What to invest in Nigeria with 100k

One of the similarities between the wealthiest 5% of the population is their investment habit. The self discipline to not spend all their income but keep a part of it for investment purposes.

Whether you are just beginning your journey towards investing or you are an established investor, there are several types of investments to explore.

With 100,000 Naira, there are several investment opportunities in Nigeria across the different sectors of the economy.

This article will look at some of the most profitable places where you can invest your 100,000 Naira in Nigeria.

What to invest in Nigeria with 100k

As an investor with this amount, some of the opportunities available to you include;

1. Agriculture
2. Stock market
3. Mutual funds
4. Real estate
5. Savings and fixed deposit
6. FGN Savings Bond
7. Treasury bills

• Agriculture

Agriculture in Nigeria has so much potential. It is actually one of the most important sectors of the Nigerian economy. Before the discovery of crude oil, it was the mainstay of the economy. But after that, the attention of the government and many investors moved from agriculture to crude oil.

With so many mouths to feed in the country, the agricultural sector of the economy is still a hot cake.

There are countless investment opportunities to invest in agriculture but with 100,000 naira, you can think of investing in;

1. Crop Farming: Crops like cassava, rice, maize, beans, etc, are always sought after all year round.

With the looming insecurity in some parts of the country where these were previously cultivated in large quantities, they have become so expensive in most parts of the country because the farmers are unable to access their farms.

The few people that have them have made it more expensive than ever.

If you have land in secure parts of the country and you decide to go into cultivating these crops, in little to no time you will be supplying to most parts of the country where they are scarce.

Other crops that are in demand include vegetables like cucumber, carrots, tomatoes, pepper, watermelon, etc. the list is endless.

With your initial investment of 100,000 you can buy the seeds, fertilizers, and basic farming tools that you need for starts.

2.Livestock Farming: There is also very high demand for poultry (whether broilers or layers), fish, snail, or small ruminants like goats.

Going into the rearing of these animals can be very lucrative because the truth is, the number of people in these businesses are very few and nothing compared to the  whole population.

People will always eat. Because of this, there will always be a need for these food items.

With your initial N100,000  for instance, you can start a small poultry, fish or snail farm with a few chicks (or fingerlings as the case may be).

Within a few months, your farm can become a very profitable venture.

2. Stock Market

Many wealthy people mention the stock market as one of their ladders to wealth. With the Nigerian Stock Exchange (NSE) you can access a platform to invest in publicly traded companies.

You can also invest in the stock market through fintech apps like Bamboo, Trove, or Chaka. Considering that you have 100,000 naira, you can invest both in Nigerian and US companies. Your capital is enough to buy shares of:

1. Blue-Chip Companies: Blue-Chip companies are established companies that are known for consistent and stable earnings over the years.

Some of them are Dangote Cement, Nigerian Breweries, GTBank, MTN, Zenith bank, etc. Most blue chip companies pay dividends to their investors at quarterly, semiannual or annual intervals.

1. Growth Companies: You can also buy shares in companies that you expect to grow above the market average when compared to other companies.

Most growth companies do not pay dividends but reinvest their profits into the company to facilitate growth. Examples are the Transnational Corporation of Nigeria Plc  and International Breweries plc.

3. Mutual Funds

Mutual funds pool money from different investors to invest in securities like stocks, bonds, and other assets.

They are usually managed by professional money managers who are very familiar with the market.

With 100,000 naira, you can invest in some of them like Cowrywise Investment Portfolio, Trustblanc Money Market Fund, United Capital Money Market Fund, Stanbic IBTC Money Market Fund, etc.

4. Real Estate

You may think that 100,000 naira is too small to do anything in the real estate space, there are some ways to invest in this sector with the capital you have. Some of them include;

1. Real Estate Investment Trusts (REITs): REITs are real estate companies that own, manage, or finance income-generating properties like office spaces, hotels residential buildings, etc.

Your 100,000 may not be enough to buy a house or hotel but it is enough to invest in a  REIT.

This saves you the stress of looking for tenants, handling property repairs, etc because you are not directly in charge of the property.

At the same time, it allows you to earn a share of the income generated through ownership of a commercial real estate property.

1. Land Purchase in Rural Areas: Buying land in a rural area that has the potential of developing within the next 5 years can be a strategic investment.

As the area develops, the value of your land will definitely appreciate greatly. You can then sell it off and make some profits on it or you can develop it into an income-generating asset by that time.

5. Savings and Fixed Deposits

If you are a conservative investor looking for safer investment options, you can consider keeping your money in a regular savings account or a fixed deposit account.

1. Regular savings account: With a regular savings account, your money is both accessible to you and kept safe for you.

Most savings accounts are insured by the Nigeria Deposit Insurance Corporation (NDIC), irrespective of the bank. This means that you are guaranteed that your money is safe.

One disadvantage of this is that the interest rate is usually low maybe 2-3% depending on your bank.

1. High-Interest Savings Accounts: High-Interest Savings Accounts give higher interest rates than the regular savings accounts. Sometimes up to 7%interest on your money. Even though it is not very high, it offers you a steady return on investment.

Fixed Deposit Accounts: There are different terms and conditions for a fixed deposit account but when done right, it often offers a higher interest rate than regular savings accounts.

With a fixed deposit, you lock up your money for a fixed period of time, ranging from 30days and above. At the end of the tenor, you can decide to withdraw the funds or rollover to another duration of choice.

The advantage here is that the interest rate is usually competitive, depending on your bank. Also, you are not tempted to spend because the money has been locked up.

If you decide to break the agreement, (that is, withdraw the funds before the agreed time), there’s a penalty of a certain percentage, or amount and a total loss of interest.

6. The FGN Savings Bond

The FGN savings bond is given by the Federal Government of Nigeria to achieve the following goals;

• Helping to improve the savings culture among Nigerians.
• Giving all  citizens an opportunity to contribute to National Development irrespective of how much or how little they earn.
• Give all citizens a chance to benefit from the comparatively favorable returns available in the capital market.

The FGN Savings Bond is one of the safest investments available because it has the full backing of the Federal Government of Nigeria. 

The least amount to subscribe with is N5,000 with multiples of N1,000 in subsequently. The coupon with rates varying between 8% to 9% are paid quarterly

Your 100,000 Naira is more than enough  to take advantage of the FGN Savings Bond and yield attractive return on your investments.

Bonds are issued by the DMO every month and are offered in two and three-year terms.  They can be bought through your bank or other approved stockbroking firms.

7. Treasury bills.

Treasury bills are another investment alternative backed by the Federal Government of Nigeria. They are similar to bonds (as explained above) but last for a shorter term – usually ranging from three months to one year.

Treasury bills are mostly issued by the CBN on behalf of the Federal Government when the government needs to borrow money from the public for a project at a certain  time.

They can be bought from brokers licensed by the CBN or through your bank. The lowest amount to invest in Treasury bills is 50 million naira. If you don’t have up to that, you can invest with your local bank with as little as 100,000 naira.

Your bank will then pool funds from several other investors like yourself to meet up with, or exceed the 50 million Naira limit on the behalf of these investors.

At maturity the interest gained is shared equally among the investors depending on the capital they invested.

Conclusion

With the rate of inflation and economic uncertainties plaguing our economy today, you may be tempted to think that 100,000 Naira is too little for an investment.

There are several places you can invest it to yield good returns and in this article, we have considered only seven of the best.

It’s now up to you to determine which of these investment options best resonate with you, your financial goals, investment temperament, and risk appetite.

And then take the first step to put that 100,000 Naira to work immediately so you can start reaping the rewards sooner or later.