Investment: Different Options To Invest In Nigeria

Investment: Different Options To Invest In Nigeria

Investment is one of the ways to build capital over a long time. One of the things that makes the affluent class wealthy is their investment. There are many ways to invest in Nigeria. These methods are very well-known to people. However, people fear the risk associated with it. 

Most times, starting may present a lot of risks. Despite this, investment comes with a long-term reward. In this article, we will be discussing the various mediums available to invest in Nigeria.

Investment Options In Nigeria

Here are some investment options in Nigeria:

Investment In Agriculture

Agriculture is one of the backbones of the Nigerian economy. Nearly all of the products consumed by Nigerians emanate from the farm. Investing in Farm produce can generate a lot of funds for you. You can also invest in livestock such as cattle, poultry and pigs. These are options that have generated millions for people. 

These agriculture investments might require you to do some market research. You also need to keep in mind that crops come in seasons. For example, during the rainy season, you can invest your resources in planting maize and cassava. 

Real Estate

Real Estate is one of the most powerful investments in Nigeria. This business does not possess much risk. 

However, it requires a huge amount of money to start. The Real Estate business is thriving in Nigeria. This is due to the amount of houses needed on a daily. You do not need to build a house before you start real estate. 

All you need to do is to purchase land or landed property. Then, hold the property for a while. After some time, you can sell it when the value rises. 

Another idea you can do is to use the property for rentals. You can let it out for some amount of money for party or celebration purposes. Real Estate is an evergreen business that will always be appreciated. 

Investing in real estate can generate income for you in years. Popular figures like Terry Waya and Reekado Banks are currently in this business and are making big figures off it.

Treasury Bills

These are short-term instruments issued by the government. They are used to control the supply and movement of money. Treasury Bills also act as a medium for the government to get funds. 

The Treasury Bill usually comes with a face value which shows the real worth of an amount. This means that if a Treasury Bill is worth N70,000. You can purchase it for N60,000.

 Therefore, you get a N10,000 or 10% reward on your investment. The interest you earn on Treasury Bills is usually called the stop rate. In Nigeria, only the Apex bank, the Central Bank of Nigeria influence the stop rate or interest rate.

Mutual Funds

Mutual Funds are one of the safest investments in Nigeria. It is designed for those who have very little knowledge of the stock market. This investment is a collective investment scheme by a professional fund manager.

Mutual funds usually invest in different investment opportunities with a clear strategy made known to the investors. Then, when there is profit, it would be shared among investors. 

In Nigeria, many firms operate as mutual funds. The most popular banks operate as mutual funds. 

Some of them include Stanbic Bank Plc, United Bank of Africa and Afrinvest. All you need do is to walk down to these companies and make inquiries. Talk to them about your investment choices.

Gold

Gold provides another medium where you can invest. This is a type of commodity that never reduces in value. This means that a value of 70-carat gold would still be the same value in 10 years. 

One way you can do this is by purchasing gold ornaments in bulk. In Nigeria, you can buy these items at Lagos, Abuja and Ibadan.

Store the gold after purchasing it. Do well to keep in mind that these gold always have value. Some accord value according to their quantity, while others to the design. It is advised you buy these items in large quantities to stand a chance of selling them at a valuable price.

Federal Government Bonds

A bond is a loan instrument that allows people to obtain funds. This platform offers a safe way for people to save money in Nigeria. It is also very secure. 

Bonds can range from 24 months to 2 years. The government usually gives the bond out to finance projects. These projects may include roads, houses and water supply.

Interest on this kind of investment is paid twice yearly. However, if you have an existing bond you can sell the account at the secondary market. 

You can sell this investment at the Nigerian Exchange Group (NXG). If you are interested in the Federal Government Bonds, do well to discuss with your stock broker.

Stocks

Stocks are shared in large portions, they represent a good source of a company’s wealth.

 It represents a company worth in the Nigeria Exchange Group (NXG). Stocks are liquid. This means they can be used to pay off short-term debts.

 Also, they can be withdrawn at any time.  Stocks often fluctuate. So, do well to do thorough research before investing in any stock. The beauty of this is that you do not need a large amount of money to start this business.

Cryptocurrency Investment 

Cryptocurrency investment is the holding of crypto for a long time. Crypto is one of the thriving businesses in Nigeria. Although, it comes with a relative good percentage of risk. It is very vital to do some research before investing in this platform. 

There are several cryptocurrencies to invest in. Some prefer investing in smaller coins while some prefer the top coins like Bitcoin and Ethereum. To do this, you need to follow the trend on the various wallets before making a decision.

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