If you are a civil servant in Abia State and NHF contributions have been deducted from your salary, you can start by checking your records with the Federal Mortgage Bank of Nigeria (FMBN), which administers the National Housing Fund (NHF). Steps to follow 1. Check your NHF number and contribution reRead more
If you are a civil servant in Abia State and NHF contributions have been deducted from your salary, you can start by checking your records with the Federal Mortgage Bank of Nigeria (FMBN), which administers the National Housing Fund (NHF).
Steps to follow
1. Check your NHF number and contribution records.
If you already have an NHF number, follow the instructions for activating your contributor account. If you do not know your NHF number, use the official NHF Data Regularization Portal: https://nhfupdate.fmbn.gov.ng/
2. Register or activate your contributor account.
The portal may ask for information such as your Staff ID or IPPIS number, BVN, NIN, phone number, email address and employment details. Use the official portal and enter your details carefully.
3. Check your contribution history.
Once your account is active, look for the contribution history or statement-of-account option. This can help you see the contributions recorded by FMBN.
4. If deductions are missing, contact your employer.
Ask your Abia State payroll or personnel department for evidence that your NHF deductions were remitted to FMBN. A deduction on your payslip does not, by itself, confirm that the money has been credited to your NHF account.
5. Follow up with FMBN if necessary.
If the portal does not show your contributions, ask FMBN to trace your records using your NHF number, Staff ID and the periods involved.
Important: Keep your payslips and any NHF records as evidence. Do not share your BVN, NIN, password or other sensitive information publicly when asking for help.
Your first goal is to confirm two things: whether an NHF account exists in your name and whether the deductions from your salary have actually been credited to it.
Before buying a company's stock, don't look at the share price alone. Study the company's financial health, profitability, debt and future prospects. Here are six important things to examine: 1. Revenue growth Check whether the company is selling more goods or services over the last three to five yeRead more
Before buying a company’s stock, don’t look at the share price alone. Study the company’s financial health, profitability, debt and future prospects.
Here are six important things to examine:
1. Revenue growth
Check whether the company is selling more goods or services over the last three to five years. Consistent growth can indicate a healthy business, although you should also investigate the reasons behind it.
2. Profitability
Look at operating profit and net profit. Is the company consistently making money, or does it report profits in one year and losses in another? Also compare profit growth with revenue growth.
3. Debt level
Examine the company’s borrowings and ability to pay interest. Heavy debt can become a problem when interest rates rise or business income falls.
4. Cash flow
A company can report accounting profits without generating enough actual cash. Check its cash flow from operating activities to see whether its core business generates cash.
5. Dividend history
If you want dividend income, check whether the company has a consistent dividend record and whether its earnings and cash flow can support future payments. Remember that dividends are never guaranteed.
6. Valuation
Even a financially strong company can be a poor investment if you pay too much for its shares. Compare its price-to-earnings (P/E) ratio, earnings per share (EPS) and other relevant valuation measures with similar companies and its own history.
Where can you find this information?
For Nigerian stocks, start with the company’s published annual reports, audited financial statements and latest interim results. You can also check disclosures on the Nigerian Exchange (NGX) website.
My final advice
Don’t buy a stock simply because its price is rising, its dividend yield is high or people are recommending it.
Look for a business with healthy finances, sustainable profits, manageable debt and reasonable valuation. Then consider whether its prospects fit your investment goals and risk tolerance.
No single ratio can tell you everything. Study the numbers over several years and understand what is driving them before making your decision.
Dollar-Cost Averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of whether the stock market is rising or falling. Instead of investing all your money at once, you spread your purchases over time. Example using Nigerian stocks Suppose yoRead more
Dollar-Cost Averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of whether the stock market is rising or falling.
Instead of investing all your money at once, you spread your purchases over time.
Example using Nigerian stocks
Suppose you decide to invest ₦20,000 in a particular NGX-listed company every month.
– Month 1: The share price is ₦100, so ₦20,000 buys 200 shares.
– Month 2: The price falls to ₦80, so ₦20,000 buys 250 shares.
– Month 3: The price rises to ₦125, so ₦20,000 buys 160 shares.
You have invested ₦60,000 and purchased 610 shares, before transaction costs.
Your average purchase price is approximately ₦98.36 per share, calculated by dividing ₦60,000 by 610 shares.
Notice that you bought more shares when the price was lower and fewer when it was higher.
What are the benefits?
1. Discipline: You develop a regular investing habit.
2. Reduced timing pressure: You do not have to guess the perfect day to buy.
3. Emotional control: You follow a plan instead of reacting to every market movement.
4. Gradual accumulation: You can build a portfolio from your monthly income without waiting until you have a large amount.
What are the risks?
DCA does not guarantee a profit or prevent losses. A company’s share price can continue falling because its business is deteriorating. You can also miss potential gains if prices rise while you gradually invest.
Therefore, DCA should be combined with proper research into the company’s financial health, valuation, dividend sustainability and long-term prospects.
In simple terms: DCA helps you build an investment position gradually, but it does not turn a bad stock into a good investment.
For someone investing on the Nigerian Exchange, it can be a useful approach when applied to suitable investments, with a consistent contribution plan and a long-term perspective.
In simple terms, underwritten means that another party has agreed to provide financial backing or take on a defined financial obligation if the expected amount is not fully raised, subject to the terms of the underwriting agreement. For example, imagine a company wants to raise ₦10 billion through aRead more
In simple terms, underwritten means that another party has agreed to provide financial backing or take on a defined financial obligation if the expected amount is not fully raised, subject to the terms of the underwriting agreement.
For example, imagine a company wants to raise ₦10 billion through an IPO.
If the IPO is underwritten, an underwriter (such as an investment bank or other qualified institution) may agree, under the underwriting agreement, to take up the portion of the shares that the public does not subscribe for, depending on the terms of the agreement.
So if the public subscribes for only ₦8 billion, the underwriter may be required to cover the remaining ₦2 billion under the agreed terms.
This is one reason underwriting can provide additional certainty to an issuer that it will raise the intended amount.
What about “underwritten documents”?
There isn’t necessarily a special document called an “underwritten document.”
You may have seen a reference to an underwriting agreement. That is the legal agreement that sets out the arrangement between the company/issuer and the underwriter, including the underwriter’s obligations, conditions and fees.
So remember:
Underwritten issue = an issue backed by an underwriting arrangement.
Underwriting agreement = the document setting out the terms of that arrangement.
And importantly, being underwritten does not mean the investment itself is guaranteed to make a profit. It relates to the financing/issuance arrangement, not the future performance of the shares.
Neither is automatically better for everyone. The choice depends mainly on when you have the money, your investment horizon and your tolerance for market fluctuations. 1. One-time lump-sum investment If you already have ₦1 million available for a long-term investment, you can invest the money at oncRead more
Neither is automatically better for everyone. The choice depends mainly on when you have the money, your investment horizon and your tolerance for market fluctuations.
1. One-time lump-sum investment
If you already have ₦1 million available for a long-term investment, you can invest the money at once.
The advantage is that the entire amount starts working immediately. If the investment rises afterward, the whole ₦1 million participates in that growth.
The downside is that if the market falls shortly after you invest, the entire amount is exposed to that decline.
2. Monthly automated contributions
Instead of investing ₦1 million at once, you could invest ₦100,000 every month for 10 months.
This can help with discipline and consistency, particularly for someone whose income comes in monthly. You also buy at different prices, so you are not relying on one particular entry price.
However, if the market keeps rising while you are gradually investing, some of your money remains uninvested and may miss part of that growth.
So which should you choose?
If you already have a large amount available and it is money you can genuinely leave invested for your intended time horizon, a lump sum allows more of the money to be invested immediately.
If you are earning and saving gradually, automated monthly contributions are a practical way to build an investment portfolio without waiting to accumulate a large lump sum.
You can also combine both approaches: invest an amount you are comfortable investing now and continue making regular contributions from future income.
The most important thing is not simply choosing between lump sum and monthly investing. Have a clear goal, suitable time horizon, appropriate risk level and a contribution plan you can consistently maintain.
Debt leverage means using borrowed money to finance a business, investment or asset with the expectation that it will generate enough additional income or profit to justify the cost of the debt. How can it be used for business growth? A business can borrow money to: - Buy productive equipment - IncrRead more
Debt leverage means using borrowed money to finance a business, investment or asset with the expectation that it will generate enough additional income or profit to justify the cost of the debt.
How can it be used for business growth?
A business can borrow money to:
– Buy productive equipment
– Increase inventory
– Expand production
– Open another branch
– Finance an opportunity that the business cannot currently fund from its own cash
For example, if a business borrows ₦1 million at a known interest cost and uses it to expand an activity that generates more than the total cost of the borrowing, the debt has helped the business increase its earning capacity.
But leverage works both ways. If the investment performs poorly, the debt and interest still have to be repaid. So the expected cash flow, interest rate, repayment period and ability to repay should be considered before borrowing.
Can debt leverage increase equity?
Yes, indirectly.
If borrowed money is used productively and the business generates additional profits, those profits can increase the company’s retained earnings and therefore its equity.
However, taking on debt does not automatically increase the owner’s wealth. If the borrowed money does not generate sufficient returns, the interest and repayment obligations can reduce profits and put pressure on the business.
So the simple principle is:
Use debt to acquire or build something productive that can generate more value than the cost and risk of the debt.
The goal should not simply be to borrow more, but to use manageable leverage to increase productive capacity and cash flow.
There is an important distinction here: Oversubscribed means investors apply for MORE shares than the company offered. Undersubscribed means investors apply for FEWER shares than the company offered. If an IPO is undersubscribed when the offer period closes, it does not automatically mean that the IRead more
There is an important distinction here:
Oversubscribed means investors apply for MORE shares than the company offered.
Undersubscribed means investors apply for FEWER shares than the company offered.
If an IPO is undersubscribed when the offer period closes, it does not automatically mean that the IPO will be extended.
What happens next depends on the terms of the offer, whether the issue is underwritten, and the applicable SEC requirements.
For an underwritten issue, the underwriter may have an obligation to take up the portion of the shares that the public did not subscribe for, depending on the underwriting agreement.
For an ununderwritten issue, the SEC rules provide for the issuer to disclose the source of any funding gap and file that information together with the proposed basis of allotment.
An extension of the offer period is therefore not something investors should assume will happen automatically. Any change to an approved transaction’s documents/timetable would have to follow the applicable regulatory process.
On the other hand, if an IPO is oversubscribed, the company has received applications for more shares than are available. Investors may then receive fewer shares than they applied for, depending on the approved allotment method and offer terms.
So, in simple terms:
Undersubscribed → not enough public demand; the offer doesn’t automatically get extended.
Oversubscribed → too much demand; investors may be allotted fewer shares than they requested.
The safest thing when participating in any IPO is to read the approved prospectus because it should state the offer period, terms and relevant allotment arrangements. The SEC also advises investors to follow the official IPO timetable and approved subscription channels.
Money Market Mutual Funds (MMFs) are mutual funds that invest mainly in short-term, relatively lower-risk instruments such as Treasury bills, commercial papers and other money-market securities. You invest your money into the fund, and the fund manager invests the pooled money. As the investments geRead more
Money Market Mutual Funds (MMFs) are mutual funds that invest mainly in short-term, relatively lower-risk instruments such as Treasury bills, commercial papers and other money-market securities.
You invest your money into the fund, and the fund manager invests the pooled money. As the investments generate returns, the value of your investment increases according to the fund’s structure and performance.
How do you make money?
For example, if you invest ₦100,000 and the fund earns a return, your investment may grow to ₦110,000 over time. The actual return is not fixed or guaranteed because it depends on the fund’s investments, rates and fees.
How do you reinvest your profit?
The simplest approach is to leave the money in the fund instead of withdrawing the returns. Your growing balance remains invested and can continue earning returns.
You can also add money regularly—for example, ₦10,000 or ₦20,000 every month. This increases the amount working for you over time.
Before choosing an MMF, check:
– The fund’s recent performance
– Management fees and other charges
– Minimum investment
– Withdrawal/redemption conditions
– The fund manager and regulatory status
– The actual assets the fund invests in
Also remember that past returns are not a guarantee of future returns.
For someone building wealth gradually, the important thing is not just finding a fund with a high return. It is understanding the risk, fees, liquidity and staying consistent with contributions and reinvestment.
The message “no trading account number found” usually points to a problem with the brokerage/trading account linked to your InvestNaija profile, rather than the money in your wallet. Having money in the InvestNaija wallet does not necessarily mean the stock-trading account is properly activated or lRead more
The message “no trading account number found” usually points to a problem with the brokerage/trading account linked to your InvestNaija profile, rather than the money in your wallet.
Having money in the InvestNaija wallet does not necessarily mean the stock-trading account is properly activated or linked.
InvestNaija’s current information shows that its stock-trading service is provided through its broker-dealer infrastructure, and brokerage/CSCS registration is part of the account setup process.
Since you have been seeing this error for months, I would check these things:
1. Check your KYC/account status in the app and make sure your verification is completely approved.
2. Check whether your CSCS/CHN details have been created under your profile. InvestNaija says new investors can have a CSCS account created during onboarding.
3. If those are complete, the problem may be an uncreated, inactive or incorrectly linked trading account number on the brokerage side.
4. Since you have already emailed them without resolution, contact their support again and be very specific. Tell them:
«“My InvestNaija account is funded, but whenever I attempt to buy an NGX stock I receive ‘No trading account number found.’ Please confirm whether my brokerage/trading account has been created and linked to my InvestNaija profile, and provide my trading account number or activate/link it if missing.”»
Also include your registered phone number/email and a screenshot of the error.
InvestNaija currently lists in-app chat, email support, and 0700-INVEST-NAIJA as support channels.
I would not create another investment account or move your money to another app yet. First get InvestNaija to confirm whether your brokerage account was actually created and linked. That will tell you whether this is an account-setup problem rather than a problem with buying the particular stock.
A good dividend stock is not necessarily the stock paying the highest dividend today. I would look for sustainable dividends, not just high dividends. Here are some things to check: 1. Dividend history Has the company consistently paid dividends over several years, or does it only pay occasionally?Read more
A good dividend stock is not necessarily the stock paying the highest dividend today. I would look for sustainable dividends, not just high dividends.
Here are some things to check:
1. Dividend history
Has the company consistently paid dividends over several years, or does it only pay occasionally?
2. Earnings and profit growth
A company needs sustainable earnings to keep supporting dividends. Look at whether profit and earnings per share are growing or declining.
3. Dividend payout ratio
Compare the dividend with the company’s earnings. A very high payout may be difficult to sustain if the company is distributing most of its earnings.
4. Cash flow
Profit is important, but also check whether the business is actually generating enough cash to support its operations and shareholder distributions.
5. Debt
A heavily indebted company may have less flexibility to maintain dividends. The appropriate debt level also depends on the industry.
6. Dividend yield
Calculate the annual dividend relative to the current share price. But don’t choose a stock simply because its yield is unusually high—the share price may have fallen because investors see problems in the business.
7. Business quality and future prospects
Ask: Is the company making money from a sustainable business? Is revenue growing? Are margins and earnings stable? Does the company have room to grow?
Finally, check the company’s latest financial statements and NGX disclosures rather than relying only on social-media lists of “high dividend stocks.”
The goal should be a strong business + sustainable earnings + sustainable dividends + a reasonable price, rather than simply the highest dividend yield.
As a civil servant in Abia State,how do access the NHF deductions the government have been taking from my salary?
If you are a civil servant in Abia State and NHF contributions have been deducted from your salary, you can start by checking your records with the Federal Mortgage Bank of Nigeria (FMBN), which administers the National Housing Fund (NHF). Steps to follow 1. Check your NHF number and contribution reRead more
If you are a civil servant in Abia State and NHF contributions have been deducted from your salary, you can start by checking your records with the Federal Mortgage Bank of Nigeria (FMBN), which administers the National Housing Fund (NHF).
Steps to follow
1. Check your NHF number and contribution records.
Visit the official FMBN NHF portal: https://ibank.fmbn.gov.ng/
If you already have an NHF number, follow the instructions for activating your contributor account. If you do not know your NHF number, use the official NHF Data Regularization Portal: https://nhfupdate.fmbn.gov.ng/
2. Register or activate your contributor account.
The portal may ask for information such as your Staff ID or IPPIS number, BVN, NIN, phone number, email address and employment details. Use the official portal and enter your details carefully.
3. Check your contribution history.
Once your account is active, look for the contribution history or statement-of-account option. This can help you see the contributions recorded by FMBN.
4. If deductions are missing, contact your employer.
Ask your Abia State payroll or personnel department for evidence that your NHF deductions were remitted to FMBN. A deduction on your payslip does not, by itself, confirm that the money has been credited to your NHF account.
5. Follow up with FMBN if necessary.
If the portal does not show your contributions, ask FMBN to trace your records using your NHF number, Staff ID and the periods involved.
You can begin through the official “FMBN website” (https://fmbn.gov.ng/).
Important: Keep your payslips and any NHF records as evidence. Do not share your BVN, NIN, password or other sensitive information publicly when asking for help.
Your first goal is to confirm two things: whether an NHF account exists in your name and whether the deductions from your salary have actually been credited to it.
See lessHow Can I Tell if a Company Is Financially Strong Before Buying Its Stock?
Before buying a company's stock, don't look at the share price alone. Study the company's financial health, profitability, debt and future prospects. Here are six important things to examine: 1. Revenue growth Check whether the company is selling more goods or services over the last three to five yeRead more
Before buying a company’s stock, don’t look at the share price alone. Study the company’s financial health, profitability, debt and future prospects.
Here are six important things to examine:
1. Revenue growth
Check whether the company is selling more goods or services over the last three to five years. Consistent growth can indicate a healthy business, although you should also investigate the reasons behind it.
2. Profitability
Look at operating profit and net profit. Is the company consistently making money, or does it report profits in one year and losses in another? Also compare profit growth with revenue growth.
3. Debt level
Examine the company’s borrowings and ability to pay interest. Heavy debt can become a problem when interest rates rise or business income falls.
4. Cash flow
A company can report accounting profits without generating enough actual cash. Check its cash flow from operating activities to see whether its core business generates cash.
5. Dividend history
If you want dividend income, check whether the company has a consistent dividend record and whether its earnings and cash flow can support future payments. Remember that dividends are never guaranteed.
6. Valuation
Even a financially strong company can be a poor investment if you pay too much for its shares. Compare its price-to-earnings (P/E) ratio, earnings per share (EPS) and other relevant valuation measures with similar companies and its own history.
Where can you find this information?
For Nigerian stocks, start with the company’s published annual reports, audited financial statements and latest interim results. You can also check disclosures on the Nigerian Exchange (NGX) website.
My final advice
Don’t buy a stock simply because its price is rising, its dividend yield is high or people are recommending it.
Look for a business with healthy finances, sustainable profits, manageable debt and reasonable valuation. Then consider whether its prospects fit your investment goals and risk tolerance.
No single ratio can tell you everything. Study the numbers over several years and understand what is driving them before making your decision.
See lessWhat Is Dollar-Cost Averaging in Stock Market Investing?
Dollar-Cost Averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of whether the stock market is rising or falling. Instead of investing all your money at once, you spread your purchases over time. Example using Nigerian stocks Suppose yoRead more
Dollar-Cost Averaging (DCA) is an investment strategy where you invest a fixed amount of money at regular intervals, regardless of whether the stock market is rising or falling.
Instead of investing all your money at once, you spread your purchases over time.
Example using Nigerian stocks
Suppose you decide to invest ₦20,000 in a particular NGX-listed company every month.
– Month 1: The share price is ₦100, so ₦20,000 buys 200 shares.
– Month 2: The price falls to ₦80, so ₦20,000 buys 250 shares.
– Month 3: The price rises to ₦125, so ₦20,000 buys 160 shares.
You have invested ₦60,000 and purchased 610 shares, before transaction costs.
Your average purchase price is approximately ₦98.36 per share, calculated by dividing ₦60,000 by 610 shares.
Notice that you bought more shares when the price was lower and fewer when it was higher.
What are the benefits?
1. Discipline: You develop a regular investing habit.
2. Reduced timing pressure: You do not have to guess the perfect day to buy.
3. Emotional control: You follow a plan instead of reacting to every market movement.
4. Gradual accumulation: You can build a portfolio from your monthly income without waiting until you have a large amount.
What are the risks?
DCA does not guarantee a profit or prevent losses. A company’s share price can continue falling because its business is deteriorating. You can also miss potential gains if prices rise while you gradually invest.
Therefore, DCA should be combined with proper research into the company’s financial health, valuation, dividend sustainability and long-term prospects.
In simple terms: DCA helps you build an investment position gradually, but it does not turn a bad stock into a good investment.
For someone investing on the Nigerian Exchange, it can be a useful approach when applied to suitable investments, with a consistent contribution plan and a long-term perspective.
See lessWhat does “underwritten” mean in relation to an IPO?
In simple terms, underwritten means that another party has agreed to provide financial backing or take on a defined financial obligation if the expected amount is not fully raised, subject to the terms of the underwriting agreement. For example, imagine a company wants to raise ₦10 billion through aRead more
In simple terms, underwritten means that another party has agreed to provide financial backing or take on a defined financial obligation if the expected amount is not fully raised, subject to the terms of the underwriting agreement.
For example, imagine a company wants to raise ₦10 billion through an IPO.
If the IPO is underwritten, an underwriter (such as an investment bank or other qualified institution) may agree, under the underwriting agreement, to take up the portion of the shares that the public does not subscribe for, depending on the terms of the agreement.
So if the public subscribes for only ₦8 billion, the underwriter may be required to cover the remaining ₦2 billion under the agreed terms.
This is one reason underwriting can provide additional certainty to an issuer that it will raise the intended amount.
What about “underwritten documents”?
There isn’t necessarily a special document called an “underwritten document.”
You may have seen a reference to an underwriting agreement. That is the legal agreement that sets out the arrangement between the company/issuer and the underwriter, including the underwriter’s obligations, conditions and fees.
So remember:
Underwritten issue = an issue backed by an underwriting arrangement.
Underwriting agreement = the document setting out the terms of that arrangement.
And importantly, being underwritten does not mean the investment itself is guaranteed to make a profit. It relates to the financing/issuance arrangement, not the future performance of the shares.
See lessIs a lump sum investment better than monthly automated contributions?
Neither is automatically better for everyone. The choice depends mainly on when you have the money, your investment horizon and your tolerance for market fluctuations. 1. One-time lump-sum investment If you already have ₦1 million available for a long-term investment, you can invest the money at oncRead more
Neither is automatically better for everyone. The choice depends mainly on when you have the money, your investment horizon and your tolerance for market fluctuations.
1. One-time lump-sum investment
If you already have ₦1 million available for a long-term investment, you can invest the money at once.
The advantage is that the entire amount starts working immediately. If the investment rises afterward, the whole ₦1 million participates in that growth.
The downside is that if the market falls shortly after you invest, the entire amount is exposed to that decline.
2. Monthly automated contributions
Instead of investing ₦1 million at once, you could invest ₦100,000 every month for 10 months.
This can help with discipline and consistency, particularly for someone whose income comes in monthly. You also buy at different prices, so you are not relying on one particular entry price.
However, if the market keeps rising while you are gradually investing, some of your money remains uninvested and may miss part of that growth.
So which should you choose?
If you already have a large amount available and it is money you can genuinely leave invested for your intended time horizon, a lump sum allows more of the money to be invested immediately.
If you are earning and saving gradually, automated monthly contributions are a practical way to build an investment portfolio without waiting to accumulate a large lump sum.
You can also combine both approaches: invest an amount you are comfortable investing now and continue making regular contributions from future income.
The most important thing is not simply choosing between lump sum and monthly investing. Have a clear goal, suitable time horizon, appropriate risk level and a contribution plan you can consistently maintain.
See lessCan debt leverage be used to increase equity in a business?
Debt leverage means using borrowed money to finance a business, investment or asset with the expectation that it will generate enough additional income or profit to justify the cost of the debt. How can it be used for business growth? A business can borrow money to: - Buy productive equipment - IncrRead more
Debt leverage means using borrowed money to finance a business, investment or asset with the expectation that it will generate enough additional income or profit to justify the cost of the debt.
How can it be used for business growth?
A business can borrow money to:
– Buy productive equipment
– Increase inventory
– Expand production
– Open another branch
– Finance an opportunity that the business cannot currently fund from its own cash
For example, if a business borrows ₦1 million at a known interest cost and uses it to expand an activity that generates more than the total cost of the borrowing, the debt has helped the business increase its earning capacity.
But leverage works both ways. If the investment performs poorly, the debt and interest still have to be repaid. So the expected cash flow, interest rate, repayment period and ability to repay should be considered before borrowing.
Can debt leverage increase equity?
Yes, indirectly.
If borrowed money is used productively and the business generates additional profits, those profits can increase the company’s retained earnings and therefore its equity.
However, taking on debt does not automatically increase the owner’s wealth. If the borrowed money does not generate sufficient returns, the interest and repayment obligations can reduce profits and put pressure on the business.
So the simple principle is:
Use debt to acquire or build something productive that can generate more value than the cost and risk of the debt.
The goal should not simply be to borrow more, but to use manageable leverage to increase productive capacity and cash flow.
See lessDoes an oversubscribed IPO lead to a longer subscription period?
There is an important distinction here: Oversubscribed means investors apply for MORE shares than the company offered. Undersubscribed means investors apply for FEWER shares than the company offered. If an IPO is undersubscribed when the offer period closes, it does not automatically mean that the IRead more
There is an important distinction here:
Oversubscribed means investors apply for MORE shares than the company offered.
Undersubscribed means investors apply for FEWER shares than the company offered.
If an IPO is undersubscribed when the offer period closes, it does not automatically mean that the IPO will be extended.
What happens next depends on the terms of the offer, whether the issue is underwritten, and the applicable SEC requirements.
For an underwritten issue, the underwriter may have an obligation to take up the portion of the shares that the public did not subscribe for, depending on the underwriting agreement.
For an ununderwritten issue, the SEC rules provide for the issuer to disclose the source of any funding gap and file that information together with the proposed basis of allotment.
An extension of the offer period is therefore not something investors should assume will happen automatically. Any change to an approved transaction’s documents/timetable would have to follow the applicable regulatory process.
On the other hand, if an IPO is oversubscribed, the company has received applications for more shares than are available. Investors may then receive fewer shares than they applied for, depending on the approved allotment method and offer terms.
So, in simple terms:
Undersubscribed → not enough public demand; the offer doesn’t automatically get extended.
Oversubscribed → too much demand; investors may be allotted fewer shares than they requested.
The safest thing when participating in any IPO is to read the approved prospectus because it should state the offer period, terms and relevant allotment arrangements. The SEC also advises investors to follow the official IPO timetable and approved subscription channels.
See lessHow can I make money by investing in a money market mutual fund?
Money Market Mutual Funds (MMFs) are mutual funds that invest mainly in short-term, relatively lower-risk instruments such as Treasury bills, commercial papers and other money-market securities. You invest your money into the fund, and the fund manager invests the pooled money. As the investments geRead more
Money Market Mutual Funds (MMFs) are mutual funds that invest mainly in short-term, relatively lower-risk instruments such as Treasury bills, commercial papers and other money-market securities.
You invest your money into the fund, and the fund manager invests the pooled money. As the investments generate returns, the value of your investment increases according to the fund’s structure and performance.
How do you make money?
For example, if you invest ₦100,000 and the fund earns a return, your investment may grow to ₦110,000 over time. The actual return is not fixed or guaranteed because it depends on the fund’s investments, rates and fees.
How do you reinvest your profit?
The simplest approach is to leave the money in the fund instead of withdrawing the returns. Your growing balance remains invested and can continue earning returns.
You can also add money regularly—for example, ₦10,000 or ₦20,000 every month. This increases the amount working for you over time.
Before choosing an MMF, check:
– The fund’s recent performance
– Management fees and other charges
– Minimum investment
– Withdrawal/redemption conditions
– The fund manager and regulatory status
– The actual assets the fund invests in
Also remember that past returns are not a guarantee of future returns.
For someone building wealth gradually, the important thing is not just finding a fund with a high return. It is understanding the risk, fees, liquidity and staying consistent with contributions and reinvestment.
See lessWhat does “No Trading Account Number Found” mean on the InvestNaija app?
The message “no trading account number found” usually points to a problem with the brokerage/trading account linked to your InvestNaija profile, rather than the money in your wallet. Having money in the InvestNaija wallet does not necessarily mean the stock-trading account is properly activated or lRead more
The message “no trading account number found” usually points to a problem with the brokerage/trading account linked to your InvestNaija profile, rather than the money in your wallet.
Having money in the InvestNaija wallet does not necessarily mean the stock-trading account is properly activated or linked.
InvestNaija’s current information shows that its stock-trading service is provided through its broker-dealer infrastructure, and brokerage/CSCS registration is part of the account setup process.
Since you have been seeing this error for months, I would check these things:
1. Check your KYC/account status in the app and make sure your verification is completely approved.
2. Check whether your CSCS/CHN details have been created under your profile. InvestNaija says new investors can have a CSCS account created during onboarding.
3. If those are complete, the problem may be an uncreated, inactive or incorrectly linked trading account number on the brokerage side.
4. Since you have already emailed them without resolution, contact their support again and be very specific. Tell them:
«“My InvestNaija account is funded, but whenever I attempt to buy an NGX stock I receive ‘No trading account number found.’ Please confirm whether my brokerage/trading account has been created and linked to my InvestNaija profile, and provide my trading account number or activate/link it if missing.”»
Also include your registered phone number/email and a screenshot of the error.
InvestNaija currently lists in-app chat, email support, and 0700-INVEST-NAIJA as support channels.
I would not create another investment account or move your money to another app yet. First get InvestNaija to confirm whether your brokerage account was actually created and linked. That will tell you whether this is an account-setup problem rather than a problem with buying the particular stock.
See lessHow Can I Find Reliable Dividend Stocks on the Nigerian Stock Exchange?
A good dividend stock is not necessarily the stock paying the highest dividend today. I would look for sustainable dividends, not just high dividends. Here are some things to check: 1. Dividend history Has the company consistently paid dividends over several years, or does it only pay occasionally?Read more
A good dividend stock is not necessarily the stock paying the highest dividend today. I would look for sustainable dividends, not just high dividends.
Here are some things to check:
1. Dividend history
Has the company consistently paid dividends over several years, or does it only pay occasionally?
2. Earnings and profit growth
A company needs sustainable earnings to keep supporting dividends. Look at whether profit and earnings per share are growing or declining.
3. Dividend payout ratio
Compare the dividend with the company’s earnings. A very high payout may be difficult to sustain if the company is distributing most of its earnings.
4. Cash flow
Profit is important, but also check whether the business is actually generating enough cash to support its operations and shareholder distributions.
5. Debt
A heavily indebted company may have less flexibility to maintain dividends. The appropriate debt level also depends on the industry.
6. Dividend yield
Calculate the annual dividend relative to the current share price. But don’t choose a stock simply because its yield is unusually high—the share price may have fallen because investors see problems in the business.
7. Business quality and future prospects
Ask: Is the company making money from a sustainable business? Is revenue growing? Are margins and earnings stable? Does the company have room to grow?
Finally, check the company’s latest financial statements and NGX disclosures rather than relying only on social-media lists of “high dividend stocks.”
The goal should be a strong business + sustainable earnings + sustainable dividends + a reasonable price, rather than simply the highest dividend yield.
See less