Whether you’re an employee or an entrepreneur or a work-from-home mum or a freelancer, preparing financially for your retirement as early as possible is a smart move.
But instead of opting for the conventional route of dedicating a substantial part of your income or salary in a savings account, I recommend walking the road less taken. (Is somebody remembering Robert Frost?).
Don’t worry, I have got you the roadmap you need.
By that, I mean the roadmap to diversify your savings into a high yield investment in Nigeria.
Just take a look at this.
On average, your savings account gives you a return of 3% per year, an ROI (Return On Investment) which smart people like you who think and grow rich should consider an insanely low one.
And even if you switch to putting your money in a fixed account, it will be growing by the miserly average of 5% per year. Duh…
Another option that most people often think of is mutual funding where your investment grows by 9-11% every year.
But all of those are still the same game. They will never truly make you rich when you retire or anytime soon.
Exactly why I have taken my time to pull together your best investment options in Nigeria.
Every high yield investment in Nigeria explained here will grow your invested capital by nothing less than 20-30% every single year.
But before going into them, here’s a quick notice.
The investment opportunities explained here are not risk-free. In fact, there is never a risk-free investment. I have only explained some of the investment opportunities that have not only helped me to make a lot of money but have also become the key to the financial breakthrough of many individuals here in Nigeria and in other parts of the world.
I was not paid by any of these businesses to help them promote their ventures. So, make sure to make your own research on whichever that picks your interest from these high yield investment opportunities in Nigeria after reading. Taken? Great. Let’s get started.
Best Investment In Nigeria
Commercial Paper Investment In Nigeria
Commercial papers, also called CPs, are the new Nigeria Treasury Bills (NTBs). After the huge fall in the yield of Treasury Bills from 22.80% yield in July 2017 to 12.99% yield in July 2018, CPs have become the most issued unsecured money market in Nigeria for their high yields. Another reason for the convergence into commercial papers from Treasury Bills is that the interests of CPs investors are more protected by the Security and Exchange Commission, making the CP market more regulated and safe to put your money in as an investor.
Here is how it works. Commercial papers are issued by big companies who are usually the big lions of their respective industries to raise funds for business purposes. These companies are required to have a great credit record to make the cut of a CP issuer. Once the CP is issued, investors can come in to invest at a face value. Okay, here’s what I mean. As an investor, you may be buying a part or a whole of a CP worth 100, 000naira at a price of 75, 000naira. When the CP reaches its maturity stage, you will be receiving 100, 000naira. Know that the maturity period of a CP usually ranges from 15days to 270days. And the minimum CP issuable by a company is 1 million nairas worth, though some companies issue CPs lower than that.
What’s great? Well, CPs are transferable. Yes, you read that right. As a CP investor, you’re legally allowed to sell your CP even before maturity to someone else with no transfer charges or costs to you or your buyer. Yay!
Investing In Stocks In Nigeria
The Nigeria Stock Exchange (NSE) is one of the biggest stock exchange markets in Africa. In one week alone towards 3rd April 2020, a total turnover of 11.267 billion nairas worth of shares was traded. If that’s enough to spark the interest in you, then here’s what stock exchange is, both as a market and a massive investment opportunity. The stock exchange market is the primary market where companies, municipalities, governments, and other incorporated bodies channel the savings of their respective investors to raise capitals. In the same light, the NSE also offers a secondary market to both small and big investors as a place where securities are sold to other investors in a market that is well regulated for the maintenance of liquidity and the reduction of risks.
So, if you’re asking, I will explain briefly how to invest in the Nigeria stock exchange. The first thing you should know is that there’s risk in this thing as the prices of the securities bought in the NSE market are controlled by the forces of buying and selling or demand and supply. Some of the securities or financial instruments you can buy in the NSE markets are shares, notes, and bonds. To start investing in stocks in Nigeria, follow the process demonstrated below.
- Locate a good brokerage firm (Meristem, Lead Capital, and ARM Securities are a few)
- Open a brokerage account with your chosen broker
- Complete the compulsory account opening form with CSCS (Central Securities Clearing Systems)
- Get your stock brokerage account funded
- After deciding what you want, place your first-ever trade order
Investing In Gold in Nigeria
Gold investment is another high yield investment in Nigeria. Here are the 6 lucky reasons you should invest in Gold today. Gold is a good retirement plan. It is risk-free, has a high diversification, is inflation-proofed, and investment in gold can be done with privacy. What’s greater? Gold is safe to invest in and you can opt for either an investment in tangible gold or virtual gold. You’ve got options! Yes! But here’s the kicker. There are about 7 ways to invest in gold of which I will be discussing the best 5 down below.
Way number one; buying uncirculated numismatic gold coins. Call them rare coins, numismatic gold coins are known to have a meltdown value that is way higher than what gold of that coin size would worth if it were not a numismatic gold coin. Why? Well, these coins are special because of their age and rarity which make them more or less artifacts. Though, newly-minted coins are also molded as duplicated of the original ancient gold coins found in archaeological excavation sites. Some of these minted gold coins are; Australian Kangaroo, South African Krugerrand, British Sovereign, U.S Mint 24K Gold Buffalo, Canadian Maple Leaf, and Vienna Philarmonic.
Another way to invest in gold is to buy physical gold-branded pieces of jewelry or pure gold jewelry, hold them, and sell them out whenever gold rises in price. Otherwise, if you’re a big investor, you can just buy gold in large bars or bullions which requires high-security cost and can be difficult to sell until you find a seriously big investor like you who is ready to buy large bars of gold. But here’s another way. For those investors obsessed with online businesses, gold is one of the ETFs anyone can trade online right from the screen of their phones or laptops. You just have to register with a good broker and get the ball rolling from there.
Real Estate Investment In Nigeria
Do you know? Successful real estate investments in Nigeria yield an average percentage return on investment of 30-35%. Yes, read that again. But here are some more fascinating facts about real estate investment. One, in the first quarter of 2018, real estate contributed to the overall GDP of Nigeria by 5.87%. Two, barely in the fourth quarter of the preceding year 2017, it was reported that real estate contributed by 7.67% to the country’s total GDP. While all of these statistics are enough evidence that real estate is really a lucrative investment, below I have explained a few out of the multiple investment opportunities in real estate as a high yield investment in Nigeria.
My number one real estate business opportunity is land flipping. Virtually anybody can do this. You just have to learn some of the basics such as the legal process of acquiring and selling land. You also want to learn how to make an accurate estimation of land maturity which is ever continuous. Once you master these things, land flipping can make you more than 400% ROI (return on investment) after 6 months or 1 year period of acquiring a piece of land.
Another real estate business opportunity is rental. By building or purchasing properties for rental purposes, you will make passive income for a lifetime on your properties which you rent out to your tenants. This is a great high-yield investment in Nigeria especially for those who are looking to develop the best retirement plan.
On the other side, if you’d rather be a digital real estate investor, REITs (Real Estate Investment Trusts) is your way to go. Investing in REITs is like buying shares or stocks. Here’s how it works. You’re putting your money in the hands of professional real estate investors who directly and physically acquire income-generating real estate. As the acquire real estate appreciates, your investment rises with it. Yay! And the great thing is, real estate is just like gold, they are both progressive in value.
One more way to invest in real estate is to lease out or rent out an open space or land either for business owners, factories, or home builders. Your space can also be rented out as an event venue for party-makers of all forms.
Investing In Uber/Taxify In Nigeria
According to the people I know over the distance who have ventured into Uber as investors, you can make more than 48% of your investment in one year. As you probably know, Uber is one of the biggest rideshare companies in the world with a net worth of $63.94 billion as reported on September 30, 2020. While being a partnership with the likes of First Bank and Germaine Autos, Uber Nigeria has over 267, 000 riders recorded every month and over 9000 partners with investors like you, according to this Vanguard News. And as I have collected from real and consistent Uber Taxi investors who have invested in the business and have been making a killing off of it, there are two basic ways to make money as an Uber Taxi investor.
The first method is to sell your vehicle to an Uber driver. Okay, here’s what I mean before you give me that face of “how is that different from listing up my vehicle for sale in a car dealership shop?”. Here, your car buyer, who is obviously an Uber driver, pays you installmentally either on a weekly basis or a monthly basis. But this is beyond getting paid your actual selling price. The thing is you and the driver you’re selling your car to comes to an agreement of 20, 000naira/week or 30, 000naira/week for a year. And if you do your calculation right, getting paid 30k every week for a year will give a total annual income of 1, 639, 000naira. Suppose you got your vehicle at the price of 1 million nairas, your return on investment would turn out as 639, 000naira. That is far way beyond a 40% return. Isn’t it?
The second money-making option as an Uber investor is to rent your car out instead of selling it. You can set the same 30, 000naira/week payment with your chosen uber driver as previously highlighted in the case of selling your car. But instead of getting paid for a year, you get to be paid through the lifetime of your vehicle. Yes, you read that right. The only problem is that your car is more vulnerable to faults which would be resulting in you spending a lot of money on repair costs frequently. Here’s why people tend to care-less about an asset or property or things that do not actually belong to them. Since your driver is only renting the vehicle unlike the former case, he won’t take as much care of the car to prevent damages. In the former case, the driver doesn’t have a choice but to give all the care possible to the car that is technically his own.
Either way below is the breakdown of how to become an Uber partner Nigeria.
- First thing, go to partners.uber.com
- Once there, fill the form that says “sign up now” to create an accomplice profile
- After that, set up your withdrawal method by filling in your bank account details at vault.uber.com
- On the add vehicle section that pops up next, fill in your vehicle details as required
- Finally, submit both the driver’s license and the Lagos State Driver’s Institute card of your chosen driver
Haulage And Trucking Logistics
According to an analysis written by the Nigeria Business Forum (you can read it here), the average haulage investor makes between 400, 000naira and 600, 000naira every month after deducting expenses. Yes, you read that right. All you have to do is purchase a substantial number of hauling vehicles (trucks or cranes or trailers or all) according to your investment capital, ensure that your vehicles are fuel-efficient, and hire expert drivers that are trustworthy and can be counted on. That’s all you need other than registering your business with the CAC (Corporate Affairs Commission) and making your business plan.
Entering into haulage investment, you can either become an independent operator or a contractor/sub-contractor or you can just become an investor who leases out his vehicles to haulage companies. Regardless of what side of the hub you stick to, you’ll need to spend between 7million nairas and 20million nairas to start up your haulage business, at least. If you’re buying a new trailer, new trailers cost about 15million naira or 20million naira per one. On the flip side, TOKUNBO as they are mostly called (used trucks) cost something between 6million naira and 7million naira per truck.
Investing In Live Stock
Here is what you don’t know. The Nigeria livestock industry is worth 30trillion nairas at the time this article was written and is predicted to hit 50trillion nairas in 10 years from now. According to my last experience buying a cow, a cow costs between 90, 000naira and 10, 000naira. Imagine selling just one cow every day, that’s you having a stream of 100, 000naira coming into your bank account every day. If you subtract the amount with which you bought the calf (a young cow) which is usually 60,000-70,000naira, you have about 30, 000naira profit on every cow sold. If you have a piece of land of grasses where they can graze or you live in an environment where grasses abound, you can save yourself the feeding cost. Otherwise, you’ll need to spend on feeding as well which will be costing you anything reaching up to 10, 000naira every 3-4month.
Investing in a feasible business opportunity is the dream of every smart Nigerian. So far, I have given you a guided walk-through on some of the high yield investment in Nigeria. I can only hope this has helped you in a way.