{"id":224,"date":"2023-01-02T00:00:04","date_gmt":"2023-01-02T00:00:04","guid":{"rendered":"https:\/\/kobotalk.com\/?p=224"},"modified":"2024-12-17T16:18:38","modified_gmt":"2024-12-17T16:18:38","slug":"best-investment-options-in-nigeria","status":"publish","type":"post","link":"https:\/\/kobotalk.com\/BLOG\/best-investment-options-in-nigeria\/","title":{"rendered":"Your 11 Best Investment Options In Nigeria"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 12<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><div class=\"pvc_clear\"><\/div><p id=\"pvc_stats_224\" class=\"pvc_stats all  \" data-element-id=\"224\" style=\"\"><i class=\"pvc-stats-icon medium\" aria-hidden=\"true\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" version=\"1.0\" viewBox=\"0 0 502 315\" preserveAspectRatio=\"xMidYMid meet\"><g transform=\"translate(0,332) scale(0.1,-0.1)\" fill=\"\" stroke=\"none\"><path d=\"M2394 3279 l-29 -30 -3 -207 c-2 -182 0 -211 15 -242 39 -76 157 -76 196 0 15 31 17 60 15 243 l-3 209 -33 29 c-26 23 -41 29 -80 29 -41 0 -53 -5 -78 -31z\"\/><path d=\"M3085 3251 c-45 -19 -58 -50 -96 -229 -47 -217 -49 -260 -13 -295 52 -53 146 -42 177 20 16 31 87 366 87 410 0 70 -86 122 -155 94z\"\/><path d=\"M1751 3234 c-13 -9 -29 -31 -37 -50 -12 -29 -10 -49 21 -204 19 -94 39 -189 45 -210 14 -50 54 -80 110 -80 34 0 48 6 76 34 21 21 34 44 34 59 0 14 -18 113 -40 219 -37 178 -43 195 -70 221 -36 32 -101 37 -139 11z\"\/><path d=\"M1163 3073 c-36 -7 -73 -59 -73 -102 0 -56 133 -378 171 -413 34 -32 83 -37 129 -13 70 36 67 87 -16 290 -86 209 -89 214 -129 231 -35 14 -42 15 -82 7z\"\/><path d=\"M3689 3066 c-15 -9 -33 -30 -42 -48 -48 -103 -147 -355 -147 -375 0 -98 131 -148 192 -74 13 15 57 108 97 206 80 196 84 226 37 273 -30 30 -99 39 -137 18z\"\/><path d=\"M583 2784 c-38 -19 -67 -74 -58 -113 9 -42 211 -354 242 -373 16 -10 45 -18 66 -18 51 0 107 52 107 100 0 39 -1 41 -124 234 -80 126 -108 162 -133 173 -41 17 -61 16 -100 -3z\"\/><path d=\"M4250 2784 c-14 -9 -74 -91 -133 -183 -95 -150 -107 -173 -107 -213 0 -55 33 -94 87 -104 67 -13 90 8 211 198 130 202 137 225 78 284 -27 27 -42 34 -72 34 -22 0 -50 -8 -64 -16z\"\/><path d=\"M2275 2693 c-553 -48 -1095 -270 -1585 -649 -135 -104 -459 -423 -483 -476 -23 -49 -22 -139 2 -186 73 -142 361 -457 571 -626 285 -228 642 -407 990 -497 242 -63 336 -73 660 -74 310 0 370 5 595 52 535 111 1045 392 1455 803 122 121 250 273 275 326 19 41 19 137 0 174 -41 79 -309 363 -465 492 -447 370 -946 591 -1479 653 -113 14 -422 18 -536 8z m395 -428 c171 -34 330 -124 456 -258 112 -119 167 -219 211 -378 27 -96 24 -300 -5 -401 -72 -255 -236 -447 -474 -557 -132 -62 -201 -76 -368 -76 -167 0 -236 14 -368 76 -213 98 -373 271 -451 485 -162 444 86 934 547 1084 153 49 292 57 452 25z m909 -232 c222 -123 408 -262 593 -441 76 -74 138 -139 138 -144 0 -16 -233 -242 -330 -319 -155 -123 -309 -223 -461 -299 l-81 -41 32 46 c18 26 49 83 70 128 143 306 141 649 -6 957 -25 52 -61 116 -79 142 l-34 47 45 -20 c26 -10 76 -36 113 -56z m-2057 25 c-40 -58 -105 -190 -130 -263 -110 -324 -59 -707 132 -981 25 -35 42 -64 37 -64 -19 0 -241 119 -326 174 -188 122 -406 314 -532 468 l-58 71 108 103 c185 178 428 349 672 473 66 33 121 60 123 61 2 0 -10 -19 -26 -42z\"\/><path d=\"M2375 1950 c-198 -44 -350 -190 -395 -379 -18 -76 -8 -221 19 -290 114 -284 457 -406 731 -260 98 52 188 154 231 260 27 69 37 214 19 290 -38 163 -166 304 -326 360 -67 23 -215 33 -279 19z\"\/><\/g><\/svg><\/i> <img data-recalc-dims=\"1\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"data:image\/svg+xml;base64,PHN2ZyB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciIHZpZXdCb3g9IjAgMCAxIDEiIHdpZHRoPSIxIiBoZWlnaHQ9IjEiIGRhdGEtdT0iaHR0cHMlM0ElMkYlMkZpMC53cC5jb20lMkZrb2JvdGFsay5jb20lMkZCTE9HJTJGd3AtY29udGVudCUyRnBsdWdpbnMlMkZwYWdlLXZpZXdzLWNvdW50JTJGYWpheC1sb2FkZXItMnguZ2lmJTNGcmVzaXplJTNEMTYlMjUyQzE2JTI2c3NsJTNEMSIgZGF0YS13PSIxIiBkYXRhLWg9IjEiIGRhdGEtYmlwPSIiPjwvc3ZnPg==\" data-spai=\"1\" border=0 \/><noscript data-spai=\"1\"><img data-recalc-dims=\"1\" decoding=\"async\" width=\"16\" height=\"16\" alt=\"Loading\" src=\"https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/plugins\/page-views-count\/ajax-loader-2x.gif?resize=16%2C16&ssl=1\" data-spai-egr=\"1\" border=0 \/><\/noscript><\/p><div class=\"pvc_clear\"><\/div><p><span style=\"font-size: 16px;\">What are the best investment options in Nigeria? Let&#8217;s talk about it! <\/span><span style=\"font-size: 16px;\">But first, <a href=\"https:\/\/kobotalk.com\/BLOG\/guide-to-investing\/\">why should you even\u00a0 invest?<\/a><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">It is the best way to make your money work for you. Rather than working for your money. It is also one of the easiest ways of escaping the rat race.<\/span><\/p>\r\n<p>Investing in income generating assets helps you earn passive income and when this income exceeds your monthly active income, you achieve financial freedom.<\/p>\r\n<p>Generally, there are different types of assets you can choose to invest in to help you achieve financial freedom.\u00a0 These include: paper assets, real estate and businesses.\u00a0 In this post, I am going to show you the best of these investment options in Nigeria.<\/p>\r\n\r\n<p><span style=\"font-size: 16px;\">Before I proceed with the list, please permit me to stress that this is not an investment advice and I have not been paid by any of the of providers mentioned here to write about them.\u00a0 The information I give is a product of my experience as a small investor in Nigeria.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Every investment comes with some measures of risk.\u00a0 Even those described as riskless investments like Treasuries, there is the risk of inflation that can make a mess of your returns.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">So it is important that you conduct your own due diligence before investing your money in any financial product or business.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">If possible seek the help of a professional adviser. \u00a0 This may be an accountant, a lawyer, a stockbroker, or financial adviser.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Now the Best Investment Options In Nigeria<\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">#1\u00a0 <span style=\"color: #0000ff;\"><strong>FGN Bonds<\/strong><\/span><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">Government Bonds offer the best investment options for people who seek security and safety of their money while creating enduring wealth.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The Debt Management Office issues <a href=\"https:\/\/kobotalk.com\/BLOG\/fgn-bonds\/\">FGN Bonds in Nigeria<\/a> on behalf of the Federal Government.\u00a0 The tenor of\u00a0 FGN bonds is long and range from 2 to 20 years.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The government issues the bonds to raise money to finance projects such as roads, railways, housing, power, and other infrastructures, etc.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Minimum subscription to FGN Bonds is usually NGN10,000 and multiples of NGN1,000 thereafter.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Interest is paid semi-annually until maturity date when the principal is paid. An investor who does not want to wait till maturity can sell the investment at the secondary market.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The secondary market for bonds in Nigeria is the FMDQ OTC platforms and the Nigerian Stock Exchange.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">DMO does primary auctions for FGN Bonds on a monthly basis while the secondary trading takes place on a daily basis.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">To invest in the FGN Bonds, contact your stockbroker for guidance.<\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">#2<strong>\u00a0 <span style=\"color: #0000ff;\">FGN Savings Bonds<\/span><\/strong><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">The Federal Government of Nigeria launched the FGN Savings Bonds in 2016.\u00a0 The FGN Savings Bond is a retail investment programme. Its purpose is to provide Nigerians of all income levels the opportunity of contributing to national development by lending to the government.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">It is also intended to make savings attractive to the average Nigerian.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Minimum amount you can invest is NGN5,000 and maximum \u00a0is NGN50,000,000.\u00a0 FGN Savings Bond tenor ranges from two to three years and primary auctions are conducted on monthly basis.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Like the FGN Bonds, there is a secondary market for Savings Bonds at the Nigerian Stock Exchange which means that if you don\u2019t wish to hold to maturity, you can exit by selling at the NSE.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><a href=\"https:\/\/kobotalk.com\/BLOG\/what-is-fgn-savings-bond-and-how-can-you-invest-in-it\/\">FGN Savings Bonds<\/a> is one of the best investment options for low income earners who want to build wealth over time with a good measure of safety and by earning reasonable returns on their investments.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Interest payable ranges from 11 to 13% which is far above what you can get from a regular savings account in a commercial bank in Nigeria.\u00a0\u00a0 This is tax-free and the bonds can be used as collateral to obtain loans from the banks. <br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Want to invest? Contact your stockbroker.<\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">#3<strong>\u00a0 <span style=\"color: #0000ff;\">Treasury Bills<\/span><\/strong><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">One of the best investment options, Treasury Bills are short dated instruments issued by the government through the Central Bank to control money supply as well as provide short term funding for the government.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">In Nigeria the CBN auctions Treasury Bills bi-weekly in tenors of 91 days, 182 days and 364 days. There is also a secondary market for this security existing in the money market.\u00a0 The money market comprises of the banks and other financial institutions dealing in short term instruments..<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Treasury Bills are the most liquid and safest investment instruments you can find in the money market.\u00a0 They offer guaranteed returned and are risk-free because they are backed by the full guarantee of the Federal Government.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><strong>How does it work<\/strong>?<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">A Treasury Bill has a face value which is the actual amount the bill is worth at maturity.\u00a0 However, the bills are usually sold for less than their face value.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">For example, if you buy a Treasury Bill for NGN100,000, you may pay NGN90,000.\u00a0 On maturity of the investment, you will receive NGN100,000, meaning you have earned a NGN10,000 interest on your investment or\u00a0 a 10% return.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The unique thing about TBs is that you earn your interest up front which effectively increases its true yield.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The interest you earn on Treasury Bill is called the stop rate and this is determined by the Central Bank of Nigeria on every auction day.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The CBN determined the stop rate by selecting the bids that fall below the marginal rate.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><strong><em>Wondering how you can invest<\/em><\/strong>?<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">It is very easy to enjoy this investment opportunity in Nigeria.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Simply work into your bank and collect the necessary forms.\u00a0 The rest of the whole process is easy as your bank will guide you through the process.\u00a0 You can also approach your stockbroker .<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Before March 6 2017 you didn\u2019t really need so much money to invest in Treasury Bill.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">They were sold in units of N1,000 and in multiple of N1,000 thereafter at the primary auction,\u00a0 though banks usually would prefer to sell in units of N100,000 and in same multiples thereafter.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">However, from March 6, 2017, the CBN increased minimum subscription to NGN50 million.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">This effectively pushed retail investors away from accessing the TB primary market and leaving that segment to the banks, stockbroking houses, other institutional investors and high networth individuals.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">But the secondary market still provides a window for retail investors.\u00a0 The secondary market is where investors who bought from the primary auction resell to enhance liquidity.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">This segment of the market is now active as it has seen a lot of institutional investors accessing it for liquidity management.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Your bank or stockbroker will guide you if you want to buy Treasury Bills from the secondary market.\u00a0\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">What you may find is that minimum investment requirement may differ and \u00a0the rates could be lower with a lower maturity date. Most investment houses will require a NGN200,000 minimum investment on their Treasury Bills products.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Treasury Bills remain an easy way to grow your income.\u00a0 It is safe and secure.\u00a0 It is a guaranteed way of letting the money you have work for you with peace of mind.<\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">#4\u00a0 <span style=\"color: #0000ff;\"><strong>Commercial Paper (CP)<\/strong><\/span><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">With the establishment of the FMDQ OTC platform in November 2013 the Commercial Paper market in Nigeria became active again after a long period of lull. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Commercial papers are short dated money market instrument issued by corporate organizations to borrow money from the investing community to finance working capital needs.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Commercial paper is more or less a promissory note and approximates Treasury Bill in the sense that: <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><em>its is a short term instrument with a minimum tenor of 15 days and a maximum tenor of 270 days (two weeks &#8211; 9 months);<\/em> <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><em>it is discounted, meaning that investors receive their interest upfront.<\/em><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">However, commercial papers offer higher returns than Treasury Bills perhaps because they are riskier as they are issued by private sector organizations unlike Treasury Bills that are issued by the government and has the full backing of the state.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">But commercial papers are also safe because they are issued by companies that have sound credit rating, good reputation, companies that are profitable and have good record of corporate governance practices. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">To give an assurance of security, the issuing company may get the bank to guaranty the CP. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Once a bank guarantees a CP, the commercial paper, becomes a Banker&#8217;s Acceptance. What this means is that if the issuer fails to honor its promise to pay on due date, the bank pays.<br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Some of the companies that are active in the commercial paper market in Nigeria include: Nigerian Breweries, Guinness Nigeria Plc, UPDC, UBA, Access Bank, Skye Bank, Ecobank, amongst others.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Interest payable on commercial paper usually vary. A review of previous issues and those trading on the FMDQ OTC shows rates between 15% and 25% per annum.<\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\"><strong>Who Can Invest in Commercial Papers<\/strong><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">According to the guidelines, only Accredited Investors can invest in Commercial Papers. Hold on, don&#8217;t run yet.\u00a0 For yo to be reading this post you are qualified to be an accredited investor.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">An accredited investor is any person or institution who has the knowledge to understand the risk associated with investing in an unregistered security like a CP. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">There are two classes of AIs, the Qualified Institutional Investor (QII) and the Eligible Individual Investor (EII).\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">An EII is any individual who has an aggregate net asset of N2 million or whose aggregate family earnings (you and your spouse) is up to N500,000 annually.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><strong>How to Invest in CP<\/strong><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">To invest in Commercial Paper, walk into your bank and tell them you are interested in investing in CP&#8217;s.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">You will be given a list of CP&#8217;s in the market, the minimum subscription of each issue, the interest rate and tenor.\u00a0 Take your decision and proceed to fill the necessary papers.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><strong><em>Also Read: <a href=\"https:\/\/kobotalk.com\/BLOG\/earn-high-returns-by-investing-in-corporate-bonds-in-nigeria\/\">Earn High Returns By Investing In Corporate Bonds in Nigeria<\/a><\/em><\/strong><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Commercial paper is attractive and is easily embraced by investors because it offers higher return than most money market instrument.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">It has an active secondary market. It is very liquid and provides you with a profitable window to diversify your portfolio and spread your risk.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">If you do not want to hold to maturity, you can easily exit by trading the instrument on the FMDQ platform.<\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">#5<strong>\u00a0 <span style=\"color: #0000ff;\">Mutual Funds<\/span><\/strong><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">This is one of the best investment options in Nigeria. However very few seem to understand it.\u00a0 <br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">In 2014, of about 46 mutual funds offered by 23 fund managers and approved by the Securities and Exchange Commission (SEC), there were less than 250,000 unit holders. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Compared this to the United States market, where about 38 percent of households invest in mutual funds. In Brazil, about 10 million people invest in mutual funds.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><strong>What then is a <a href=\"https:\/\/kobotalk.com\/BLOG\/how-you-can-make-money-by-investing-in-mutual-funds\/\">Mutual Fund<\/a>?<\/strong><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Mutual Fund is certainly one of the best investment options in Nigeria for retail investors and any one with limited knowledge of the stock market and not having the heart to bear the level of risk associated with investing in the stock market. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">It is a collective investment scheme under the management of a professional fund manager.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Mutual funds invests in different instruments such as stocks, treasury bills, bonds, real estates and such other assets in line with defined investment strategies.<br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Profits made are distributed as dividend to unit holders.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">If you are a beginner investor or you are one who is averse to risk or do not understand how to navigate the murky waters of financial market, mutual fund may just be what you need.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><strong>How to invest <\/strong><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">There are more than 50 investment firms in Nigeria operating as mutual funds.\u00a0 Some are strictly equities; others are money market focused while a good number of them operate mixed funds.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">There are funds that appeal to ethical and religious beliefs, in case you are such a selective investor.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The most popular companies with the most thriving funds include Stanbic IBTC, ARM, FSDH, Afrinvest, UBA group and FBN Capital, amongst others.\u00a0 You can contact these companies and discuss your investment choices.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">These funds have reported Net Asset Value of over between 15 and 20%\u00a0 while some others have even beat the broad market in the past. For more information on approved funds, visit the SEC website.<\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">#6<strong>\u00a0 <span style=\"color: #0000ff;\">Gold<\/span><\/strong><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">Gold is making my list of best investment options in Nigeria. It is golden to invest in Gold. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Gold is one commodity whose intrinsic value never falls. A 15 carat gold today will still be 15 carat in 20 years time. But the worth may have increased ten thousand fold over that period.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">It is a store of value.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Many ways you can invest in gold include buying gold jewelries and storing for a period of time.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Or buy gold plated items, wait a while and then offload at a higher price.<br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Abuja, Kano and even Lagos are some of the places you can buy gold jewelries and plated items.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The returns can be amazing. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Other gold commodities include bars, coin and bullion.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">To be able to trade in gold products<a href=\"https:\/\/kobotalk.com\/BLOG\/6-reasons-you-should-have-gold-in-your-investment-portfolio\/\" target=\"_blank\" rel=\"noopener noreferrer\">,<\/a> you must first learn a few trick like how it is measured, weighed and valued. You must also know where to source and identify original gold.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">With less than NGN200,000 (as at the time of writing) you can start investing in gold. However, if you do not have the time to source for the products or you want to remove the risk of buying fake products from your shoulders, you may consider investing with gold based \u00a0network marketing companies. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">I have seen people make 2 times their investment over a period as short as 90 days working with these companies. \u00a0I have seen people who became millionaires using this model. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">But before you join any of such companies, you must do your due diligence, ascertain its credibility and understand its systems and policies.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Another way of <a href=\"https:\/\/kobotalk.com\/BLOG\/6-reasons-you-should-have-gold-in-your-investment-portfolio\/\" target=\"_blank\" rel=\"noopener noreferrer\">investing in Gold<\/a> is to trade in its derivative.\u00a0 I however, do not recommend this model if you are not financially savvy.\u00a0 It is highly volatile and you can burn your fingers if you do not do things right. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">If properly done, you will make more money trading gold derivatives than you will ever make trading in foreign currency.<\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">#7<strong>\u00a0 <span style=\"color: #0000ff;\">Stocks<\/span><\/strong><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">Many will wonder why stocks is making my list of best investment options in Nigeria. Afterall, many Nigerians are yet to forget the shock of 2008. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">This was when the market crashed and so many people lost money.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">But the fact remains that stocks remains a strong vehicle for people who desire to build long term wealth.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">If carefully done, investing in equities can offer incredible return.\u00a0 Returns on investment is in three folds.\u00a0 These are capital appreciation, dividend payment and bonuses.<br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Research supports the assertion the only investment that beats equities over a long period of time is real estate. <br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">However, you don\u2019t need as much capital outlay to invest in stocks as you will need for real estate. Most importantly, stocks are more liquid and come very handy in times of emergency.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The secret is to develop a winning system.\u00a0 Conduct your research very well and do not speculate. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Invest in quality stocks with sound fundamentals and pay attention to market\u00a0 developments. <br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Of equal importance also is to carefully <a href=\"https:\/\/kobotalk.com\/BLOG\/stockbroker-in-nigeria\/\">choose a stockbroker<\/a> and other investment professionals to work it because to some extent your success or otherwise depends on the quality of the stock broker you use.<\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">#8<strong>\u00a0 <span style=\"color: #0000ff;\">Real Estates<\/span> <br \/><\/strong><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">Real Estates will always be one of the best investment options in Nigeria. You can make a lot of money by investing in real estates.\u00a0 If you say it requires huge capital to play in the property market, you are right.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">However, I have discovered that there are places for different income group to make money in real estates.\u00a0 \u00a0\u00a0With as little as N500,000, you can buy a piece of land in an area that has potential to develop. Hold it for a while and thereafter sale when demand for property in the area rises. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">You can also use the piece of land for open space rental.\u00a0 This will guarantee you steady cashflow over time.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">You will need to be careful so that you do not deal with crooks \u2013 there are so many of them.\u00a0 Develop relationships with property lawyers and land owners\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">It may also pay to relate well with the charlatans that call themselves sons of the soils (or <em>omoniles<\/em>).\u00a0 You truly cannot avoid them!<br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Also<a href=\"https:\/\/kobotalk.com\/BLOG\/get-rich-in-real-estate\/\"> Read 10 Sure Ways to Get Rich In Real Estates With Small Money<\/a><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">If you have the resources you can invest in already developed properties like apartment houses and hostels.\u00a0\u00a0 It is possible to get mortgage financing to purchase investment properties.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Real estate investment may not be as liquid as other investment discussed here.\u00a0 But one thing is sure, investing in real estates provides you with cash flow over a long period of time. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Besides, prices of properties will always appreciate.\u00a0 <\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">#9<strong><span style=\"color: #000025;\">\u00a0 Digital Farm Crowd Funding Platforms<\/span><\/strong><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">You may not know it, new set of millionaires are emerging in Nigeria from farming.\u00a0 The trend will continue as government at all levels continue to drive agriculture as a way of diversifying the economy. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Farming will continue to be viable in Nigeria because of its huge population and the growing number of industries.\u00a0 <br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Sub-sectors that are open to investment include produce farming such as rice, cassava and plantain. Other crops include\u00a0 beans, maize and pineapple, etc; <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Livestock production such as poultry, pig and snail; fish farming as well as <a href=\"https:\/\/kobotalk.com\/BLOG\/how-to-start-and-make-money-with-vegetable-farm\/\">vegetable farming<\/a> or horticulture are also viable.<br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"><strong>Also Read<\/strong>:<a href=\"https:\/\/kobotalk.com\/BLOG\/watermelon-farming\/\" target=\"_blank\" rel=\"noopener noreferrer\"> How to Make Money With Water Melon Farming<\/a><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">But I hate farming, yet\u00a0 I want to make money from it.<br \/><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\"> It is possible!<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Simply invest in digital crowd farm funding platforms.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Digital farm funding platforms are relatively new in Nigeria and is part of the technology disruptions in agriculture.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">These platforms provide a bridge between farmers and investors.\u00a0 The organisations provide a digital platform where people who have the resources go and put their money down to help fund small holder farmers who do don&#8217;t have access to regular banks to fund their farm projects.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Funding farm projects through these platforms can earn returns as much as 40% depending on what you are funding.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">The money you invest is used to sponsor various kinds of agricultural projects or different stages in a particular project.\u00a0 This may include: land acquisition, cultivation, planting, harvesting and marketing of\u00a0 the products. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">You get an agreed return on your investment periodically, say quarterly, half yearly or annually.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">On maturity, you have the option of exiting with your principal or reinvesting for the next farming round. <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">One of the platforms you can explore to invest in lucrative farm projects in Nigeria is farmcrowdy. Sponsor a farm project with minimal amount and earn up to 25% returns on your investment.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Using the farmcrowdy app may turn out to be your best investment options in Nigeria.\u00a0 Explore it.\u00a0 In this other post, we explore this in detail and listed <a href=\"https:\/\/kobotalk.com\/BLOG\/agricultural-investment-platforms\/\" target=\"_blank\" rel=\"noopener noreferrer\">20 agricultural investment platforms making ordinary folks rich<\/a>.\u00a0 Check it out\u00a0<br \/><\/span><\/p>\r\n<h3><span style=\"font-size: 16px;\">10. \u00a0<strong>Digital Savings and Investment Platforms<\/strong><\/span><\/h3>\r\n<p><span style=\"font-size: 16px;\">This is another new area of disruption in financial services that is growing in importance in Nigeria.\u00a0 We covered it in another post <a href=\"https:\/\/kobotalk.com\/BLOG\/savings-and-investment-platforms-in-nigeria\/\" target=\"_blank\" rel=\"noopener noreferrer\">12 top savings and investment platforms in Nigeria<\/a>. Explore it to find out more.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">These organizations provide digital platforms in form of web portals and apps through which users can easily automate savings and investment to earn high ROI.\u00a0 They offer\u00a0 better returns than your\u00a0 \u00a0regular bank savings and this account for their growing attractiveness as one of the best investment options in Nigeria.<\/span><\/p>\r\n<h3>11. Bankers Acceptance<\/h3>\r\n<p>Not many retail investors know about BA as an investment instruments. Part of the reason is that economic downturn and tougher regulations impact on the use of this debt instrument.\u00a0<\/p>\r\n<p>Banker&#8217;s Acceptance a short term instrument the bank issues to guarantee the credit of a borrower.\u00a0 However, it remains a profitable investment instrument worth exploring. It is an instrument that a Bank uses to raise money from its customers on behalf its top rated or prime borrowers.\u00a0\u00a0<\/p>\r\n<p>A banker acceptance is like a CP (Commercial Paper).\u00a0 However, while a BA carries the guarantee of the Bank, a CP doesn&#8217;t.\u00a0 Therefore, a CP is a riskier instrument compared to a BA.<\/p>\r\n<p><strong>How it Works<\/strong><\/p>\r\n<p>A bank borrowing customer wishes to fund a project and approaches his bank for funding.\u00a0 The regular bank lending window is expensive, so customer opts for the option of borrowing the money from a group of the bank other customers; those looking for high yield on their funds.<\/p>\r\n<p>The bank raises the money from a couple of its customers at a rate usually higher than what a regular bank fixed deposit offers.\u00a0 The bank guarantees the credit, meaning that if the borrower fails to pay or perform in line with the terms of the credit, the bank pays the investor.<\/p>\r\n<p>The instrument, the bank uses to raise the money is Banker&#8217;s Acceptance.\u00a0 The instrument is issued for a tenure between 30 and 180 days.<\/p>\r\n<p>BA is negotiable. What this means is that the holder can trade it at a discount if he doesn&#8217;t wish to hold to maturity.\u00a0 The investor who holds it to maturit receives the face value.<\/p>\r\n<p><span style=\"font-size: 16px;\"><strong>In Conclusion<\/strong><\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">That\u2019s it.\u00a0 <\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">My <b>Best Investment Options In Nigeria<\/b> for people who want to make money and still sleep with their eyes closed. \u00a0 \u00a0<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">These investment opportunities in Nigeria will continue to be money spinners.\u00a0 This is based on my readings of the economy and the policy framework of the government. \u00a0<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">Make your life better by investing wisely and profitably and if you require assistance, feel free to consult with me.<\/span><\/p>\r\n<p><span style=\"font-size: 16px;\">This is to your success.<\/span><\/p>\r\n<p><\/p>\r\n<p><\/p>","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 12<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>What are the best investment options in Nigeria? Let&#8217;s talk about it! But first, why should you even\u00a0 invest? It is the best way to make your money work for you. Rather than working for your money. It is also&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1048,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"_joinchat":[],"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[5],"tags":[23,43,22,31],"class_list":["post-224","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing","tag-investment","tag-nigeria","tag-real-estate","tag-stocks"],"a3_pvc":{"activated":true,"total_views":937,"today_views":0},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.5 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Your 11 Best Investment Options In Nigeria - KOBOTALK BLOG<\/title>\n<meta name=\"description\" content=\"If you are desirous of making mone in Nigeria and do so with the peace of mind, your best investment options in Nigeria are explained in this post\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/kobotalk.com\/BLOG\/best-investment-options-in-nigeria\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Your 11 Best Investment Options In Nigeria - KOBOTALK BLOG\" \/>\n<meta property=\"og:description\" content=\"If you are desirous of making mone in Nigeria and do so with the peace of mind, your best investment options in Nigeria are explained in this post\" \/>\n<meta property=\"og:url\" content=\"https:\/\/kobotalk.com\/BLOG\/best-investment-options-in-nigeria\/\" \/>\n<meta property=\"og:site_name\" content=\"KOBOTALK BLOG\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/web.facebook.com\/kobotalkng\/\" \/>\n<meta property=\"article:published_time\" content=\"2023-01-02T00:00:04+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-12-17T16:18:38+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/kobotalk.com\/BLOG\/wp-content\/uploads\/2019\/05\/invest-in-nigeria-e1657262374209.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"600\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Buchi\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Buchi\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"16 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Your 11 Best Investment Options In Nigeria - 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He provides strategic advisory to help SME's, small business owners and HNI's grow profitable business and make informed investing decisions.","url":"https:\/\/kobotalk.com\/BLOG\/author\/kobo20\/"}]}},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2019\/05\/invest-in-nigeria-e1657262374209.jpg?fit=600%2C400&ssl=1","jetpack-related-posts":[{"id":3131,"url":"https:\/\/kobotalk.com\/BLOG\/mutual-funds-in-nigeria-the-12-best-you-can-buy-now\/","url_meta":{"origin":224,"position":0},"title":"Mutual Fund In Nigeria &#8211; The 12 Best You Can Buy Now","author":"Buchi","date":"April 23, 2021","format":false,"excerpt":"Mutual fund is a collective investment scheme which allows investors to invest in a professionally managed diversified asset portfolio.\u00a0 This diversified portfolio may ranges from stocks, bonds, treasury bills, real estate, etc. under the guidance of a professional manager. Mutual fund in Nigeria is growing rapidly.\u00a0 Very suitable for retail\u2026","rel":"","context":"In &quot;Investing&quot;","block_context":{"text":"Investing","link":"https:\/\/kobotalk.com\/BLOG\/category\/investing\/"},"img":{"alt_text":"dividend paying stocks","src":"https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2018\/12\/growth.jpg?fit=1200%2C582&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2018\/12\/growth.jpg?fit=1200%2C582&ssl=1&resize=350%2C200 1x, https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2018\/12\/growth.jpg?fit=1200%2C582&ssl=1&resize=525%2C300 1.5x, https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2018\/12\/growth.jpg?fit=1200%2C582&ssl=1&resize=700%2C400 2x, https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2018\/12\/growth.jpg?fit=1200%2C582&ssl=1&resize=1050%2C600 3x"},"classes":[]},{"id":243,"url":"https:\/\/kobotalk.com\/BLOG\/how-you-can-make-money-by-investing-in-mutual-funds\/","url_meta":{"origin":224,"position":1},"title":"How You Can Make Money by Investing In Mutual Funds","author":"Buchi","date":"January 1, 2018","format":false,"excerpt":"If there is one simple, easy and less complicated way of investing in the financial markets, it is through Mutual funds. It gives just everybody the opportunity to invest even without the sophisticated knowledge that the financial markets demand. It is also one of the most effective ways one can\u2026","rel":"","context":"In &quot;Investing&quot;","block_context":{"text":"Investing","link":"https:\/\/kobotalk.com\/BLOG\/category\/investing\/"},"img":{"alt_text":"","src":"https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2018\/01\/mutual-funds.jpg?fit=1024%2C512&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2018\/01\/mutual-funds.jpg?fit=1024%2C512&ssl=1&resize=350%2C200 1x, https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2018\/01\/mutual-funds.jpg?fit=1024%2C512&ssl=1&resize=525%2C300 1.5x, https:\/\/cdn.shortpixel.ai\/spai\/q_lossy+ret_img+to_webp\/i0.wp.com\/kobotalk.com\/BLOG\/wp-content\/uploads\/2018\/01\/mutual-funds.jpg?fit=1024%2C512&ssl=1&resize=700%2C400 2x"},"classes":[]},{"id":2405,"url":"https:\/\/kobotalk.com\/BLOG\/guide-to-investing\/","url_meta":{"origin":224,"position":2},"title":"A Guide to Investing: An Ultimate Read for the Beginner","author":"Buchi","date":"July 18, 2020","format":false,"excerpt":"If you are reading this article,\u00a0 it's most likely that you want to start investing.\u00a0 That's a great decision to make.\u00a0 Your challenge probably is you don't know how to start; right?\u00a0 In this Ultimate Beginner\u2019s Guide to Investing, you'll learn how to. 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