7 Lucrative Investments Nigerians Seem to Not Understand

There are so many lucrative investments that could bring good profits but many Nigerians do not seem to understand them. These investments are like hidden paths to success that not many people are taking….CONTINUE READING...CONTINUE READING

They also hold the potential to reshape portfolios and open doors to substantial returns. Join us as we unveil these intriguing opportunities, inviting you to consider the road less taken on your journey towards financial prosperity. Let’s get in.

Real Estate Investment Trusts
Real Estate Investment Trusts (REITs) are financial instruments that allow people to invest in real estate without owning physical properties. REITs are traded on the Nigerian Stock Exchange (NSE) and regulated by the Securities Exchange Commission like other stocks.

While REITs have gained popularity in many parts of the world, including some African countries, their understanding and adoption in Nigeria have been hindered by a lack of awareness, trust and transparency concerns, and risk perception amongst others.

Another reason why Nigerians don’t understand REITs is because the Nigerian REITs market is still growing and returns in matured markets like the US and UK may not be realized in Nigeria.

Dividend Stocks
Investing in stocks that pay regular dividends can provide passive income, but not everyone might realise the potential benefits of these stable investments. This is because most Nigerians lack access to comprehensive financial education.

Another reason why Nigerians may not seem to understand dividend stocks is because dividend payments can fluctuate. They also count as taxable income. This means that your tax rate will depend on your income. Also, interest rate changes can impact dividend stocks for better or worse.

Peer-to-Peer Lending
Peer-to-peer lending platforms match people who have cash to invest- with businesses that want to borrow.

Nigerians might not seem to understand peer-to-peer lending due to concerns about borrower trust and risks, lack of regulation, technological barriers, education gaps, absence of success stories, complexity perceptions, and unfamiliarity with online transactions.

Foreign Exchange Trading
The allure of quick profits might attract investors, but the complexities of forex trading can lead to significant losses if not approached with proper knowledge. Forex trading requires a good understanding of global financial markets, which might not be common among all Nigerians.

Also, the high level of risk associated with forex trading, including potential losses, can deter individuals who prioritize capital preservation. The lack of proper regulation and oversight in the forex market might raise concerns about scams and fraudulent activities.

Moreover, the volatile nature of currency markets and the need for continuous monitoring and quick decision-making can be daunting for those with limited time and expertise.

Angel Investing
One reason why some Nigerians may not seem to understand angel investing is the lack of proper education and awareness about startup ecosystems and investment opportunities. Some of them don’t know the basics of angel investing and may not be able to meet the regulatory requirements.

They may also not know how to join an angel network and may not be ready to go through all the stress of joining. Some Nigerians just want a place where they can invest their money without stressing their head about financial education.

Cryptocurrency
The concept of digital currencies and blockchain technology might be relatively new and unfamiliar to many Nigerians. Another reason why this may seem complex is the technological nature of cryptocurrencies, such as using digital wallets and understanding cryptographic principles.

We must also not forget to state that concerns about security, scams, and hacking incidents in the cryptocurrency space might create skepticism and fear of losing investments.

Also, the volatile nature of cryptocurrency prices and the fast-paced nature of the market might discourage those who prefer more stable investment options.

Impact Investing
Many Nigerians might not be familiar with the idea of aligning financial returns with positive social and environmental outcomes. Impact investing requires evaluating not only financial returns but also the social and environmental benefits of the investment, which can be more challenging to quantify and understand.

Also, the traditional separation between profit-making and philanthropy could make it difficult for individuals to grasp the concept of impact investing….CONTINUE READING