nigeria’s agricultural ecosystem to transform the country into a leading agribusiness and Agro allied industrial nation.
The agricultural sector contributes 25% of Nigeria’s gross domestic product (GDP) and accounts for 48% of the labour force, by exporting agricultural products alone.
Some of the ways to invest in this sector include:
Now, let's guide you on how you can start investing
The mining sector is another channel of investment in Nigeria. However, this can be highly volatile, though often makes good long-term returns of investment.
Nigeria is richly blessed with several mineral resources, such as gold, iron ore, limestone, coal, bitumen, tin, marbles, columbites, lithium, etc. This makes the country a mining destination and a great channel for exploration.
You should take advantage of this sector by establishing your own mining company. All you need to do is follow these steps:
The manufacturing industry has over the years contributed to the nation’s GDP and has grown steadily to an annual average of 15% within the past 5 years. This is because of the growth trajectory led by governmental interventions over the years.
The federal government of Nigeria advocates for higher manufacturing investment, so as to increase the country’s economic growth and provide more employment opportunities.
Some of the top manufacturing opportunities you can invest money are:
To key into the system, you should engage in detailed research on the current trends for manufacturing industries.
This is an exciting opportunity you don't want to miss.
Yes, you can become a manufacturer by taking these steps:
This is one of the fast-growing channels to invest money in Nigeria.
The Nigerian transport and logistics industry has currently gained about NGN 300,000,000,000.00 and it accounts for more than 5% of the country’s GDP.
Although just like other investment platforms, it also has its own risk factors, which must be considered before making any investment.
Follow the guidelines below and start investing
As an investor, it is important for you to recognise the immense potential in waste management and consider steps towards harnessing it.
This is because the amount of waste products generated in Nigeria is enormous and is continuously increasing as a result of waste management crises, especially in urban areas in the country.
You can start investing now by recycling waste products and turning them into gold mines. All you need is:
The Nigerian Health Sector offers a massive investment opportunity to develop the Nigerian health system and bridge the funding gap between planning and providing health facilities to its citizens.
The reliance on importation of medical supplies has been seen as a threat to the nation’s health security, this was exposed during the COVID-19 pandemic.
Also, due to the high demand for proper health services in Nigeria, the long-term prospects for private health services are very promising, as it will lead to a lesser number of persons seeking medical attention outside the country.
The following are ways you can key in this sector:
You can also engage in an online medi-care.
Educational sector is another attractive means for investment because it is recognised as a veritable and a strategic pivotal to Nigeria's economic growth.
The result from my recent analysis shows that this sector is highly under-funded, especially at the basic and secondary school level.
However, the Nigerian government in its bid to meet its financial projections in developing this sector, has taken steps to collaborate with private investors, by creating a Public Private Partnership (PPP) initiative to enable private investors to contribute in the development of the educational system.
What are the steps to take?
You can embrace this investment opportunity by partnering with the Nigerian government through PPP. or establish a private school
Below are simple steps to guide you on how to establish a private school:
This is a tenure-based investment system where profits on investment only accrue within an agreed period, that is, after your investment has become matured within a minimum of 30 days and maximum of 180 days, with an opening balance of NGN 100,000.00.
All banks in Nigeria offer fixed deposit opportunities to their customers with different interest rates.
Here is an easy step for you
This process is also provided online by most banks in Nigeria.
15. Money Market Funds
This is also described as a short-term debt fund. It is a form of investment with a low risk.
It mostly comprises of monetary instruments like treasury bills, certificate of deposit or CD, commercial papers, etc. It also provides high liquidity preservation of capital and moderate income generation.
Here are easy steps to start investment
Firstly, you need to compare the interest rates offered by different banks in Nigeria
Then you can open a money market account, just like opening a savings account,
Fill the form provided by the bank, submit your application and fund the account.
This is another lucrative form of investment. It is one of the unlimited means of investment in Nigeria, although with a high level of risk.
Cryptocurrency is a digitalized asset which increases or decreases in value with time. It is a digital coin used to carry out exchange services and functions as an asset.
Some of the leading crypto investment platforms include:
What are you waiting for? Follow these guidelines and start investing.
Firstly, Identify your choice of crypto investment
Have an extensive understanding of its operations.
Have an investment or business plan
Ensure that your identified crypto investment has been registered and its operations are authorised by the Federation government in Nigeria.
Know the laws or policies that regulate it.
If you will establish or manage any of the above crypto investments, ensure it is registered, obtain a license to run the business.
Finally, have a marketing strategy that will create the required traffic of clients.
Water is a basic necessity for any living thing and that makes it a very promising means of investment. However, this form of investment requires hard-work, dedication and passion as there are a lot of competitors in the business.
Follow these simple steps and start investing
This type of investment is usually in high demand, as a lot of people relocate from one place to another in Nigeria and definitely need the services of haulage companies to ease the stress of carrying weighty luggage from one place to another.
Most entrepreneurs also require the services of haulage companies to move large amounts of goods from one place to another.
This is a very simple business to set up, all that is required are:
This is another trending means of investments. Investing your money in the fashion industry is very profitable in Nigeria, especially if you are an investor with a great sense of fashion or with a keen interest in fashion.
To start investing in this sector you have to think like an entrepreneur,
More so, there are some key factors that could impact the price of your fashion investment, such as the brand of fashion line, authenticity, storage and having a good understanding of the quality of your fashion wears or accessories.
This is another means of investment in high demand, especially for middle aged or elderly persons who require the services of a fitness or gym instructor or a fully equipped fitness centre to keep fit and stay strong.
If you are an expert in this field or can engage the services of an expert, then this is a good place for you to invest your money in Nigeria.
Following these simple steps and start investing
This is one of the most profitable means of investment in Nigeria because it guarantees a daily or weekly return of profits due to the high demand.
Most people in Nigeria love to celebrate for different occasions and definitely need the services of an event planner to manage the occasions and ease them of the stress of planning or organising such events.
Some of the most celebrated occasions are birthday celebrations, wedding parties, car or house dedication, baby dedication, festivals, etc.
It is very easy to invest in this platform as no form license is required. However, you need to be able to manage an event effectively, know your clients and ensure your clients are satisfied.
Here are basic some steps to get you started:
This form of investment allows you to generate more profits for your money in Nigeria. It can be accessed through various applications on your gadget such as android or iOS phones , tablets, laptops, etc.
However, there are a few licensed applications where you can invest money in Nigeria. They include:
Here are a few steps to guide you on how to start investing money in any of the above:
Investment is a very lucrative means to generate more income in Nigeria. You can invest in one or more of the above means of investments and create great value for your money.
Generally, it is important to do a detailed search on any investment platform, analyze the risk factors associated with it before making any investment, register the business with the required government agency and obtain the relevant permits. You should also seek a proper business guide from our counseal experts before engaging in any of the above means of investment.