What Are The Types Of Investment To Earn Money In Nigeria?

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Nigeria offers some of the best investment opportunities in the world. People have made enormous gains by investing and earning in Nigerian opportunities ranging from agriculture to health. There are currently several chances that are optimal for long-term investment and short-term investment in Nigeria, regardless of budget size. Here is a guide to understanding how to invest and earn daily in Nigeria.


What Is An Investment?

A purchase made to create income or capital growth is known as an investment. When a person invests in a good, they do not intend to utilise it as a source of immediate consumption, but rather as a tool for future wealth creation. An investment is always an expenditure of some resource today”time, effort, money, or an asset”in the anticipation of a future return greater than the initial investment. 


Types Of Investments In Nigeria


1. Mutual Funds

Investors who cannot readily put together a portfolio of stocks, bonds, or other assets on their own can do so through mutual funds. In a mutual fund, funds are pooled together from multiple individuals by fund managers to invest in various securities, such as bonds, equities, and money market instruments. The assets of mutual funds are professionally managed by fund managers, who work to maximize returns for investors.


2. Plastic Recycling

Recycling plastic refers to the process of turning recyclable plastic waste, such as PET bottles, into new goods. Stages including collection, sorting, baling, and crushing is typically included before the ultimate conversion into the new products.

Nigeria is one of the countries with the biggest global contributions to plastic pollution, producing over 2.5 million tonnes of plastic garbage per year. You can devise a plan for recovering plastics that involves removing them from the environment or consumers as they produce them.


3. Individual Stocks

A share of ownership in a public firm is represented by a stock. When you purchase a certain stock, you are acquiring a stake in the business. There are some hazards, but great risk also carries a high return. Be mindful that you are investing for the long term and have knowledge of the industry.


4. Real Estate

Real estate is essentially a type of asset that encompasses both undeveloped land and buildings constructed thereon. You can invest in real estate through a variety of methods, including buying a rental property, flipping houses, joining real estate investment clubs, and using internet real estate platforms. Real estate businesses give you the option to pay a portion of the total cost of the property upfront and then pay the remaining amount, plus interest, over time.


5. Fixed Deposits (FD)

A fixed deposit (FD) is a financial product offered by banks or NBFCs that, up until the specified maturity date, offers investors a higher rate of interest than a typical savings account. It might or might not call for the creation of a different account. It is referred to as a fixed deposit in India and the United States, as a term deposit or time deposit in Canada, Australia, and New Zealand, as a bond in the United Kingdom, and as a fixed deposit when compared to a recurrent deposit or a demand deposit before maturity. Some banks might provide FD holders with extra services like competitively priced loans secured by FD certificates.

It's vital to remember that banks could provide lower interest rates when the economy is shaky. The interest rate ranges from 4% to 7.50%. [1] An FD's term can range from 7, 15, or 45 days to 1.5 years and up to 10 years. [2] Because they are protected by the Deposit Insurance and Credit Guarantee Corporation, these investments are safer than Post Office Schemes (DICGC). DICGC guarantees, however, only go up to 500000 (about $6850) per depositor per bank. [3] They also provide benefits for income and wealth taxes.


6. Oil and Gas

Nigeria, one of the world's top oil producers, offers both foreign and local investors a variety of lucrative investment options. It is a highly regulated industry, which makes investing in it more difficult than investing in other industries and necessitates extensive research, expert knowledge, financial resources, and paperwork. But among other things, you can invest in oil by purchasing energy ETFs and mutual funds or stock in an oil and gas business.


7. FGN Savings Bond

Due to its backing by the full faith and credit of the Federal Government of Nigeria, the FGN Bond is one of the safest long term investment options. It is guaranteed that your interest and principal will be paid when due to their lack of default risk. Additionally, the investment is not subject to municipal or state taxes. Through stock brokers on The Nigerian Stock Exchange, you can purchase FGN bonds (NSE).


8. Mining 

Coal, iron ore, limestone, bitumen, gold, and other minerals are abundant in Nigeria. These are valuable commodities, and the mining industry in the nation is continually growing. If you have a sizable investment budget, you might want to think about the mining sector. Make sure you choose knowledgeable, experienced people to direct your actions. Mining stocks, or purchasing shares of mining firms, as well as ETFs that invest in mining companies, are other ways to invest in the industry.


Things To Consider Before You Invest Money In Nigeria


Risk tolerance

Recognize that there is some risk associated with any investment. Knowing your level of tolerance will enable you to select the best investing strategy for you.


Financial goals

Consider long-term investments if you're saving for retirement or the future. You can create investment plans that are in line with your financial objectives by being aware of them.



Nigeria is not among the simplest countries in which to invest money, particularly given the state of the economy, inflation, and exchange rate volatility.


Have a steady source of income

Before you begin exploring investing alternatives, make sure you have a reliable source of income in this nation. Except for investments that have a very minimal risk or no risk at all, you should only invest money that you are willing to lose.



One of the best ways to lower the risks involved in investing is to diversify your investments. Never forget to only put a portion of your eggs in one basket.



In Nigeria, there are many long-term investment and short-term investment options. These options won't all be worthwhile investing your time and money on. Based on your investment objectives and risk tolerance, narrow down your options. Make sure you investigate each option's security with appropriate diligence. Making an informed choice to invest and earn in Nigeria.

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