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Investment Tips

Is there a legitimate Nigerian business that can guarantee 5-10% monthly interest?

Is there really a legitimate business that can guarantee investors 5-10% monthly return on investment?



Is there a legitimate Nigerian business that can guarantee 5-10% monthly interest?

Now, this is an interesting question, isn’t it? Nairametrics’ Lead Partner and Publisher, Ugochukwu Obi-Chukwu, recently asked his Twitter followers the same question. As expected, the question was met with numerous responses. Some investment platforms even used the occasion to advertise their services to potential customers. But is there really a legitimate business that can guarantee investors 5-10% monthly return on investment? Well, let’s take a closer look at the matter.

Apparently, such businesses exist 

Majority of those who responded to the question did believe that such businesses exist. As a matter of fact, they even came up with suggestions ranging from regular small businesses to more organised kinds of investments. For example, a Twitter user replied that roadside restaurant business would suffice. However, just in case that isn’t good enough, she equally suggested events management.

Although she did not explain in detail how exactly these businesses could guarantee that much return on investment, it is important to note that food businesses always have the potential to thrive. This is due mainly to the fact that humans need food to survive. However, this type of business always tends to be highly competitive, even for those operating on a large scale. Therefore, it is highly uncertain if a “Mama Put” business can, indeed, guarantee 5-10% ROI.

Moving on, another Twitter user (Samuel U.F Udom) suggested that investing in the business of scrap metal purchase would serve the purpose. He actually explained his point, mentioning iron as the metal of choice. Apparently, iron is always in high demand. The business works in such a way that a kilo of scrap metal, which can be purchased from scavengers at N70-N80, can then be sold to the end-users (I.e., recycling companies) at N120.

[READ MORE: Solomon Udoh’s experience is why you should monitor your investment performance constantly]

If you can buy up to 10 tons volume of scrap metal, then you can make over N300, 000 worth of net profit, he said. This sounds interesting, no doubt. However, it needs further verification.


Another business idea that can even give more than 10% ROI, according to RealNaijaKolo, is haulage business. Now, this is not just an ordinary kind of haulage business. Instead, it’s all about transporting natural resources such as limestone, laterite, iron ore, and more. To do this job, you need to be closer to sites like Opkella where limestone is mined by the likes of BUA cement. Something else you would need is a contract with a producer to transport the goods. Then you stand a chance of earning up to 15% returns on investment.

Again, this sounds almost too good to be true. But then again, we are talking about limestone and other natural resources which serve as raw materials for some of the biggest companies in Nigeria. Therefore, just in case you are interested in this sort of business, conduct more research to better understand it before jumping right into it.

Theodore Isichei suggested that veterinarians can cash out by simply offering to immunise cows for Fulani herdsmen up north. According to him, some of these Fulani cattle owners are willing to pay as much as N10, 000 just to immunise one cow. Imagine immunising a herd of cattle, N10, 000 per one. Interesting! But then again, is this even true? Moreover, how much would the immunisation kit cost?

Some people took advantage to advertise 

Biodun Afolabi, who described himself as an investment technology enthusiast, told those who cared to listen that Wealth.NG could definitely help them to actualise this. According to him, just by downloading the Wealth.Ng app, Nigerians could have access to invest in stocks, treasury bills, and more. Now, just to quickly add that this one is true. Go get the app right away.

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investments, how to measure the performance of your investments., Here are ways to ask family and friends to fund your business - PART 2 

Meanwhile, Cokodeal, which claims to be Africa’s largest export platform, also took advantage of the moment to explain how they can help Nigerians earn up to 10% return on their investments on a monthly basis. See below if you care-

Some people are sceptical 

It is probably important to mention at this point that when it comes to investing, return on investment is never something one talks with certainty except when one is definitely certain. This is because anything could happen along the way, thereby causing disappointments.

This is exactly the point Onaopemipo Dara made when she pointed out that some people probably didn’t understand what 5-10% ROI really entails. Her suggestion is that people need to first understand what this means.

Please note that suggestions made in this thread are the opinions of those who shared them. Therefore, if you are thinking of going into any of the businesses suggested therein, ensure to consult a qualified investment expert to give you the necessary advice.


Best of luck in your investment journey.

Emmanuel is a professional writer and business journalist, with interests covering Banking & Finance, Mergers and Acquisitions, Corporate Profiles, Brand Communication, Fintech, and MSMEs.He initially joined Nairametrics as an all-round Business Analyst, but later began focusing on and covering the financial services sector. He has also held various leadership roles, including Senior Editor, QAQC Lead, and Deputy Managing Editor.Emmanuel holds an M.Sc in International Relations from the University of Ibadan, graduating with Distinction. He also graduated with a Second Class Honours (Upper Division) from the Department of Philosophy & Logic, University of Ibadan.If you have a scoop for him, you may contact him via his email- [email protected] You may also contact him through various social media platforms, preferably LinkedIn and Twitter.



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    Financial Literacy

    Is investing dead?

    It appears the rules of investing have evolved from buy low to sell high, to buy high to sell higher.



    Warren Buffett spent $7 billion to $8 billion on positions in Delta Air Lines, United Airlines, American Airlines, and Southwest Airlines. In 2021, as the scale of the Coronavirus-induced lockdown became apparent, the Oracle of Omaha, Warren Buffet sold all his airline stocks. This was no casual decision, Buffet has said that his favorite holding period is “forever” and his strategy is to buy companies, milk them of cash, pay no dividends, and compounds his returns by holding.

    Why did Warren sell? Well, you don’t have to be an investing genius to see any virus that stops global commerce will affect business travel and thus reduce revenues flowing to airlines, thus airlines stock prices were going to fall. Buffet got out to avoid a diminution in the value of his position.

    At the 2021 Berkshire Hathaway Annual Shareholders meeting Buffet said he diverted so the airlines would find it easier to get the CARES Act government funding, ok but the story is not about Buffet but about what happened when he sold.

    Usually, Buffet buying a stock is a stamp of approval on that stock, ditto when he sells. When Buffet sold in May 2020, the shares of the US-based airlines tumbled with American Airlines falling 7.7%. After Buffet sold, stock of the airlines rose in April as retail investors bet against the judgment of Buffet.

    READ: Where to invest N500,000 right now

    Was Warren Buffet wrong?

    Let us take a look at another example. Hertz filed for bankruptcy in May 2020, meaning that its stocks became worthless, its shares kept falling to as low of $0.40, yet its stock appreciated in price to a high of $6.00 as retail investors (again), many of them on Robinhood, pumped up purchases on this stock because it was rising in price, in essence creating a self-fulfilling buying hurricane and pumping up a stock worth zero. The higher prices were trailed by even higher demand.

    Were the retail investors naïve? No, they understood the risk when  Hertz tried to take advantage of the demand by selling new shares with this clear warning: “we expect that common stockholders would not receive a recovery through any plan unless the holders of more senior claims and interests, such as secured and unsecured indebtedness are paid in full.

    READ: Why Warren Buffet’s $4.6m lunch with Bitcoin entrepreneur is experiencing delay 

    So what’s going on? Is investing dead? We can argue that retail investors bought into Airlines because they were aware the US government would rescue the airlines with a package worth billions. They also anticipated that the stock price having fallen so low represents a discount to the existing price. They were buying low to eventually sell higher.

    Why would retail investors buy a bankrupt company? It appears the rules of investing have evolved from buy low to sell high, to buy high to sell higher.

    The price of any stock used to be the discounted present value of all future earnings, thus if I say the price of Zenith Bank today is N20, I am stating that if I take all earning of Zenith Bank from the future and discount them back to today using an agreed discount rate, I will arrive at N20. The P.E. relates the price of the stock to the earning and is often looked at as a measure of how expensive the stock or market is when compared to earnings. The PE of the US markets as measured by the Schillers CAPE valuation is at 36.6. this represents the second-highest level, since 1890. CAPE looks at the last 10 years of earnings adjusted for inflation.

    Investing was a “simple” exercise in seeking to determine the intrinsic value of a stock, using fundaments such as market share and earning and then buying if intrinsic value is less than the market price and vice versa. Not anymore!

    This goes far beyond traditional assets, there is an uptick in selling prices of alternative assets such as NFT and cryptocurrencies, with cryptocurrencies like Dogecoin up 675% in 3months.

    So is investing dead? Not yet. The issue is liquidity, excess liquidity in the US. The average retail investor has seen two stimulus cheques from the US governments and interest rates at record lows. This means the average US investor has an incentive to take on more risk to earn above safe fixed income yield. Another driver is the record appreciation in home prices, especially in the suburbs. Many American homeowners can take “equity” (difference between home value and mortgage, if any) from their homes at record low rates and invest. This excessive liquidity is looking for where to “park” and is showing up on heightened valuations aka “bubbles.”

    In Finance, there is a theory called the Greater Fool theory, where prices can keep rising as long as the current holder of any asset can sell that position to another investor at higher prices. The new holder then sells to a new investor at a higher price and so on. We are watching that right now.

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    In the long run, the market will correct, and valuations will again reflect earnings, the trigger will be the decoupling of the US Federal Reserve from bond-buying and the rise in yield which signals inflation. My advice to any investor is to ensure that when the market corrects, you are vested in quality assets.

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    Investment Tips

    How to thrive as a small business in today’s era of globalization

    Small businesses play a critical role in developing the entire economy of any country, hence the need to activate the interests of potential clients.



    The "new normal" in business and economy

    The globalization of the world economy is a reality in which companies in all countries have been living for two decades. According to statistics, more than 50% of all innovative developments appear precisely in small businesses, and globalization, in this case, involves the investment in small businesses and their development by larger entrepreneurs and investors.

    Small business and globalization

    Today, small business development is based on the following factors:

    • Availability of a state support program
    • Venture investment
    • Business incubators

    Emphasis is on the formation of substantial assistance and support for the development of small businesses in the first place. At the same time, a significant emphasis is also placed on providing honourable working conditions. In some zones, even very loyal conditions have been created for the normalized work of entrepreneurs since there is a definite need to improve the economic performance of this or that region.

    Thus, globalization is the process of implementing a variety of assistance, which is aimed directly at creating standardized conditions for the work of entrepreneurs. Naturally, at the moment, the sphere of activity of small businesses in the field of innovative developments is actively developing. In this case, individual private investors take an active part in globalization, offering various programs for investing money.

    Enhancing small business development

    Since small business plays a critical role in developing the entire economy of any country, there is a dire need to activate the interests of potential clients. Business development is provoked by the fact that all conditions have been created for it, and large companies are ready to invest their funds in its development.

    In recent years, there has been an intensification of interest in developing small businesses all over the world. It is becoming clear that this business can bring the state to a new level in the global economy. It is in small businesses that many exciting and truly original ideas are born. But, due to lack of funding, such ideas have no prospects for active development. For this reason, in Europe and America, this business is at the peak of development, and it receives assistance not only from the state but also from private investors and large entrepreneurs.

    How to help your businesses thrive?

    It is a question that only successful entrepreneurs have. An entrepreneur cannot be successful without the desire to constantly develop his business, conquer new business heights and achieve new goals. A company cannot go on a knurled one. Sooner or later, such a business will be at the bottom. Technologies change, competitors change, customers change with their needs, and if your business stands still, it will not meet new requirements. Therefore, it is imperative to grow and develop a business constantly:

    • Expand the range of products and services;
    • Improve the quality of goods and services and raise the price, as well as take customers away from competitors;
    • Attract new customers with marketing and advertising. Use translation equipment in your business to attract clients from all over the world. For example, simultaneous translation equipment will allow you to overcome the language barrier.
    • Expand your business – open new points of sale and branches;
    • Expand the market through related activities;
    • Sell Better – Train Your Sellers;
    • Combine different methods;

    Risk management system

    Even the smallest business depends on changes in the global economy. No doubt, this does not mean that every entrepreneur has to watch Bloomberg all day and become an expert in different fields to predict which direction oil prices will go. There are specially trained people for this. You have to go about your business. To do this, you need to have a well-structured risk management system that will allow you to effectively monitor all types of risks, including global ones.


    Remember that the modern economy is just as global as small business needs. Suppose an entrepreneur wants his goods to sell equally well in New York and Milan. In that case, he will strive to enter the Italian market, and, therefore, he will carefully study those peculiarities of doing business inherent in Italy.

    In the modern world, the presence of a risk management system is not just a tool for preventing the dangers and threats of a particular enterprise in a specific country. It is a mechanism for promoting a company to its own country and the markets of other countries.

    Final word

    Simultaneously, it is obvious that to enter the markets of other countries, which means that the organization becomes a player in the global economy, the management system as a whole and the risk management system must change depending on the situation and show flexibility and adaptability. Only if these conditions are met can we say that your company is ready to enter the global market and will be able to withstand the impact of the worldwide economy.

    About author

    Rachel Eleza, Growth Marketing Director at UpSuite and a part-time writer.

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