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How to invest in uncertain times

Financial planning is having a plan for your finances in a manner that protects your cash flow from dissipation and/or loss.



Nairametrics Financial literacy, invest intelligently, portfolio diversification, treasury bills, Your next of kin, or not?, Investing in uncertain times, Things to accomplish during COVID-19 lockdown

Financial planning, in simple terms, is having a plan for your finances in a manner that protects your cash flow from dissipation and/or loss.

Financial planning is a process; if you wanted a step by step guide on how to establish a financial plan, it would be: First, agree on a plan ⁠— what do you want to achieve? By when? Then, start an Emergency Fund, and settle your life insurance to protect your dependants from loss of your income. Only after you have done these can you start the journey of investing current income into available asset classes.


Investing in uncertain times

What should an investor do in these uncertain times of financial loss and meltdown in asset values?

Don’t panic

Look at your financial goals. Have they changed? If they have not, do not make any strategic financial decisions that will change your investment portfolio because of current uncertainties. If you have an RSA, or any investment fund set aside to invest money for the long term (more than 36months), then absolutely ignore the noise today and keep investing.

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Being worried is understandable in this time of global economic uncertainty, but do not simply dismiss your carefully prepared, long-term investment plan. If you own a good dividend-paying asset, be careful about selling because the price of that asset is falling. Selling an asset as prices fall is simply actualizing that loss, i.e., you move that loss from paper to reality.

[READ MORE: Between saving, investing, speculating, trading & gambling)

Review your budget

Remember, cash is king; it’s time to go over your budget and cut back on discretionary spending plans that drain cash away and reposition your budget for saving and only necessary spending. The coming months may see job losses and bulk buying of commodities, e.g., food. Prepare for this, keep non-essential capital investment down, and keep physical cash nearby. You can use your emergency fund and prepay for purchases, then simply replenish your fund later.

Tap into your emergency fund

Even with a plan, you still have to pay bills, so if you need cash to cover non-discretionary expenses, this is the time to tap into cash and near cash saved in your Emergency Fund. An Emergency Fund is where you save 3 to 6 months of your non-discretionary expenses, i.e., expenses you must make like food and rent. An emergency fund is an important part of any financial plan, as it stops you from selling down your assets at a lower price to meet expedient cash needs.

Keep paying your bills

If you have credit cards and loans from banks, make sure you are making the minimum payments to ensure your credit score does not take a hit. Yes, it’s tough, but a good credit score is very important, as you can get lower Annual Percentage Rates on new applications for loans.


Continue investing

As the market prices fall, keep investing if you already do so on a constant basis. If your employer matches your retirement contributions, then keep investing, don’t lose that benefit. The goal for you is to adopt a Naira Cost Averaging approach. Naira Cost Averaging is simply buying same amount of a share at regular intervals, no matter the price. the volatility in uncertain times means that as share prices fall, the investors are also able to buy shares at that lower costs, helping to reduce the average cost per share and positioning the portfolio for positive return.


Keep in mind that this strategy only works with shares, not fixed income instruments like bonds. 

Look for opportunities

Keep in mind that the market prices of many assets are indeed falling, but the values of these assets may not have fallen in same proportion.

For example, Zenith Bank Plc’s share prices have fallen by 46% over one year, but the PE is 3.87 with an implied divided yield of 23% (on N2.80 divided) higher than the double-digit Nigeria inflation rate of 12.2%. Look at the market prices falling as an opportunity to own quality stocks at a good bargain price.

Another example? The S&P 500 has fallen 31% since February the 19th, the market is essentially pricing in a zero earning for most of the 2020 year; there are also headwinds with crude oil price war between Russia and Saudi Arabia, but does anyone believe the markets will remain at negative 30% for the coming 9 months? Is this a buying opportunity? What about China? Down 16% YTD, are Chinese stocks a discount today?

We have no way of predicting the future, but it’s better to acquire blue-chip, well-capitalized stocks, in a growing market segment like Alibaba, at a significant discount to her 52-week closing price.


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Pay down debt

Corporations also have cash needs. If you owe debt, significant debt, it may be a good exercise to call up your creditors and seek better terms on those loans. The enemy of bank lending is uncertainty, however, lack of bank credit in the system will create a cash crunch and most institutions will offer great terms if you were paying down your loans. 

[READ ALSO: Is investing in commodities only for the brave?)

Position yourself

Start to prepare a list of possible assets you want to buy. What should be your criteria for buying risky variable return assets?

  • Companies in a sector producing essential goods and services.
  • Highly capitalized blue-chip stocks.
  • Price Earnings Ratio below 15.
  • Dividend yield offered well above the market average of 4.5%. Keep in mind inflation rate of 12.2%.
  • High volume traded, average 1m traded share volume in 90 days.

However, you can keep it simple by looking at buying the index that tracks the stock markets, e.g., for equities, the Global X MSCI Nigeria ETF (NGE) invests in the largest and most liquid companies listed on Nigeria Stock Exchange. To hedge, buy fixed income; I prefer bank Commercial Paper because it offers higher yields than Sovereign bonds, but watch the issuer.

Remember, investing is risky. You can lose 100% of your capital; always seek advise before investing.




  1. Ayomide Afolabi

    March 23, 2020 at 9:07 am

    How do i invest in apple or facebook stocks from Nigeria

    • Jessica

      April 18, 2020 at 7:26 pm

      There are some apps that can buy through. E.g Trove, Chaka, InvestBamboo.. I would advice you join the Money Africa Forum to know more.

  2. kanmi

    April 25, 2020 at 6:10 pm

    how do i join the Money Africa Forum

  3. kanmi

    April 25, 2020 at 6:11 pm

    how do i join the Money Africa Forum?

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LIRS further extends deadline for filing annual tax returns by one month

“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.” – Ayodele Subair



LIRS further extends deadline for filing annual return by one month

The Lagos State Internal Revenue Service (LIRS) has again extended the deadline for filing of Annual Tax Returns from May 31 2020 to June 30, 2020.

This is part of the state government’s effort to provide relief to taxpayers in light of the economic impact of the Covid-19 pandemic. With this development, annual returns for individuals, both employees and self-employed persons, can be filed anytime before June 30, 2020.


In a press release signed by Monsurat Amasa, the head of LIRS’ Corporate Communications Department, the agency urged taxpayers to take advantage of the magnanimity of the government and file their returns. The LIRS’ Executive Chairman, Mr. Ayodele Subair, explained the extension thus:

“As the Lagos State Government keeps abreast of global best practices in containing the Covid-19 pandemic and eases the effects of an economic downturn on taxpayers and residents of the State, LIRS had initially extended the deadline for filing annual tax returns for two months, from the statutory March 31st of every fiscal year to May 31, 2020.  

“We constantly debated what other measures could be taken as an organization to support individuals and businesses at this time, hence, the additional one-month extension from June 1, to June 30, 2020.”

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(READ MORE: COVID-19: Lagos issues new guidelines, considers full reopening of economy)

He further explained that taxpayers can file the annual returns from the comfort of their homes and offices using the LIRS eTax platforms. They can also generate assessment and payment schedule, and other tax administration matters on the same platform. Updates on business operations and alternative payment platforms are to be found on the verified handles, and the LIRS website.

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Where to invest in May

Post-COVID-19 lockdown, Nigerians need to send their money on the right errands in May 2019, if they will not be caught napping the expected recession.  




This May, post-COVID-19 lockdown, Nigerians need to send their money on the right errands, if they don’t want to be caught napping during the anticipated recession.

When listing out assets that should make up the ideal portfolio in May 2020, founder of Nairametrics, Ugochukwu “Ugodre” Obi-Chukwu, explained that investors should consider choice stocks in the Nigerian and foreign stock exchanges, as well as investments in money market instruments where some decent profits can be made.


Ugodre said this during the maiden edition of the Nairametrics Monthly Investment Guide Webinar.

According to him, this will also be the time to look into Agri-Tech investments, using crowdsourcing platforms, after which you can sit back and watch your funds grow over a time span of 5 months to a year.

According to him, it is also important to invest in foreign currencies and crypto-currencies to balance one’s portfolios.

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He noted that foreign direct investments have reduced over the last couple of years due to reduced trust in Nigeria’s economic policies, and the desire of foreign investors to cash out their funds with ease. This also explains why portfolio investments grew by 38% in 2019.

He said, “Foreign investors love portfolio investments because when they put their money in, they can easily take it out as well.”

(READ MORE:   CrowdFunding: Who is qualified according to new SEC Guidelines)

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Finding the right stocks

On the stock market, he noted that quite some stocks improved in the month of April and could improve in the coming months. He listed 20 suggested shares, including six stocks which he described as COVID-19 proof.

Agritech,Errands you can send your money in May 2020  


Dangote Sugar Refinery, May & Baker Nigeria Plc, GSK, Neimeth International Pharm, Nestle Nigeria, and Cadbury Nigeria Plc are fast-moving consumer goods companies that are expected to be resistant to pressure from the pandemic.


He advised investors to track stocks that are liquid, have good financials and good corporate governance, in order to limit risks borne by investors. Valuation of the shares, he said, could be done by comparing stock value and earnings per share.

Working around cryptocurrency volatility 

While making a presentation on “Why Bitcoin should be in your portfolio,” Yele Badamosi, CEO of Bundle stated that foremost cryptocurrency, Bitcoin, had maintained a steady appreciation over the last decade giving investors high yields.

Although the market is highly speculative and unregulated, its high returns and high risk indicate that investors with high-risk appetites could find the market more attractive.

To avoid being on the wrong side, he advised users to consider time-based rebalancing, or tolerance rebalancing to reduce risks and rebalance one’s portfolio.

(READ MORE: AfCFTA delay: A bane to Africa’s $3.4 trillion economic bloc)


“There are reputable people in the space, but it is important to do your research, start small, and buy regularly. Be wary of get-rich-schemes and unrealistic guaranteed returns,” he advised.  cryptocurrency,Cryptocurrencies and its usage in Africa, Errands you can send your money in May 2020  


With applications like Bundle Africa on Google Play Store, buying cryptocurrencies is as easy as selecting the buy button and having it saved in your bundle wallet.

What to expect in Q2 2020

According to Wale, an economist, who also spoke at the webinar, the demand for crude oil will remain low as several countries and businesses are still in lockdown, even though OPEC has cut down production.

Interest rates may remain low, though, despite this, Nigerian business entrepreneurs cannot expect single-digit interest rates.

Foreign reserve and government reserves will remain under pressure in the coming months. The World Bank says that this is the worst year so far, going back to the great depression and this is what I think as well. This is probably going to be the worst economic crisis we have seen,” Wale said.

He added that with the exception of industries in the Healthcare sector, telco companies, digital technology companies, and food producers, other sectors could very well expect a big hit.

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Why risk your life when you can bank with V by VFD (VBank or V)

Unlike other apps that are laced with either unbidden and hidden charges, V is free, as there are no charges for customers whether they are transferring money to another customer of V or another bank.



VFD MFB closes gap with bank customers, launches new app, Why risk your life when you can bank with V by VFD (VBank or V)

The recent lifting of the lockdown has seen Nigerians rush to the banks to execute banking transactions that they have missed in the last five weeks.

Saying that this action or mis-action contravenes the physical distancing preached by the health agencies and government, is only stating the obvious. By doing this, they endanger themselves, and other family members whom they return to after their day at the bank.
But what if it was possible to do all your banking from your phone?


V to the rescue
V disrupted the banking industry when earlier this year, it launched a highly optimized virtual bank app that enables users to carry out all banking transactions with ease and from their phones.
Users are able to create and set up a bank account with the app within 5 minutes and start carrying out transactions immediately.
Of course it doesn’t matter if you already have an account with the traditional banks. There’s always room for pleasant disruptions, aren’t there?

What they offer
VBank was launched as Nigeria’s first fully virtual bank to close the gap which hitherto existed between established traditional banks and their customers. That means there are no barriers between the bank and its teeming customers and potential customers.
Unlike other apps that are laced with either unbidden and hidden charges, V is free, as there are no charges for customers whether they are transferring money to another customer of V or another bank.

(READ MORE: VFD Group meets nutritional needs of residents of Olowogbowo community)

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According to Azubike Emodi, MD/CEO, VFD Microfinance Bank, experts behind V are taking a consumer-centric approach with an aggressive feedback collection mechanism to build an app that meets the objectives of the customer.
The app, which is available for download on App store and google playstore allows users to monitor expenses and income, categorize budgets, and set spending limits. V is available to download by searching for “V by VFD” on App Store and Google Play store.

Why risk your life when you can bank with V by VFD (VBank or V)
What else could one ask for in a bank?
Another landmark feature of V is referral functionality (Veelage), which is also connected to monthly financial reward. It allows interested users of V to earn income and advance though the V community simply by getting account holders signed up with a unique ID and maintaining an average balance.

About this unique feature, Olukunle Salami, Business Performance Manager, VFD Group Plc would say that It is a 2-way value proposition that ensures individuals can earn consistently for several months beyond the initial referral point.

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Whoever guessed that we could earn from our bank?



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