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  So you’re a Nigerian entrepreneur, congratulations! You’ve chased your dream and built a business. Now, what about your future and your business’s future?  Here’s where investing comes in.  Investing is like planting seeds – you put in some money now, and hopefully, it grows over time. In this article, we will explore 10 different investment options you, as a Nigerian entrepreneur, can consider growing your hard-earned money:
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  1. Savings Account

This is the classic, safe choice. Banks and some fintech companies offer savings accounts where you deposit your money and earn a small interest rate. It’s a good way to keep your money safe and easily accessible, like a money jar at home, but with a little extra growing on the side.
  1. Fixed Deposit Accounts

Think of this as a commitment to your bank. You deposit your money for a fixed period (like 6 months or a year) and earn a higher interest rate than a regular savings account. It’s good if you know you won’t need the money for a while and want to guarantee a bit more growth.
  1. Government Bonds

The Nigerian government sometimes issues bonds, which are basically like loans you give to the government. In return, they promise to pay you back your money with interest over time. It’s a safe option with steady returns, like borrowing money from a trusted friend with a good promise to pay you back with a little extra.
  1. Money Market Mutual Funds

Imagine a club where everyone puts in some money together. This “club” is a mutual fund, and professionals manage it by investing in safe, short-term things like government bonds. You get a share of the profits based on how much you invest. It’s a good way to get started with investing without having to pick individual investments yourself.
  1. Stocks (Shares)

Ever heard of companies like Dangote or MTN? You can own a tiny piece of these companies by buying their shares (also called stocks) on the Nigerian Stock Exchange. If the company does well, the value of your shares might go up, and you can earn a profit. But remember, there’s always a chance the company might not do well, and you could lose some money. This option is riskier but has the potential for higher rewards.
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  1. Real Estate

Land and buildings are always in demand in Nigeria. You can invest in real estate by buying land, a house, or even an apartment building. You can then rent it out to tenants and earn a monthly income.  This can be a good long-term investment, but it requires a larger upfront investment and more management work.
  1. Agriculture

Nigeria is a land rich in agriculture. You can invest in farms, crops like cocoa or rice, or even livestock like chickens or fish.  This can be a great way to support the Nigerian economy and earn a good return, but it also requires knowledge of farming and can be affected by weather or disease.
  1. Small and medium-scale enterprises (SMEs)

There are many talented entrepreneurs in Nigeria with great business ideas. You can invest in these smaller businesses and help them grow. If they succeed, you could see a good return on your investment.  This can be a risky option, but it can also be very rewarding if you choose the right business.
  1. Cryptocurrency

This is a digital type of money, like Bitcoin, that’s becoming increasingly popular.  You can invest in cryptocurrency by buying it and hoping its value goes up.  However, cryptocurrency is a very new and risky investment, and its value can fluctuate wildly.  Only invest what you can afford to lose.
  1. Peer-to-Peer Lending

This is like playing a matchmaker for borrowers and lenders.  Online platforms connect people who need loans with people who have money to invest. You can invest your money in these loans and earn interest.  This can be a good way to earn a higher return than a savings account, but there’s always a risk that the borrower might not repay the loan.
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Final Thoughts

Note that this is just a starting point! Do your research and talk to a financial advisor before making any investment decisions. Consider your risk tolerance – how comfortable are you with the possibility of losing money? The most important thing is to choose investments that are right for you and your financial goals.
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This article was first published on 6th April 2024


Chidiogo Shalom Akaelu holds a degree in English and Literary Studies, from the University of Nigeria. She is a freelance writer, editor and founder of Loana Press, a budding online publishing outlet.

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