What are the Best Investments that Nigerians can Venture into?

Owing to the current economic downturn faced in Nigeria, a lot of citizens are seeking ways to make things work for themselves as they are on the lookout for the best investment options they could take on.

Beyond seeking profitable investment opportunities, it is important to understand what investment is all about.

Many have lost money because of a lack of knowledge. While it is encouraged to have investment plans and diversify, one must have reasonable knowledge about investment.

Having the money to invest without the knowledge of investment, will definitely take more from you than you should get as returns.

Investing can be complicated, and until you understand what you're doing, it will likely feel like betting.

Taking the essential measures to learn how to invest, on the other hand, will put you on the correct track to increasing your earning potential and achieving your financial objectives.

The first thing to realize about investing is that there is no “all-encompassing” method because everybody's income, financial obligations, and risk tolerance are different.

What is Investing?

The act of resource allocation, generally money, with the goal of creating an earning is known as investing.

One can invest in ventures, such as utilizing your money to establish a business, or assets, such as buying real estate with the intention of reselling it at a greater price later.

Investing is the practice of purchasing assets that rise in value over time and produce income or capital gains as a result. In a broader sense, investment can also refer to spending time or money to better your own or others' lives.

However, in the financial sector, investing refers to the purchase of stocks, real estate, and other valuable assets in order to generate capital gains or income.

Investing works in the most basic sense when you acquire an asset at a low cost and sell it at a higher price.

A capital gain is a type of return on your investment. One strategy to make money investing is by selling assets for financial gain or to realize your capital gains.

Nigeria's most Profitable Investment Prospects

Upon getting an idea of what investment is all about, the question on the mind of a lot of people would be, what are the profitable ventures for Nigerians to invest in.

While there are a number of investment opportunities that come up daily in various sectors, one would want to tread carefully, so as not to lose funds.

Some investments that Nigerians can venture into are as follows:

1. Technology

The ideal practice in this century is to invest in technology. Everything we do is dominated by technology. According to reports, the internet is used by around 76 million Nigerians.

That is a significant number, and it certainly presents opportunities.

Nigeria is plagued by plenty of issues that can be handled with technology. There are numerous ways in which technology can improve one's life.

Invest in tech startups or start your own. Choose a problem to solve, and the rest is up to you.

FinTech has recently become popular in Nigeria. However, there are numerous more aspects of technology.

2. Manufacturing Sector

Nigeria is a nation that is overly reliant on importation for even the most insignificant of items. This isn't good enough for Africa's biggest economy.

As the economy improves, there is a greater demand for domestic production, and the manpower for such is readily available.

Investing in the manufacturing sector of Nigeria will pay off, as it will increase employment and economic growth. Governments have often called for increased investment in the industrial sector.

In Nigeria, small household goods like toothpicks are extremely significant. There are numerous critical items to manufacture: Food, water (table and sachet), fiber cables, telephone equipment, car tyres, and fashion are only a few examples.

3. Real Estate

Real estate is one of Nigeria's most lucrative investment options. This is due to the increasing population, and a significant influx of people to big cities like Lagos, Abuja, Port Harcourt, Uyo, and others.

Real estate investment in major cities could be quite profitable for investors. Seeing also that Nigeria is blessed with a large landmass, most of which is yet to be harnessed.

Low-cost houses, building materials, hotels, shopping malls, and many other possibilities are available. There are numerous ways to earn from real estate investments.

One of the most pressing issues as the population and the economy continues to rise is housing.

4. Haulage and Transportation Services.

There is a major challenge in Nigeria, particularly in large cities like Lagos. 

Because these locations are so densely populated, transportation becomes a major challenge. At the end of the day, vast crowds of people may be seen helplessly waiting for buses at several bus stations in Lagos.

Investing in the transportation business is a wise decision. Alternative modes of transportation, such as water transportation and railways, are needed in Nigeria due to the high volume of significant traffic.

It can also be a wise investment in regions where motorcycles and tricycles are permitted.

Haulage services are quite profitable. Various things, ranging from petroleum products to edibles, textiles, and more, must be transported on a regular basis.

5. Agriculture.

Nigeria's population is projected to be over 200 million people. And feeding such a massive population is one of the most difficult tasks. Nigeria is reliant on imports since it is unable to produce enough food for its population.

In 2018, Audu Ogbe, who served as Nigeria's Minister of Agriculture from 2015 to 2019, stated that the country spends $22 billion annually on food importation.

Every government after independence has attempted to limit food importation. As a result, numerous incentives have been provided.

The Bank of Agriculture was established to assist agricultural businesses in obtaining financing and support.

Many financial institutions, notably Nigeria's Ministry of Finance, provide particular financial assistance to agriculture-related firms. Agriculture is unquestionably one of Nigeria's most important investment prospects.

If properly planned and implemented, investing in agriculture can be a very profitable investment. Crops, cattle, logistics, agricultural implements, and many others are areas of great interest.

6. Oil and Gas.

Nigeria's economy is based on the oil and gas sector. Foreign and local investors can invest in Nigeria's oil and gas business and watch their money increase.

Nigeria is one of the world's top oil producers.

Here are a few sectors in the oil and gas industry where investors could focus.

  • Transportation of petroleum.

  • Services for Wells.

  • Product Promotion.

  • Exploration and Exploitation.

  • Refining.

  • Installation and Construction.

  • Creating industries to manufacture chemicals and solvents from natural gas, such as chlorinated methane, formaldehyde, and others.

  • Establishing a plant to produce refined mineral oil, petroleum jelly, grease, and other products.

  • Domestic Production and marketing of Liquefied Petroleum Gas (LPG).

7. Apps for investment

Thanks to technology, there are currently investment apps that can assist you to invest even if you have a small amount of money.

These apps can help you increase your money without having to worry about it.

All you have to do is put money into the app and wait for the money to yield returns and they are trustworthy.

Some of these apps include:

  • PiggyVest.

  • CowryWise.

  • CrowdyVest.

  • Ziing.

To invest in stocks in the U.S, there are also mobile apps that can make it possible for you.

They are:

  • Chaka.

  • Bamboo.

  • Rise.

  • Trove.

It is important to carry out your due diligence before you jump on any of these platforms.

8. Mining

Nigeria is endowed with an abundance of natural resources that have received little attention. For a committed investor, investing in these underserved areas can be extremely profitable.

Nigeria's mining industry is vastly underdeveloped and hasn't been much progress. This leaves a lot of room for possible investors to examine the situation.

Many of Nigeria's resources are untouched, and the leadership has continued to offer hints that it is willing to work with investors.

The following are some of the resources that exist in Nigeria:

  • Bitumen.

  • Lead.

  • Zinc.

  • Coal.

  • Gold.

  • Limestone.

  • Kaolin.

  • Granite.

9. Franchise.

A franchise is essentially an arrangement in which you or another individual or organization pays money to a company in exchange for the right to do business under the firm's name, brand, and trademark.

To be awarded this right by the firm, the organization or individuals must pay the company a set amount of money in exchange for it.

A franchise fee is the amount of money paid to the corporation by this group or individual.

There are franchising opportunities available to anyone who wants to make money. A franchise can be the quickest way to start a business and gain a large number of consumers.

With a franchise, you will have a trustworthy and well-recognized brand name. This means that people will patronize you without any promotion from the start.

Final Thoughts

Before you venture into any form of investment, ensure you have adequate knowledge of the sector you are investing in.

You can as well consult with professionals to get proper guidance on how to make investments, manage risk and also diversify your investments.

It is also a good idea to have investments in various sectors, as diversification is a way to play safe when it comes to investing. This helps you get more returns and if any sector experiences a crash, you can fall back on other sectors.

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