10 Ways To Start Investing Small In Nigeria

Many Nigerians are locked up in the belief that investing only concerns the big guys in the cities. But this is very false. Despite the challenging situation of the economy you can commit yourself to some small investments that would bring in huge returns in future! And this article unveils 10 ways to start investing “small small” in Nigeria to secure your future.

Investing money is a good source of passive income, and in Nigeria, there are countless investment opportunities to leverage on. Investing small amounts in the right business can yield considerable rewards that can be gradually converted into bigger investments later on.

It takes a devoted, serious, and smart person to excel with investments. And if you think you are, then check out these 10 ways to start investing small.

Table of Contents

1. Federal Government of Nigeria (FGN) Savings Bonds

Nigerians are provided investment opportunities by the Federal Government which include Savings Bonds. Investing into FGN Savings Bonds helps to contribute to the economic growth of the country.

When you are involved in this investment, you lend to the government and earn interest after a period of time. You can invest as little as N5,000 and up to 50 million naira for a duration between two to 20 years.

Interest can be up to 13%, depending on the timeframe you go for, and even exceeds the interest commercial banks offer. It is kind of safer, reliable, and worth considering since the Nigerian government is predictably expected to be around for a long time. Payment often comes twice every year.

2. Agriculture

Agriculture remains a goldmine for investors. It is one of the sectors that hasn’t been fully tapped into in the country but has produced multi-millionaires! And considering the focus of the Nigeria government in pulling diverse incentives to boost the agricultural sector, it becomes a juicy area to start investing small.

It is important to note that Africa has a massive rural land area which is great for agriculture. So, if you’re looking for small investments that can generate good monthly returns in Nigeria, then put your money in agriculture.

3. Investing Apps

You can also start investing small in Nigeria with investment apps. These apps are owned by finance institutions but do not function like traditional banks. They offer bigger returns since they are not affected by the huge maintenance expenses bore by traditional banks.

And without any paperwork, you can invest from the comfort of your home in any of these apps. The emergence of these mobile apps have impacted immensely in improving investment in the country.

Apps like Carbon, PiggyVest, Cowrywise, AfrInvestor, ThriveAgric, Payday Investor, and Rise are investment apps to try.

4. Mobile Food Business

Cooked food business is one of the businesses in Nigeria aspiring businessmen and women do not need a huge amount of money to start. With just a small cash, you could set up this business which could turn out to become big in no time.

Everyone needs food to survive, just like water is needed for the body. It is one of the things we all can’t do without. You can use such an advantage especially now most families do not have the time to cook due to long tasks of the day.

Start small and watch it become big soon. If your N10,000 can only afford to buy some rice, beans, and meat, start with it. And with time, you can add other foods like salad, moimoi, and other varieties to keep up with the demands.

5. Mutual Funds

Mutual funds offer investors juicy returns. This investment scheme is organized by skilled money managers who pool funds from multiple sources, and invest in reliable and profitable financial programs.

This isn’t necessarily secluded to rich guys alone, even with N5000 as an investment capital, you can be part of mutual funds investment and watch your money grow. While it is vital for you to have good knowledge in the financial market, you do not have to be inclined in the sophisticated aspects to understand how it works.

6. Treasury Bills

As a small investor, investing in this government guaranteed debt instrument provided by CBN as a way of financing expenditure and controlling the supply of money in the system is a medium you should consider.

Treasury bills also known as T-Bills can be acquired via any official dealer, especially banks treasury bill mobile apps, and are sold via a bi-weekly auction announced by CBN. You can be part of it with just N10,000.

Walk into a bank to request for a form, fill it and state the amount you are purchasing and your bid rate. You can only fill a signup form once, especially with the rise of T-Bills mobile apps from banks.

7. Nigerian Stock Exchange

Investing in stock has to do with acquiring a small unit of a company’s share that is sold under the Nigerian Stock Exchange. You can invest just N5,000 stocks that could generate huge figures in future.

As a stock investor, you can through capital appreciation, cash dividend, and bonus issues. Capital appreciation comes with the increase in the price of stocks, dividends is a specific portion of profit distributed by the company to its shareholders, and the bonus issues are added shares given to the shareholders. This method is one of the sure ways you can start investing “small small” in Nigeria.

8. Individual Stocks

Individual stocks is an option to consider if you are a great risk-taker. The profitability is quite huge, and that’s how it works – the higher the potential profit, the higher the risks!

They are a part of a company’s ownership share handed to public individuals. They offer huge investment returns when you invest even a small amount, but the volatility rate is equally high. You may want to acquire stocks provided via mutual funds as against this.

And based on the level of instability involved, you should consider limiting your stock holdings to 10% of the total portfolio as a measure to control risks. Making investments generally has to do with a certain level of risk, and this option is not different.

You can check out online discount brokers to acquire stocks. Set up an account, fund it, select your type of order and turn out as an authentic shareholder.

9. Real Estate

Real estate is one investment opportunity that has made many Nigerians immensely rich! And by investing your small cash, you could build up gradually to the big game!

The common mode of investing in real estate involves buying a property for a period of time which is expected to appreciate over time and maybe resold. But there are other better and cheaper options.

In Real estate investment trusts (REITs) companies offer payment of dividends to investors over properties – hotels, offices, malls, residential buildings, etc – that have generated income within a stipulated period of time.

Real estate crowdfunding is also another reliable investment option in the industry. In crowdfunding, funds are pooled together towards a specific project. But the kind of money you invest in real estate may not be such that you’d need to access anytime soon because real estate takes lots of patience.

So, if you need higher returns or just checking out to diversify your investment options, then consider investing in real estate.

10. Fashion Design

Investing in fashion designing doesn’t mean that you must become a fashion designer too. Fashion is a big thing on the globe right now, and there are diverse areas you can start investing small in the Nigerian fashion industry. solution

Many investors have turned multi-millionaires through this industry without lifting a finger. You can invest in the supply of various kinds of uniforms for schools, companies, public sectors, army, etc. you can also invest in importing wears – not necessarily new wears. A huge number of the Nigerian population buy used wears. So, you should consider getting recycled clothes that are very much in good condition; bags, shoes, wristwatches, accessories, even face masks have become trendy now – no thanks to the pandemic!

This trend is fast-growing in Africa and an answer to the prayers of many since new clothes are becoming extremely expensive. Clothes can be bought from other African countries, or from countries like Hong Kong, Italy, China, France, Dubai, India, and many others.

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