A Complete Guide to Investing in Nigeria in 2020
Investing in Nigeria to many especially the common man might seem like a tall dream which is only reserved for the rich and mighty in the society, while some other when it comes to investment believes that nothing good comes out of it as they easily link it to Ponzi schemes like the popular MMM Ponzi scheme which saw many people make money at the expense of others while some saw their hard-earned cash run down the drain.
No denial investments are no child’s play as it involves several risks, however, there is no business without risk. Each business no matter how simple and easy it might seem comes with various risk as they are determined by various market forces that must be fully understood as they vary before you venture into them.
The fear associated with investment has made it a no-go area for many however the truth is that there are immense and great benefits that come with investments anywhere in the world.
Many of the world’s richest figures to have ever graced the pages of the Forbes list have one investment or the other which they are leveraging to acquire more wealth and also create new streams of income.
There are many diverse ways and methods to invest in Nigeria, the question many ask when it comes to investment in Nigeria is usually centered on is it possible to invest in Nigeria with small money?, are there any opportunities for individuals who do not have many financial wits to invest in Nigeria and make good returns, can a poor man invest? These are the several questions which this article seeks to answer.
Against the notion and popular belief that investment in Nigeria is an all special function of the wealthy and rich in the country. the truth and stark reality is that anybody can do investment or anybody can invest in Nigeria regardless of how much he or she makes or earns. The truth about investment in Nigeria or in any part of the world is that the earlier you start investing, the better.
What makes the difference in investment is the power of compound interest. Investing is like planting a seed into the ground, the seed planted has the potency to grow into a very big tree and from there it germinates into something big through its seeds.
It is like planting a tiny mango seed which after a while of due diligence nurturing grows and bears fruits.
By definition, according to Farlex Financial Dictionary; investment is the act of placing capital into a project or business with the intent of making a profit on the initial placing of capital.
An investment may involve the extension of a loan or line of credit, which entitles one to repayment with interest, or it may involve buying an ownership stake in a business, with the hope that the business will become profitable. Investing may also involve buying a particular asset with the intent to resell it later for a higher price.
If there is any time to invest in Nigeria, the time has never been right as there are many gaps that have been created with the outbreak of the novel virus Covid-19. The nation is currently facing a huge financial crisis as the federal government of Nigeria is doing all it can to stabilize the economy. The dependence on oil as the mainstream of the economy has been shattered as it was made evident during the thick of the onslaught of the covid-19 pandemic globally which did not exempt Nigeria.
The nation’s reserve fell as a result of the reduction in oil prices across the federation. The lockdown effect which saw to the closure of many businesses both small and medium-scale enterprises as well as the loss of jobs which was a result of the closure of business enterprise which increased greatly the rate of unemployment in the nation.
All these among many other factors left a need for a dire intervention from the nation’s economic team to save what is left of the nation’s economy. Adding to the prediction of the World Bank is predicting that the nation Nigeria may face its biggest recession in 40 years left the federal government with the need to step in and create a viable economic plan.
While many might want to play safe with these various harsh and hurting realities, it must be realized that the nation Nigeria is in a time of rebuilding, and this time around as it has been made obvious. The Muhammadu Buhari led administration has not shied away from taking bold steps to ensuring a safe economic recovery for the nation. This can be seen in its removal of subsidy, hike in fuel price, and the electricity tariff.
The federal government of Nigeria has stated it will be putting in place certain strategic economic reforms in the nation, this opens a window for its populace to key into this and invests in various sectors of the Nigerian economy as well as on the global scale. There are certainly important and benefits that come with investment
5 Reasons Why You Should Invest.
- Grow your money– this is one of the most important and major benefits that come with investing your money. When you make a wise investment it enables you to grow it as you expect a large return from it. The growth and the success of the investment you do only implies one thing, a replenished income. So instead of allowing your money to lie fallow you in the bank, you can actually do something wise with it which is to invest it
- Save for the future– investment allows you to prepare for the future by saving up for it. When you engage in long term investment instead of keeping the money in the bank, you get to have a double of what you saved or what you used in starting the investment deal. It is also often said that bigger risk increases your chances of earning greater wealth. Nonetheless, becoming more conventional with investment as you grow older is wise.
- Start and expand a business– investing is an integral part of business starting and growth. This is because when investors invest in business outfits it enables them to grow. Funding is very important to business as without it a business enterprise cannot be sustained. When a business is invested in by investors and profits are recorded, the investors get the money he or she used in investing in the business at a double rate.
- Cash Savings can decrease over time in value– while many people think that it is better for them to keep their money in the bank for as long as it takes, this may not be wise in some regards as the saved money may decrease in value over a period of years. This can happen if the value overtime does not keep in tandem with inflation.
- Investing is not as complicated as you think– many people think the investment is one big complicated venture, however, this is not true as the only vital factor you know is that you have sufficient knowledge and information about the financial market before dipping your toes in it. This is why you must take your time to study the market factors and the financial market itself.
List of the Best 7 Investment Opportunities in Nigeria
- Real Estate Investments
Real estate business in Nigeria has proven to be one of the best and lucrative investment opportunities in Nigeria in the last few decades. However, in order to successfully sail through this, however, you must possess high capital. The increasingly high population of the nation which has created the need to build more houses for many due to the fact that many Nigerians face accommodation issues.
Leveraging into this sector t provides a variety of options available in real estate. You could consider leasing out for commercial purposes like conferences, seminars, and public functions. Investing in real estate, especially in commercial parts of the country, attracts high returns.
With the federal government of Nigeria seeking to provide an alternative economy mainstream apart from oil, investing in Agriculture will in a few years’ time turn to be gold. There are various opportunities in the nation’s agricultural sector which can be leveraged by investors to make good money and create wealth. There is no doubt that the Agricultural is one of the most encouraging and lucrative sectors in Nigeria with latent for so much more as the country further develops. There are so many advantages that come with investment in agriculture in Nigeria as the country is blessed with diverse natural products. There are many people who are considering doing business in agriculture and the only thing that they are lacking is the funds. Helping them to start their business enterprise might prove the right choice as it will in the long run prove lucrative.
There are a lot of stigmas from various Nigerians regarding any business that has to do with cryptocurrency as many often believe due to lack of information that is another Ponzi scheme with no iota of credibility. However, this is not true as this has proven to be a game-changer for many who invested in cryptocurrency. During the thick of the novel virus, covid-19 there was a huge rise in dollars which was to the advantage of many who are into this investment. This can be explained as virtual money that is being brought and sold online. Knowing the right time to buy and sell these currencies always proves the difference. There are many opportunities in cryptocurrency investments where Nigerian investors can purchase popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, and more.
- Fashion Design
The Nigerian Fashion industry is a huge and ever-growing one, there are thousands of growing and expanding small and medium scale fashion outfits in Nigeria while there are many more Nigerians who are seeking to start fashion design business in Nigeria. There is a growing market in Nigeria due to the availability of creative and innovative fashion enthusiasts in Nigeria. The growing entertainment industry in Nigeria has also created a great influx and demand for trendy fashion patterns and outfits in the nation.
There are also numerous business opportunities that investors can look towards such as the supply of uniforms, the importation of wears, recycling options, and more
- Haulage Services or Logistics
Most businesses are going online these days as the realities of covid-19 pandemic have made many more understand the need and benefits that come with doing business online in Nigeria. And as a result of this, the haulage and logistic business in Nigeria has grown to become one of the most lucrative ones in Nigeria as there are many people who now engage in this business. There are various ways through which goods can be transported from one place to another. This can be done either through the land, water, or air. Providing the means through which these goods and products reach their final destination can be very lucrative, so is an investment in the business in Nigeria.
- Transportation Business
The transportation business in Nigeria is a very lucrative one as there is an immense financial benefit that comes with it. The Nigerian nation is one which has an estimate of over two hundred million inhabitants, every day there are hundreds of people at the various parks in the nation across the states that are moving from one place to the other. Providing them a means to reach their destination can be very lucrative. The same also applies to invest in this form of business as they make their money daily. The only risk attached to this is in the case of car theft or accident. There is also water transportation, for example for those thinking of doing business in Nigeria or investing in a business in Lagos state, the Lagos state government has switched and prioritized water transportation in the state to reduce the traffic congestion in the state. investing in this business can prove to be very lucrative.
Forex, also known as foreign exchange, FX, or currency trading, is a decentralized global market where all the world’s currencies trade. The forex market is the largest, most liquid market in the world with an average daily trading volume exceeding $5 trillion. By investing in forex through the use of legally recognized investors in the business, you get the chance to make a huge return.
Other businesses that you can invest in are
Bonds and Stocks Investments
Oil and Natural Gas
Pure Water Production
By Marcus Amudipe