Yes, ₦400,000 can be used as a starting point for a 10-year retirement investment plan, especially if the person is disciplined about adding ₦20,000 every month.

I would not put all the money into one investment. A better approach is to build a diversified retirement portfolio using regulated investment options.

For example, the person could consider:

• ₦200,000 — a low-risk money-market/fixed-income fund
• ₦100,000 — a diversified equity/mutual fund for long-term growth
• ₦100,000 — Treasury bills or another suitable fixed-income investment

Then continue investing the ₦20,000 monthly, with part going into the growth portion and part into the lower-risk portion.

There is also the Personal Pension Plan (PPP) regulated by PenCom for eligible self-employed/informal-sector contributors. It allows eligible contributors to maintain an RSA with a licensed Pension Fund Administrator and make voluntary contributions.

The important thing is not to chase investments promising extremely high or guaranteed returns. The SEC has warned Nigerians about unregistered online investment schemes and unrealistic guaranteed returns.

If the person stays consistent for 10 years, the ₦400,000 initial investment plus ₦20,000 monthly contributions means they would personally contribute:

₦400,000 + (₦20,000 × 120 months) = ₦2,800,000.

The final amount could be considerably higher because of investment returns, but the actual result will depend on the investments and their performance. Returns are not guaranteed.

If you tell me the person’s age, risk tolerance (low/medium/high), whether they are employed or self-employed, and whether the ₦20,000 can increase over time, I can prepare a specific 10-year retirement plan with suggested percentages and projected outcomes.