As we know that investment is the use of money to get a profit or to make a business activity successful. There are lucrative sectors and areas people can invest in to get a profit. The following areas will open the youth to invest in.
1. Invest in Financial Market Instruments
In 2019, market watchers are expecting monetary policy to remain tight. This means interest rate is likely to remain at current levels or higher.
Treasury Bills and Government bonds are expected to yield as high as 10%-16% per annum depending on the tenor of investment and the timing of enter. Additional benefits of investing in government debt instruments are the tax implication.
Income earned from investing are not subject to tax. Also, government securities are highly liquid and can be repurchased (sold for cash) at any time if he investor so wishes.
In 2017, the Nigerian Stock Exchange grew by 425 making it the third-best performing capital market in the world after Argentina and Turkey.
Although the NSE ASI has declined 11.3% year to date in 2018, this is considered normal as profit taking by investors tend to occur after a massive boom. It is expected that the ASI should pick up again Q2 2019
For those with advanced trading skills, try trading Exchange-Traded Funds (EFTs), Metals such as gold of Forex.
However, please note to seek training on how to trade these products before taking positions as the international foreign exchange market can be extremely volatile and could lead to capital erosion if not well managed.
Returns, however, can be much higher compared to what government securities offer since the risk is also higher. Stock market tip: Wait for stocks to bottom out before buying and know the fundamentals of the stock niche you wish to play in.
2. Invest in the Agricultural Sector/ Value Add
This sector has been the largest contributor to GDP at an average of 38% in the last 8 years with crops accounting for 80%, forestry 3% and fishery 4%.
This sector employs about 65% of the adult labor force in Nigeria, Furthermore, the agro-industrial enterprises depend on this sector for raw materials whilst 88% of the non-oil exports earning also come from the sector.
Agreed some of us are quick to run away from this sector as we think it’s not ‘cool’ to be a farmer. Well, no one is asking you to grab a hoe or get hold of a tractor here.
There are many value added businesses you can invest in with agricultural products,. For instance, you can make delicious smoothness, yoghurt or fruit juices, hygienically packed and full of nutritional goodness.
Many of these products are available in the market today selling at prices from N500 to N2000 depending on the contents. The good thing about investing in this type of business is the high turnover nature.
A lot of people are becoming more aware these days that healthy drinks are rapidly beginning to compete with sodas and other artificially sweetened drinks.
You can also try buying produce such as fresh cat-fish, stock-fish from fish farmers, smoke and pack thee and sell at amazing margins if up to 100% or higher! Think of the value added and great rewards.
3. Invest In Fashion/Entertainment
This is one sector that continues to yearn for investment. Recently, at an international event organized by UBA, I wore simple cotton-fabric native attire made by my6 designer.
One of the participants of the event from Mai liked the outfit so much that he requested I call the tailor to come take his measurement.
By the end of the 3-day event attended by representatives of all our countries of presence, 15 orders were placed for Nigerian –made native attire from citizens of Guinea, Senegal, Congo Brazzaville, Cote D’Ivoire, Uganda and Mozambique!
Globalization is nourishing tonic for investment. Through technology and high mobility, people are beginning to wear fabrics/attires made from varying regions some long as it looks and feels good on them.
What more, the Nigerian movie industry, Nollywood has been a money-spinner for investors right from inception. Again, technology has helped surge volumes and worldwide recognition of this industry.
The high level of investment in nollywood has also seen the quality of these monies become much better and their products gain wider international acceptance.
As a result, box office records are being broken by the day for new Nigerian and other African movies.
4. Invest in Real Estate
Yes, real estate! Agreed, real estate is not an easy investment as it requires capital. It is also not very liquid, i.e. cannot be readily converted to cash. Good thing about real estate though is that the value of land in most areas continues to go up.
Furthermore, rather than buy to sell, you can buy to rent or lease. Real estate in itself is capital. In some cases, it can be re-invested in its own form as capital for a business venture.
Better still, many other investment opportunities thrive on real estate: farming for instance requires arable land. From establishing a car wash to owning a barbing salon, real estate investment can hardly go wrong.
If you are fortunate to acquire real estate: farming for instance requires arable land. From establishing a car wash to owning a barbing salon, real estate investment can hardly go wrong.
If you are fortunate to acquire real estate in a commercial location, you are able to acquire in the outskirts, then it can be used for farming. Again farming may require huge capital.
But the government f today is interested in funding agricultural business via its various loan schemes being disbursed through the Central Bank of Nigeria or Bank of Agriculture. Go for areas where property is currently cheap but has potential for appreciation.
5. Invest in Transport or Courier Services
Mobility is the key to subsistence, especially in the large cities of our continent be it Lagos, Abuja, Nairobi or Kinshasa. Commercial transport used to be a no-go area for the ‘cool’ and ‘classy’; then came companies like Uber, Taxify, Gokada, Absolute cabs and the likes.
Now commercial transport business has caught the interest of the middle class and has suddenly chalked in some ‘swag’ to it. You can choose to buy, or lease a car for the cab transportation service, recruit a driver or simply do the driving yourself if you have the time.
Gokada concept is exceptionally brilliant, revolutionalizing the way we move around in Lagos and making it possible to move safely without worries of traffic congestion, and it comes at affordable prices too.
The riders are trained and have safety in mind as they meander through the heavy Lagos traffic getting you to your destination in no time.
If you do not want to invest in courier services, you may wish to borrow the concept of Errand boy Nigeria, a business that specializes in general deliveries and errands.
This type of investment is even more viable in patronage and items purchased need to be delivered to the buyers’ doorstep. Investment options are endless helped largely by the technology revolution.
From banking to insurance; from transportation to courier; from food business to event planning, technology is helping to find better and more convenient ways to do things thus creating investment opportunities for the discerning eye in the process. Identify your passion for investment and lock in now!
Source: The Lion Magazine