If you're completely new to investing in stocks in Nigeria, don't start by asking “Which stock will make me rich quickly?” Start by learning how the market works and building a disciplined approach. Here's a simple path: 1. Learn the basics first Understand what a share is, how dividends work, whatRead more
If you’re completely new to investing in stocks in Nigeria, don’t start by asking “Which stock will make me rich quickly?” Start by learning how the market works and building a disciplined approach.
Here’s a simple path:
1. Learn the basics first
Understand what a share is, how dividends work, what makes a stock go up or down, and the difference between investing and trading.
2. Use a registered stockbroker.
In Nigeria, you don’t buy shares directly from the Nigerian Exchange. You go through a registered stockbroker. The SEC specifically advises investors to buy and sell shares through registered brokers.
3. Make sure your investment is properly registered.
Your shares are held through the Nigerian capital-market infrastructure involving CSCS. NGX says investors can hold their securities with CSCS, Nigeria’s licensed central depository.
4. Start small.
You don’t need to wait until you have ₦1 million. Start with an amount you can afford to leave invested for the long term. The important thing at the beginning is learning and developing consistency—not trying to make a huge profit immediately.
5. Don’t put everything into one company.
Consider diversification rather than betting your entire investment on one stock. Look at different companies, sectors and, depending on your circumstances, other asset classes too.
6. Research before you buy.
Don’t buy a stock simply because someone posted, “This one is going to the moon!”
Look at the company’s business, revenue, profitability, debt, dividend history, competitive position and valuation. If you don’t understand why you’re buying it, take a step back.
7. Think long term.
Stock investing isn’t supposed to be a get-rich-quick scheme. Prices will rise and fall. A beginner should be prepared for volatility and focus on building wealth over years rather than trying to predict tomorrow’s price.
8. Keep checking your portfolio.
CSCS provides an Online Portfolio View, and its current USSD service can also provide information such as your stock position, portfolio value and CHN when accessed from your registered mobile number.
And one rule I would never compromise on:
Verify your broker before sending money. The SEC has a “Find a Registered Operator” facility where investors can check the registration status and functions of capital-market operators.
So the beginner’s formula is:
Learn → Choose a registered broker → Start small → Diversify → Invest consistently → Be patient.
You don’t need to be an expert before you start, but you should understand what you’re putting your money into.
At 42, you're definitely not too old to learn a high-income skill. In fact, you have something younger people may not have yet: experience, discipline, professional relationships and a better understanding of how money and people work. The key is not to learn every skill. Choose one that has real deRead more
At 42, you’re definitely not too old to learn a high-income skill. In fact, you have something younger people may not have yet: experience, discipline, professional relationships and a better understanding of how money and people work.
The key is not to learn every skill. Choose one that has real demand, fits your strengths and can realistically generate income.
Some options I’d consider are:
Digital skills — data analysis, UI/UX design, digital marketing, cybersecurity, software development or AI-related skills.
Professional services — project management, business analysis, bookkeeping/accounting support, consulting or sales.
Sales — don’t underestimate this one. Someone who can consistently bring customers and revenue to a business can become extremely valuable.
The important thing is to think beyond “What skill pays the most?”
Ask:
“What skill can I become genuinely good at, that people around me are willing to pay for?”
Then give yourself a realistic 6–12 month learning and income-building plan.
For example:
Learn → Practice → Build proof of your ability → Get your first paying clients/job → Improve → Increase your price/income → Invest the extra income.
And don’t feel pressured to completely abandon your current career. You can learn the new skill alongside your existing work until the new income becomes reliable.
At 42, you’re not starting from zero.
You’re starting with 42 years of life experience—and adding a new income-producing skill to it.
The goal isn’t to become a completely different person overnight. It’s to build a skill that gives you more options, more income and eventually more financial freedom.
It depends on why you need the phone and what the skill can do for you. But if the current phone still works and you're choosing between a new phone and learning a valuable skill, I'd lean toward the skill. Think about it this way: 📱 A new phone gives you convenience. 💡 A valuable skill can give youRead more
It depends on why you need the phone and what the skill can do for you. But if the current phone still works and you’re choosing between a new phone and learning a valuable skill, I’d lean toward the skill.
Think about it this way:
📱 A new phone gives you convenience.
💡 A valuable skill can give you additional income.
If your current phone can still handle calls, WhatsApp, learning materials and the basic things you need, you may not need to upgrade immediately.
Instead, you could use that money to learn something people are willing to pay for—digital skills, electrical/solar installation, graphics design, programming, tailoring, hairdressing, sales, catering, or another skill that fits your interests and your environment.
But there’s an exception.
If your current phone is preventing you from working, learning or earning money, then replacing it can actually be an investment. In that case, don’t necessarily buy the most expensive phone you can afford. Buy the cheapest reliable phone that does the job and put the remaining money toward the skill.
So before spending the money, ask yourself:
“Will this purchase help me make more money, or will it simply make me feel better for a while?”
If the phone is a genuine tool for earning, buy wisely.
If it’s mainly an upgrade because you want something newer, and your current phone is still functional, learn the skill first.
Because a phone can become outdated in a few years, but a valuable skill can continue paying you for decades.
Yes, failure is often part of the journey to success. Think about it this way: when something doesn't work, you get information. You learn what to improve, what to avoid and sometimes even discover a better direction. A failed business can teach you about customers and money. A rejected job can pushRead more
Yes, failure is often part of the journey to success.
Think about it this way: when something doesn’t work, you get information. You learn what to improve, what to avoid and sometimes even discover a better direction.
A failed business can teach you about customers and money.
A rejected job can push you to improve your skills.
A bad investment can teach you about risk and financial discipline.
But there’s an important difference between failing and repeatedly making the same mistake without learning from it.
Failure becomes useful when you can say:
“What went wrong?”
“What can I learn from this?”
“What will I do differently next time?”
Success isn’t always about never falling. Sometimes it’s about falling, learning, adjusting and having the courage to try again.
So yes, failure can be part of success—but don’t romanticize failure. Learn from it, adapt and keep moving forward.
And maybe the better question isn’t “Did I fail?”
It’s:
“What did this failure teach me that success might never have taught me?”
Honestly, neither one is automatically “better.” It depends on your current financial situation, your skills, your goals and how much risk you're willing to take. But if you're starting with limited capital, I'd strongly consider learning a valuable skill first. A skilled trade gives you something tRead more
Honestly, neither one is automatically “better.” It depends on your current financial situation, your skills, your goals and how much risk you’re willing to take.
But if you’re starting with limited capital, I’d strongly consider learning a valuable skill first.
A skilled trade gives you something that nobody can easily take away from you: the ability to earn from your knowledge and hands.
For example, depending on your interests, you could learn electrical installation, plumbing, welding, solar installation, refrigeration/AC repair, automotive work, fashion, hairdressing, catering or a digital skill.
Once you’re good at the skill, you can turn it into a business.
That’s where I think the two options can actually work together:
Skill → Experience → Customers → Business → Growth
Starting a business immediately can work, but there’s a bigger risk if you don’t understand the market, customers, pricing and cash flow. You could end up investing your money into a business you don’t really understand.
On the other hand, learning a skill doesn’t mean you have to remain an employee forever. You can start by working for someone, gain experience, build relationships, save money and eventually start your own operation.
So I’d ask myself three questions:
1. What skill can I learn that people are willing to pay me for?
2. Can I become good enough at it to earn independently?
3. How can I eventually turn that skill into a business?
For someone with limited capital, my preferred route would be:
Learn → Earn → Save → Invest → Start/expand a business.
The goal isn’t simply to choose between “skill” and “business.” The smartest move can be to use a skill as the foundation for building your business and wealth.
Because at the end of the day, capital is useful, but a valuable skill gives you the ability to keep creating capital.
The truth is, building wealth isn't only about finding the “perfect investment.” You first need to increase the amount of money you have available to invest. I'd approach it in two parts: earn more and manage/invest what you earn wisely. 1. Increase your earning power 📈 Look beyond your current salaRead more
The truth is, building wealth isn’t only about finding the “perfect investment.” You first need to increase the amount of money you have available to invest.
I’d approach it in two parts: earn more and manage/invest what you earn wisely.
1. Increase your earning power 📈
Look beyond your current salary. Learn skills that can generate additional income—freelancing, digital skills, sales, consulting, technical services, online businesses, or even a well-managed side business.
The goal isn’t necessarily to work 10 different jobs. It’s to build at least one additional income stream that can grow over time.
2. Control your spending
You can’t build wealth if every increase in income immediately becomes an increase in lifestyle.
Know exactly how much you’re earning, spending, saving and investing each month.
3. Build an emergency fund first 🛡️
Before taking significant investment risks, keep some money accessible for emergencies. This reduces the chances of having to sell investments at the wrong time.
4. Invest according to your risk level
For someone starting out, you could consider instruments such as Treasury Bills, government securities and regulated money-market or mutual funds. The SEC recognises different types of collective investment schemes, including money-market, fixed-income, balanced and equity funds.
Government securities can also provide a relatively conservative component of a portfolio; the CBN describes Nigerian Treasury Bills as short-term government securities whose income is realised upfront.
As you become more experienced and your financial position allows it, you can consider diversified equity investments and other assets for longer-term growth.
5. Don’t put everything in one investment.
Diversification matters. Your entire savings shouldn’t depend on one company, one business, one stock or one investment platform.
6. Verify before you invest 🚨
This is particularly important in Nigeria. If you’re using an investment platform or financial operator, verify that the relevant operator is registered with the SEC and that its registration covers the service being offered. The SEC provides an online Find a Registered Operator facility for this purpose.
And be very careful with anyone promising guaranteed high returns, quick profits or “risk-free” investments.
Finally, remember this:
Increasing your income gives you more money to work with. Investing wisely allows that money to work for you. Consistency is what connects the two.
You don’t have to become wealthy overnight. Start with what you have, keep learning, increase your earning power, invest consistently and give compounding time to work.
For a new investor, I wouldn't say there's one “best” investment plan. The best starting point is usually a simple, diversified plan that matches your income, goals and risk tolerance. If you're just starting out, I'd consider this approach: 1. Build an emergency fund first 💰 Before investing aggresRead more
For a new investor, I wouldn’t say there’s one “best” investment plan. The best starting point is usually a simple, diversified plan that matches your income, goals and risk tolerance.
If you’re just starting out, I’d consider this approach:
1. Build an emergency fund first 💰
Before investing aggressively, keep some money available for unexpected expenses. You don’t want to sell an investment at a bad time just because you need cash.
2. Start with lower-risk investments
Treasury Bills, government securities and money-market funds can be a good place for beginners who want to understand investing without taking as much market risk as individual stocks. The SEC recognises money-market funds as a type of collective investment scheme, and these funds can invest in instruments such as Treasury Bills and commercial paper.
3. Consider mutual funds
If you don’t know enough about picking individual stocks yet, a regulated mutual/unit trust fund can give you diversification and professional management. The SEC explains that unit trusts pool investors’ money and invest it across assets such as shares and money-market instruments.
4. Gradually add stocks for long-term growth 📈
Once you’ve learned the basics and can tolerate fluctuations, you can consider diversified equity investments. Stocks can provide higher long-term growth potential, but they also carry more risk.
5. Invest consistently, not emotionally.
You don’t need ₦1 million to start. Even a small amount invested regularly can become meaningful over time. The SEC also recommends consistent investing, diversification, patience and understanding your risk tolerance.
For example, a beginner could think about a structure like:
Those percentages aren’t a universal rule—they should change depending on your income, responsibilities, goals and risk tolerance.
And one very important rule: don’t invest simply because someone promises you guaranteed or unusually high returns. The SEC recently warned Nigerians about unregistered online investment schemes and advises investors to verify operators before investing.
So, if you’re new, don’t focus on “How can I double my money quickly?”
Start by asking:
“How can I protect my money, understand what I’m buying, and consistently grow my wealth over the next 5–10 years?”
That’s a much healthier starting point for an investor.
One simple way to think about it is this: An investment may be overvalued when the price has risen far beyond what the underlying asset can reasonably justify. But there isn't one magic number that tells you, “This is overvalued.” You have to look at a few things. 1. Compare price with fundamentalsRead more
One simple way to think about it is this:
An investment may be overvalued when the price has risen far beyond what the underlying asset can reasonably justify.
But there isn’t one magic number that tells you, “This is overvalued.” You have to look at a few things.
1. Compare price with fundamentals
For shares, look at things like earnings, revenue, cash flow and the company’s growth prospects. If the share price keeps rising while the actual business isn’t improving at the same pace, that’s a warning sign.
2. Look at valuation ratios
For stocks, metrics such as P/E (Price-to-Earnings), P/B (Price-to-Book) and EV/EBITDA can help you compare the company’s valuation with its own history and similar companies.
3. Compare it with its peers
If similar companies are trading at much lower valuations without a good reason for the difference, you should ask yourself why investors are willing to pay so much more for this particular asset.
4. Watch investor behaviour
When people start buying simply because “the price keeps going up” rather than because they understand the investment, that’s a potential warning sign.
You may also see excessive hype, unrealistic return expectations and people saying things like “it can only go up.”
5. Ask the most important question:
«“If I had to buy this investment today, would the underlying fundamentals justify the price I’m paying?”»
If the answer is no, the investment could be overvalued.
And remember, overvalued doesn’t necessarily mean the price will fall tomorrow. An asset can remain overvalued for months or even years. That’s why valuation should be combined with your investment goals, risk tolerance and time horizon.
In simple terms: Don’t just ask how much an investment has gone up. Ask whether the underlying value has grown enough to justify that price.
Treasury Bills are usually sold at a discount, meaning you pay less than the face value and receive the full face value when the bill matures. The basic formula is: Discount = Face Value × Discount Rate × (Days to Maturity ÷ 365) And: Purchase Price = Face Value − Discount For example, let's say youRead more
Treasury Bills are usually sold at a discount, meaning you pay less than the face value and receive the full face value when the bill matures.
The basic formula is:
Discount = Face Value × Discount Rate × (Days to Maturity ÷ 365)
And:
Purchase Price = Face Value − Discount
For example, let’s say you buy a ₦1,000,000 Treasury Bill with a 15% discount rate and 91 days to maturity.
Discount:
₦1,000,000 × 15% × (91 ÷ 365)
= ₦37,397.26
So your purchase price would be:
₦1,000,000 − ₦37,397.26
= ₦962,602.74
At maturity, you receive the ₦1,000,000 face value.
So your gross return is approximately ₦37,397.
One thing to remember: the discount rate is not exactly the same as the investment’s effective annualized return, because the discount is calculated on the face value rather than the amount you actually paid.
That’s why when comparing Treasury Bills with other investments, it’s important to look at the effective yield, not just the quoted discount rate.
For a public servant in Nigeria, I don't think there is one single “best” investment plan. It really depends on your salary, age, financial goals and how much risk you're comfortable taking. But if I were advising a public servant, I'd build it in layers: 1. Start with your pension — but don't stopRead more
For a public servant in Nigeria, I don’t think there is one single “best” investment plan. It really depends on your salary, age, financial goals and how much risk you’re comfortable taking.
But if I were advising a public servant, I’d build it in layers:
1. Start with your pension — but don’t stop there.
Your Retirement Savings Account (RSA) is already an important part of your retirement plan. Under the Contributory Pension Scheme, contributions are invested by a licensed Pension Fund Administrator (PFA) and managed under PenCom’s regulatory framework.
2. Build an emergency fund.
Before chasing high returns, try to have about 3–6 months of essential expenses somewhere easily accessible. This prevents you from selling investments whenever an unexpected bill comes up.
3. Consider low-to-moderate risk investments.
For someone who wants relatively stable investments, options such as Treasury Bills, FGN Bonds and regulated money-market/mutual funds can be considered. SEC regulates collective investment schemes such as unit trusts, while government securities are generally used as more conservative investments.
4. Add long-term growth investments.
If you have a longer time horizon, you could allocate part of your money to diversified equity investments or equity funds. They can offer better long-term growth, but they also come with more volatility.
5. Consider voluntary retirement savings.
If your normal pension contribution isn’t enough for the retirement lifestyle you want, additional voluntary retirement savings can be useful. PenCom’s Personal Pension Plan provides a framework for eligible people to make voluntary pension contributions through licensed PFAs.
The biggest mistake, in my opinion, is putting all your money into one investment because someone promised you “20% every month” or “guaranteed returns.” 🚩
A better approach is diversification — keep some money accessible, some in safer investments, some for long-term growth, and continue building your pension.
So if someone earns, for example, ₦200,000 per month, I wouldn’t immediately tell them to invest ₦100,000. I’d first look at their expenses, debts, emergency savings and retirement goals.
The best investment plan is the one you can consistently maintain without putting your everyday life under financial pressure.
How Can a Beginner Buy NGX Shares With ₦10,000 or ₦30,000?
If you're completely new to investing in stocks in Nigeria, don't start by asking “Which stock will make me rich quickly?” Start by learning how the market works and building a disciplined approach. Here's a simple path: 1. Learn the basics first Understand what a share is, how dividends work, whatRead more
If you’re completely new to investing in stocks in Nigeria, don’t start by asking “Which stock will make me rich quickly?” Start by learning how the market works and building a disciplined approach.
Here’s a simple path:
1. Learn the basics first
Understand what a share is, how dividends work, what makes a stock go up or down, and the difference between investing and trading.
2. Use a registered stockbroker.
In Nigeria, you don’t buy shares directly from the Nigerian Exchange. You go through a registered stockbroker. The SEC specifically advises investors to buy and sell shares through registered brokers.
3. Make sure your investment is properly registered.
Your shares are held through the Nigerian capital-market infrastructure involving CSCS. NGX says investors can hold their securities with CSCS, Nigeria’s licensed central depository.
4. Start small.
You don’t need to wait until you have ₦1 million. Start with an amount you can afford to leave invested for the long term. The important thing at the beginning is learning and developing consistency—not trying to make a huge profit immediately.
5. Don’t put everything into one company.
Consider diversification rather than betting your entire investment on one stock. Look at different companies, sectors and, depending on your circumstances, other asset classes too.
6. Research before you buy.
Don’t buy a stock simply because someone posted, “This one is going to the moon!”
Look at the company’s business, revenue, profitability, debt, dividend history, competitive position and valuation. If you don’t understand why you’re buying it, take a step back.
7. Think long term.
Stock investing isn’t supposed to be a get-rich-quick scheme. Prices will rise and fall. A beginner should be prepared for volatility and focus on building wealth over years rather than trying to predict tomorrow’s price.
8. Keep checking your portfolio.
CSCS provides an Online Portfolio View, and its current USSD service can also provide information such as your stock position, portfolio value and CHN when accessed from your registered mobile number.
And one rule I would never compromise on:
Verify your broker before sending money. The SEC has a “Find a Registered Operator” facility where investors can check the registration status and functions of capital-market operators.
So the beginner’s formula is:
Learn → Choose a registered broker → Start small → Diversify → Invest consistently → Be patient.
You don’t need to be an expert before you start, but you should understand what you’re putting your money into.
See lessWhat High-Income Skills Can I Learn at 42 to Improve My Financial Situation?
At 42, you're definitely not too old to learn a high-income skill. In fact, you have something younger people may not have yet: experience, discipline, professional relationships and a better understanding of how money and people work. The key is not to learn every skill. Choose one that has real deRead more
At 42, you’re definitely not too old to learn a high-income skill. In fact, you have something younger people may not have yet: experience, discipline, professional relationships and a better understanding of how money and people work.
The key is not to learn every skill. Choose one that has real demand, fits your strengths and can realistically generate income.
Some options I’d consider are:
Digital skills — data analysis, UI/UX design, digital marketing, cybersecurity, software development or AI-related skills.
Professional services — project management, business analysis, bookkeeping/accounting support, consulting or sales.
Sales — don’t underestimate this one. Someone who can consistently bring customers and revenue to a business can become extremely valuable.
The important thing is to think beyond “What skill pays the most?”
Ask:
“What skill can I become genuinely good at, that people around me are willing to pay for?”
Then give yourself a realistic 6–12 month learning and income-building plan.
For example:
Learn → Practice → Build proof of your ability → Get your first paying clients/job → Improve → Increase your price/income → Invest the extra income.
And don’t feel pressured to completely abandon your current career. You can learn the new skill alongside your existing work until the new income becomes reliable.
At 42, you’re not starting from zero.
You’re starting with 42 years of life experience—and adding a new income-producing skill to it.
The goal isn’t to become a completely different person overnight. It’s to build a skill that gives you more options, more income and eventually more financial freedom.
See lessShould I Buy a New Phone or Invest the Money in Learning a Skill?
It depends on why you need the phone and what the skill can do for you. But if the current phone still works and you're choosing between a new phone and learning a valuable skill, I'd lean toward the skill. Think about it this way: 📱 A new phone gives you convenience. 💡 A valuable skill can give youRead more
It depends on why you need the phone and what the skill can do for you. But if the current phone still works and you’re choosing between a new phone and learning a valuable skill, I’d lean toward the skill.
Think about it this way:
📱 A new phone gives you convenience.
💡 A valuable skill can give you additional income.
If your current phone can still handle calls, WhatsApp, learning materials and the basic things you need, you may not need to upgrade immediately.
Instead, you could use that money to learn something people are willing to pay for—digital skills, electrical/solar installation, graphics design, programming, tailoring, hairdressing, sales, catering, or another skill that fits your interests and your environment.
But there’s an exception.
If your current phone is preventing you from working, learning or earning money, then replacing it can actually be an investment. In that case, don’t necessarily buy the most expensive phone you can afford. Buy the cheapest reliable phone that does the job and put the remaining money toward the skill.
So before spending the money, ask yourself:
“Will this purchase help me make more money, or will it simply make me feel better for a while?”
If the phone is a genuine tool for earning, buy wisely.
If it’s mainly an upgrade because you want something newer, and your current phone is still functional, learn the skill first.
Because a phone can become outdated in a few years, but a valuable skill can continue paying you for decades.
See lessIs failure part of success?
Yes, failure is often part of the journey to success. Think about it this way: when something doesn't work, you get information. You learn what to improve, what to avoid and sometimes even discover a better direction. A failed business can teach you about customers and money. A rejected job can pushRead more
Yes, failure is often part of the journey to success.
Think about it this way: when something doesn’t work, you get information. You learn what to improve, what to avoid and sometimes even discover a better direction.
A failed business can teach you about customers and money.
A rejected job can push you to improve your skills.
A bad investment can teach you about risk and financial discipline.
But there’s an important difference between failing and repeatedly making the same mistake without learning from it.
Failure becomes useful when you can say:
“What went wrong?”
“What can I learn from this?”
“What will I do differently next time?”
Success isn’t always about never falling. Sometimes it’s about falling, learning, adjusting and having the courage to try again.
So yes, failure can be part of success—but don’t romanticize failure. Learn from it, adapt and keep moving forward.
And maybe the better question isn’t “Did I fail?”
It’s:
“What did this failure teach me that success might never have taught me?”
See lessIs It Better to Learn a Skilled Trade or Start a Business in Nigeria?
Honestly, neither one is automatically “better.” It depends on your current financial situation, your skills, your goals and how much risk you're willing to take. But if you're starting with limited capital, I'd strongly consider learning a valuable skill first. A skilled trade gives you something tRead more
Honestly, neither one is automatically “better.” It depends on your current financial situation, your skills, your goals and how much risk you’re willing to take.
But if you’re starting with limited capital, I’d strongly consider learning a valuable skill first.
A skilled trade gives you something that nobody can easily take away from you: the ability to earn from your knowledge and hands.
For example, depending on your interests, you could learn electrical installation, plumbing, welding, solar installation, refrigeration/AC repair, automotive work, fashion, hairdressing, catering or a digital skill.
Once you’re good at the skill, you can turn it into a business.
That’s where I think the two options can actually work together:
Skill → Experience → Customers → Business → Growth
Starting a business immediately can work, but there’s a bigger risk if you don’t understand the market, customers, pricing and cash flow. You could end up investing your money into a business you don’t really understand.
On the other hand, learning a skill doesn’t mean you have to remain an employee forever. You can start by working for someone, gain experience, build relationships, save money and eventually start your own operation.
So I’d ask myself three questions:
1. What skill can I learn that people are willing to pay me for?
2. Can I become good enough at it to earn independently?
3. How can I eventually turn that skill into a business?
For someone with limited capital, my preferred route would be:
Learn → Earn → Save → Invest → Start/expand a business.
The goal isn’t simply to choose between “skill” and “business.” The smartest move can be to use a skill as the foundation for building your business and wealth.
Because at the end of the day, capital is useful, but a valuable skill gives you the ability to keep creating capital.
See lessHow Can I Increase My Income and Invest Wisely in Nigeria?
The truth is, building wealth isn't only about finding the “perfect investment.” You first need to increase the amount of money you have available to invest. I'd approach it in two parts: earn more and manage/invest what you earn wisely. 1. Increase your earning power 📈 Look beyond your current salaRead more
The truth is, building wealth isn’t only about finding the “perfect investment.” You first need to increase the amount of money you have available to invest.
I’d approach it in two parts: earn more and manage/invest what you earn wisely.
1. Increase your earning power 📈
Look beyond your current salary. Learn skills that can generate additional income—freelancing, digital skills, sales, consulting, technical services, online businesses, or even a well-managed side business.
The goal isn’t necessarily to work 10 different jobs. It’s to build at least one additional income stream that can grow over time.
2. Control your spending
You can’t build wealth if every increase in income immediately becomes an increase in lifestyle.
Know exactly how much you’re earning, spending, saving and investing each month.
3. Build an emergency fund first 🛡️
Before taking significant investment risks, keep some money accessible for emergencies. This reduces the chances of having to sell investments at the wrong time.
4. Invest according to your risk level
For someone starting out, you could consider instruments such as Treasury Bills, government securities and regulated money-market or mutual funds. The SEC recognises different types of collective investment schemes, including money-market, fixed-income, balanced and equity funds.
Government securities can also provide a relatively conservative component of a portfolio; the CBN describes Nigerian Treasury Bills as short-term government securities whose income is realised upfront.
As you become more experienced and your financial position allows it, you can consider diversified equity investments and other assets for longer-term growth.
5. Don’t put everything in one investment.
Diversification matters. Your entire savings shouldn’t depend on one company, one business, one stock or one investment platform.
6. Verify before you invest 🚨
This is particularly important in Nigeria. If you’re using an investment platform or financial operator, verify that the relevant operator is registered with the SEC and that its registration covers the service being offered. The SEC provides an online Find a Registered Operator facility for this purpose.
And be very careful with anyone promising guaranteed high returns, quick profits or “risk-free” investments.
Finally, remember this:
Increasing your income gives you more money to work with. Investing wisely allows that money to work for you. Consistency is what connects the two.
You don’t have to become wealthy overnight. Start with what you have, keep learning, increase your earning power, invest consistently and give compounding time to work.
See lessWhat Are The Best Investment Plans For New Investor?
For a new investor, I wouldn't say there's one “best” investment plan. The best starting point is usually a simple, diversified plan that matches your income, goals and risk tolerance. If you're just starting out, I'd consider this approach: 1. Build an emergency fund first 💰 Before investing aggresRead more
For a new investor, I wouldn’t say there’s one “best” investment plan. The best starting point is usually a simple, diversified plan that matches your income, goals and risk tolerance.
If you’re just starting out, I’d consider this approach:
1. Build an emergency fund first 💰
Before investing aggressively, keep some money available for unexpected expenses. You don’t want to sell an investment at a bad time just because you need cash.
2. Start with lower-risk investments
Treasury Bills, government securities and money-market funds can be a good place for beginners who want to understand investing without taking as much market risk as individual stocks. The SEC recognises money-market funds as a type of collective investment scheme, and these funds can invest in instruments such as Treasury Bills and commercial paper.
3. Consider mutual funds
If you don’t know enough about picking individual stocks yet, a regulated mutual/unit trust fund can give you diversification and professional management. The SEC explains that unit trusts pool investors’ money and invest it across assets such as shares and money-market instruments.
4. Gradually add stocks for long-term growth 📈
Once you’ve learned the basics and can tolerate fluctuations, you can consider diversified equity investments. Stocks can provide higher long-term growth potential, but they also carry more risk.
5. Invest consistently, not emotionally.
You don’t need ₦1 million to start. Even a small amount invested regularly can become meaningful over time. The SEC also recommends consistent investing, diversification, patience and understanding your risk tolerance.
For example, a beginner could think about a structure like:
Emergency savings → 40% safer investments → 30% diversified funds → 20% long-term equities → 10% learning/other opportunities.
Those percentages aren’t a universal rule—they should change depending on your income, responsibilities, goals and risk tolerance.
And one very important rule: don’t invest simply because someone promises you guaranteed or unusually high returns. The SEC recently warned Nigerians about unregistered online investment schemes and advises investors to verify operators before investing.
So, if you’re new, don’t focus on “How can I double my money quickly?”
Start by asking:
“How can I protect my money, understand what I’m buying, and consistently grow my wealth over the next 5–10 years?”
That’s a much healthier starting point for an investor.
See lessHow Can I Tell When an Investment Has Become Overvalued?
One simple way to think about it is this: An investment may be overvalued when the price has risen far beyond what the underlying asset can reasonably justify. But there isn't one magic number that tells you, “This is overvalued.” You have to look at a few things. 1. Compare price with fundamentalsRead more
One simple way to think about it is this:
An investment may be overvalued when the price has risen far beyond what the underlying asset can reasonably justify.
But there isn’t one magic number that tells you, “This is overvalued.” You have to look at a few things.
1. Compare price with fundamentals
For shares, look at things like earnings, revenue, cash flow and the company’s growth prospects. If the share price keeps rising while the actual business isn’t improving at the same pace, that’s a warning sign.
2. Look at valuation ratios
For stocks, metrics such as P/E (Price-to-Earnings), P/B (Price-to-Book) and EV/EBITDA can help you compare the company’s valuation with its own history and similar companies.
3. Compare it with its peers
If similar companies are trading at much lower valuations without a good reason for the difference, you should ask yourself why investors are willing to pay so much more for this particular asset.
4. Watch investor behaviour
When people start buying simply because “the price keeps going up” rather than because they understand the investment, that’s a potential warning sign.
You may also see excessive hype, unrealistic return expectations and people saying things like “it can only go up.”
5. Ask the most important question:
«“If I had to buy this investment today, would the underlying fundamentals justify the price I’m paying?”»
If the answer is no, the investment could be overvalued.
And remember, overvalued doesn’t necessarily mean the price will fall tomorrow. An asset can remain overvalued for months or even years. That’s why valuation should be combined with your investment goals, risk tolerance and time horizon.
In simple terms: Don’t just ask how much an investment has gone up. Ask whether the underlying value has grown enough to justify that price.
See lessHow to calculate discounted rates in treasury bills?
Treasury Bills are usually sold at a discount, meaning you pay less than the face value and receive the full face value when the bill matures. The basic formula is: Discount = Face Value × Discount Rate × (Days to Maturity ÷ 365) And: Purchase Price = Face Value − Discount For example, let's say youRead more
Treasury Bills are usually sold at a discount, meaning you pay less than the face value and receive the full face value when the bill matures.
The basic formula is:
Discount = Face Value × Discount Rate × (Days to Maturity ÷ 365)
And:
Purchase Price = Face Value − Discount
For example, let’s say you buy a ₦1,000,000 Treasury Bill with a 15% discount rate and 91 days to maturity.
Discount:
₦1,000,000 × 15% × (91 ÷ 365)
= ₦37,397.26
So your purchase price would be:
₦1,000,000 − ₦37,397.26
= ₦962,602.74
At maturity, you receive the ₦1,000,000 face value.
So your gross return is approximately ₦37,397.
One thing to remember: the discount rate is not exactly the same as the investment’s effective annualized return, because the discount is calculated on the face value rather than the amount you actually paid.
That’s why when comparing Treasury Bills with other investments, it’s important to look at the effective yield, not just the quoted discount rate.
See lessWhat Is the Best Investment Plan for Public Servants in Nigeria?
For a public servant in Nigeria, I don't think there is one single “best” investment plan. It really depends on your salary, age, financial goals and how much risk you're comfortable taking. But if I were advising a public servant, I'd build it in layers: 1. Start with your pension — but don't stopRead more
For a public servant in Nigeria, I don’t think there is one single “best” investment plan. It really depends on your salary, age, financial goals and how much risk you’re comfortable taking.
But if I were advising a public servant, I’d build it in layers:
1. Start with your pension — but don’t stop there.
Your Retirement Savings Account (RSA) is already an important part of your retirement plan. Under the Contributory Pension Scheme, contributions are invested by a licensed Pension Fund Administrator (PFA) and managed under PenCom’s regulatory framework.
2. Build an emergency fund.
Before chasing high returns, try to have about 3–6 months of essential expenses somewhere easily accessible. This prevents you from selling investments whenever an unexpected bill comes up.
3. Consider low-to-moderate risk investments.
For someone who wants relatively stable investments, options such as Treasury Bills, FGN Bonds and regulated money-market/mutual funds can be considered. SEC regulates collective investment schemes such as unit trusts, while government securities are generally used as more conservative investments.
4. Add long-term growth investments.
If you have a longer time horizon, you could allocate part of your money to diversified equity investments or equity funds. They can offer better long-term growth, but they also come with more volatility.
5. Consider voluntary retirement savings.
If your normal pension contribution isn’t enough for the retirement lifestyle you want, additional voluntary retirement savings can be useful. PenCom’s Personal Pension Plan provides a framework for eligible people to make voluntary pension contributions through licensed PFAs.
The biggest mistake, in my opinion, is putting all your money into one investment because someone promised you “20% every month” or “guaranteed returns.” 🚩
A better approach is diversification — keep some money accessible, some in safer investments, some for long-term growth, and continue building your pension.
So if someone earns, for example, ₦200,000 per month, I wouldn’t immediately tell them to invest ₦100,000. I’d first look at their expenses, debts, emergency savings and retirement goals.
The best investment plan is the one you can consistently maintain without putting your everyday life under financial pressure.
See less