Investment is very crucial in attaining financial stability and preparing for the future. In Nigeria, there are various sectors with outstanding investment opportunities. These sectors are easy to invest in, and yield good returns. Here are the top investment opportunities in Nigeria in 2020
1. Real Estate
Real estate is one of the best investment opportunities in Nigeria. The value of a property increases every year, this makes this sector have little risk involved. In investing in real estate, you’ll need a large amount of money to make the investment worth it. Properties aren’t cheap, but as the prices keep hiking your investment returns keeps increasing.
Before investing in real estate, research is paramount. You need to know the right city and state that give high returns on your investment. Major states in Nigeria like Lagos or Abuja tend to bring better returns than the others.
Agriculture is a good investment sector in Nigeria. A large part of Africa’s economy comes from Agriculture, in terms of both livestock and crops. Agriculture yields a high amount of returns, and is one of the best financial investment opportunities in Nigeria. You can invest in livestock production like poultry, fish farming, pig, snail, among others. In the farming sectors like rice, maize, cassava, plantain, etc. The good thing about investing in Agriculture is that you don’t have to be on the farming or livestock site to enjoy your returns. There are crowdfunding investment companies in the agricultural sector, where you can invest with. These companies carry out the agricultural processes with your money and give you returns at the fixed maturity date. Nigeria has an agrarian economy; therefore the agriculture sector is a profitable financial investment in 2020.
3. Treasury Bills
Another good area to invest in is the Nigerian Treasury Bills. Treasury bills (T-bills) are a good investment opportunity that is secure, safe, and has zero risk. T-bills mature within a year and are issued by the Federal Government through the CBN. They are majorly used to generate income to control money inflow to the economy. T-bills are auctioned at a discounted price that becomes the percentage return for every investor. So if you buy T-bills of ₦200,000 at a 10% T-bills rate, you would pay ₦180,000 and have an interest of ₦20,000. To invest in T-bills, you’ll need your bank officer to keep you updated on the past T-bills rate and tell you the scheduled date for the next T-bill auction. You can invest from either ₦50,000 or ₦500,000 depending on your bank and enjoy good interest.
4. Nigerian Stock Exchange
The Nigerian Stock exchange (NSE) is also an investment opportunity with good returns in Nigeria. The NSE is a platform where traders and stockbrokers buy and sell shares or other securities. You can buy shares to a company through the NSE and also sell your shares. However, the Nigerian stock exchange is a very risky investment opportunity though it yields high returns. Buying shares in a wrong company could put you in a major loss, so research is imperative in investing in the Nigerian stock exchange.
5. Oil and Gas Sector
Africa is known for its rich endowment in natural resources. Nigeria is one of the largest oil producers in Africa, it has large deposits of oil and gas. The oil and gas sector has been one of the major resources for the nation’s economy’s growth. The oil and gas sector has created more foreign investment opportunities in Nigeria than locally. There are more foreign investors in Nigeria because Nigerians aren’t so much encouraged to invest in the sector. However, oil and gas is still a good financial investment opportunity in Nigeria.
Another lucrative investment opportunity in 2020 is logistics. Logistics investment could be in terms of delivery of goods, local transportation, or international transportation of goods. Recently, there have been local logistics businesses like Uber and Bolt which has risen to be one of the best investment opportunities in major cities in Nigeria. To invest in Taxify or Uber, you’ll give a car to the company or hire a driver and get high weekly returns.
7. Peer to Peer Lending
Peer to peer (P2P) lending is a good investment opportunity in Nigeria. The P2P lending is a safe and reliable investment that yield good returns. It involves lending out money (through a company) to the right people, and receiving your money back at a stipulated time, with a good interest rate. In peer to peer lending, the companies do a good level of research to completely eradicate the risks by only giving loans to the right people. Sycamore offers secure lending and investment platform with attractive returns for both individuals and corporate organizations. Visit www.sycamore.ng to learn more.