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Hello World!
My name is Mbadiwe Ikechukwu, popularly known as Iking Ferry.And today…I am not just writing a blog post.I am documenting the beginning of a mission. Let me say something very simple…But very powerful.Most people are not poor because they are ...
Why Zenith Bank Share Price Dropped After Dividend Declaration – Technical Adjustment Explained
Most Nigerians lose money in the stock market not because they invested in bad companies… But because they do not understand how the market actually works. One of the biggest areas where beginners get confused is something called: “Technical Adjustment.” ...
What is NGX Premium Board? (Explained Simply Using Dangote Refinery IPO in Nigeria)
Last week, I asked a simple question: “If Dangote Refinery IPO is listed on the Premium Board… do you understand what that means?” Many people said: “Iking, please explain.” So today…. As your Financial Literacy Advocate, let me break it ...
Do companies in Nigeria pay 30% Company Income Tax on money market mutual fund investments through a corporate brokerage account?
You’re right to pause on this—corporate investing in money market funds in Nigeria is treated differently from individual investing, and tax can materially affect your net return. Let’s separate facts from confusion. 1. What tax law actually applies The law you’re referring to is the Companies IncomRead more
You’re right to pause on this—corporate investing in money market funds in Nigeria is treated differently from individual investing, and tax can materially affect your net return.
See lessLet’s separate facts from confusion.
1. What tax law actually applies
The law you’re referring to is the Companies Income Tax Act (CITA).
Standard Company Income Tax (CIT) rate:
30% for large companies
20% for medium companies
0% for small companies (turnover ≤ ₦25 million)
So yes—30% is real, but it doesn’t apply blindly to every investment income.
2. How money market mutual funds are taxed for companies
This is where many people get it wrong.
Income inside a money market fund typically comes from:
Treasury Bills
Commercial Papers
Bank deposits
Now the key:
(A) Interest from government securities
Income from:
Treasury Bills
FGN Bonds
➡️ Generally tax-exempt, even for companies.
(B) Interest from bank placements / commercial papers
This is the tricky part.
Interest earned may be subject to Withholding Tax (WHT) ~10%
BUT for companies:
WHT is usually not final tax
It’s treated as advance tax
So: ➡️ You may still be assessed under CIT depending on total profits.
3. Why people mention “30% tax”
That 30% applies when:
The income is considered part of your company’s taxable profit
After deducting allowable expenses
Then: ➡️ Your company pays CIT on net profit, not directly on the investment amount.
4. Important nuance (very critical)
If your company is:
Small company (≤ ₦25m turnover)
➡️ You likely pay 0% CIT ➡️ Only WHT may apply (and sometimes even refundable)
Medium/Large company
➡️ Investment income can:
Increase taxable profit
Lead to CIT liability (up to 30%)
5. Do you pay “extra tax” on the mutual fund itself?
No separate “mutual fund tax”
But you may have:
Withholding Tax deductions
CIT impact at company level
So the tax is: ➡️ Indirect, not at the fund level—but at your company level
6. Practical example
Let’s simplify:
Your company earns ₦1,000,000 from MMF
WHT deducted = ₦100,000
If you’re a large company:
That ₦1M goes into your total profit
You may pay CIT (30%) on overall profit
But:
That ₦100k WHT is credited against your tax
7. What most corporate investors overlook
Money market funds are not fully tax-free for companies
Structure matters:
Direct T-bills vs MMF
Company size
Total annual profit
8. Straight advice for your situation
Since you’re using a corporate brokerage account:
Confirm your company classification:
Small / Medium / Large
Ask the fund manager:
Breakdown of income sources (T-bills vs others)
Track:
WHT deductions
Annual tax computation
Bottom line
Yes, CITA (up to 30%) is real
But:
It applies to net company profits, not directly to the fund
Some MMF income (like T-bills) can be tax-exempt
Others may flow into taxable profit
Why do exchange traded funds (ETFs) show high volatility even when underlying stocks are performing well in the Nigeria stock market?
Your expectation sounds logical: if the underlying stocks are doing well, the ETF should be stable or rising smoothly. But in practice, Exchange Traded Funds (ETFs) often show short-term volatility even when fundamentals are strong. That’s not a flaw—it’s how the structure works. Let’s break it downRead more
Your expectation sounds logical: if the underlying stocks are doing well, the ETF should be stable or rising smoothly. But in practice, Exchange Traded Funds (ETFs) often show short-term volatility even when fundamentals are strong. That’s not a flaw—it’s how the structure works.
See lessLet’s break it down properly.
1. ETFs trade like stocks (intraday pricing effect)
Unlike mutual funds, ETFs are priced every second during market hours.
That means:
Price reacts instantly to buy/sell pressure
Not just the value of underlying stocks (NAV)
So even if the underlying portfolio is strong: ➡️ Heavy selling in the ETF itself can push price down temporarily.
2. Supply vs Demand mismatch (market microstructure)
ETF prices are influenced by:
Traders
Institutions
Arbitrageurs
If more people are:
Selling the ETF → price drops
Buying the ETF → price rises
Even when underlying stocks are stable.
This creates short-term dislocations between:
ETF price (market price)
NAV (true value of holdings)
3. Arbitrage mechanism (creation/redemption process)
ETFs rely on Authorized Participants (APs) to keep prices aligned.
When mispricing happens:
APs buy/sell underlying stocks
Create or redeem ETF units
But: ➡️ This correction is not always instant, especially in volatile markets
Result:
Temporary volatility even when fundamentals are fine
4. Sector concentration & weighting effects
Many ETFs are not equally weighted.
Example:
A tech ETF may be dominated by a few large stocks
If:
2–3 heavyweights dip slightly
➡️ ETF drops, even if 20 smaller stocks are performing well
5. External macro factors (big driver)
ETF prices react to:
Interest rates
Inflation data
Currency movements
Global sentiment
So even if companies are reporting:
Strong earnings
➡️ The ETF can fall because:
Market sentiment turned risk-off
6. Liquidity differences (hidden risk)
Some ETFs (especially in emerging markets like Nigeria or niche sectors):
Have low trading volume
This leads to:
Wider bid-ask spreads
Sharp price swings
Even small trades can move the price significantly.
7. Passive rebalancing and index tracking
ETFs must follow their index strictly.
When:
Index rebalancing happens
Stocks are added/removed
➡️ ETF is forced to buy/sell, which can:
Create temporary volatility
Ignore short-term “good performance”
8. Investor behavior (psychology)
Retail and institutional investors:
React to news, fear, rumors
Even if fundamentals are strong: ➡️ Panic selling can drive ETF volatility
The key insight (this is what many miss)
ETF price ≠ immediate reflection of company performance
It is a combination of:
Underlying asset value (NAV)
Market demand/supply
Liquidity
Sentiment
Practical takeaway for you as an investor
Since you’re actively learning investing:
Don’t judge ETFs by short-term price movement
Focus on:
Tracking error
Expense ratio
Long-term index performance
If you’re investing monthly (like your ₦50k plan): ➡️ Volatility actually helps via dollar-cost averaging
Simple analogy
Think of ETF like a basket of goods in a busy market:
The goods inside are valuable (strong stocks)
But the price of the basket depends on:
Who is buying or selling at that moment
Why is my InvestNaija registration not completing due to location issues in Nigeria?
The problem you're having with signing up for InvestNaija is pretty common, and it's not just about your location. It's actually a combination of how the app checks to make sure users are who they say they are. Here are the real reasons this happens: 1. Location + KYC (Compliance restriction) InvestRead more
The problem you’re having with signing up for InvestNaija is pretty common, and it’s not just about your location. It’s actually a combination of how the app checks to make sure users are who they say they are.
See lessHere are the real reasons this happens:
1. Location + KYC (Compliance restriction)
Investment apps in Nigeria are regulated (via SEC rules), so they must:
Confirm you’re physically in Nigeria
Match your location with your BVN/NIN details
If:
Your phone location is OFF
You’re using VPN
Or your IP looks foreign
You might find that the app won’t let you in or won’t finish signing you up.
The app can also use your device’s location while it’s running.
App Store
2. BVN phone number mismatch (very common)
A major issue from real users:
The app needs you to use the same phone number that is connected to your Bank Verification Number.
If you changed SIM or don’t have that number again → registration fails
Example complaint:
You need to use the same phone number that you used to register for your Bank Verification Number.
Google Play
This alone stops many people from completing signup.
3. Backend verification issues (system problem)
From multiple user reports:
BVN validation sometimes fails
OTP doesn’t come
Registration gets stuck
This means: ➡️ Sometimes the problem is their system, not you.
4. Incomplete or inconsistent personal details
If any of these don’t match exactly:
Name (must match BVN exactly)
Date of birth
Phone number
Email format
You might have trouble getting registered because the system could say no or keep sending you back to the start.
5. App glitches / poor optimization
Let’s be direct—this app has:
Several complaints about registration errors
Bugs during onboarding
So yes, difficulty completing registration is not unusual.
What you should do (practical fix)
Try this step-by-step:
Step 1 — Fix location issue
Turn ON GPS location
Turn OFF VPN
Use mobile data (not Wi-Fi if possible)
Step 2 — Confirm BVN details
Make sure to use the exact phone number that is linked to your Bank Verification Number.
If you’ve lost your phone, you should visit your bank to update your BVN details.
Step 3 — Reinstall and retry
Clear app cache OR reinstall
Try registration again fresh
Step 4 — Try different time
Sometimes server issues resolve after a few hours/days
Step 5 — Contact support
Email: info@investnaija.com
Include:
Your full name
Phone number
Screenshot of error
Important reality check
If the issue persists after all this:
It’s likely their system problem, not your location
Many Nigerian users face similar onboarding issues
Straight advice (based on your situation)
Since you’re serious about investing (from your previous questions), don’t depend on one app.
If InvestNaija keeps stressing you:
Move to alternatives like PiggyVest, Bamboo, Risevest
They tend to have smoother onboarding
How can I invest 50k monthly salary in Nigeria for long-term wealth building?
Putting 100% of your ₦50k salary into investments is aggressive—but it can work only if your side hustle truly covers all living costs consistently. If that income fluctuates, you’ll need a buffer (I’ll show you where to adjust). Let’s structure this like a disciplined system, not guesswork. 🔹 StepRead more
Putting 100% of your ₦50k salary into investments is aggressive—but it can work only if your side hustle truly covers all living costs consistently. If that income fluctuates, you’ll need a buffer (I’ll show you where to adjust).
See lessLet’s structure this like a disciplined system, not guesswork.
🔹 Step 1: Protect the plan (non-negotiable)
Before investing everything:
Build at least ₦100k–₦150k emergency fund (2–3 months basic fallback)
Keep it in a liquid, low-risk place
Good options:
PiggyVest (SafeLock / Flex Naira)
Cowrywise (money market fund)
👉 If your side hustle is stable, you can build this quickly in 2–3 months.
🔹 Step 2: Use a simple allocation for your ₦50k monthly
Don’t dump everything into one place. Use this structure:
✅ Option A (Balanced, beginner-friendly)
₦25k (50%) → Low-risk / steady returns
Money market fund (Stanbic, Cowrywise, etc.)
Capital preservation + daily interest
₦15k (30%) → Growth (Nigerian stocks / equity funds)
Long-term wealth building
Expect volatility
₦10k (20%) → Dollar/foreign exposure
Hedge against naira depreciation
Via platforms like Bamboo
🔹 Step 3: Automate consistency
The real edge is not the amount—it’s consistency.
Every month:
Invest immediately after salary enters
Don’t wait or “see what’s left”
Treat it like:
“Investment is my first expense”
🔹 Step 4: Understand what each part is doing
🟢 Money Market Fund
Low risk
~8–15% yearly (varies)
Acts like your “stability engine”
🔵 Stocks / Equity Funds
Higher risk, higher return potential
Think 3–5+ years, not quick profit
🟡 Dollar Investments
Protects you from naira losing value
Even small amounts matter long-term
🔹 Step 5: What NOT to do
Avoid these mistakes:
❌ Putting all ₦50k into high-risk stocks
❌ Chasing “fast doubling” schemes
❌ Withdrawing too often (kills compounding)
❌ Jumping between apps every month
🔹 Step 6: Realistic expectation
If you invest ₦50k monthly consistently:
1 year → ~₦600k + returns
3 years → strong compounding effect
5 years → meaningful financial base
👉 The power is in time + consistency, not speed.
🔹 Important reality check
If your side hustle income:
❌ is unstable → don’t invest full ₦50k
✅ is stable → your plan is solid
In unstable case, adjust:
Invest ₦30k–₦40k
Keep buffer cash
🔹 Bottom line
You’re in a strong position if your bills are covered elsewhere.
Best approach:
Diversify (don’t go all-in one place)
Stay consistent monthly
Think long-term (not quick profit)
How do I create poll questions on Fokona ?
The error message you’re seeing on Fokona — “minimum poll questions is 15” — is poorly worded, but it doesn’t mean you need 15 different questions. It means: Your poll must have at least 15 characters (letters/words) in the question field, not 15 questions. 🔹 What the error actually means “Minimum pRead more
The error message you’re seeing on Fokona — “minimum poll questions is 15” — is poorly worded, but it doesn’t mean you need 15 different questions.
See lessIt means:
Your poll must have at least 15 characters (letters/words) in the question field, not 15 questions.
🔹 What the error actually means
“Minimum poll questions is 15” =
👉 Your poll question is too short
Example of what causes the error:
❌ “Best stock?” (too short)
🔹 How to fix it (step-by-step)
1. Write a longer poll question
Make sure your question is descriptive enough.
Examples:
❌ Too short
“Best investment?”
✅ Correct
“Which investment option is best for long-term wealth building in Nigeria?”
2. Add multiple poll options (answers)
Most platforms like Fokona require:
At least 2–4 answer choices
Example:
Stocks
Mutual funds
Real estate
Fixed deposit
3. Ensure each option is valid
Avoid:
Empty options
Very short or duplicate answers
4. Check for hidden issues
If the error still shows:
Remove emojis or special symbols
Avoid copy-paste from WhatsApp (it may carry hidden characters)
Refresh the page or try another browser
🔹 Example of a valid poll
Question:
“Which investment platform do you trust most for long-term savings in Nigeria?”
Options:
PiggyVest
Bamboo
Cowrywise
Bank fixed deposit
👉 This will pass because:
Question is longer than 15 characters
Options are complete
🔹 Why Fokona does this
Platforms like Fokona enforce minimum length to:
Prevent spam questions
Encourage meaningful discussions
🔹 Bottom line
You’re not required to create 15 questions.
You just need:
A longer, clear poll question (15+ characters)
Proper answer options
How do I set up compound interest using Stanbic IBTC money market mutual funds in Nigeria?
To be precise: you don’t “set” compounding manually in a Stanbic IBTC Asset Management money market fund the way you would in a fixed deposit. Compounding is already built into how the fund works. Your job is simply to structure your investment so it actually compounds. Let me break it down clearly.Read more
To be precise: you don’t “set” compounding manually in a Stanbic IBTC Asset Management money market fund the way you would in a fixed deposit.
See lessCompounding is already built into how the fund works. Your job is simply to structure your investment so it actually compounds.
Let me break it down clearly.
🔹 How compounding works in Stanbic IBTC Money Market Fund
The fund invests your money in Treasury Bills, commercial papers, deposits, etc.
These instruments generate interest daily
The fund adds (reinvests) that interest back into your investment value (NAV)
Over time, you earn interest on your interest
👉 That is compounding.
Also note:
Returns are not fixed — they depend on market interest rates
Income is typically distributed or reflected periodically (often quarterly)
🔹 The key truth (many people miss this)
You don’t activate compounding with a button.
You enable it by behavior:
✅ Leave your returns inside the fund
❌ Don’t withdraw frequently
🔹 How to SET UP compounding properly (practical steps)
1. Choose “Growth / Reinvestment” style
When investing (via app or form):
Ensure your fund option is NOT dividend payout
Choose:
Growth option (if available), OR
Automatic reinvestment
👉 This ensures earnings stay inside and compound
2. Don’t withdraw your earnings
If you withdraw:
You break the compounding cycle
Your “interest on interest” stops
👉 Leave the money untouched as long as possible
3. Add money regularly (this boosts compounding)
Instead of one-time investment:
Add funds monthly or weekly
This is called contribution compounding
Example:
₦100k grows
You add ₦20k monthly
Now compounding works on a larger base
4. Respect the holding period
Minimum holding: about 30 days
Early withdrawal penalty affects your earnings
👉 Stay longer = better compounding effect
5. Use their digital platform
You can manage everything through:
Stanbic IBTC app / web portal
You can:
Reinvest easily
Track daily growth
Add funds anytime
🔹 Simple illustration (so you understand clearly)
Let’s say:
You invest ₦100,000
Annual yield ≈ 10–15% (example)
Year 1 → ₦115,000
Year 2 → ₦132,250
Year 3 → ₦152,087
👉 Notice: You’re earning on ₦115k → then ₦132k → not just ₦100k
That’s compounding.
🔹 What will STOP your compounding
Avoid these:
Frequent withdrawals
Choosing dividend payout option
Leaving money idle outside the fund
Panicking and exiting early
🔹 Bottom line
To “set up” compounding in Stanbic IBTC money market fund:
Invest ✅
Leave profits inside ✅
Keep adding funds ✅
Stay invested long-term ✅
That’s it — the fund handles the compounding internally.
Is it safe to invest in PiggyVest and Bamboo in Nigeria and are they insured by NDIC?
This is a very important question—and you’re right to be cautious. Let’s break it down clearly without hype. 🔐 1) Is PiggyVest safe? And is it NDIC insured? ✔️ Regulation & structure PiggyVest is not a bank It is regulated by the Securities and Exchange Commission (SEC) as a fund/portfolio managRead more
This is a very important question—and you’re right to be cautious. Let’s break it down clearly without hype.
See less🔐 1) Is PiggyVest safe? And is it NDIC insured?
✔️ Regulation & structure
PiggyVest is not a bank
It is regulated by the Securities and Exchange Commission (SEC) as a fund/portfolio manager
Your money is held with partner financial institutions (banks/microfinance banks)
🏦 NDIC insurance — the truth
The Nigeria Deposit Insurance Corporation only insures bank deposits, not fintech apps directly
👉 So:
PiggyVest itself → ❌ NOT directly NDIC-insured
But:
Funds held in partner banks → ✔️ may be covered by NDIC (up to ₦5 million) depending on structure
⚠️ Important nuance:
Savings (Piggybank, Safelock) → relatively safer (bank-linked)
Investments (Investify) → ❌ NOT insured, risk depends on the specific asset
🧠 Bottom line for PiggyVest
Safe for:
Savings
Low-risk fixed income
Not “risk-free”:
Investment products can lose value
NDIC protection is indirect, not guaranteed on everything
🌍 2) Is Bamboo safe? And is it NDIC insured?
✔️ What Bamboo actually is
Bamboo lets Nigerians invest in:
US stocks (e.g. Apple, Tesla)
ETFs
It is not a bank and not a savings platform
🏦 NDIC insurance — does NOT apply
NDIC only covers Nigerian bank deposits
👉 So:
Bamboo → ❌ NOT covered by NDIC at all
🛡️ What protects your money instead?
Bamboo uses:
SEC-regulated structures (Nigeria & US partners)
Assets held with foreign custodians/brokers
In many cases:
US brokerage accounts may have SIPC-type protection (covers broker failure, not market loss)
⚠️ But understand:
If stock price falls → you lose money (no insurance)
If platform fails → recovery depends on custodians, not NDIC
⚖️ 3) Key difference (this is where people get confused)
Feature
PiggyVest
Bamboo
Type
Savings + investment
Stock trading
NDIC coverage
Partial (via partner banks)
❌ None
Regulation
SEC Nigeria
SEC + foreign brokers
Risk level
Low → Medium
Medium → High
Capital guarantee
Only on some savings
❌ No guarantee
🚨 4) Critical reality (most people ignore this)
Even NDIC itself warns:
Only licensed bank deposits are guaranteed
👉 Meaning:
Anything outside traditional banking = investment risk applies
✅ Final Verdict (straight answer)
PiggyVest
✔️ Generally safe for savings
✔️ Some indirect NDIC protection (via banks)
⚠️ Investment options are not insured
Bamboo
✔️ Legit and widely used
✔️ Safe structure (custodian-based)
❌ No NDIC protection at all
⚠️ Fully exposed to market risk
🧠 Practical advice (important for you)
Since you’re already investing:
Use PiggyVest → for:
Capital preservation
Short-term disciplined savings
Use Bamboo → for:
Growth (stocks, long-term wealth)
👉 Don’t treat them the same—they serve different purposes.