Indexation can help long-term investors by adjusting the purchase cost of an investment for inflation, which may reduce the portion of gains treated as taxable profit when the investment is eventually sold. However, the exact tax benefit depends on the country, investment type, and current tax rulesRead more
Indexation can help long-term investors by adjusting the purchase cost of an investment for inflation, which may reduce the portion of gains treated as taxable profit when the investment is eventually sold. However, the exact tax benefit depends on the country, investment type, and current tax rules.
3 Key Points
1. Protects Against Inflation
Indexation recognizes that money loses purchasing power over time, giving a more realistic picture of your investment gain.
2. Can Reduce Taxable Gains
Where indexation is allowed, the adjusted purchase cost becomes higher, potentially reducing the taxable capital gain and therefore the tax payable.
3. More Valuable Over Long Periods
The longer you hold an investment, the greater the effect of inflation adjustment can potentially become—making indexation particularly relevant to long-term investment planning.
In simple terms: Indexation helps distinguish real investment profit from inflation-driven gains.
1. The safety depends more on the regulated investment provider than on whether it is an app or a bank. A digital app is simply a channel through which you access an investment. For ₦1 million or more, verify that the investment manager/broker is properly registered with the SEC Nigeria and understaRead more
1. The safety depends more on the regulated investment provider than on whether it is an app or a bank.
A digital app is simply a channel through which you access an investment. For ₦1 million or more, verify that the investment manager/broker is properly registered with the SEC Nigeria and understand who actually holds the underlying assets. The SEC specifically warns Nigerians against unregistered online investment schemes.
2. For a large amount, I would not put everything in one place.
Instead of choosing “app or traditional bank,” I would think about diversification. For example, part could be in a money-market fund, part in Treasury bills or other fixed-income investments, and another portion in quality equities, depending on your time horizon and risk tolerance. This reduces your dependence on one institution or one type of investment.
3. For ₦1 million+, traditional banks can give more personal support, but a good regulated digital platform can also be perfectly reasonable.
My preference would be: regulation first, investment structure second, platform convenience third. If you are investing a substantial amount, don’t choose an app merely because it shows the highest return. Check SEC registration, underlying assets, fees, withdrawal conditions, custodian/trustee arrangements, historical performance and risks before transferring the money. The SEC maintains a public directory for verifying capital-market operators.
My simple rule: For ₦1 million or more, I would rather use a properly regulated investment manager through a convenient app than use an unregulated platform simply because it promises a higher return.
If I were advising someone based on what I’ve learned, I would look at three income routes rather than depending only on investment returns: 1. Invest through regulated platforms. In Nigeria, I would first consider SEC-regulated options such as money-market funds, Treasury bills, mutual funds and eqRead more
If I were advising someone based on what I’ve learned, I would look at three income routes rather than depending only on investment returns:
1. Invest through regulated platforms.
In Nigeria, I would first consider SEC-regulated options such as money-market funds, Treasury bills, mutual funds and equities. The SEC specifically advises investors to verify that an investment operator is registered before using it.
Platforms/fund managers worth researching include Cowrywise, Stanbic IBTC Asset Management, United Capital, ARM and FBNQuest—but I would compare their fees, liquidity and recent performance rather than choosing simply because one advertises a higher rate.
2. Use your time and knowledge to create income.
You don’t always need capital to make money. You can teach, write, consult, create educational content, sell a professional skill or provide services online. Fokona, for example, is a Nigerian financial-education platform where people can learn about investing, personal finance and income growth, and it also has opportunities around contributing knowledge.
3. Build an income-producing asset.
Instead of asking only, “Where can I invest my money?”, also ask, “What can I build that can produce money repeatedly?” A small business, digital course, book, YouTube/Facebook audience, professional training programme or service business can potentially create active income today and become a long-term asset.
The principle I would follow:
Earn actively → save consistently → invest wisely → reinvest the returns → build assets.
If I were simply sharing what I have learned, I would advise you to approach it in three steps: 1. Find the successor to Trans International Bank. The bank did not simply disappear; Trans International Bank was one of the banks consolidated into Spring Bank Plc in 2006. So the old share certificateRead more
If I were simply sharing what I have learned, I would advise you to approach it in three steps:
1. Find the successor to Trans International Bank.
The bank did not simply disappear; Trans International Bank was one of the banks consolidated into Spring Bank Plc in 2006. So the old share certificate should first be traced through the successor/share-registration records.
2. Contact the current/appointed share registrar with the certificates.
Take the 1998 share certificate, bonus certificate, valid means of identification, BVN/NIN details and any old dividend warrant or shareholder information to the registrar handling the legacy shares. The registrar can trace the shareholder account and determine whether there are unclaimed dividends or shares arising from the subsequent restructuring.
3. Don’t assume the dividend is still payable simply because the certificate is old.
Ask the registrar specifically to conduct a share-account and unclaimed-dividend search and explain what happened to the Trans International Bank shares after the Spring Bank restructuring. There were also dividend declarations by Trans International Bank before the restructuring, so it is worth checking the historical dividend records.
In short: Don’t throw away those 1998 certificates. They are important evidence of the original investment. The first practical step is to trace the shares through the registrar/successor records, rather than going to a normal bank branch.
let me first explain what you mean by overvalued, if am right. What Does “Overvalued” Mean? Overvalued means an investment is priced higher than its underlying economic value or what its future earnings and cash flows reasonably justify. this is 3 points to know if your Investment Has Become OvervalRead more
let me first explain what you mean by overvalued, if am right.
What Does “Overvalued” Mean?
Overvalued means an investment is priced higher than its underlying economic value or what its future earnings and cash flows reasonably justify.
this is 3 points to know if your Investment Has Become Overvalued?
1. Price has risen faster than its underlying value
If the investment’s price increases significantly while its earnings, cash flow, assets, or business performance do not grow proportionally, it may be overvalued.
2. The valuation becomes unusually expensive
Compare measures such as P/E, P/B, dividend yield, or price-to-cash-flow with the investment’s historical levels and similar investments. Extremely high valuations can be a warning sign.
3. Expectations become unrealistic
When investors are pricing in extremely high future growth and the investment can only justify its price if everything goes perfectly, the risk of overvaluation increases.
Simple rule: A good investment can still be a bad investment if you pay too much for it.
Let's me answers you with 3 points 1. Different investment strategies and portfolios: Money market funds don't necessarily invest in the same instruments. One fund may hold more higher-yielding Treasury bills, commercial papers, or fixed deposits, while another may hold more conservative or lower-yiRead more
Let’s me answers you with 3 points
1. Different investment strategies and portfolios:
Money market funds don’t necessarily invest in the same instruments. One fund may hold more higher-yielding Treasury bills, commercial papers, or fixed deposits, while another may hold more conservative or lower-yielding assets. This affects the return.
2. Different costs and fund structures:
Management fees, administrative expenses, transaction costs, and other charges can differ between funds. What matters is the net return to you after fees, not simply the headline interest rate.
3. Rates change with timing and market conditions:
Money-market yields move with prevailing interest rates and the specific securities held by each fund. Therefore, FirstBank’s fund having a higher current rate than Stanbic IBTC’s doesn’t automatically mean it is the better fund. Compare historical performance, fees, risk, liquidity, fund size, and consistency of returns before choosing.
Key principle: Don’t choose based on today’s highest rate alone; choose the fund that gives you the best risk-adjusted net return over your investment period.
Let's me answers with just simple 3 points 1. The fund earns income: The fund manager pools investors’ money and invests it in short-term, relatively low-risk instruments such as Treasury bills, commercial papers, and fixed deposits. These investments generate interest/investment income. 2. Income iRead more
Let’s me answers with just simple 3 points
1. The fund earns income:
The fund manager pools investors’ money and invests it in short-term, relatively low-risk instruments such as Treasury bills, commercial papers, and fixed deposits. These investments generate interest/investment income.
2. Income is credited to the fund:
The interest earned increases the fund’s value. Depending on the fund structure, your return may appear as an increase in your unit value/NAV or may be distributed as income.
3. Returns can compound through reinvestment:
When returns remain invested rather than withdrawn, they become part of the capital generating future returns. Over time, returns begin generating additional returns, creating the effect of compounding.
Before you can successfully save or invest on a ₦90,000 salary in Nigeria, you must first understand all your expenses. Track where your money goes every month—this gives you control. Then apply this principle: Always save at least 20% of your income first, before spending on anything else.
Before you can successfully save or invest on a ₦90,000 salary in Nigeria, you must first understand all your expenses.
Track where your money goes every month—this gives you control.
Then apply this principle:
Always save at least 20% of your income first, before spending on anything else.
How Does Indexation Benefit Long-Term Mutual Fund Investments?
Indexation can help long-term investors by adjusting the purchase cost of an investment for inflation, which may reduce the portion of gains treated as taxable profit when the investment is eventually sold. However, the exact tax benefit depends on the country, investment type, and current tax rulesRead more
Indexation can help long-term investors by adjusting the purchase cost of an investment for inflation, which may reduce the portion of gains treated as taxable profit when the investment is eventually sold. However, the exact tax benefit depends on the country, investment type, and current tax rules.
3 Key Points
1. Protects Against Inflation
Indexation recognizes that money loses purchasing power over time, giving a more realistic picture of your investment gain.
2. Can Reduce Taxable Gains
Where indexation is allowed, the adjusted purchase cost becomes higher, potentially reducing the taxable capital gain and therefore the tax payable.
3. More Valuable Over Long Periods
The longer you hold an investment, the greater the effect of inflation adjustment can potentially become—making indexation particularly relevant to long-term investment planning.
In simple terms: Indexation helps distinguish real investment profit from inflation-driven gains.
Henry Paul Akinmade
See lessBusiness Educator
How Safe Are Digital Investment Apps for Investing ₦1 Million or More in Nigeria?
only licence by SEC is safer
only licence by SEC is safer
See lessHow Safe Are Digital Investment Apps for Investing ₦1 Million or More in Nigeria?
1. The safety depends more on the regulated investment provider than on whether it is an app or a bank. A digital app is simply a channel through which you access an investment. For ₦1 million or more, verify that the investment manager/broker is properly registered with the SEC Nigeria and understaRead more
1. The safety depends more on the regulated investment provider than on whether it is an app or a bank.
A digital app is simply a channel through which you access an investment. For ₦1 million or more, verify that the investment manager/broker is properly registered with the SEC Nigeria and understand who actually holds the underlying assets. The SEC specifically warns Nigerians against unregistered online investment schemes.
2. For a large amount, I would not put everything in one place.
Instead of choosing “app or traditional bank,” I would think about diversification. For example, part could be in a money-market fund, part in Treasury bills or other fixed-income investments, and another portion in quality equities, depending on your time horizon and risk tolerance. This reduces your dependence on one institution or one type of investment.
3. For ₦1 million+, traditional banks can give more personal support, but a good regulated digital platform can also be perfectly reasonable.
My preference would be: regulation first, investment structure second, platform convenience third. If you are investing a substantial amount, don’t choose an app merely because it shows the highest return. Check SEC registration, underlying assets, fees, withdrawal conditions, custodian/trustee arrangements, historical performance and risks before transferring the money. The SEC maintains a public directory for verifying capital-market operators.
My simple rule: For ₦1 million or more, I would rather use a properly regulated investment manager through a convenient app than use an unregulated platform simply because it promises a higher return.
Henry Paul Akinmade
See lessBusiness Educator
How Can I Increase My Income and Invest Wisely in Nigeria?
If I were advising someone based on what I’ve learned, I would look at three income routes rather than depending only on investment returns: 1. Invest through regulated platforms. In Nigeria, I would first consider SEC-regulated options such as money-market funds, Treasury bills, mutual funds and eqRead more
If I were advising someone based on what I’ve learned, I would look at three income routes rather than depending only on investment returns:
1. Invest through regulated platforms.
In Nigeria, I would first consider SEC-regulated options such as money-market funds, Treasury bills, mutual funds and equities. The SEC specifically advises investors to verify that an investment operator is registered before using it.
Platforms/fund managers worth researching include Cowrywise, Stanbic IBTC Asset Management, United Capital, ARM and FBNQuest—but I would compare their fees, liquidity and recent performance rather than choosing simply because one advertises a higher rate.
2. Use your time and knowledge to create income.
You don’t always need capital to make money. You can teach, write, consult, create educational content, sell a professional skill or provide services online. Fokona, for example, is a Nigerian financial-education platform where people can learn about investing, personal finance and income growth, and it also has opportunities around contributing knowledge.
3. Build an income-producing asset.
Instead of asking only, “Where can I invest my money?”, also ask, “What can I build that can produce money repeatedly?” A small business, digital course, book, YouTube/Facebook audience, professional training programme or service business can potentially create active income today and become a long-term asset.
The principle I would follow:
See lessEarn actively → save consistently → invest wisely → reinvest the returns → build assets.
How Can I Claim Dividends From Shares I Bought in 1998 in Nigeria?
If I were simply sharing what I have learned, I would advise you to approach it in three steps: 1. Find the successor to Trans International Bank. The bank did not simply disappear; Trans International Bank was one of the banks consolidated into Spring Bank Plc in 2006. So the old share certificateRead more
If I were simply sharing what I have learned, I would advise you to approach it in three steps:
1. Find the successor to Trans International Bank.
The bank did not simply disappear; Trans International Bank was one of the banks consolidated into Spring Bank Plc in 2006. So the old share certificate should first be traced through the successor/share-registration records.
2. Contact the current/appointed share registrar with the certificates.
Take the 1998 share certificate, bonus certificate, valid means of identification, BVN/NIN details and any old dividend warrant or shareholder information to the registrar handling the legacy shares. The registrar can trace the shareholder account and determine whether there are unclaimed dividends or shares arising from the subsequent restructuring.
3. Don’t assume the dividend is still payable simply because the certificate is old.
Ask the registrar specifically to conduct a share-account and unclaimed-dividend search and explain what happened to the Trans International Bank shares after the Spring Bank restructuring. There were also dividend declarations by Trans International Bank before the restructuring, so it is worth checking the historical dividend records.
In short: Don’t throw away those 1998 certificates. They are important evidence of the original investment. The first practical step is to trace the shares through the registrar/successor records, rather than going to a normal bank branch.
Henry Paul Akinmade
See lessBusiness Educator
How Can I Tell When an Investment Has Become Overvalued?
let me first explain what you mean by overvalued, if am right. What Does “Overvalued” Mean? Overvalued means an investment is priced higher than its underlying economic value or what its future earnings and cash flows reasonably justify. this is 3 points to know if your Investment Has Become OvervalRead more
let me first explain what you mean by overvalued, if am right.
What Does “Overvalued” Mean?
Overvalued means an investment is priced higher than its underlying economic value or what its future earnings and cash flows reasonably justify.
this is 3 points to know if your Investment Has Become Overvalued?
1. Price has risen faster than its underlying value
If the investment’s price increases significantly while its earnings, cash flow, assets, or business performance do not grow proportionally, it may be overvalued.
2. The valuation becomes unusually expensive
Compare measures such as P/E, P/B, dividend yield, or price-to-cash-flow with the investment’s historical levels and similar investments. Extremely high valuations can be a warning sign.
3. Expectations become unrealistic
When investors are pricing in extremely high future growth and the investment can only justify its price if everything goes perfectly, the risk of overvaluation increases.
Simple rule: A good investment can still be a bad investment if you pay too much for it.
Henry Paul Akinmade.
See lessBusiness Educator
How Can I Invest and Grow My Savings Over 10 Years in Nigeria?
what can i invest it into?
what can i invest it into?
See lessHow Are Returns Generated and Reinvested in a Money Market Fund?
Let's me answers you with 3 points 1. Different investment strategies and portfolios: Money market funds don't necessarily invest in the same instruments. One fund may hold more higher-yielding Treasury bills, commercial papers, or fixed deposits, while another may hold more conservative or lower-yiRead more
Let’s me answers you with 3 points
1. Different investment strategies and portfolios:
Money market funds don’t necessarily invest in the same instruments. One fund may hold more higher-yielding Treasury bills, commercial papers, or fixed deposits, while another may hold more conservative or lower-yielding assets. This affects the return.
2. Different costs and fund structures:
Management fees, administrative expenses, transaction costs, and other charges can differ between funds. What matters is the net return to you after fees, not simply the headline interest rate.
3. Rates change with timing and market conditions:
Money-market yields move with prevailing interest rates and the specific securities held by each fund. Therefore, FirstBank’s fund having a higher current rate than Stanbic IBTC’s doesn’t automatically mean it is the better fund. Compare historical performance, fees, risk, liquidity, fund size, and consistency of returns before choosing.
Key principle: Don’t choose based on today’s highest rate alone; choose the fund that gives you the best risk-adjusted net return over your investment period.
Henry Paul Akinmade
See lessBusiness Educator
How Are Returns Generated and Reinvested in a Money Market Fund?
Let's me answers with just simple 3 points 1. The fund earns income: The fund manager pools investors’ money and invests it in short-term, relatively low-risk instruments such as Treasury bills, commercial papers, and fixed deposits. These investments generate interest/investment income. 2. Income iRead more
Let’s me answers with just simple 3 points
1. The fund earns income:
The fund manager pools investors’ money and invests it in short-term, relatively low-risk instruments such as Treasury bills, commercial papers, and fixed deposits. These investments generate interest/investment income.
2. Income is credited to the fund:
The interest earned increases the fund’s value. Depending on the fund structure, your return may appear as an increase in your unit value/NAV or may be distributed as income.
3. Returns can compound through reinvestment:
When returns remain invested rather than withdrawn, they become part of the capital generating future returns. Over time, returns begin generating additional returns, creating the effect of compounding.
Henry Paul Akinmade.
See lessBusiness Educator
How can I save and invest on a ₦90k salary in Nigeria?
Before you can successfully save or invest on a ₦90,000 salary in Nigeria, you must first understand all your expenses. Track where your money goes every month—this gives you control. Then apply this principle: Always save at least 20% of your income first, before spending on anything else.
Before you can successfully save or invest on a ₦90,000 salary in Nigeria, you must first understand all your expenses.
Track where your money goes every month—this gives you control.
Then apply this principle:
See lessAlways save at least 20% of your income first, before spending on anything else.