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Investment Tips

Breaking down the biggest misconceptions young people have about investing 

This article is aimed at breaking down some of the biggest misconceptions young people have about investing.



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Over the weekend, three friends —Emeka, Joe, and Mayowa— hung out at an upscale lounge somewhere in Lagos. As is often the case during such gatherings, the young men drank some liquor and talked about their jobs and the women in their lives. Most importantly, they talked about opportunities for making more money. Now, this aspect of their conversation underscored the fact that many young people have very troubling misconceptions about investing.

Ponzi schemes are considered investment

As the friends were discussing, Emeka was particularly interested in knowing if there was a new Ponzi scheme in town, after the massive collapse of MMM a few years ago. The 26-year old is fascinated by get-rich-quick schemes. As a matter of fact, he considers Ponzi schemes as the only form of investment that anybody should be thinking about.

Of course, Emeka couldn’t be more wrong to think that Ponzi schemes equate investing. The differences between the two are clear. For one, Ponzi schemes are illegal whereas proper forms of investment aren’t. But then again, for the hundreds of thousands of people like Emeka, none of these matters.

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The truth is that many people in Nigeria have the falsest understanding of what investing really entails. Therefore, this article is aimed at breaking down some of the biggest misconceptions young people have about investing, starting with the one below.

Investing is for old people

This may sound unbelievable, but a lot of young people in Nigeria believe that investing is for old people. Financial expert, Kalu Aja, is familiar with this falsehood. While commenting on this topic, he shared some of the most ludicrous things he has heard such as: “Don’t save for retirement, you’re young. There’s no need to save at all; just hustle.”

[READ MORE: Is there a legitimate Nigerian business that can guarantee 5-10% monthly interest?]

Going back to the lounge where Emeka and his friends hung out over the weekend, a similar sentiment prevailed. Joe’s employer had recently set up a pension plan for him following the confirmation of his appointment. But the young man wasn’t happy over this, simply because a certain amount was meant to be deducted from his monthly salary to fund the pension plan. See his argument below:

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“They said it’s good for me. But who cares about saving for retirement?! I am just 25 years old and will be working for the rest of my life…” 

Again, Joe was wrong because nobody can work for the rest of their lives. However, someone’s investment can work for them by yielding interests that will sustain them for the rest of their lives. Therefore, do not be deceived into thinking that you can work all your life. A time will come when nobody will employ you again, because you will be too old. If by then you do not have other means of sustenance, you are going to wish you had arranged a good investment for your retirement while you were young.

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Investments that do not guarantee 30% interest per month are not worth it

This is another misconception young people have about investing. It explains why many of them overlook legitimate forms of investments such as the stock market and prefer Ponzi schemes such as MMM. As Kalu Aja explained, it is greedy to think that any investment would ever guarantee you as much as 30% interests per month. If you rush into a Ponzi scheme with the hope of getting this, you shouldn’t be disappointed when it collapses eventually, as such schemes usually do. You could lose all your money just because of your greed.

I need all the money in the world before I can invest

Again, this is not true. While some forms of investment do require a lot of capital, there are other forms of investing that do not require you to have all the money in the world. A good example is mutual funds which specialise in pooling together investors’ incomes to form a large sum which can then be invested in select stocks, bonds and other forms of investments that will definitely yield you interest.

The riskier the investment the more rewards

Kalu Aja said he often comes across this misconception. As such, he was more than eager to debunk it. According to him, every form of investment has an element of risk, no doubt. However, it is not the risk that produces the reward. Therefore, thinking that an investment must be very risky for it to produce result is false.

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“All rewards come from risk, i.e., volatility. But not all risks produce returns. Buying a Nigerian stock, for instance, is high risk because of the volatility characteristic of the stock market. Does the volatility guarantee any returns? No. investing should, therefore, be planned to mitigate against risks.”

Once I buy a stock, I’ll become wealthy

This is yet another misconception that prevails among young people in Nigeria. For whatever reason, they believe that making money through the stock market is an automatic process. For them, all you need to do is buy the stock and keep, and before long, it begins to yield tons of money for you. Unfortunately, it does not work like that.

Mayowa, who was mentioned above, learnt this the hard way. During the weekend hangout with his friends, he complained that he was done with investing because he hadn’t made any money from his bank stock. According to him, he bought N30,000 worth of shares a few years ago and was surprised to find out that the investment had barely yielded any interests years later. Therefore, he was convinced that investing is a useless venture.

[READ ALSO: Steps to developing a growth plan for your business]

foreign investment, Here’s the easiest way to invest in your future 

The truth is that Nigerian stocks are not one of those investment packages you just buy and keep aside. As Nairametrics’ publisher, Ugochukwu Obi-Chukwu, once explained, you have to look at owning a stock the same way you consider owning a pastry shop. Nobody just stocks their pastry shop, lock it up, and leave it to sell itself. Your NSE stocks are like your inventory. You need to periodically look at it and ask yourself important questions like “Is it earning money for me? Is it doing well?” If it’s not doing well, then you flip it. Be active with your stock because that’s the only way you can know it’s the right time to sell or even buy more.

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There are many misconceptions young Nigerians have about investing. But for the meantime, we have only focused on the five discussed above. It is expected that reading this will help you do away with these falsehoods, just in case you are one of those who believe them. Investing is one of the best gifts you can ever give yourself; however, you must be wise about how you go about doing that.

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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In a hyperinflation economy like Nigeria’s, these are the best investments to consider immediately

A deeper review of investments to consider amid the prevailing high inflation in Nigeria.



Where to buy Real Estate in Lagos in 2021, Nigeria's Real Estate Sector recorded positive growth after three year low, Real estate: Declining credit reflects underlying weakness 

Let’s face it, Nigeria’s rising inflation plus lower options for high yielding investments are already driving a significant number of investors away from Africa’s leading frontier market. This is coming at a time when Nigeria’s top performing investment asset class for 2020 is currently having a year-to-date return of around -3.30%.

Recent data published by the National Bureau of Statistics (NBS) reveals Nigerian inflation rate surged to a 33-month high, as it rose further to 16.47% in January 2021 from 15.75% in December 2020. This is marks 17th consecutive month of rising inflation in the country.

Consequently, Nairametrics interviewed selected financial experts on the investment options best suitable for such macro.

That being said, it’s important to note that there are no guarantees when it comes to investing during high inflation. At best, such investments may be inflation-safe, but returns can never be guaranteed.

READ: The Nigerian economy is increasingly dollarized but there is a way-out

Debo Adejana, MD/CEO, Realty Point Limited, Chairman, REDAN South West Zone.

At 16.5% inflation rate as of January 2021, the obvious is that there are very little short-term investments that can outperform that especially in the short term. So, that being said, my traditional conservative disposition of the fact that the best investment term is the long-term.

To make returns that will consistently be higher than 16.5% in short term investments will require very good knowledge of the asset class and share dedication.

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If that is clear, then by my own understanding, the following are some of the possible investment areas or strategies to adopt with real estate being my most preferred asset class anytime:

  1. Financial player in a JV Property Development Scheme. This helps to save time and gives faster turnover of investment fund.
  2. Buying distressed property now, renovate, rent-out for 2years of more just to hold if necessary and sell after.
  3. Crowd owning/funding property deals
  4. Guaranteed rent discounting
  5. International property investment for positive cash flow and to enjoy foreign exchange appreciation

All the above can be done as a large ticket investor or little fractional holder using a well-structured and regulated vehicle.

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READ: Real estate sector GDP positive in Q4 2020, but still in the woods

Darlington-Morsi Onyemaka, Co-founder, Quba Exchange

Inflation means that prices for things are rising, and as such the same amount of money buys less over a certain period of time. This in itself is especially not good for cash savings as the best way to manage inflation is by investing in instruments that give you a return higher than the current rate of inflation or at least one that keeps up with it.

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The best kinds of assets to invest in during inflation are tangible assets that have fundamental values and as such, their worth measures up together with inflation. These assets include real estate, growth stocks, and commodities like food, crude oil, and gold (especially gold).

On the flip side, one should avoid long-term fixed-income investments. This is because the value of the underlying security falls as investors tend to focus on higher-yielding alternatives when the interest rates of that instrument start rising.

READ: FG says Finance Bill 2020 will check inflation

Thelma Ugonna Ohiri-Anyanwu, CFA

Inflation is the increase in prices of goods over a period of time, where a specific amount of currency will be able to buy less than before.

In as much as inflation erodes the value of funds, this should not deter one from investing as some investment’s types are great hedge against inflation and helps to preserve capital. Some of such investments are Gold, REITs, real estate, commodities and a well-balanced stock portfolio.

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Silas OZOYA, Founder/CEO SUBA Capital

Inflation in many ways affect the general health of a countries economy and her citizens literally and the only way out of inflation is continuous and increased investments in local production, expansion of existing local businesses and enacting fiscal policies that would strengthen the currency of such country.

To mitigate this, increased and persistent investment from all angles in Agriculture, local processing, and increased export would do a positive dent on our inflation rate and keep us far away from recession through job creation, wealth growth, food, and cash crop production at scale.

Nigerian’s home and abroad should consider investments that support economic growth through investments in Agriculture and agro-allied ventures.


Agriculture from my experience is one of the very few sectors that puts food on the table, employs people, and grows the value of your money against inflation all in one value chain.

The general public, high net worth individuals, and Nigerians abroad should consider holding at least 20% of their asset portfolio in Agriculture and agro-allied investments.

Angela Aya, Head, Institutional Sales at Alonati

There are a lot of investment opportunities for both the wealthy and not so rich investors in Nigeria, investors desiring to get an income or return on investment. Some are the FGN Savings Bonds, Stocks, Real Estate, Gold, Cryptocurrency, Agriculture etc. However, below are some investments that offer inflation protection:

Real Estate

Investment in real estate has been profitable and remains lucrative especially in Nigerian urban cities.

This investment however requires medium to high capital. Nigeria is still a developing Country in the world and the need for housing to match the Country’s increasing population size remains critical, as urban-rural migration continues to increase due to the neglect of development of the rural areas by the States and Federal Government.

The value of land and property has continued to rise and will continue to appreciate due to the margin between demand and supply as the need for residential and commercial buildings in major cities remains high.


Investing in gold has remained an agelong golden income space. The value of gold has continued to appreciate over the years because of the importance attached to it all around the world.

Gold remains an important symbol of wealth and affluence, and can be purchased as bars, coins or jewelries and resold at a higher price over time.

Bottom line

A disciplined investor can hedge against inflation risks by investing in the following asset classes that often outperform during high inflationary climates.

  • Debo Adejina – Real Estate,
  • Darlington-Morsi Onyemaka – real estate, growth stocks, and commodities like food, crude oil, and gold (especially gold).
  • Thelma Ugonna Ohiri-Anyanwu, CFA – Gold, REITs, real estate, commodities and a well-balanced stock portfolio.
  • Silas OZOYA – Agriculture and agro-allied ventures.
  • Angela Aya – Real Estate & Gold.

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Investment Tips

Retail franchise investment next gold mine for Nigerian investors- CIG

Retail franchise investment curbs unemployment  and create buffer for people looking for side hustle



The Choice International Group (CIG) has tasked both unemployed and employed Nigerians to embrace retail franchise investment, as the initiative would curb unemployment in the nation  and create buffer for people looking for side hustle.

In line with a recent FBDS Study, there are over 450,000 Nigerian career professionals with minimum investible funds of N1 million, looking out for investment opportunities.

In the majority, these funds are looking for franchise type opportunities for ease of venturing and minimal failure risk.

As far as CIG chairperson, Diana Chen, is concerned, such investor should look no further but consider the group’s retail franchise investment opportunity, which offers Nigerian community mouth-watering offer of owning Gree & Lontor retail stores.

According to him, Gree is the world’s residential air-conditioner manufacturer, while Lontor provides high-quality, energy-saving and convenient rechargeable home appliances and lighting products for global consumers.

He said, “Both brands have been built by the CIG into a world-class electronic retail chain in Nigeria opening no less than 20 brand shops in Lagos and Oyo over the last 18 months.

“The sales performance of its existing stores in the country makes Gree & Lontor one of the most profitable businesses in Nigeria with yields of an average return on investment of 50% and above per annum.

“CIG is offering investors the opportunity to own any of six regional logistics centres, or any number of Gree & Lontor brand shops in viable locations across Nigeria.

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“It is the decision of the company to open up these opportunities to the investing public through a Franchise Retail partnership.”


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He added that the company has mapped out two investment models it says are simple, transparent, and hassle-free.

“The first model involves only six regional logistics centres located across the geopolitical zones in Nigeria.

“Whoever invests in this will require a capital outlay of $1 million, and become a mega distributor partner of the Gree & Lontor brand, and service a network of brand shops.

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“The second investment model involves the Gree & Lontor brand shops – retail franchise stores that require an initial capital outlay of N20 million.

“The investor will secure a store size of 120-150sqm at any choice location, shopping mall, plazas, high streets and even residential neighbourhoods.”

What they are saying

Nigeria is a growth market for franchising and franchise development services.

Gbenga Ajayi, an Entrepreneurship analyst, said, “The retail industry comes second to the food industry among sectors with best franchising opportunities.

“As with other emerging markets, one of the challenges of franchising in Nigeria remains the strengthening of intellectual-property regimes so that franchise companies can transmit knowledge and franchise system concepts with the confidence that such know-how will be protected.

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