There are several ways to invest in Nigeria, including fixed deposits in banks, bonds, stock, starting a new business and putting your money in real estate.
Real Estate – Nigeria’s real estate market is one of the rising ones in Africa at the moment. Compared to other types of investment, it has little risk, while assuring more profit and better capital appreciation. Indeed, since Nigeria is a rising market chances are that if you buy a property in the private market and put it up for rent (in order to still be making money), in a few years time you will be able to sell the house for a much higher price than what you purchased it at.
Technology for Entrepreneurs – Especially when it comes to preserving clients’ information, documents and such, it’s best to have everything in a computer (and a backup disk) than in paper. This is not only vital for you, but also for the employees that work in your company. You don’t necessarily need to buy the latest models, but you can also look for second hand computers online and use those until you and your employees feel comfortable with its use. It’s a small investment that could help you a lot on the long-run.
Agriculture – One of the most stable markets in Nigeria is without doubt agriculture. We’re one of the biggest cereal producers in Africa and we export to many other countries in the world, so it’s wise to say it’s a potentially growing market that has had positive outcomes in the past years. Of course it has it’s risks because it depends on international amendments and yearly crops.
Foresee the market – According to Samson Capital’s Lewis, 2014 will be a weak dollar environment. This obviously will change the market and its trends, so be ready to do investments that take advantage of it, like for example “commodity-friendly” investments, or making some earnings from abroad.
Think about the future – To be focused on the present is fundamental, however, to think about the future is too very important. This is why you should invest on your retirement account, for example making contributions as early as possible in the year. This way, you’ll be able to take advantage of tax-advantaged growth. But you must not only think of making larger contributions but also save as much as you can in your ordinary expenses by managing your bills.
Investing of course can be a risky business and it’s important to know where to put your money and how much. There’s no magic formula on how to become wealthy by making the right financial moves, but when things go your way the positive outcome is enormous.