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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:

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: 
  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:

 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:

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

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:

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:

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

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:

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: 

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:

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

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:

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:

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:

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

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: 

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

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:

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, 

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

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:

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:

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.

In Nigeria, Christmas gift hampers business is always in high demand between December and mid-February of the next year. It's a lucrative venture that guarantees good profit during the festive season. So, if you're thinking of a good business during Christmas and New year celebrations this season, you've just got a profitable one!

Let's walk through the steps you need to take to start your Christmas gift hamper business in Nigeria.

Research the market

It is easy to assume that the Christmas gift hamper business is very common and needs no knowledge. However, a thorough research of the gift market will help you understand your competition and your prospective customers. 

In your research, you want to know the common practices and what you can improve. For instance, using a more attractive wrap and basket will attract customers because it's not what they are used to. Research will open you up to more possibilities.

The beauty of a hamper often draws buyers/users of gift hampers before going further to check the content. So learning how you can be artful with your package comes handy.

Some factors to consider in your research are pricing, packaging, client base, business location, hamper content, etc.

Design a business plan

Christmas gift hamper market in Nigeria is porous, so you need a solid plan that will set your business apart from others. This will provide you with strategies to penetrate the market and win customers over.

A Nigeria-focused business plan will also help you carve a niche for your Christmas hamper business. For example, you could decide to sell to businesses (B2B) or individuals (B2C). You could also choose to have an online-only, onsite-only Christmas hamper store or both.

You will also decide what kind of structure you want your Christmas gift hamper business to take with a business plan. Read our article on how to structure your business in Nigeria to learn more.

A good business plan for a Christmas gift hamper business contains

We have seasoned experts that are ready to help you design your business plan. Book a session on Counseal to discuss your business plan with one of them.

Raise your capital 

A medium scale Christmas gift hampers business with 2-3 workers requires between N400,000 and N1,000,000.  A larger scale one requires N 1,000,000 and above. Hence, having a sure source of funds is crucial.

There are a few ways to raise money for this business. 

  1. Possessing some cash of your own put away for the business is a good way to start. It gives you full ownership of your returns. This also fosters quick execution on decisions. But, if you don't, getting funds is still possible…
  2. You could take a loan from the bank or seek funding from investors with your designed business plan.  Now, taking a loan will attract some interest in paying back while funds from investors will only give you partial ownership of the business. Either way, you get to start your business.
  3. There is also friends and family investment. Your business plan will also be needed here. It will help them see the potential of your business and invest with their own savings.

Have your business plan in both hard and soft copy; you never know who would ask you to send your business plan on the spot.

That’s another reason you need a convincing business plan. Don't forget to book a session with our experts.

Create a Unique Brand

The gift hamper business in Nigeria is large, but yours could stand out with unique branding. You shouldn't make the mistake of going with the flow. From choosing your business name down to your logo, colour and graphics, your Christmas gift hamper business should be attractively different from others.

Think about what you want your customers to feel when they hear your business name, see your logo, or see your brand colour. Let these three words guide you: attractive, distinct, enduring. For instance, you could choose to use customized baskets and wrappers for your gift hampers. Give your customers an experience that can only be found with you.

Your customer relationship also creates an intangible image of your brand. According to the Corporate eye, customer service and brand image change in direct proportion to one another. That is, if your customers feel good, your brand image is good and vice versa. For instance, timely delivery of gift hampers  will make your customers feel valued. A Forrester research found that 71% of customers say that valuing their time is the most important thing a brand can do to provide good customer service. 

Advertise and sell your hampers

Both onsite and online gift hamper business require aggressive marketing. Though advertising methods change with time and trend, there are basic strategies for it. There are 5 common factors you should consider when choosing a marketing strategy for your Christmas gift hamper business:

The first four factors will help you determine the best way to promote or market your Christmas gift hamper business. The traditional way would be through word of mouth, print media, TV and radio adverts. However, we are in a digital age and there are vast opportunities for you to advertise your business. Some are:

The list is endless, but the goal remains making profitable sales. You only need to use the 5 factors above to determine what strategy fits your niche. Then, be consistent and creative with it.

And that's how you start a Christmas gift hamper business in Nigeria.

The Christmas gift hamper business is a seasonal but profitable business in Nigeria. To start a Christmas gift hamper business in Nigeria this holiday season, our experts at Counseal can help you create a solid business plan and develop a customer-oriented branding strategy that will bring in good returns. Book a session with us today to get started!.

According to researchers at CSIRO, production of poultry meats and eggs only meets 30% of the demand. Hence, it's one of the most lucrative ventures in the country. 

In this article, we guide you through how to set up your poultry farm, employ expert hands and market your produce. 

Let's dive into the 5 step guide to starting your own poultry business in Nigeria.

1. Conduct series of surveys

A survey or research will help you build a solid foundation for your poultry business. As profitable as poultry farming is, it is a delicate venture that you do not want to go into without knowing it well. So we have outlined below the items you need to conduct your survey on:

Research type of birds and supplier

We will focus on chicken and turkey in this guide as they have the highest demand in Nigeria. Below is a chart that helps you understand the types and breeds of chicken and turkey:

              Table 1. Note: Cockerels are male chickens, so there are no Cockerels that are layers.

This table helps you to ask appropriate questions during your survey. You won't look or sound ignorant and won't get exploited. 

Taking online poultry courses to understand birds will also be helpful. Some people even go as far as understudying an operating farm. You can try this too. The end goal is that you are grounded before you start your own poultry farm.

Carve a niche

It is important that you focus on a particular sector of poultry farming. You cannot be everywhere. You could choose between rearing chicken or turkey, or both. Whatever your choice is, you still need to choose either of the following:

Here, you will gain the benefits of knowing about birds. You'll be able to decide if you want to focus on layers only, broilers only, or both. You might also not be interested in eggs or meat, so you could just focus on breeding the birds. As mentioned earlier, demand for poultry products in Nigeria is very high, hence any sector you choose is profitable.

Know your shelter options

One thing to also note during your survey is the type of housing you want to give your birds. Shelter in poultry is very important for productivity. There are 4 main shelter types for poultry farming: the free-range shelter, the semi-intensive shelter, the intensive shelter, and the folding unit shelter.

Of these 4 shelters, the intensive shelter system is the ideal for commercial farming. The following are the main types of intensive poultry shelter:

Consider your poultry feed

For every stage of growth, the feed for poultry birds differ, so your survey should include knowing about the different types of feed. Poultry feeds are classified as:

We have listed below some of the common chicken feed brands in Nigeria ( note that these chicken feeds are the same for turkeys):

Each brand has its own ration or category of feeds for different birds and growth stages. So, be sure to understand which feed is for what stage when you choose a brand.

Do a market survey

This is the point in your survey where you have to think about your brand. Remember, we talked about competition earlier? Now you need to study them deeply. Look at who does what you want to do well and who doesn't. What makes them better or worse and how you can leverage their strengths and weaknesses to become a better brand in the poultry industry.

You want your customers to know you are new but better than the existing businesses. So, you also need to study who your customers are. Know what they want, how they want it, what they see in other poultry farms that make them go there. You could conduct a survey for this.

Some of the things to consider in branding are pricing, promos, adverts (PR), business portfolio (logo, brand colour, brand font, slogan etc.). You should build a unique selling point. We will delve more into this later, but if you need help with building your brand, you can speak with one of our business experts.

2. Source Your Funding

We are excited for you if you already have some funds set apart for the poultry farm. However, if you don't, this is not a reason for you to back down on your dreams. The Nigerian government has different programs in place to encourage farming in Nigeria. There are also non-governmental and international aids that could help. 

Some ways you  can fund  your business are:

It is worthy of note here that, for most grant applications, you will be required to have a registered business name at least.

For any of the funding categories, you will need a business plan that shows how much you need to start your business. Table 2 below shows how much you need to set up your business:

Table 2

You should note that because of the inflation rate in Nigeria, currently the costs above are subject to changes depending on the economic shifts. Also, the land costs are subject to obtainable costs in different locations.

3. Manage the location of your poultry

The site of your poultry is very essential to the success of your business on more than 1 level. Apart from deciding on leasing or buying, there are factors to consider in picking a location:

The size of your poultry farmland will be determined by the scale of your farm. 

4. Farm management is key

A poultry farm requires professional management as well as competence. This is because poultry birds (in this article, chicken and turkey) require regular cleaning, feeding management, water management, litter management, medications, etc. Hence, you need trusted hands on your farm.

Your poultry farm team should include:

5. Marketing and sales determines your profitability

It is important that the operational section of your poultry farm does not engross you, but you also need to be active with the marketing and sales aspect. After all, your end goal is to be able to make a good profit from this venture. Let's see some important marketing strategies that will help you make good sales:

Build your brand: 

We mentioned earlier that you need to have a brand that sets you apart. When building a brand, every tiny detail counts. Things as mundane as colour or your brand's font can determine if your business will stand out in the large marketing or not.

First thing to have when setting up a poultry farm is a logo and letterhead. Then you can tease your target customers with:

You also need to invest in customer support. This will help you build a strong customer base. Don't forget your aim is to let them know you are new but better, so they need to experience what really makes you better than others.

Determine where to sell:  

This will take a lot of ' being on people's faces' because you are new. The sector you have chosen will determine where you should pitch your business. 

For instance, if you choose to have a hatchery, you'll have to pitch to other poultries that major in meat or egg production. If you decide to produce meat and eggs, then you'll have to pitch to restaurants, hotels, event planners, caterers, etc.

Moreover, you could choose to be a seasonal poultry farmer. This means that you harvest your birds for meat in a particular season such as Christmas season, EID season, New year's, etc. Demand for poultry meat during certain seasons is usually high, so this could be your niche in sales.

Another profitable idea is to harvest your birds to sell as frozen foods. You will need another section of your business that kills, cleans and freezes the birds in preparation for sales.

We have finally come to the end of the guide, to starting your own poultry farm in Nigeria. All you need do now is for you to start your business. I hope you enjoyed this guide but if you still have questions on starting your own poultry farm in Nigeria, book a session with our experts now.

Agriculture is one lucrative sector of the economy that a diaspora investor is certain to get returns on investment. Agricultural business in Nigeria, although once on the brink of collapse and neglect, is growing into a lucrative sector because of government investments and incentives granted to this sector. The incentives granted to this sector are aimed at encouraging local, diaspora and foreign investments. This article provides a guide on the most lucrative agricultural business in Nigeria that a diaspora can invest in.    

Agricultural Business a Diaspora can Invest In. 

The key to investing in agricultural business in Nigeria is knowing the most lucrative to invest in. The following are the most lucrative agricultural businesses in Nigeria to invest in: 

Maize/ Corn Farming: 

Investing in maize farming is one agriculture business in Nigeria that is quite lucrative. With irrigation farming, maize is planted at any time of the year and can be harvested within 2-3 months after planting.
Because of its popularity and demand for food consumption, starch, and beer making, maize farming on a commercial level is highly profitable. Intending diaspora investors can obtain low interest agricultural loans from CBN to invest in this business. These low-interest loans are offered by the government to encourage investments in the agricultural sector. The CBN also offers access to foreign exchange to investors intending to export maize grain outside the country.
Investment in maize farming can be done by investing in a maize farm or via an agricultural investment platform. Returns on investment in maize farming are projected at a minimum of 50%. 

Rice Farming 

Investments in this agriculture business in Nigeria has become very popular among diasporan investors due to its lucrativeness. Rice production in Nigeria has boomed due to government policy and investments to encourage investment in this sector. Rice production grew from 5.8 million metric tonnes in 2015 to almost 9-million metric tonnes in 2021. This was because of the government ban on the importation of rice.
Further, because of this ban, Nigeria became the largest producer of rice in Africa, hence making rice farming on a commercial level very profitable. An investment in rice farming takes 12 months to harvest and if done properly guarantees up to 25% return on investment. Investment in rice farming can be done by investing in a commercial-scale rice farm or via an agricultural investment platform.    

Poultry Farming  

Poultry farming is the rearing of domestic birds such as chickens, geese, ducks, guinea fowls, turkeys, etc. for their meat and eggs. Investing in this agriculture business in Nigeria is highly lucrative due to the high consumption of poultry meat and eggs. Recent statistics show that current production only meets 30% demand of eggs and meat in Nigeria for an industry valued at NGN 1.6 trillion.  

To encourage investment in this sector, the government has banned the importation of frozen poultry products and the CBN offers low-interest loans to investors. A diasporan looking for a short-term investment can invest in this agricultural business and get a minimum of 30% returns on investment within 3-6 months. 

Fish Farming:  

Fish farming in Nigeria has evolved from traditional methods of harvesting fish to rearing fish in a water tank on land. World Bank statistics shows that 3.4 million metric tonnes of fish are consumed in Nigeria and current local production meets only 40% of consumption demand.  Because of the gap in meeting local consumption demand, diasporas are encouraged to invest in this agriculture business in Nigeria. To encourage investments, the government banned the importation of fish in Nigeria and offer low interest loans to intending investors.   
Further, by-products of fish such as dry fish, fish oil, liver oil, etc are steadily developing an international market.  Access to foreign exchange is also available to investors intending to export these by-products outside Nigeria. 
Investing in fish farming includes investing in a commercial fish farm or via an agriculture investment platform or renting farmlands for fish farms for a fee based on the profit made. The return on investment is projected at a minimum of 22% returns on investment depending on the money invested.     

Snail Farming: 

Snail farming is a low capital-intensive agriculture business in Nigeria, valued at $12 billion dollars. Anyone including a diasporan investor can invest in this agricultural business. Its lucrativeness can be attributed to the 100% guarantee on investment returns. Snail meat is considered a rich diet in Nigeria and when harvested and sold during the dry season can make large profits. As snail meat is scarce during the dry season. Most state governments offer capital to diaspora investors intending to invest in this agriculture business. Investment in snail farming can be done by partnering with a snail farmer to establish a snail farm. 

Sugarcane Farming: 

This agriculture business in Nigeria has a lot of untapped potential. Sugarcane farming on a commercial level is very profitable as there is a domestic market for sugar cane and its fibre by sugar factories, biofuel, paper, beer, renewable energy and building companies. To reduce the importation of sugarcane and to encourage investment in sugar cane farming, a 5 years tax holiday is granted to sugar cane farmers.
Further, low-interest loans are offered to sugarcane farmers and investors by CBN as well as educating them on the best way of cultivating sugarcane to boost production.   

The return on investment is projected at a minimum of 25% depending on the money invested and the period of investment. Investment can be done by investing in a sugarcane commercial farm or via an agricultural platform.       

Palm Oil Farming: 

Investments in this agriculture business in Nigeria is popular among diasporan investors. This is because of its lucrativeness from profits made in exporting palm kernel oil which is produced from palm oil farming to international markets. Further, local consumption of palm kernel oil is very high as it is used in the production of vegetable oil, soaps, detergents, cosmetics, etc.  

To encourage investments in this agricultural business, tax holidays of a minimum of two years are granted to palm oil farmers. Additionally, low-interest rate agricultural loans and access to foreign exchange are granted to diaspora investors intending to export palm kernel oil.

Investing in palm oil farming is a long-term investment as a palm tree has a life expectancy of 25-50 years and can produce palm kernel oil throughout that life span. A diaspora investor can invest in a commercial palm tree plantation or partner with a local palm oil farmer. Returns on investment is projected at a minimum of 40% depending on the money and the time length of the investment.     

Cassava Farming: 

Cassava farming is known for its low input and high output nature. It is widely practiced in Nigeria as cassava is one of the widely consumed staple foods in Nigeria. Cassava farming on a commercial level is very profitable due to Nigeria's large domestic cassava market.
Further, Nigeria's international market for exporting processed cassava products has grown steadily, leaving room for more investments to meet both local and international markets' consumption demand. 

Diasporan investors are encouraged to invest in this agriculture business in Nigeria to meet both local and international consumption demand. To encourage investments, state and federal governments offer low-interest loans to investors and easy access to foreign exchange for cassava farmers intending to export cassava. Additionally, low import duties are levied on the importation of raw materials used in making local fertiliser which boosts cassava production.   

Returns on investment is projected at a minimum of 22% depending on the period and money invested. Investments can be done via agricultural investment platforms or by investing in cassava commercial farms.   

Plantain Farming: 

This is another lucrative agriculture business in Nigeria. Its lucrativeness is because of local and international demand for plantain and its processed products such as starch. Plantain farming done on a commercial level can be used to meet both local and international demand. To encourage investment in this sector, the government provides access to low-interest agricultural loans and tax incentives to investors and farmers alike. Additionally, low import duties on raw materials used in local production of fertilizer are used to boost plantain production.

A diasporan investor can invest by investing in a commercial plantain plantation or via an agricultural investment platform or partner with a plantain farmer to build a plantain plantation. The minimum projected return on investment is 20% depending on the money and the length of the investment.   

Pig Farming: 

Pig Farming is also known as piggery. It is the rearing of pigs for its meats and its products. This agriculture business in Nigeria is very lucrative due to the quick and huge yields within a short period of time.  Additionally, there is a domestic market demand for pig meat and lard which is used in the production of insecticides, plastics, oil polishes, rubber, cosmetics, etc.

Pig farming is capital intensive, therefore little investments are done in this business despite its lucrativeness. To encourage investments in this business, the government offers incentives for investors interested in pig farming. These incentives include low interests agricultural loans for purchasing farmlands, feed, and equipment for rearing pigs. The minimum projected return on investment is 40% depending on the amount of money invested. Investment in this business can be done by investing in a commercial pig farm or via an agricultural investment platform.       

As a diaspora seeking to invest in any of the listed agricultural businesses in Nigeria is recession-proof. This is because Nigerians would still eat even during an economic recession. Additionally, population growth in Nigeria is inevitable.  Hence, the increase in demand of more agricultural products to sustain the needs of the ever-growing Nigerian economy. 

However, it is important to point out that this article is only intended to serve as a guide and not to replace proper legal advice on investing in agriculture business in Nigeria.  

If you have further questions about investing in any agriculture business in Nigeria, book a free session with an expert.

Introduction

We can refer to the act of loaning money at an interest rate as a money-lending business. Although it is not as strictly regulated as traditional financial institutions like retail and commercial banks, mortgage companies, insurance companies, etc.

A money-lending business is considered a type of financial institution. It is, however, limited to issuing consumer loans and debts.

When you choose to get a money-lending business registered as a company, the share capital should not be less than N20 million. You will also need to fully understand and adhere to all laid down guidelines by the relevant government agencies.

What you will need to understand following this guide

I will focus the bulk of this tutorial on Lagos and Abuja, as they have the most advanced process of registration of the money-lending business.

How much is the Nigerian money lending licence?

In Lagos, you get an application form for ₦25,000 (Twenty-Five thousand Naira). Thereafter, you will pay the licence fee of ₦200,000. 

In Abuja, they assess the fees payable based on the location of the money-lending business. It should, however, not be more than ₦200,000 (Two hundred thousand Naira) no matter the location, while the costs associated with obtaining a Police Clearance Report for directors and other miscellaneous expenses is also within N200,000 (Two hundred thousand Naira).

Who issues the money lending licence in Nigeria?

The certificate and licence are both granted by a state government agency allowed to do so within the State you do business. 

In Abuja, the Chief Magistrate issues both the certificate and licence. 

In Lagos, after applying to the Chief Magistrate for the Certificate. You would have to go a step further by applying to the Ministry of Home Affairs for the Licence.

What is the importance of the money lending licence in Nigeria?

Simply put, the licence gives you a right to debt recovery and enforcement of loan agreements.

It is also illegal to conduct a business dealing in money lending without a state-issued licence and certificate. The licence issued is valid for one year and renewable on its expiration.

Do I need a licence in every state of the Federation?

This depends on the scale of operation you envisage. As stated above, get your licence and certificate in the States you intend to operate in. You will definitely have more reach with the use of a digital lending application. 

We recommend you to register in all states if you will be using a digital lending application.

Is the money lending business profitable in Nigeria?

Besides standing the test of time, financial institutions involved in lending-related activities are among the most successful companies in the world. If you are interested in this business, please do it. Your investment will be put to good use. As bank interest rates rise, so will the rates charged by private money-lenders.

The high success rate is due to the constant need financial help.

How can I register my money lending business in Nigeria?

Some states are liberal about the choice of corporate personality you give to your business. You can operate the business in your natural name in such states. In Lagos, however, you must register as a company with a minimum share capital of ₦20 million and at least two directors who must be adults. 

Your CAC registration will require:

After incorporation, you can apply for the money-lender’s licence and certificate. For the certificate you will need;

The company registration takes between 7 to 14 days to be completed except for where you opt for the fast-track which takes 48 hours.

Tax Clearance Certificates, account opening, and police clearance also take about 14 days, all things being equal.

In Abuja, the Certificate and licence take 14 days. In Lagos, the certificate takes 7 days while the licence takes a long time because of the inspection of the applicant’s office.

How can you set up a money-lending business in Nigeria?

Step 1: Do an extensive research

Extensive research into any business venture aid in spotting both possibilities and dangers. It helps in identifying and avoiding blind pitfalls.

With this knowledge, you will make intelligent choices to address issues effectively. It also leads to a better understanding of the industry and customers, which makes it easier to deal with customers and stakeholders.

It gives you an insight into the challenges faced by those currently operating and how best to mitigate such challenges to your advantage.

Step 2: Consultation with professionals

You can increase the chances of your business surviving by consulting accomplished professionals with experience with businesses similar to yours.

This is crucial to providing you with objectivity and bringing you to terms with the stark realities of the money lending industry. You will need to consult at least two of the following professionals:

Step 3: Set up an internal framework

This comprises all the policies, processes, monitoring sales, and marketing campaigns, code of conduct, and other activities to ensure you keep up with standard practices.

It will ensure that your operations are run economically and efficiently. Check out this article on best practices for developing internal controls for your business.

Step 4: Registration with relevant agencies

First, register your business with the Corporate Affairs Commission (CAC).

We recommend that you register as a private limited company to grant your business a corporate personality different from yours. It is also a major requirement in Lagos to register as a company before they can licence you as a money-lending company.

You will also need to register with the Federal Inland Revenue Service as a taxpayer and get your Tax Identification Number.

Step 5: Legal compliance

So far, all we have discussed borders on legal compliance and they are all of utmost importance to ensure a smooth running business.

Besides these, the Federal Competition and Consumer Protection Commission (FCCPC) recently set up interim guidelines for digital money lenders.

The FCCPC requires you to do the following as a digital money lender:

Conclusion 

The application process doesn't have to be a pain. Most delays are because of the unavailability of required documents. But, if you use the services of professionals, the process will be more flexible. 

If you have questions about this or other compliance-related inquiries, book a free appointment with a Counseal expert. We're here to help! 

If you’re in the U.S or U.K and want to invest in Nigerian properties, now is the most profitable time.

24.4 million of 216.5 million Nigerians are homeless. 80% live in homes that are in a terrible state. Housing deficit in Nigeria is presently at 28 million. There is a rising need in the sector because of the housing deficit. 

This is a gold mine for investors.

There’s more…

70% of property investments in Nigeria come from Nigerians abroad. The housing market has grown in the last 3 years. According to the NBS, real estate services GDP increased by 10.84% in the first quarter of 2022. Home-based Nigerians make up merely 30% of these services. 

In this guide, I will share 4 reasons you should invest in Nigeria’s real estate. I will cover Nigeria’s real estate tax and rate leverage, ease of control when renting or selling and the favorable  cost price. Value and steady flow of active and passive income. 

You will likewise learn about the risks you might face and what you should do to avoid them.

1. Tax Advantage

Property tax policies in Nigeria are better contrary to countries such as the United states. No state in Nigeria takes annual taxes on real estate, though just as in the United states policies differ from state to state. 

It's this simple.

You will make payment of required taxes on properties during registration of the property at the state’s deed registry. Oyo and Lagos states, for instance, collect Land use charges yearly on plots in GRAs. Yet, the fees aren’t outrageous as the property tax in the United States or United Kingdom. 

Compared to  the United States, Nigeria’s real estate tax rate makes it a fertile investment terrain. 

For instance…

The property tax rate in California sits at 0.73% but in Lagos state, the highest land use charge rate in GRAs is 0.039%. But, no state in Nigeria charges land use charges for free-hold lands.

So,  investing in Nigeria’s real estate market has abundant benefits for you.

Real Estate Investment firms in Nigeria are no longer required to pay CIT (tax imposed on profits of a company from all sources)  on rental income and dividend as long as the company distributes at least 75% of such income within 12 months.

2 . Time and Financial Control

Real estate investment in Nigeria will give you control on time.

This is how…

You get to keep your property for as long as you want. Unlike the stock market where you want to sell so you don’t run at a loss, real estate investments do not depreciate. 

The more you keep it, the more the value appreciates. 

Likewise…

You get to control the price. Interestingly, market price does not mean fixed price. So, you can sell or rent out your property at your desired price.

3. Value for your budget

You will always get a property that fits your budget either in the rural or the urban areas. And your budget’s size will not reduce the value of your real estate. 

4. Active and Passive Income

Whatever amount you invest, as long as demand for real estate is increasing, the value of your investment increases too. You will always sell higher than the price you bought your property.

5. Nigeria's Housing Market is Profitable

The rise in housing deficit has caused a boost in the market. You can make real estate your main business while abroad. A lot of  CEOs are abroad whose real estate firms are in Nigeria. These businesses are doing well and making profit with a solid arrangement. 

There's more…

You can also be sure that you will get good passive income even with your busy schedule abroad. All you need to do is to have a trusted hand. And, I will recommend that you make that trusted hand your real estate lawyer.

Risks of investing in Nigeria 

The 'Ọmọ Onile' fiasco

These are land grabbers in the South West of Nigeria. They are sometimes stronger than the state. After buying a property, they exploit buyers for money. They even seize properties from buyers, claiming their family owns the land. Lack of proper research on the history of the property gives them a room to attack the buyer.

Get a real estate lawyer to avoid this problem. The history of the property will be confirmed by your lawyer. They will also verify documents before you buy.

Know your location

Location controls the rise in value of your property. It might be cheap, you need to perform a market survey of the area to answer questions like; 

Is the area a growing one? 

Is it the location for the middle class or the rich?

For example:

You can't build a luxury duplex in Epe, Lagos state and expect to sell at the same price you will sell the luxury duplex in Banana Island, Lagos state. Epe is a freshly developing location with cheap properties, while Banana Island is a location only for the wealthy and prominent in Nigeria.

You must work with your real estate lawyer to ensure that the location is ideal for your investment and your desired returns. 

Documentation issues

Fake or partial documents can cost you your investment. 

This puts your claim in doubt. 

You can be scammed with wrong documents. It is a key process in buying property in Nigeria. 

You must verify documents from the seller to be original and complete before the purchase of any property.

In addition…

You have to know the documents you need to process to register your ownership. 

Some of these documents are C of O, Deed of Sub-lease, Deed of Assignment, Building approvals.

Delayed  liquidity 

This risk comes with the fact that selling real estate as quickly as stocks is not a sure thing. The time of selling might not allow you to meet your urgent needs.

 However, you can use your property to get a quick loan to raise money for your emergency. 

This is another reason for you to have good documents for your property. Banks will insist on genuine documents before processing any loan. 

Proper documents will add to the value of your property, which will influence the amount of loan you can get. So, your property might take long to sell, you can always keep it and still get a loan with it.

REITs are Dicey

REITs are not for you if you know nothing about the stock market. The Real Estate Investment Trusts work exactly as the stock market. 

Just like stocks, 

REITs will expose your investment to market risks and liquidity risks, among others.

You are going to trade in major stock markets that are prone to price fluctuations in money markets. As a result, you might get a lower payment than what they paid for their shares in the public exchange.

The investments in public REITs are not as liquid as stocks and bonds, though investors are allowed to sell on the public exchange market. The fund’s buy-back offers alone can  liquify. And, there is no secondary market for sale of properties.

You won’t have control over the returns of your investment, and often you can’t even sell your shares until after a few years. The best you can do is trade through a stockbroker. 

Still, your broker also doesn’t have control over how well the market does. So, delving into it without excellent knowledge is a risk you don’t need.

That's it.

Nigeria’s real estate industry has benefits for all, home and abroad. You don't have to be in Nigeria to invest in her property market. You will get the same returns and control as a home-based investor. 

Hire a real estate lawyer who will stand-in for you. Tell them clearly what you want. Don’t take documentation lightly. 

Also, avoid all the risks I have shown you in this article with the precautions. Take this article as your guide to property investment in Nigeria. 

What prevents you from investing in Nigerian properties? Share with us in the comment below.

Either you're a beginner or a seasoned pro, in this guide, you will find all the information you need to get started (or continue) investing in Nigeria's online real estate market.

How to Search for Property Investment Prospects Online

To start, you need the right keywords to use in your search. With the right keyword, there is no limit to your exploration. I recommend you use only on verified websites such as PropertyPro.ng and Jumia Deals to avoid falling victim to scammers. Going on these websites won’t —remain vigilant. 

You can detect if a website is legitimate by:

This step also helps in facilitating your decision on which aspect of real estate you would like to invest in.

Hire a Professional Online

While you can invest in the comfort of your phone, it is also important to be cautious. Hence, the need for a real estate lawyer or a real estate agent.

To talk to seasoned professionals, we recommend booking a time with Nigerian-based experts to help your search. A real estate lawyer is your foot soldier. They will offer the following services, among others:

Your lawyer or agent should always physically verify whatever you have researched online.

How to Conduct Market Research for a Nigerian Property

Now that you have narrowed down your choices and hired a professional, the next step is to research the market with your lawyer or agent.

This is to ensure that the property is well located. I’m certain you desire good returns from your investment. So, you can’t take chances on the location of the proposed real estate investment.

If you are considering rental investment; either commercial or residential, location is important. You need to check if the location is habitable and perfect for development. Check if the location is growth friendly for your investment returns. If you want to flip the properties, you need to be more strategic and consider the rate of development in the area in tandem with how soon you want to see your investment return.

You can easily view the location with Google Earth or 3D on Google Maps, but your lawyer or agent also has to visit the location in person.

We include details of the location of most property in our free Nigerian Real Estate Due Diligence report.

Verifying Documents

Verification of the title documents to a property is a crucial and indispensable step.

Location of a property determines the type of title you will possess. Location in terms of whether it is in a freehold area or Government reserved area (GRA). For GRAs, you get a Deed of Sublease/Assignment with a governor's consent. While you get a Certificate of Occupancy (C of O) for a freehold.

The deed of sublease/assignment grants a 99 years’ lease on the land after which the Government takes over. You can verify the authenticity of the documents at the Ministry of Lands and Housing of the state where they are situated. 

In some states like Oyo state, you might get a deed of conveyance for old properties. This is okay, as it is the equivalent of a C of O.

Other necessary documents are:

All titles will have to be searched for at the land registry and subsequently perfected where need be; the Governor’s consent is a major prerequisite to a perfect land title in a GRA. States like Lagos state and Oyo state have websites where you can make inquiries. 

Your lawyer should confirm from the search that the property is not a subject of any lawsuit. Book a free virtual session with a Nigeria-based lawyer that can help with this.

Determining your Source of Funding 

This is a major step in determining the aspect of real estate to invest in. It could determine how soon you get returns (profit) from the investment. 

You can also approach other mortgage banks, like FirstTrust Mortgage Bank. Some of these mortgage banks also give out mortgage loans to Nigerians in the diaspora. Before you proceed with any bank, carry out thorough research to understand the terms and conditions of the bank.

Buying your Nigerian Property Online

Next step for you after sorting out funding is to buy. Do not pay into a personal account if you are buying from a company. Be sure to pay for the company’s bank account. Your lawyer or agent should be at the company’s office or at the property location on the date of payment to ensure the company hands over all documents.

It is safe to conduct your payment transaction in a bank if you are buying from an individual. So, it is good to have a Nigerian bank account. Your Banker and your lawyer or agent will be your witnesses. Seller should hand over all documents to your lawyer in the bank the moment they or their representative confirms receipt of your payment. 

Your lawyer should send all original documents from your property to you after the purchase. You could allow your lawyer to keep copies that are needed for title perfection.

Get Property Insurance for your Nigerian Property

Most property buyers don’t understand Nigeria’s insurance schemes. Insurance helps you guard against financial risks and unplanned hazards. The following are some benefits you get:

Insurance covers you, especially in case of disasters. Some insurance firms in Nigeria are; Leadway Assurance, Jaiz Insurance, etc. You can choose by comparing the benefits. Your lawyer can also help with picking a good insurance plan for you for you. Talk to a Nigeria-based legal expert now for a free 30-min virtual session.

Managing your Nigeria Property Business online

One tool I didn’t mention from the start is on your phone. 

It is video calling. Research shows that video conferencing fosters collaboration and trust. Use this tool to monitor your property and all ancillary transactions with the help of your lawyer or agent. You can use video conferencing apps like Zoom. Even your WhatsApp or Telegram video calls will do.

Another tool is structure. It is not a physical tool, but it is important. You and your agent or lawyer must have a system for periodic reports. You need to ensure proper documentation of all information for rental investments. Your lawyer or agent should document rental fees, renters’ information, dates, etc.

You can use Google's workspace for this. It is free. You and your agent or lawyer will have access to the documents. And you will see any changes made.

Ask questions. Clarify any doubts you might have about the information you get. Ask until your mind is at peace.

If you wish to expand your investment, repeat the steps again.

Having gone through the steps to take before investing in Nigerian real estate, you can do well in Nigeria’s real estate scene. Follow this guide to invest safely and monitor your investment strictly. 

What else could stop you from investing? 

Let us in the comments below.

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