15 Best Investment Opportunities in Nigeria
Passive income, in today’s world, is the key to having financial flexibility. People are retiring early by making money work for them by investing in various assets.
The most common forms of investment where people prefer to invest their hard-earned money are endowment plans, mutual funds, dollar investments, bonds, stocks, and the like.
Smart and calculative investment in the best investment opportunities in Nigeria can help people get decent returns. However, the returns from these instruments primarily depend on the performance or the market valuation of the asset one has invested in.
Best Investment Opportunities in Nigeria: A Primer
Nigeria has emerged as a classic destination for investments. There are plenty of investment options for people looking to invest their hard-earned money.
Dollar investments is the talk of the town as one of the best investment opportunities in Nigeria. Despite market movements, Nigerian investors are getting good returns from this digital asset.
f you want to explore Dollars as an asset class, start with Pillow. You can invest with as little as 3000 Naira and earn 14% annual returns on your investments.
Some of the assisted investment opportunities you can invest in right away are stocks and mutual funds. Agriculture, entertainment, tourism, education, and livestock are some other promising investment opportunities in Nigeria. Let's dive into all of these in some detail.
The 15 Best Investment Opportunities in Nigeria
1. Dollar Investment
Investing in dollars for Nigerians can provide protection against the fluctuations of the Nigerian Naira, as well as access to a widely-used and widely-accepted currency. Investing in dollars refers to purchasing assets denominated in US dollars. This type of investment can provide a hedge against currency fluctuations and can be a safe-haven during times of economic uncertainty.
Pillow is a savings app that allows you to virtually save your funds in dollars while earning daily passive income.You can deposit funds with Naira and earn up to 14% annual interest on your deposit.
2. Investment in Stocks
Stocks are universally renowned for being top investment opportunities. As a fact, the African stock market is back on the grind due to increased consumer demand and the rising contribution of manufacturing.
Contract for Difference (CFD) data shows that the Nigerian Stock Exchange has expanded by 2.63% or 1123 points since the beginning of 2022. This data indicates that the Nigerian stock market has great potential.
Moreover, market diversification beyond oil and gas is also pushing the market focus of investors from both countries within Africa and beyond.
3. Mutual Funds
You might be quite familiar with mutual fund investments by now. This is more of an assisted investment as people invest in groups of stocks. These groups of companies are selectively catered to by the company experts to form the best composition of companies.
Data shows that mutual fund investments in Nigeria grew by 3.4% to N1.407 trillion in April 2022 as compared to N1.361 trillion in 2021. Some top mutual funds that you can invest in Nigeria are money market funds, bond funds, equity funds, dollar funds, and balanced funds.
4. Investing in Bonds
Interested parties can look into investment in bonds. These are recognised as debt instruments where the owner owns the bond, and the holder holds the debt against the bond.
There are various corporate bonds for the general public in Nigeria to invest in as a high RoI option. These include FGN bonds (Promissory, Eurobonds, Diaspora, and Savings). Besides these, there are municipal bonds, treasury bonds, asset-backed securities, etc.
5. Foreign Exchange
Foreign exchange or Forex is among the most preferred investment opportunities in Nigeria. This is a preferred choice of many investors as it opens the foreign market for traders. But, Forex trading puts individuals at a greater risk. Therefore, it is wise to invest via trusted brokers.
Please conduct your due diligence before you invest in the foreign exchange market.
6. Agricultural Investment
Nigeria has about 70.8 million hectares of agricultural or production land. According to the reports produced by the National Bureau of Statistics, the agriculture industry contributed about 41 trillion Nigerian Naira last year. This makes up about 24% of the total GDP of the country.
Therefore, agriculture is considered to be one of the best investment opportunities in Nigeria. You can look for agricultural investments if you are ready to invest a larger amount of capital. This is because this trade requires people to have significant amounts of raw materials as well as fulfil the required trade protocols and approvals.
7. Real Estate Investment
Real estate is a constant commodity provider in any known country. Building and trading are yet to be fully exploited in the Nigerian market. Therefore, investors can look into getting their hands deep into the market as these are the current and growing investment opportunities in Nigeria.
Real estate is one of the trendy assets of investment for Nigerians and foreign investors. In this sector, one can invest in the property and sale as a whole or can invest in rental properties or other financial or commercial properties.
Nigeria has worldwide recognition for the potential of its agriculture and animal husbandry. Therefore, investing in the booming livestock of the country can also be an opportunity if the investor finds the same interesting.
9. Mining and Mineral Resources
The 36 states of the confederation, as well as the FCT in Nigeria, are blessed with a plethora of substantial mineral reserves that can be extracted.
Coal, gold, columbite, iron ore, uranium, marble, gypsum, copper, limestone, marble, lead-zinc, granite, clay, glass sand, gemstones, barite, tin, talc, and bitumen are a few of these elements. Investment in these sites can yield far more than expected.
10. Education Sector
The Nigerian government has been actively investing in the education sector to improve people's education levels. So, the market might receive strong economic inflow from larger markets in the coming years.
Investors can either start private institutions or coaching centres The government has also been active in welcoming investments. The OECD sustainable investment program is one such incentivised program hosted by the government of Africa.
11. Oil and Gas
The oil and gas sector must be addressed as the highest and among the most ROI-generating investment opportunities in Nigeria. It brings in revenue amounting to 1.2 trillion Nigerian Naira.
The country is a store for a higher number of natural resources like petroleum and other fuels. Investors can invest in the equity of oil exploration and production companies or take the mutual fund route.
12. Manufacturing Industry
The Nigerian market has been opening up for manufacturing as the government is looking at market diversification. This is going to attract many multinational manufacturing organisations. Therefore, investors may look at this opening as one of the biggest investment opportunities in Nigeria.
This is one of the new investment opportunities in Nigeria. The total size of the logistic market in Nigeria is 13,14,00,000 Naira. This sector is fast growing, but as of 2022, it is still in its nascent stages. Therefore, investors can expect more potential to tap into the logistics sector.
14. Fitness Training
The world has become more aware of their health and lifestyle in 2022. This is the best time to tap into the industry and get a good return on your investment.
The Nigerian government has several health programs. Investors can partner with initiatives such as the Health Reform Foundation or the National Population Commission.
15. Photography and Videography Services
Among the best investment opportunities in Nigeria are photography and video services. This is due to the great natural reserves and wildlife found in the country. It attracts a lot of photographers and videographers. Therefore, investors can look into running agencies.
Nigerian youth are also looking for side hustles to generate some passive income for themselves. Photography or video editing skills come in handy as investment opportunities for starting businesses in these fields.
Other investment opportunities in Nigeria for people on the lookout include digital marketing arenas, affiliate marketing, tutoring, etc.
Which Platform is Best for Investment in Nigeria for Better Returns?
Along with the increasing interest of people in investment opportunities in Nigeria, new investment platforms are coming up with better investment plans. You can explore different platforms on the market to suit your specialised needs, risk-reward appetite and more.
With the wide range of investment opportunities at hand, you have many ways to exercise your skill and try your luck at investing.
The diverse investment opportunities in Nigeria, especially the country's reserves and population, have a lot of untapped potential.
Along with traditional investment routes, Nigeria offers livestock investment, agricultural investment, education and fitness investments in greater numbers.
As dollars is the most researched investment option in Nigeria, a trusted platform like Pillow can be considered for secure investing.
Besides, if you are overwhelmed by the many options, choose one that excites you the most and start researching it in detail. Reach out to and follow some industry experts. You may also find some financial experts to guide you on dollars, stocks, bonds, and mutual funds. Good luck!
What are some of the risks of investing in Nigeria?
As the investment market is opening up, investors might face legal challenges when renewing their licenses. Also, investors must keep a close watch on the political situation of the country when investing.
Where can I invest my money and get a monthly income in Nigeria?
Agriculture, real estate, mutual funds, and high-paying dividend stocks are just a few of the many options for generating monthly income from investments in Nigeria.
How can I earn a daily income in Nigeria?
Day-in-day-out trading at stock market exchanges and dollars can be a way to ensure daily income from investments in Nigeria.