There are several investment opportunities for beginners in Nigeria. Investing your money is a great way to earn passive income in Nigeria. In investing, you let your money work for you.
There are many investment vehicles with different investment duration and return on investment. The most successful investors are those that think and invest for the long term.
As an investment novice with no to little experience, I have compiled a list of investment opportunities for you in Nigeria.
8 Investment Opportunities in Nigeria
1. Buy Dollar and Keep
This may sound like an absurd investment idea, but trust me, it’s one of the best investment opportunities in Nigeria. The Nigeria Naira is highly unstable, losing its value every day. Keeping or saving in dollar will help you preserve its value. It will also help you hedge against inflation.
Nigeria is highly dependent on the oil and gas sector. Which is the principal source of revenue for the country. Since the fall of the price of crude oil, the Naira has also continued to lose its value. This free-fall is expected to continue as the world move towards a renewable energy source.
You can also buy other stable foreign currency like the Pound and Euros. The Bureau De Change is always a great place to exchange your FX for Naira whenever you need your money back.
2. Investing in International ETF Stocks
Another investment opportunity in Nigeria for beginners is to invest in the international stock market. Foreign stock markets like the US, Australia, and the UK, are more stable and regulated than the Nigeria Stock Exchange.
As a baby investor, you can start investing in the stock market by investing in ETFs. ETF stands for exchange-traded funds. They are a combination of different stocks with a common picking goal.
ETF is a low-cost way of diversifying your stock portfolio. For example, the S&P Vanguard (an ETF) tracks the largest 500 companies in the US, so buying one unit is like buying the stock of the 500 companies.
ETF is a decent way to start investing in the stock market with little money and less risk.
3. Invest in Cryptocurrency
Before you start investing in cryptocurrency, I need to warn you:
Cryptocurrency is a highly volatile space, and therefore it’s considered a high-risk investment.
Do not put any money you are not willing to lose into it.
Now that’s clear, investing in cryptocurrency is a great way to make your money work for you. Although the market is highly volatile, therefore you need to be careful when investing.
As a newbie, it is advisable to only invest in Bitcoin because it’s more stable than all the smaller coin in the crypto space. To hedge against the frequent price movement, you can consider using the Dollar-cost average. The Dollar Cost Average is a method where you buy an amount of coin either weekly, monthly, or quarterly, no matter its price.
You can easily double your investment in a year if you get your strategy right.
4. Invest in Mutual Funds
Another investment opportunity in Nigeria is to invest in Mutual Fund. Investing in Mutual Funds is one of the best investment opportunities for beginners in Nigeria.
The mutual fund is a collective investment scheme under the management of a professional fund manager. They invest in different investment instruments like treasury bill, stocks, real estate, and other assets in line with defined investment strategies. The profits from these investments are distributed as dividends to unit-holders.
It is one of the best investment options for newbies.
POPULAR MUTUAL FUND FIRMS IN NIGERIA
There are a couple of investment firms that you can invest in within Nigeria. Below are some of the best-performing ones in 2020
- Stanbic IBTC Aggressive Fund
- Stanbic IBTC Nigerian Equity Fund
- Vetiva’s New Gold ETF
- FBNQuest Nigeria Smart Beta Equity Fund
- Vantage Balanced Fund
- Vantage Dollar Fund
- Legacy USD Bond Fund
- VI ETF
- Coronation Fixed Income Fund
- United Capital Euro Bond Fund
5. Invest in Land
Buying lands is another way to invest your money in Nigeria. Lands will always appreciate in price. It’s no coincidence that Bill Gate is the largest farmland owner in the USA.
There are many ways to make profits when it comes to investing in lands. You can always sell your lands at a higher price, lease out the land for farming or other purposes, or use it for building projects.
You can never be at a loss when it comes to investing in lands.
Although, it is a lovely investment plan. The ability to identify a good location and avoid land scam are two topmost skills that are required in investing in lands.
6. Invest in Real Estate
Real estate is another investment opportunity in Nigeria. Real estate is a good investment idea because you can get a sizable yearly return on your investment, which you can re-invest into other investment opportunities.
There are different ways to invest in real estate, but the most popular one is to build houses, halls and gardens for rent.
Investing in real estate is not just a way to become rich. It’s one of the ways to create inter-generational wealth.
7. Treasury Bill
Treasury Bill is another good investment option for beginners in the world of investing. The Treasury bills are short dated instruments issued by the government through the central bank to raise funds for the government and control the money supply in the country.
T-Bills is one of the safest investment options in Nigeria. Your investment returns are guaranteed and are risk-free because they are backed by the federal government.
Due to the current high inflation rate in the country, I will advise you to consider other investment options to put your money instead.
8. Invest With Mobile Apps
Another way investment opportunity in Nigeria is to invest with saving Apps. There are mobile apps that are called “savings apps”, that is because they help people to save their money and build a saving culture.
Many of these Apps also offer an investment option. They invest your money on your behalf and give a guaranteed return on investment after the investment tenor, which can be 3 months to 2 years.
Some of the mobile Apps to Invests in are:
Warren “god of investing” Buffett said:
“If you don’t find a way to make money while you sleep, you will work until you die.”
Investing in any of the above-listed investment opportunities will help you make money when you sleep. We all have our own risk tolerance level and make sure you invest according to your own risk level.
Which other investment opportunities for beginners in Nigeria do you know? Do well to share with me in the comment box.