Where To Invest Money In Nigeria: A Comprehensive Guide

Investments in cryptocurrency

Investing in bitcoins and other cryptocurrencies is quickly becoming one of the best investment options in Nigeria due to the potential for high returns. While cryptocurrencies are known for their volatility, historical data shows that they have the potential for significant gains, outperforming traditional stock markets over shorter time periods, for example, Bitcoin. The average historical return of Bitcoin is more than 200% per year, but it is worth considering that over the years the potential for such growth decreases. In addition, Bitcoin is volatile, which sometimes leads to corrections of 50% or more.

Nigerians invest in cryptocurrencies in the hope of seeing their value rise, hoping to profit as demand for these digital assets rises. Nigerians can also explore other decentralized investment options, such as staking and lending, in addition to the traditional buy-and-hold strategy. These methods enable investors to actively participate in the cryptocurrency market and profit while they wait for the prices of crypto assets to rise in the long run.

Best crypto exchanges in Nigeria

Bybit

Bybit Review

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Bybit is a well-known cryptocurrency exchange that started in 2018. It's a platform for trading crypto in a special way, using instruments called derivatives. This means they allow trading contracts that are connected to the value of cryptocurrencies. Bybit also offers leverage, which can amplify the results of your trades. Their derivatives offerings include contracts connected to the value of Bitcoin, Ethereum, and other tokens. Bybit’s platform also has some advanced features like mutual insurance and a system to show how deep the market is.

Binance

Binance Review

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Binance is a renowned exchange offering cryptocurrency trading. Based out of Hong Kong, the exchange offers many features for traders, including its own special kind of money called a native asset. Traders can start trading on Binance with just $1, and they can further take advantage of leverage offered by the exchange. Moreover, the fee charged is also on the lower side – just 0.1% of what you trade.

Pros and Cons

Investments in securities

Nigerians who want to invest their money in a safe and diverse manner should consider investing in securities, which include stocks, bonds, and exchange-traded funds (ETFs). Stocks imply that you own a portion of a company and can profit from dividends and the company's increasing value. If you invest in stocks, you're buying parts of companies that are listed on the stock market. There are good options on the Nigerian Stock Exchange, like MTN, Nestle, and Dangote Cement. You can also invest in US stock indices such as the Nasdaq and SP 500, which provide average historical annual returns of around 10% per year in US dollars. To start investing, you need to open an account with one of the brokers that provides access to trading such instruments.

Bonds, on the other hand, give you a steady income through interest payments, while ETFs combine various assets, allowing your money to be spread out. Investing in securities can potentially give you up to 13% returns each year. Apps like Bamboo, Chaka, and Trove are good places to start your investment journey. Make sure you do proper research to find companies that could make you money. So while investing in securities can give you regular profits, it's important to understand the benefits and risks involved.

Investments in real estate

Investing in real estate in Nigeria is like planting a valuable seed that grows over time. There’s a reported demand for about 700,000 housing units annually in Nigeria to meet up the growing population. The real estate market constituted over 6.39% of the GDP in Nigeria this year. Given that people are constantly looking for places to live, it has actually proven to be one of the best ways to invest and grow your money in Nigeria. This investment option is essential for Nigerians seeking long-term financial stability.

Not only does real estate offer the prospect of rental income, but it also allows investors to benefit from property value appreciation. Whether residential or commercial, real estate provides tangible assets that can increase in value over time. While it requires a large amount of money to start, real estate is often seen as a reliable and less volatile investment option in Nigeria, providing a sense of security and protection against inflation.

Investments in precious metals

For Nigerians looking for where to invest money, precious metals like gold, silver, and platinum are appealing investment choices because they are timeless symbols of stability and prosperity. Unlike other investments highlighted in this article, precious metals are valuable assets that have withstood the test of time. Gold, in particular, is widely known for its ability to preserve its value during economic uncertainties.

Nigerians can invest in precious metals physically or through financial instruments such as exchange-traded funds (ETFs) and precious metal mutual funds with the Chaka and Trove app. While investments in precious metals might not generate income regularly, their long-term value and stability make them an important part of a balanced investment strategy.

High-yield savings accounts

High-yield savings accounts are different from traditional savings accounts. High-yield accounts, as the name implies, offer a higher interest rate, which makes it easier for Nigerians to save and watch their money grow as it sits in their account.

The interest rate on these accounts is represented by the Annual Percentage Yield (APY), and the higher the APY, the faster your money grows.

With the Nigerian Deposit Insurance Commission's insurance protecting deposited funds, investing toward financial long-term goals with a high-yield savings account offers a low risk, and easily accessible option for Nigerians looking for a dependable way to increase their savings. Examples of high-yield savings accounts are the FCMB Premium Savings Account and the Stanbic MaxYield Account.

Copy trading (investing in successful traders)

For Nigerians who have an interest in trading but do not have much trading experience, copy trading is a great way to invest and make a profit. It is the best option for Nigerians who do not want to waste time and effort learning how to trade on their own. This method of investment enables you to benefit from the knowledge and skills of successful traders for a little or no fee, and there are a lot of copy trading platforms available to Nigerians.

Some examples of these copy trading platforms are eToro and RoboForex’s CopyFX. TU experts advise against considering copy trading as a means of making quick money because there is no such thing as a risk-free investment, regardless of the investment strategy you use. They have also highlighted a detailed step-by-step guide for you to get started below:

• 1

  Choose a reliable copy trading platform: Research and select a reputable copy trading platform that corresponds to your investment goals. Sign up on the chosen platform and provide the necessary details, which may include your identity and address, for verification.

• 2

  Fund your account: Deposit funds into your copy trading account. Ensure you understand the minimum deposit requirements and payment methods accepted by the platform.

• 3

  Explore and select traders to copy: Examine the platform's list of available traders. Review their performance metrics, risk levels, and trading strategies. Select traders whose style fits your investing goals and risk tolerance.

• 4

  Allocate funds to your selected trader: Allocate a portion of your funds to copy the traders you have chosen.

• 5

  Monitor and adjust: Keep an eye on the traders you are copying on a regular basis. Evaluate their strategy and make any necessary portfolio adjustments. You can copy several profitable traders to diversify your portfolio if you want.

Where to invest in Nigeria for a beginner?

For a beginner in Nigeria looking to start investing, options that require relatively small startup capital and don't demand special knowledge are advised. Copy trading stands out as an excellent choice for several reasons. Firstly, it allows beginners to dip their toes into the investment world without needing a lot of financial knowledge. Through copy trading platforms, beginners can emulate successful traders' strategies, learning from their experiences and decisions. As a beginner, having the ability to start with a smaller investment while leveraging the expertise of professional traders provides a valuable learning opportunity. Additionally, copy trading platforms often offer user-friendly interfaces, simplifying the investment process for newcomers.

How to choose the best investments in Nigeria

Pay attention to the criteria listed by TU experts below so you can develop a well-informed investment strategy that aligns with your financial goals and risk tolerance for a successful investment journey in Nigeria.

• 1

  Define your financial goals: Before choosing investments in Nigeria, clearly define your financial goals. Consider whether you are investing for short-term gains or for long-term goals.

• 2

  Assess your risk tolerance: Understanding your risk tolerance is crucial in selecting the right investments. Assess how comfortable you are with the possibility of market fluctuations and potential losses. If you have a higher risk tolerance, you may be more open to volatile but potentially higher-returning investments. On the other hand, if you have a lower risk tolerance, you might prefer more stable, conservative investments.

• 3

  Understand investment options: Take your time to understand the different investment options available in Nigeria. This includes cryptocurrencies, stocks, bonds, real estate, mutual funds, and other options. Each investment type comes with its own risk and return profile. Educate yourself on the characteristics and performance history of each investment option before making decisions.

• 4

  Stay informed about economic trends: Keep yourself informed about the economic trends in Nigeria and globally. Understand how inflation, interest rates, and geopolitical events can impact different investment options. Staying informed enables you to make informed decisions, adjust your portfolio as needed, and anticipate potential changes in the financial landscape.

Where to invest in Forex: the best brokers in Nigeria

RoboForex

RoboForex Review

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RoboForex is a brokerage company that was founded in 2009. It provides services to financial markets in 169 countries. More than 3.5 million users are RoboForex clients.

RoboForex is recognized as a reliable partner by the most respected financial market experts. The company has won numerous prestigious awards. The RoboForex group of companies has an international license to provide services from FSC Belize.

RoboForex is a top Forex and CFD broker offering a wide choice of earning opportunities. Novice traders can copy the signals of professionals automatically. For professional traders, the broker offers a Forex bot constructor and individual trading in the Forex, cryptocurrency and stock markets.

Exness

Exness Review

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Exness Trading Company has been working in the Forex market since 2008. The broker operates legally in more than 130 countries, fully complying with local laws in all jurisdictions.

The broker is a member of the Financial Commission, providing up to EUR 20,000 insurance coverage per client in the event of a force majeure. The broker holds the leading position in Forex ratings. The company’s monthly trading turnover totals $325.8 billion USD. The broker currently has CFDs available for cryptocurrency, stocks, more than 120 currency pairs, energy and metals.

Depending on the requirements of traders, the broker offers a variety of account types, including cent-for-novice, standard, and professional accounts. In the form of currency pairs, precious metals such as gold, silver, platinum, palladium, and others can be traded. Additionally, 97 different currency pairs are available.

FxPro

FxPro Review

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FxPro, a distinguished brokerage, offers comprehensive trading services across the financial market. With regulation in four jurisdictions and a vast clientele exceeding 2 million globally, FxPro stands as a reliable choice. Providing access to an extensive array of instruments, including CFDs, forex, stocks, and cryptocurrencies, FxPro ensures diverse trading options. The platform boasts a range of renowned trading platforms like MT4, MT5, and cTrader, coupled with additional tools such as AutoChartist and TradingCentral. FxPro caters to varied trader preferences with three account types – Standard, Pro, and Premium. The broker emphasizes trader education through webinars, seminars, and video tutorials, fostering skill enhancement. FxPro's commitment to customer satisfaction is evident through its award-winning status, tight spreads, commission-free trading, and innovative features like the Quant custom indicator and detachable chart windows. Traders also benefit from a welcome bonus of up to $8 per lot traded, making FxPro an all-encompassing choice for traders worldwide.

How to make money in Nigeria without investment?

Nigerians do not need to make any initial investments in order to make money. TU experts have highlighted some options for you below, but it is important to note that, while these options may allow you to earn money without making an initial investment, you should approach them with realistic expectations.

• 1

  Forex affiliate programs: Engaging in forex affiliate programs is a way to make money in Nigeria without making an initial investment. This involves promoting the broker's services through various means, such as online marketing, social media, or content creation. As clients are referred through your affiliate link trade on the platform, you earn a commission based on their trading activities.

• 2

  No-deposit bonuses: Some forex brokers provide no-deposit bonuses as a promotional strategy to attract new traders. With a no-deposit bonus, individuals can start trading on the platform without depositing their own money.

• 3

  Online surveys and microtasks: Participating in online surveys and microtasks is a simple way to earn money without investing. Several websites and apps pay users to complete surveys, watch videos, or perform small online tasks.

Why is Nigeria a good place to invest?

Nigeria is full of talented, inventive, and industrious people who work tirelessly in a variety of fields, most notably technology. The country is one of the best places to invest in Africa, and here are the reasons:

• 1

  Business-friendly reforms: Nigeria has implemented a number of business-friendly reforms in order to increase foreign and local investment in the country. The goal of these reforms is to create an environment that is more favorable for business operations by drawing in both domestic and foreign investors.

• 2

  Economic growth: Nigeria has experienced strong economic growth as a result of its large and youthful population, abundance of natural resources, and efforts to diversify its economy. These factors have made Nigeria a desirable place to invest.

• 3

  Infrastructure development: In Nigeria, infrastructure development investments are becoming more and more popular. In order to support economic activity, the government understands how important it is to construct and modernize vital infrastructure, such as ports, roads, and electricity supplies. Better infrastructure not only makes company operations run more smoothly but also shows a dedication to long-term growth.

• 4

  Natural resource wealth: Nigeria has an abundance of natural resources, especially in the oil and gas industry. The government's commitment to reforms in the oil and gas industry also signals opportunities for investors in this very important sector.