“If you don’t find a way to make money while you sleep, you will work until you die”. By now, you’ve probably seen or heard that quote by Warren Buffet floating around on social media. With the way the economy is moving/planning for the future, it’s safe to say it’s time to really think about investing your money and increasing your financial health. We’ve put together 5 of the best investment methods in Nigeria to help you along the road to financial freedom.
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- FOREX Trading
A high-yield but more risky investment, forex trading is simply trading one currency for another. The rate at which the currency is exchanged is what matters and where you can stand to gain or lose money. Forex trading is always quoted in pairs like GBP/USD (Great British Pounds and the US Dollars).
Before you decide to pursue this kind of investment, you should consider your investment objectives, experience level, and how well you can handle risks. You should contact an independent financial advisor before you invest in this high yield investment in Nigeria. It seems simple enough but currency markets can become volatile very quickly.
- Treasury Bills
This is one of the best investment options in Nigeria as it carries very little to no risk you are literally investing in something that is guaranteed by the Nigerian government (there may be some irony in that). Treasury bills are short-term investment opportunities issued by the federal government of Nigeria via the Central Bank to control the money supply and provide a sort of short-term funding for the government. The real value of a treasury bill is given at 10% discount during auctioning. After you invest in it, you stand to make the deducted 10% as your interest. As with most low-risk investments, treasury bills have low interest rates, so while you won’t make a lot of money, you’ll ALWAYS make 10% of your investment.
- Real Estate
This is probably THE investment option you’ve heard a lot about and to be honest, it lives up to the hype thanks to our ever-growing population. It’s a high-yield investment but one with a long tail…it’s unlikely you’ll see any profits for many years. The idea with real estate is to buy cheap and sell at a much higher value. That may take years, decades even but when you do sell, you are looking at a large cash out.
If you can start big, buy pieces of land in commercial and upcoming areas and construct solid buildings. Residential and office building are usually in high-demand so you can start there. Warehouses are also highly recommended. If you don’t want to go into building yourself, you can also invest in completed properties using the same logic.
Mini-importation is a relatively easy investment to start. You’re simply importing low-cost but essential goods from places like China and selling them at a more-expensive price. You can invest N100,000 into your importation business and recoup more that N150,000 in profit. This is another high-yield investment and a good thing to consider is “Is what I’m importing meeting a basic need? And will a lot of people buy it?”
- FGN Bonds
Another low-risk but sure investment option, FGN bonds are super reliable because they are back by the government and the only way you lose is if the government collapses. Since that’s quite an unlikely occurrence, your money is safe. FGN Bonds are issued by the Debt Management Office (DMO) in the name of the Federal Government for a period of 2 –20 years depending on what the individual wants.
The minimum amount required for subscription (first-time) is N10,000 and subsequent subscriptions can be done in the multiples of N1,000. Unlike treasury bills, interest rates on FGN bonds vary based on the timeframe you chose to invest in. Interest is paid twice a year until the timeframe lapses and the principal is returned to the investor. In simple terms, you’re lending the government money and earning interest on that loan.