Imagine you are in the shoes of Chinedu, a young man eager to secure his financial future, just like you with your next ₦10,000. Chinedu, who is a farmer, just harvested some crops and is pondering what to do with the money he earned.Now, let's think about what Chinedu might do with his money and hoRead more
Imagine you are in the shoes of Chinedu, a young man eager to secure his financial future, just like you with your next ₦10,000. Chinedu, who is a farmer, just harvested some crops and is pondering what to do with the money he earned.
Now, let’s think about what Chinedu might do with his money and how he can make the best decision for his future. Since Chinedu is just starting out and has irregular income like you, he needs to be smart about how he invests this money.
Chinedu could consider saving some of the money for emergencies or unexpected financial needs that may arise in the future. This way, he’s prepared for any situation without having to dig into his investments.
For investing, Chinedu might want to start with something simple and beginner-friendly, like a savings account or a money market mutual fund. These options are relatively low-risk and can help him grow his money slowly but steadily over time.
Since Chinedu’s income is irregular, he should focus on building an emergency fund first before diving into more aggressive investments. This fund acts as a safety net, ensuring he has cash available when needed, especially during lean months.
If Chinedu were to start from scratch like you, his first three financial moves might be:
1. Set aside a portion of the money for emergencies.
2. Invest another portion in a savings account or a low-risk mutual fund. 3. Focus on finding ways to increase his income, perhaps by expanding his farming business or acquiring new skills.
By making these strategic moves, Chinedu can lay a solid financial foundation for himself and work towards achieving financial independence.
Remember, just like Chinedu, it’s essential to approach your finances wisely, especially when dealing with limited resources and irregular income. Stay focused on your goals, be patient with your investments, and always be open to learning and growing your financial knowledge. With time, dedication, and smart financial decisions, you can pave the way towards a financially secure future for yourself.
Ah, investing in the Nigerian capital market with 2 million naira sounds like a wise decision! Let's break it down in a simple way so that anyone, including Mama Ngozi selling tomatoes, can understand:Simple Explanation:Investing in the capital market means using your money to buy assets like stocksRead more
Ah, investing in the Nigerian capital market with 2 million naira sounds like a wise decision! Let’s break it down in a simple way so that anyone, including Mama Ngozi selling tomatoes, can understand:
Simple Explanation:
Investing in the capital market means using your money to buy assets like stocks, bonds, or other financial products with the aim of making a profit.
How it Works:
When you invest 2 million naira in the capital market, you can buy shares of different companies or invest in government securities like Treasury Bills or Bonds. Your money grows as the value of these investments increases over time.
Benefits:
1. Potential for High Returns: Investing in the capital market can potentially help your money grow faster than just keeping it in a bank. 2. Diversification: By spreading your 2 million naira across different investments, you reduce the risk of losing all your money if one investment performs poorly.
Risks:
1. Market Fluctuations: The value of your investments can go up and down depending on the performance of the market. 2. Economic Factors: Factors like inflation or government policies can also impact your investments.
Real-life Nigerian Example:
Let’s say you invest 1 million naira in stocks of a Nigerian company. If the company performs well, the value of your shares can increase, allowing you to make a profit when you sell them.
Common Mistakes:
1. Putting all your money in one investment. 2. Not researching or seeking advice before investing.
Practical Steps to Get Started:
1. Research: Learn about different investment options in the capital market.
2. Open a brokerage account: This is where you can buy and sell investments. 3. Start small: Invest a portion of your 2 million naira to test the waters before committing all.
Short Summary:
Investing 2 million naira in the Nigerian capital market involves buying assets like stocks or bonds with the aim of making a profit. It comes with potential benefits like high returns and diversification, but also risks like market fluctuations. By taking practical steps and educating yourself, you can make informed investment decisions.
Now, are there any specific investments you’re interested in learning more about in the Nigerian capital market? How can I help you further?
Oh, I appreciate your interest in investing your #400,000 wisely. Let's explore some options suitable for your budget.1. Savings Account:- Simple Explanation: A savings account is like a safe place to keep your money in a bank. The bank uses your money to give loans to others, and in return, they paRead more
Oh, I appreciate your interest in investing your #400,000 wisely. Let’s explore some options suitable for your budget.
1. Savings Account:
– Simple Explanation: A savings account is like a safe place to keep your money in a bank. The bank uses your money to give loans to others, and in return, they pay you a small amount of interest.
– How it works: You deposit your money in the bank, and over time, you earn interest on it.
– Benefits: It’s low-risk, easy to access your money when needed, and your money is safe from theft.
– Risks: The interest earned is usually small and may not beat inflation, meaning the value of your money could decrease over time.
– Real-life Example: You keep your money in a piggy bank at home. Instead of just staying there, it’s like giving it to a reliable friend who promises to give you a bit more back later.
– Common Mistakes: Not comparing interest rates offered by different banks, leading to missed opportunities for higher returns.
– Practical Steps: Visit different banks to compare interest rates and choose one that offers the best rate.
2. Agriculture Investment:
– Simple Explanation: You can invest in agriculture by funding a farm or crop production. The farmers use the money to grow crops or raise animals.
– How it works: The farmers harvest and sell the produce, and you get a share of the profits based on your investment.
– Benefits: It supports local farmers, provides food for the community, and can offer good returns.
– Risks: Weather conditions can affect the harvest, leading to reduced profits. There’s also a risk of pests or diseases damaging the crops.
– Real-life Example: Investing in a friend’s farm to grow tomatoes. You share in the proceeds when the tomatoes are sold.
– Common Mistakes: Not doing proper research on the farm or not understanding the farming process.
– Practical Steps: Find reputable farms or agricultural investment platforms to invest your money.
3. Fixed Deposit:
– Simple Explanation: A fixed deposit is like giving your money to the bank for a specific period in exchange for a higher interest rate than a regular savings account.
– How it works: You agree on a fixed term with the bank, and they pay you interest at the end of the period.
– Benefits: Guaranteed returns, higher interest rates than savings accounts, and your initial investment is secure.
– Risks: Your money is locked in for a fixed period, and you may face penalties if you need to withdraw it before the agreed time.
– Real-life Example: It’s like planting maize seeds and agreeing to harvest them after a certain number of months for a better yield.
– Common Mistakes: Not comparing interest rates or withdrawing money before the maturity date.
– Practical Steps: Inquire about fixed deposit rates from different banks and choose the one with the best rates.
Would you like to learn more about any of these investment options or have any other questions on your mind?
Ah, investing in Bonds is a great way to grow your money, even Mama Ngozi selling tomatoes can do it successfully. Let me break it down for you in simple terms:What are Bonds?- Think of Bonds as loans that you give to the government or a company.- When you buy a Bond, you are lending money to the isRead more
Ah, investing in Bonds is a great way to grow your money, even Mama Ngozi selling tomatoes can do it successfully. Let me break it down for you in simple terms:
What are Bonds?
– Think of Bonds as loans that you give to the government or a company.
– When you buy a Bond, you are lending money to the issuer (government or company) for a set period.
– In return, the issuer promises to pay you back the amount you lent (the principal) plus interest at a fixed rate.
How it works:
– You buy a Bond at a certain price, and over time, you receive interest payments from the issuer.
– When the Bond matures (reaches the end of its term), you get back the initial amount you invested (principal).
Benefits:
– Bonds are generally considered lower risk compared to stocks because they offer fixed returns.
– They provide a predictable income stream through interest payments.
– They can diversify your investment portfolio and help balance risk.
Risks:
– The main risk is interest rate risk. When interest rates rise, the value of existing Bonds may fall.
– There is also the risk that the issuer may default on the Bond, leading to loss of principal and interest.
Real-life Nigerian example:
– Imagine you buy a Bond from the Nigerian government. You lend them money, and in return, they promise to pay you back with interest after a few years. This can help the government fund projects and you earn a return.
Common mistakes:
– Investing all your money in Bonds, which may not keep up with inflation.
– Not considering the credit rating of the issuer, which indicates their ability to repay.
Practical steps to get started:
1. Research different types of Bonds available (government, corporate, municipal).
2. Decide how much you want to invest.
3. Open a brokerage account to buy Bonds. 4. Choose Bonds that match your risk tolerance and investment goals.
Short summary: Bonds are like loans you give to governments or companies in exchange for regular interest payments and return of principal. They offer a steady income stream and lower risk compared to stocks, but remember to consider interest rate risk and issuer credit rating.
Now, tell me, what steps have you taken to start investing in Bonds?
Yes — what you’re seeing is normal for bonds, but it depends on how you’re viewing the value. A key point first: Government bonds do NOT reduce your “final repayment value” if you hold them to maturity. What usually changes is the market value (unit price) before maturity. Let’s break it down clearlRead more
Yes — what you’re seeing is normal for bonds, but it depends on how you’re viewing the value.
A key point first:
Government bonds do NOT reduce your “final repayment value” if you hold them to maturity.
What usually changes is the market value (unit price) before maturity.
Let’s break it down clearly.
1) Why your bond value appears to have dropped
If you invested in an FGN Bond via an app (like Cowrywise, i-invest, Wealth.ng, etc.), what you’re usually seeing is:
Mark-to-market value (current market price), not your guaranteed payout value
So your investment dashboard shows:
Original investment = ₦X
Current market value = ₦X ± change
That “drop” is not a loss unless you sell early.
2) Can government bonds actually reduce in value?
✔ YES — but only in market price (not principal repayment)
Bond prices move in the secondary market because of:
A. Interest rate changes (MOST IMPORTANT FACTOR)
This is the main reason.
When interest rates in the economy rise, existing bonds become less attractive.
Example:
You bought bond at 12% interest
New bonds are now offering 18%
Investors will prefer the 18% bond, so: ➡ your 12% bond becomes less valuable
➡ its market price drops
This is called:
Interest rate risk (inverse relationship)
B. Inflation changes
If inflation increases:
Investors demand higher yields
Existing bonds lose market value
C. Central Bank monetary policy (CBN actions)
When the Central Bank of Nigeria raises interest rates:
Bond yields rise
Old bonds fall in price
D. Time remaining to maturity
The closer the bond gets to maturity → the more stable it becomes
Long-term bonds fluctuate more
E. Market demand and liquidity
If many investors are:
selling bonds → price drops
buying bonds → price rises
3) Important distinction (THIS is where confusion happens)
Two values exist:
1. Face value (your guaranteed repayment)
This is what government pays at maturity
Example: ₦1,000,000 invested → you still get ₦1,000,000 (plus interest)
2. Market value (what apps show daily)
Can go up or down
Only matters if you sell before maturity
4) So did you lose money?
Only in these cases:
You sold the bond early at a lower price
Or you are in a fund where NAV fluctuates and you exited early
If you hold to maturity:
❌ No loss on principal
✔ You still receive full capital + interest agreed
5) Why it may look worse in apps
Some platforms show:
Daily bond valuation
Unit price movement
Fund NAV (if it’s a bond fund, not direct bond)
So even small interest rate changes can show as:
“-2%”
“-5%”
etc.
But this is paper movement.
6) Practical example (simple)
You invest:
₦500,000 in FGN Bond (5 years, 14%)
After 6 months:
Interest rates rise in Nigeria
Market price drops → your app shows ₦480,000
But if you wait till maturity:
You still receive ₦500,000 + interest
7) Bottom line
Government bonds do not permanently reduce your capital
They only fluctuate in market value before maturity
The biggest driver is interest rate changes (CBN policy)
If you want deeper clarity
Tell me:
The platform you used (e.g. Cowrywise, i-invest, Wealth.ng)
Whether it was “bond” or “bond fund”
I can explain exactly what happened in your specific case and whether it’s safe to hold or exit.
Angela Olofua I help serious business owners and entrepreneurs register their business name and company (LTD) with the Corporate Affairs Commission (CAC).
I’m not sure about treasury bills. But I know there are different types of bonds. Bonds offered by licensed companies listed on the NGX and the Federal Government (FGN) bond itself. I will always recommend the FGN bond because it is always guaranteed, nothing will make you not receive your dividendsRead more
I’m not sure about treasury bills. But I know there are different types of bonds. Bonds offered by licensed companies listed on the NGX and the Federal Government (FGN) bond itself.
I will always recommend the FGN bond because it is always guaranteed, nothing will make you not receive your dividends and your capital at the end of the contract you signed up for.
By contract, I mean the number of years you wish to invest. The highest is 3 years tenure. And you get your dividend every quarter of the year till the end of the tenure.
The FGN bond is always announced at the first week of every month and stays open for 5 days. So, always look out for the announcement and make sure you invest before it closes else you’ll wait till the next month.
And the minimum capital you can start with is N5,000 and the highest is 50Million. I will also recommend that you download the InvestNaija App and also follow Chapel Hill Danhem on Facebook for quick updates about FGN bond opening. I hope this answers your question to some extent.
If You Were in My Position, What Would You Do With Your Next ₦10,000?
Imagine you are in the shoes of Chinedu, a young man eager to secure his financial future, just like you with your next ₦10,000. Chinedu, who is a farmer, just harvested some crops and is pondering what to do with the money he earned.Now, let's think about what Chinedu might do with his money and hoRead more
Imagine you are in the shoes of Chinedu, a young man eager to secure his financial future, just like you with your next ₦10,000. Chinedu, who is a farmer, just harvested some crops and is pondering what to do with the money he earned.
Now, let’s think about what Chinedu might do with his money and how he can make the best decision for his future. Since Chinedu is just starting out and has irregular income like you, he needs to be smart about how he invests this money.
Chinedu could consider saving some of the money for emergencies or unexpected financial needs that may arise in the future. This way, he’s prepared for any situation without having to dig into his investments.
For investing, Chinedu might want to start with something simple and beginner-friendly, like a savings account or a money market mutual fund. These options are relatively low-risk and can help him grow his money slowly but steadily over time.
Since Chinedu’s income is irregular, he should focus on building an emergency fund first before diving into more aggressive investments. This fund acts as a safety net, ensuring he has cash available when needed, especially during lean months.
If Chinedu were to start from scratch like you, his first three financial moves might be:
1. Set aside a portion of the money for emergencies.
2. Invest another portion in a savings account or a low-risk mutual fund.
3. Focus on finding ways to increase his income, perhaps by expanding his farming business or acquiring new skills.
By making these strategic moves, Chinedu can lay a solid financial foundation for himself and work towards achieving financial independence.
Remember, just like Chinedu, it’s essential to approach your finances wisely, especially when dealing with limited resources and irregular income. Stay focused on your goals, be patient with your investments, and always be open to learning and growing your financial knowledge. With time, dedication, and smart financial decisions, you can pave the way towards a financially secure future for yourself.
See lessHow Can I Structure a ₦2 Million Investment Portfolio in the Nigerian Capital Market?
Ah, investing in the Nigerian capital market with 2 million naira sounds like a wise decision! Let's break it down in a simple way so that anyone, including Mama Ngozi selling tomatoes, can understand:Simple Explanation:Investing in the capital market means using your money to buy assets like stocksRead more
Ah, investing in the Nigerian capital market with 2 million naira sounds like a wise decision! Let’s break it down in a simple way so that anyone, including Mama Ngozi selling tomatoes, can understand:
Simple Explanation:
Investing in the capital market means using your money to buy assets like stocks, bonds, or other financial products with the aim of making a profit.
How it Works:
When you invest 2 million naira in the capital market, you can buy shares of different companies or invest in government securities like Treasury Bills or Bonds. Your money grows as the value of these investments increases over time.
Benefits:
1. Potential for High Returns: Investing in the capital market can potentially help your money grow faster than just keeping it in a bank.
2. Diversification: By spreading your 2 million naira across different investments, you reduce the risk of losing all your money if one investment performs poorly.
Risks:
1. Market Fluctuations: The value of your investments can go up and down depending on the performance of the market.
2. Economic Factors: Factors like inflation or government policies can also impact your investments.
Real-life Nigerian Example:
Let’s say you invest 1 million naira in stocks of a Nigerian company. If the company performs well, the value of your shares can increase, allowing you to make a profit when you sell them.
Common Mistakes:
1. Putting all your money in one investment.
2. Not researching or seeking advice before investing.
Practical Steps to Get Started:
1. Research: Learn about different investment options in the capital market.
2. Open a brokerage account: This is where you can buy and sell investments.
3. Start small: Invest a portion of your 2 million naira to test the waters before committing all.
Short Summary:
Investing 2 million naira in the Nigerian capital market involves buying assets like stocks or bonds with the aim of making a profit. It comes with potential benefits like high returns and diversification, but also risks like market fluctuations. By taking practical steps and educating yourself, you can make informed investment decisions.
Now, are there any specific investments you’re interested in learning more about in the Nigerian capital market? How can I help you further?
See lessWhat Can I Invest ₦400,000 in to Make a Profit in Nigeria?
Oh, I appreciate your interest in investing your #400,000 wisely. Let's explore some options suitable for your budget.1. Savings Account:- Simple Explanation: A savings account is like a safe place to keep your money in a bank. The bank uses your money to give loans to others, and in return, they paRead more
Oh, I appreciate your interest in investing your #400,000 wisely. Let’s explore some options suitable for your budget.
1. Savings Account:
– Simple Explanation: A savings account is like a safe place to keep your money in a bank. The bank uses your money to give loans to others, and in return, they pay you a small amount of interest.
– How it works: You deposit your money in the bank, and over time, you earn interest on it.
– Benefits: It’s low-risk, easy to access your money when needed, and your money is safe from theft.
– Risks: The interest earned is usually small and may not beat inflation, meaning the value of your money could decrease over time.
– Real-life Example: You keep your money in a piggy bank at home. Instead of just staying there, it’s like giving it to a reliable friend who promises to give you a bit more back later.
– Common Mistakes: Not comparing interest rates offered by different banks, leading to missed opportunities for higher returns.
– Practical Steps: Visit different banks to compare interest rates and choose one that offers the best rate.
2. Agriculture Investment:
– Simple Explanation: You can invest in agriculture by funding a farm or crop production. The farmers use the money to grow crops or raise animals.
– How it works: The farmers harvest and sell the produce, and you get a share of the profits based on your investment.
– Benefits: It supports local farmers, provides food for the community, and can offer good returns.
– Risks: Weather conditions can affect the harvest, leading to reduced profits. There’s also a risk of pests or diseases damaging the crops.
– Real-life Example: Investing in a friend’s farm to grow tomatoes. You share in the proceeds when the tomatoes are sold.
– Common Mistakes: Not doing proper research on the farm or not understanding the farming process.
– Practical Steps: Find reputable farms or agricultural investment platforms to invest your money.
3. Fixed Deposit:
– Simple Explanation: A fixed deposit is like giving your money to the bank for a specific period in exchange for a higher interest rate than a regular savings account.
– How it works: You agree on a fixed term with the bank, and they pay you interest at the end of the period.
– Benefits: Guaranteed returns, higher interest rates than savings accounts, and your initial investment is secure.
– Risks: Your money is locked in for a fixed period, and you may face penalties if you need to withdraw it before the agreed time.
– Real-life Example: It’s like planting maize seeds and agreeing to harvest them after a certain number of months for a better yield.
– Common Mistakes: Not comparing interest rates or withdrawing money before the maturity date.
– Practical Steps: Inquire about fixed deposit rates from different banks and choose the one with the best rates.
Would you like to learn more about any of these investment options or have any other questions on your mind?
See lessHow Can I Invest in Bonds in Nigeria?
Ah, investing in Bonds is a great way to grow your money, even Mama Ngozi selling tomatoes can do it successfully. Let me break it down for you in simple terms:What are Bonds?- Think of Bonds as loans that you give to the government or a company.- When you buy a Bond, you are lending money to the isRead more
Ah, investing in Bonds is a great way to grow your money, even Mama Ngozi selling tomatoes can do it successfully. Let me break it down for you in simple terms:
What are Bonds?
– Think of Bonds as loans that you give to the government or a company.
– When you buy a Bond, you are lending money to the issuer (government or company) for a set period.
– In return, the issuer promises to pay you back the amount you lent (the principal) plus interest at a fixed rate.
How it works:
– You buy a Bond at a certain price, and over time, you receive interest payments from the issuer.
– When the Bond matures (reaches the end of its term), you get back the initial amount you invested (principal).
Benefits:
– Bonds are generally considered lower risk compared to stocks because they offer fixed returns.
– They provide a predictable income stream through interest payments.
– They can diversify your investment portfolio and help balance risk.
Risks:
– The main risk is interest rate risk. When interest rates rise, the value of existing Bonds may fall.
– There is also the risk that the issuer may default on the Bond, leading to loss of principal and interest.
Real-life Nigerian example:
– Imagine you buy a Bond from the Nigerian government. You lend them money, and in return, they promise to pay you back with interest after a few years. This can help the government fund projects and you earn a return.
Common mistakes:
– Investing all your money in Bonds, which may not keep up with inflation.
– Not considering the credit rating of the issuer, which indicates their ability to repay.
Practical steps to get started:
1. Research different types of Bonds available (government, corporate, municipal).
2. Decide how much you want to invest.
3. Open a brokerage account to buy Bonds.
4. Choose Bonds that match your risk tolerance and investment goals.
Short summary: Bonds are like loans you give to governments or companies in exchange for regular interest payments and return of principal. They offer a steady income stream and lower risk compared to stocks, but remember to consider interest rate risk and issuer credit rating.
Now, tell me, what steps have you taken to start investing in Bonds?
See lessWhy Did My FGN Bond Investment Lose Value After I Bought It?
Yes — what you’re seeing is normal for bonds, but it depends on how you’re viewing the value. A key point first: Government bonds do NOT reduce your “final repayment value” if you hold them to maturity. What usually changes is the market value (unit price) before maturity. Let’s break it down clearlRead more
Yes — what you’re seeing is normal for bonds, but it depends on how you’re viewing the value.
See lessA key point first:
Government bonds do NOT reduce your “final repayment value” if you hold them to maturity.
What usually changes is the market value (unit price) before maturity.
Let’s break it down clearly.
1) Why your bond value appears to have dropped
If you invested in an FGN Bond via an app (like Cowrywise, i-invest, Wealth.ng, etc.), what you’re usually seeing is:
Mark-to-market value (current market price), not your guaranteed payout value
So your investment dashboard shows:
Original investment = ₦X
Current market value = ₦X ± change
That “drop” is not a loss unless you sell early.
2) Can government bonds actually reduce in value?
✔ YES — but only in market price (not principal repayment)
Bond prices move in the secondary market because of:
A. Interest rate changes (MOST IMPORTANT FACTOR)
This is the main reason.
When interest rates in the economy rise, existing bonds become less attractive.
Example:
You bought bond at 12% interest
New bonds are now offering 18%
Investors will prefer the 18% bond, so: ➡ your 12% bond becomes less valuable
➡ its market price drops
This is called:
Interest rate risk (inverse relationship)
B. Inflation changes
If inflation increases:
Investors demand higher yields
Existing bonds lose market value
C. Central Bank monetary policy (CBN actions)
When the Central Bank of Nigeria raises interest rates:
Bond yields rise
Old bonds fall in price
D. Time remaining to maturity
The closer the bond gets to maturity → the more stable it becomes
Long-term bonds fluctuate more
E. Market demand and liquidity
If many investors are:
selling bonds → price drops
buying bonds → price rises
3) Important distinction (THIS is where confusion happens)
Two values exist:
1. Face value (your guaranteed repayment)
This is what government pays at maturity
Example: ₦1,000,000 invested → you still get ₦1,000,000 (plus interest)
2. Market value (what apps show daily)
Can go up or down
Only matters if you sell before maturity
4) So did you lose money?
Only in these cases:
You sold the bond early at a lower price
Or you are in a fund where NAV fluctuates and you exited early
If you hold to maturity:
❌ No loss on principal
✔ You still receive full capital + interest agreed
5) Why it may look worse in apps
Some platforms show:
Daily bond valuation
Unit price movement
Fund NAV (if it’s a bond fund, not direct bond)
So even small interest rate changes can show as:
“-2%”
“-5%”
etc.
But this is paper movement.
6) Practical example (simple)
You invest:
₦500,000 in FGN Bond (5 years, 14%)
After 6 months:
Interest rates rise in Nigeria
Market price drops → your app shows ₦480,000
But if you wait till maturity:
You still receive ₦500,000 + interest
7) Bottom line
Government bonds do not permanently reduce your capital
They only fluctuate in market value before maturity
The biggest driver is interest rate changes (CBN policy)
If you want deeper clarity
Tell me:
The platform you used (e.g. Cowrywise, i-invest, Wealth.ng)
Whether it was “bond” or “bond fund”
I can explain exactly what happened in your specific case and whether it’s safe to hold or exit.
What Is the Difference Between Bonds and Treasury Bills in Nigeria?
I’m not sure about treasury bills. But I know there are different types of bonds. Bonds offered by licensed companies listed on the NGX and the Federal Government (FGN) bond itself. I will always recommend the FGN bond because it is always guaranteed, nothing will make you not receive your dividendsRead more
I’m not sure about treasury bills. But I know there are different types of bonds. Bonds offered by licensed companies listed on the NGX and the Federal Government (FGN) bond itself.
I will always recommend the FGN bond because it is always guaranteed, nothing will make you not receive your dividends and your capital at the end of the contract you signed up for.
By contract, I mean the number of years you wish to invest. The highest is 3 years tenure. And you get your dividend every quarter of the year till the end of the tenure.
The FGN bond is always announced at the first week of every month and stays open for 5 days. So, always look out for the announcement and make sure you invest before it closes else you’ll wait till the next month.
And the minimum capital you can start with is N5,000 and the highest is 50Million. I will also recommend that you download the InvestNaija App and also follow Chapel Hill Danhem on Facebook for quick updates about FGN bond opening. I hope this answers your question to some extent.
See less