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Investing In Nigeria: A Complete Analytical Guide

By Diaspora Investment Advisory Team
Updated December 6, 2022

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:

1. Technology 

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:

  • Identify the area of technology you intend to invest your money in, for example, FinTech business, blogging, e-commerce, software development, etc.
  • You can also register a company or invest in an already existing tech company that can work with your budget. If you are establishing a tech company, you may need to employ the services of some experts in that field as you don't intend to do it all.
  • Create a detailed business plan
  • Research on how to satisfy your target customers and set out marketing strategies.
  • Ensure you register and obtain a license from government agencies such as the Nigeria communication commission, National Information Technology Agency, Nigeria Internet Registration Association, etc.

2. Oil and Gas Sector

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

  1. Establish a company or become a partner with an existing company and start investing in any of the following businesses: 
  • Petroleum marketing
  • Pipe-lining
  • Well servicing
  • Oil and gas transportation (petroleum haulage)
  • Diesel supply
  • Refinery 
  • Kerosene supply business, etc.
  1. Register your company with the Corporate Affairs Commission in Nigeria, and Nigerian Social Insurance Trust Fund (NSITF)
  1. Obtain a permit from the Department of Petroleum Resources, this license must be sought for and obtained before you can commence any form of business in this sector. 
  1. It is also necessary for you to register with production companies, such as Shell Petroleum Development Company, Total Nigeria, Nigeria Nation Petroleum Corporation (NNPC) so as to access certain petroleum products.
  1. Setup a gas plant or petroleum station, if you intend to engage in the sale and distribution of oil and gas products.

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.

3. Real Estate Industry 

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:

  • Carry out research on the location you intend to set up a real estate business to determine how real estate thrives in that area.
  • Identify the specific sector of real estate you intend to invest money into, such as land sale, sale of properties or rentals, whether residential, commercial property or mass housing properties.
  • Purchase a land space and register it at the land registry in that state. In Abuja, it can be done at the Abuja geographic Information System (AGIS).
  • Know the law regulating landed properties, such as the purchase, sale or development of lands in that location.
  • Ensure you obtain authorization from government agencies before you sell or develop any land.
  • It is also important to do a detailed inspection of the land you intend to purchase, to determine the legal owners of the land and ensure that the land is genuine. You can also conduct a search at Abuja geographic Information System (AGIS).
  • Finally, set up a marketing strategy.

 It is most advisable to leverage online marketing.

4. FGN Saving Bonds 

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:

  • Obtain an application form from any of the authorized dealers (PDMMs), or download from the DMO's website  New FGN Bond Tender Form
  • Complete the application forms and submit through any of the PDMMs.
  • Common-price auction system is normally employed as opposed to multiple price auctions.
  • Payments for the allotment are payable in full on application.
  • You can also access the FGN bonds after the Auctions in the secondary market through any of the broker-dealers on the FMDQ OTC Trading Platform or through Stanbic IBTC StockBrokers on the Nigerian Stock Exchange (NSE).
  • FGN bonds purchase is confirmed by electronic registration in the Central Bank of Nigeria’s Scripless Securities Settlement System or by issue of certificates, where required.
  • Interest is paid semi-annually until the maturity date when the principal amount is repaid.
  • Payment of interest is through issue of interest warrant (cheque) or direct transfer to current or savings bank accounts of the investor.
  • Bond holders who do not want to hold the bonds until maturity date can sell them at any time on the floors of the NSE or through FMDQ OTC Trading Platform.

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.

5. Treasury  Bills

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

  • Purchase treasury bills from the CBN at low rates, through an authorized broker or through registered banks in Nigeria (this is usually granted for 91 days, 182 days and 365 days).
  • Fill the treasury bill forms provided by the bank or broker.
  • Indicate your bidding rate or simply leave it to the bank.
  • You can invest with the sum of ₦50,000,000. However, if you don’t have up to that, you can invest with some commercial banks for as low as ₦100,000, this depends on the bank you purchase it from.
  • Once your bid is successful, the interest is paid upfront.

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

6. Stock Exchange

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:

  • Firstly, research and decide on a preferred stockbroker, such as Afrinvest securities Ltd APT securities and funds ltd, Arm securities ltd, Associated Assets Managers Limited.
  • In deciding on the stock broker, some important factors to consider include the ease of access, affordability, their integrity/reputation, and their status (active or inactive) with the NSE/SEC.
  • Register with your chosen stockbroker
  • Participate in the NSE by registering on the CSCS (Central Securities Clearing System). CSCS Ltd is an associate company of the NSE. The system is an electronic database that records ownership of Nigerian securities. 
  • On registration, the system assigns an account number to you that will accompany every Nigerian stock trade you execute.
  • Fund your account and start trading.

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.

7.  Agricultural Sector

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:

  • Mechanized crop production such as rice, maize, millets, sugar cane, tomatoes, palm kernel.
  • Rubber 
  • Timbers
  • Horticultural 
  • Livestock
  • Dairy farm
  • Aquaculture (fish farming)
  • transport of agricultural products, etc.

Now, let's guide you on how you can start investing

  • Firstly, learn and understand how to set up any farming business. For example, if you intend to invest in maize or rice, you have to understand the planting season and the soil texture.
  • Incorporate the business.
  • Write a business plan for the business
  • Purchase the machineries or tools.
  • It is also important to purchase land space for farming or storage of agri-products and you need to establish a welcoming environment for your clients.
  • More so, it is necessary to have the right packaging to prevent contamination and other factors that pose a threat to farming.
  • If you intend to invest in transportation of agricultural products, it is important to obtain the necessary license from government agencies in Nigeria, for example, the Nigerian Export Promotion Council (NEPC).
  • You can also decide to employ the services of an agricultural consultant for proper guidance before investing in any of the above agricultural businesses.

8. Mining Sector

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:

  • Identity the minerals to be mined and where such minerals are located.
  • Write a business plan.
  • Register the company with the corporate affairs commission in Nigeria.
  • Obtain the necessary license from the Federal Ministry of Mines and Steel Development(MMSD)
  • Conduct a geological survey on the identified mining locations to ascertain the quality and quantity of minerals.
  • Mobilise mining professionals and equipment to the sites.
  • Employ the service of a public relations officer who will liaise with the host community where you intend to commence the mining process. This is very important because you need to negotiate and meet the demands of the community before you commence mining activities.
  • It is also very important for you to be knowledgeable and skilled in excavation and mining to avoid making losses.

9. Manufacturing Industry 

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: 

  • cement industry, 
  • brewery, 
  • textiles industry, 
  • chemical industry, 
  • Flour milling 
  • Rubber, etc.

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:

  • Identify what aspect of the manufacturing industry you intend to invest money in. 
  • Also, it is important to draw up a business plan and know your target customers
  • Register a business under the extant laws in Nigeria
  • Register the brand name of your products. This is also important as it enables your customer to identify your products with ease.
  • Purchase the manufacturing equipment or tool and employ the qualified personnel if needed. 
  • Finally, you need to leverage on different platforms of online marketing to promote the business.

10. Transportation and  Logistics

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

  • Identify the type of transportation and logistics company you intend to invest money in. For example, bus, air or marine transport and logistics companies, international or interstate transport systems.
  • Get acquainted with the operation system.
  • Build and develop a business plan
  • Register the business under the extant laws in Nigeria and obtain the relevant licences. 
  • Acquire the necessary transport facilities and employ qualified personnel. 
  • Finally, get a physical place of business and brand your products.

11. Waste Management Services

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:

  • Register the business.
  • Map out the location and dumping site you intend to cover.
  • Write out a business plan.
  • Find out the requirements to obtain a license from relevant authorities in Nigeria.
  • Acquire the necessary working tools or equipment.
  • Design and apply your marketing strategies.

12. Health Sector

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:

  • First, you must either be a licensed health practitioner or employ the services of a health practitioner.
  • Register the company with CAC
  • Register and obtain a license from the Ministry of Health in Nigeria. 
  • Register you health sector with the Medical and Dental Council of Nigeria (MDCN)
  • Set up a physical location.
  • Purchase the necessary health equipment or pharmaceutical products and health consumables.
  • Plan out workable marketing strategies.

You can also engage in an online medi-care.

13. Education

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:

  • First, identify what aspect of the educational sector you intend to invest money in 
  • Write a business plan.
  • Register your school as a business or an NGO, depending on your goals.
  • Obtain government approval from the Ministry of Education.
  • Set up school structure.
  • Employ qualified Staff.
  • You can also set up an e-learning system.

14. Fixed Deposits: 

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

  • Determine the interest rate on return of investment from various banks.
  • Work into any Nigeria bank of your choice and apply to open a fixed deposit account, 
  • Fill the fixed deposit form,
  • Deposit the required amount of money as stated above and wait till maturity to enjoy the accruable interest.

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.

16. Crypto-currency 

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: 

  • bitcoin, 
  • litecoin, 
  • ethereum, 
  • binance, 
  • satoshi, e.t.c. 

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.

17. Pure Water Production 

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

  • Firstly, draw out a business plan and analyze the demands of the market.
  • Register the business.
  • Determine the location for the business (where you can reach your targeted customers).
  • Register and obtain the required certification/ approval from the government agencies such as National Agency for Food and Drug Administration and Control (NAFDAC)  visit: https://www.nafdac.gov.ng/our-services/product-registrationevaluation/ and  Standards Organisation of Nigeria (SON), visit: www.son.gov.ng.
  • Brand your business name
  • Set up a workable market strategy.
  • Drill a borehole or get a standard water supply.
  • Purchase the equipments. 
  • You will also need to employ qualified personnel to work with you.

18. Haulage Services

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:

  • First, you need to register the business with the corporate affairs commission. If you want to be recognised with a brand name, this makes it easy for your clients to identify with you easily.
  • Then you also need to be acquainted with the business.
  • Obtain a license from government agencies.
  • Get a physical place of business.
  • Build a workable market strategy.
  • Then purchase the necessary haulage facilities and employ qualified personnel to do the job.

19. Fashion Design Services

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, 

  • Build a fashion portfolio, 
  • Identify your targeted customers
  • Have a vision for brand identification (you can start with one brand name).
  • You also need to set out a marketing strategy on how to promote your business and set the right prices for your products. 
  • It is most advisable to register your company and the brand name so as to have a distinctive means of identification and exclusivity of your brand name. 
  • Finally, create a website for your fashion line

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. 

20. Fitness and Training Services 

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

  • First, know your proposed customers.
  • write a business plan with defined goals and stating how you intend to achieve those goals. 
  • You may also need a physical fitness centre or you can create an e-fitness centre (create apps or websites).
  • Finally, register the business to get a distinct means of identification. 

21. Event Planning and Management 

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:

  • Obtain some managerial skill or employ the services of an event manager. 
  • I will also advise you to register the business if you wish to be identified with a distinctive name by your clients.
  • Take advantage of digital marketing to promote your business 

22. Online Investment 

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:

  • kuda, 
  • opay, 
  • piggy vest, 
  • cowrywise, 
  • i-invest, 
  • sumo trust, 
  • investment-one, etc.

Here are a few steps to guide you on how to start investing money in any of the above:

  • Identify one or more of the above means of investing money online.
  • Have an extensive understanding of the nature of the online business you intend to invest money in.
  • Have an investment or business plan
  • Ensure that your identified online business has been registered and its operations are authorised by the Federation government of Nigeria.
  • Know the laws or policies that regulate such online investment.
  • If you need to establish or manage any of the above online investments, ensure it is registered, the necessary licences have been obtained. Finally, have a marketing strategy that will create the required traffic for prospective clients.

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.

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