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Business News

Where to Invest N5 Million right now

Investment analysts advice on varieties of opportunities ranging from buying stocks to investing in Eurobonds, cryptocurrencies, foreign currencies, and even angel investment.

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As global financial markets swing recklessly in the storm of COVID-19, it is easy to be confused when deciding what investment vehicle to jump on that would maximize one’s profits. Nairametrics interviewed some financial experts, entrepreneurs, and corporate heads and asked for their opinions on what sector they would invest in if they had, say, N5 million capital.

Their responses were as interesting as they were varied—ranging from buying stocks to investing in Eurobonds, cryptocurrencies, foreign currencies, and even angel investment.

 


Elile Olutimayin, ACS, Managing Director at CardinalStone Securities Limited

A lot needs to be considered when giving investment advice to a potential investor – age, risk tolerance, cash flow, cash obligations, duration, and details on the investor’s overall portfolio to ensure diversification.
With the price to earnings ratio of the Nigerian stock market currently around 7.2x, it is undervalued when compared to some emerging and frontier markets; a significant upside potential exists for our market post-COVID-19, and if key macro concerns are addressed.

With N5million and a 12 to 18-month investment horizon, I would invest in some very decent names on the local bourse. My preferences in the banking sector are tier 1 names like FBNH, Zenith, Guaranty, and UBA. For the non-banks, Dangote Cement and MTNN are my top picks.

 


Olusayo Tola-Adenaike (ACA, ACMA, CGMA) Financial Business Partner, Oil Multinational Firm

Deal book 300 x 250

The treatment of N5m investment will vary from one individual to the other, depending on whether you have an Emergency Fund, and the current proportion of your portfolio.

On a personal note, additional N5m investment will be used for either of these options:
If I can get USD at close to the official rate, I will convert the entire sum and invest 50% into a Eurobond and 50% in my USD Mutual fund.
I would invest the entire N5m into a reliable and high-interest Agric crowdfunding arrangement.
I would invest N2.5m into my Naira Money market fund and will split N2.5m into 10 places to give short term interest yielding loans to family/friends who are providing services that are essential in this period (food, logistics, pharmacies, supermarkets, etc).

 


Yele Bademosi CEO & Co-founder of Bundle

Bitcoin, for the last 10 years, has been the best performing asset of any asset type/class so I’m a long term holder.
BNB is the network token for Binance Chain and is one of the few crypto assets I’m a long term holder in. It fits into an investment thesis I’m developing for platform/network tokens for both crypto assets. I believe there’s a greater than 50% chance that both will return at least 25% from their current price at some point over the next 12 months (probably higher).

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In addition, Eurobond is a dollar-based investment so it’s a good hedge against any potential devaluation with decent annual returns.

Binance

For Tech Stock ETFs, I’m very long on tech; they are one of the few sectors that can potentially thrive even in a downturn and have the flexibility to manoeuvre headwinds.

 

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Samed Olukoya Founder & Chief Executive Officer at Investors King

The recent currency devaluation has increased Nigeria’s foreign exchange rate, cost of importation, and cost of doing business in general, while high unemployment, weak earnings, and low household incomes have impacted consumer spending.

Therefore, the risk associated with the real economy at this time has risen and definitely requires more money to mitigate.

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I will invest in the foreign exchange market where demands and supplies are readily available given my background and experience.

 


Silas Ozoya, Managing Partner, SUBA Capital

With an N5 million fund, I would first analyze the risk involved in whatever investment vehicle portfolio I intend to invest it in, consider the rate of return on investment via the tenor of the investment, and frequency of return before taking such a decision.

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My top investment portfolios of choice would be agriculture, real estate, and the capital market to fulfil long, medium, and short term tenors.
I would invest 60% of the fund in Agriculture to produce more food and create jobs, 20% in rental real estate, and 20% in the Capital Market for liquid cash flow.

 

Disclaimer: Please note that these are opinions and should not be construed as an investment recommendation for financial advice. Kindly consult your financial adviser if you’re looking for professional advisory service.

Olumide Adesina is a France-born Nigerian. He is a Certified Investment Trader, with more than 15 years of working expertise in Investment trading. Follow Olumide on Twitter @tokunboadesina. He is a Member of the Chartered Financial Analyst Society.

1 Comment

1 Comment

  1. Sirajo Salish Abdullahi

    August 12, 2020 at 10:55 pm

    We need more axplanition about it

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Coronavirus

Covid-19: Governors to discuss distribution of vaccines today

Governors of the 36 states of the federation will today meet to discuss the sharing formula for the recently delivered Covid-19 vaccine.

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Oil Price Crash: Governors to meet on budgetary and economic issues

The Nigerian Governors Forum has announced that all 36 Governors will meet today to discuss the distribution of the recently arrived 3.9 million Covid-19 vaccines through the COVAX programme.

This was disclosed by the NGF in a statement issued in Abuja on Wednesday by Mr Abdulrazaque Bello-Barkindo, the Head, Media and Public Affairs of the NGF Secretariat.

The NGF disclosed that the meeting, which would be held virtually, will commence by 5 pm.

“The meeting is of a single-item agenda, which will discuss the delivery of the COVID-19 vaccines and their distribution in the country,” he said.

What you should know

  • Nairametrics reported on Monday that 3.94 million doses of the AstraZeneca/Oxford vaccine, manufactured by the Serum Institute of India arrived at the Nnamdi Azikiwe Airport.
  • The National Primary Health Care Development Agency (NPHCDA) also released guidelines on registering for Covid-19 vaccination in Nigeria.

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Business

Royal Academy of Engineering invests over £3.5 million in Nigeria, others

The academy has awarded over £3.5 million in 37 projects in Nigeria and across 13 African countries.

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The Royal Academy of Engineering has awarded over £3.5 million to 37 projects in Nigeria and across 13 African countries to promote better training and sustainability and diversify economies.

This was disclosed by the Academy via a statement issued and seen by Nairametrics on Thursday to mark the UNESCO World Engineering Day 2021.

It stated that the Academy’s interest in partnering with partner academic institutions’ projects focused on realizing sustainable development goals.

One of such projects, according to the statement, is the renewable energy project recently embarked on by Engineering students in the University of Abuja, Nigeria.

It stated, “A new awardee of the HEPSSA programme, the University of Abuja, in a project titled “Renewable energy utilization: Accelerating diffusion of solar power systems”, seeks to address the problem of access to affordable and clean energy with a view to enable accelerated diffusion solar power systems.”

Commenting on the progress achieved in Africa, Nigerian born Engineer in the UK, Yewande Akinola MBE, who is also a member of the Royal Academy of Engineering GCRF Africa Catalyst Committee, said:

“While we see immediate improvements in skills and innovation through these programmes, the real win is establishing a framework for lasting change. This will equip communities in Africa to anticipate and plan for the challenges posed by climate change, urbanisation and economic development. The continent is transforming rapidly, and those engineering its future need the skills to think on their feet.”

Stressing the need for strategic partnerships and buy-in of stakeholders, she said, “By developing strong alliances between local partners in sub-Saharan Africa and the UK, we can enable learning, collaboration and sharing of best practice, which in turn will build skills to boost innovation. But there is much more to be done, which needs the continued support of investors and partners.”

She added that the Academy aimed to support the development of a diverse and future fit workforce across the continent.

“It is estimated that fewer than 10% of engineering posts in Africa are currently occupied by women. GCRF Africa Catalyst has worked with Women in Engineering (WomEng) to promote gender diversity across a wide spectrum of professional experience.

“WomEng’s work with Eswatini’s Registration Council for Architects, Engineers, Surveyors and Allied Professionals has resulted in seven registered female members where they initially had none. A HEP SSA project with the Institute of Engineers Rwanda also helped to increase the number of female internship applicants from 5% to 2018 to 25% in 2019,” she said.

Highlights of achievements of the Africa grants:

  • Over 2000 professionals trained by Professional Engineering Institutions across sub-Saharan Africa.
  • Over 530 student industry placements since 2013. Number of students obtaining industry internships increased from 40% to 90% over the course of one project in Zambia
  • Diversity & Inclusion initiatives have driven equal gender participation in programmes. A project from the Institute of Engineers Rwanda helped to increase the number of female internship applicants from 5% in 2018 to 25% in 2019.
  • 50 individual course curricula reviewed and improved as a result of industry-academia partnerships.
  • Almost 50 UK organisations and 400 in-country bodies involved as project partners so far.

What you should know

  • Launched in 2016, with support from the UK government’s Global Challenges Research Fund (GCRF), the Africa Catalyst initiative allows Engineers to focus on issues of specific importance to their relevant jurisdictions while facilitating good governance practices.
  • The Royal Academy of Engineering is showcasing its impact on enhancing collaboration, education, and diversity in engineering in sub-Saharan Africa, delivered through its Africa grants programmes ahead of the second UNESCO World Engineering Day for Sustainable Development on the 4th of March 2021.

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