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7 Short Term Investments In Nigeria For Youths

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investment funding opportunities in nigeria

7 Short Term Investments In Nigeria For Youths

Lolu was projecting towards doing his master’s degree in a year’s time. He had some cash on him but knew it would not completely meet his needs in his first year. He was really at a crossroads on what to do with the money. He wondered if he should buy a piece of property and exercise patience for its appreciation, but he knew that it would take years. A few weeks later, he bumped into Jide who told him how he raised legitimate funds, within a year, to kickstart his now thriving business.

To invest, according to Wikipedia is to allocate money in the expectation of some benefit in the future. An investment is akin to saving for the rainy day, but with extra benefits attached which could be profit.

According to Investopedia, short term investments are securities that can be converted to cash within a period of six months to one year. They are also seen as liquid assets, which are programmed and ran to provide a temporary resting ground for excess cash or loose cash. Short term investments are also known as marketable securities or temporary investments. Unlike long term investments, which has been said offers a higher profit or yield over time. The risks involved in short term investments are less than long term investments.

short term investments in Nigeria

Short term investments in Nigeria

There are a whole lot of examples of short term investments.

1) Treasury bills

short term investments in Nigeria

Treasury bills are debt securities or government bonds, that mature in less than one year. They are affordable and are rushed by investors. They have proven over time, to be one of the best short term investments in Nigeria. They are sold by financial institutions, an example of which includes banks. They can also be sold by brokers.

Treasury bills are also used by the government to help finance national borrowing requirements. The bills are sold or given at a discounted price. It differs from treasury notes or treasury bonds. Treasury bonds are also debt securities but have a period of maturation of over ten years.

The maturity of treasury notes is from 2- 10 years. At the end of the period, it can be returned with interest or reinvested for more profit. One of the mouth-watering benefits of Treasury bills as a short term investment in Nigeria is that the interest received at the end of the agreed tenure is not subject to tax.

Other benefits of Treasury bills as a short term investment in Nigeria is that the bills can be used as collateral to buy more transactions, the interest and tenure of maturation are according to the preference of the customer.

2) Money market accounts

short term investments in Nigeria

Money market accounts are accounts in banks or credit unions which are high-interest yielding. It is also known as a money market deposit account and is an example of a short term investment in Nigeria. Money market accounts differ from the traditional savings account in banks in the following ways viz

 

  • The account pays a higher interest rate.
  • It includes the privilege of debit cards and checks writing.
  • They are not as flexible as other accounts because they have restrictions meted on them.
  • Money market accounts are insured.

Inquiry about the account and other information can be accessed by visiting a bank.

3) Online investment or savings apps

This is a great idea for a short term investment in Nigeria. It is preferred by people because of the ease and flexibility that comes with it. The world is being overtaken by technology and is making a whole lot of things easier.

A great example of an online or investment app is Sumotrust. Sumotrust is a digital saving and investment platform that allows for ease in saving money. It helps one achieve financial integrity better and hence meet financial goals or targets.

It automates your savings and has flexible savings options. You can transfer money using sumotrust. More importantly, it is the most secure digital savings platform in Nigeria.

Related: Top 10 online savings platforms in Nigeria in 2020 with high interest rate

Sumotrust offers really high-interest returns, absence of hidden charges, and fees, unlike some banks. It also broadens one’s horizon as an entrepreneur or just an average individual by allowing one to connect with other entrepreneurs of like minds and also partner with trusted brands. There are four different types of accounts available. The accounts include the Main savings account, fixed savings account, mission savings account, and Sumotrust High-Interest Fixed Deposit Account (SHIFDA).  Visit sumotrust for more information.

Check out why sumotrust is just ahead of others.

4) Fixed savings deposit account

A fixed savings deposit account is a form of short term investments available in Nigeria. It is an investment account offered by banks that has a stipulated amount of money paid into the account with an agreed interest rate and time, after which the money can be liquidated and collected with accrued interest or reinvested/ rolled over.

Some features of the fixed savings deposit account include

  • The investment period of 30 days and a maximum of 360 days.
  • An account can be opened only with a minimum of N100,000
  • Termination of account before maturity is feasible but interest will be forfeited.
  • An account can be terminated whenever the customer pleases.
  • Individuals or corporate bodies or associations are eligible for the account.
  • It offers a high-interest rate.

More information on the technicalities of this account can be gotten from the bank.

5) Certificate of deposit

This is an agreement between an individual and a bank. In exchange for a high interest, higher than a money market account, an individual can decide to enter an agreement with the bank. The bank uses the money for a period of time and high interest is reached which is paid to the individual.

This is an ideal short-term investment in Nigeria. It is sometimes referred to as a type of savings account, but without the option of withdrawal. It differs from the regular savings account in the following ways.

  • The minimum deposit required is higher than that of a savings account.
  • A penalty is paid for withdrawals pre-maturity. Legitimate withdrawals are only made post maturity.
  • There’s no room to add more money after the deposit has been made.

It is worthy to note that the longer the length of the term the more the rate of interest generated.

6) Buying foreign currency

Buying foreign currency can also be seen as a short term investment in Nigeria. A rise in the market value of our local currency determines the amount of profit that can be made. This method can be dicey and is associated with risks of buying fake currency and a host of others.

With the rate of inflation and devaluation of our local currency, saving money is not just enough. Investment has become the real deal. Short term investments are even better ways to meet targets faster.

7) Cryptocurrency

Cryptocurrency is one of the short- term and long-term investments for youths in Nigeria. It has proven to be very effective in making millionaires in this part of the world. So many startups have sprung up from crypto. You can either buy and hold, mine or trade. More on Cryptocurrency and blockchain will be coming up on the site soon.

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Finance

The Key Challenges Facing Nigerian Banks

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Everyone who owns a bank account in Nigeria would have at one time or the other had reason to walk into the bank and encountered the long queues. There are times when we often wonder if these banks deliberately make people queue just to patronize them but the indisputable fact remains that even as we face challenges, so do these banks. so what are ts The Key Challenges Facing Nigerian Banks

Challenges Facing Banks in Nigeria

The Key Challenges Facing Nigerian Banks

The Key Challenges Facing Nigerian Banks

The various challenges facing the Nigerian banks include;

1.         Weak capital base

It is considerably difficult for a bank which can “hardly feed itself” to grant customers loans or go into international trade. A bank with a weak financial base is a bank on the highway to failure. Little wonder therefore why several years ago, the Central Bank of Nigeria (CBN) on realizing this impending doom, directed all Nigerian banks to increase their capital base from N1b to at least N25b by December 31, 2005. This led to the closure of many banks and only 25 banks were able to meet the N25b requirement. Some banks had to resort to mergers.

2.         Ethics and professionalism

Ethics can be regarded or is a defined and agreed set of values and principles or guidelines which confer or enforce on a person a sense of differentiation of what is right from what is wrong. Nigerian banks are known for a high display of unethical and fraudulent behaviours as well as greed and insider abuse.

This, therefore, constitutes most of the distress bank customers, the bank staff and management go through. In spite of the many interventions by the Central Bank of Nigeria in this issue, the trend keeps rearing its ugly head, every now and then within the Nigerian banking space.

3.         Poor corporate governance practices

Majority of banks do not adhere to good corporate governance practice. In the banking industry, the need for proper governance cannot be overemphasized if there must be an improvement in the company’s performance and attraction of potential investors etc. Other factors which form a cork in the wheel of progress of Nigerian banks include over expansion as well as the corruption of bank officials and improper risk management.

Fraud could be substantively reduced in the Nigerian banking system if proper business ethics and whistleblowing efforts and practices are carried out. This, of course, can be enforced or enhanced via moral corporate governance, which of course is lacking in many Nigerian banks. Recently, a new banking code of ethics was constituted. How many banks have enforced this in their working system? Very few, if any. This, therefore, calls to question the credibility of these banks.  If these corporate governance principles were efficiently implemented by banks, we would witness significant progress in our banking sector.

4.         Reliance on public sector funds

Most banks now depend on the public sector for funding thereby neglecting the private sector.

To discourage this trend, therefore, the Central Bank of Nigeria had to enact and enforce a policy which directed an increment of cash reserve requirement for the public sector. This policy upon implementation got many banks on their feet with a resultantly increased sourcing of funds or income from the private sector.

5.         Slow GDP growth

Factors like Low oil prices and low availability of foreign currency affect banks negatively. Banks meet several threats from their operating environment and the fact that Nigeria is sliding into recession (which is fast rewinding as at the time of writing this) is a potent factor.

Despite the relentless efforts by banking authorities to regulate and as much as possible, normalize the foreign exchange as well as the interbank market thereby enhancing the inflow of dollars, Nigerian banks still face severe narrow foreign currency liquidity. This is a big blow for the banking system in Nigeria and the need for a change cannot be too much to ask for.

6.         Implementation of the TSA-Treasury single account.

The implementation of the treasury single account in Nigeria has become a problem for Nigerian banks reason being that states and government parastatals that would normally fix deposit huge sums of money would no longer be able to do this as this money has to be rendered to the federal government for payment into the nation’s general treasury single account. Previously, banks use this fixed deposited money to grant loans and engage in other financial transactions while generating interest for itself. Banks no longer have access to floats provided by the accounts they maintained for the ministries, departments and agencies.

At a greater loss from the implementation of treasury single account are deposit banks. This is because public sector funds make up a large portion of commercial banks deposit. Due to this, banks will continue to devise means of mobilizing funds from the private sector.

Other challenges Nigerian banks faces are;

  1. The arrest of bank managing directors by the Economic and Financial Corrupt Practices Commission (EFCC).
  2. A decline in oil prices which has led to decrease in government revenues and subsequently bank rates.
  3. Failing to meet customer’s expectations.
  4. Implementation of the Full abolition of commission in turn over policy.
  5. Inaccessibility of banks in rural areas.
  6. Insufficient revenue.
  7. Non-availability of foreign exchange reserves.
  8. Pressure from regulatory bodies.
  9. The struggle for foreign currency imports by customers.

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Major Trends in E-commerce You Can’t Ignore in 2021

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Miss these 10 major ecommerce trends at your own risk! find out the Major Trends in E-commerce You Can’t Ignore in 2021 today.

2021 is the best time for ecommerce, with some amazing developments happening in this field. E-retailers are using data, analytics and innovative interaction to retain existing customers and gain new ones. Many trends and technologies are pushing ecommerce forward in an exciting way.

Ecommerce being an ever-evolving domain, its future is tough to predict. But these trends are promising for the consumers and retailers alike.

We’ve listed the 10 major trends in ecommerce you can’t ignore in 2021 who are pushing ecommerce forward.

Major Trends in E-commerce You Can’t Ignore in 2021

Major Trends in E-commerce You Can’t Ignore in 2021

·         #1. Integrated virtual sales implementation

Previously, the online sales team would wait for the customer to ask queries. Customers would ask about the features and specs, before making the purchase.

Retailers are now going the next step to initiate a conversation with the consumers via live chat. This leads to a direct point of connection with the visitor/buyer thereby forging loyalty. The sales team offers reliable advice about the products, its features or supplementary information, consumers are more likely to become loyal customers.

In 2021, brands are focusing to build loyal customers. The sales team no more makes pitches, they answer customer queries to build long term customer relations.

·         #2. Multichannel selling

When consumers find unique products on a merchant website, they also visit marketplaces such as Amazon and Etsy to find it there. In multichannel selling, the vendors sell on his own website and on other high traffic websites and marketplaces.

The consumers go to high traffic websites selling thousands of products to find unique items from multiple sellers. Here the consumer can buy a wide array of items and pay at a single point of payment.

Multi-channel selling is gaining momentum, no more can sellers afford to sell their products just on their website. Multi-channel selling exposes their products to a much wider audience.

·         #3. Instant delivery

This trend originally started by Amazon has gained popularity and is preferred by consumers. Same day delivery and delivery within an hour for groceries which means faster shipping will bring customers back for more purchase.

The key here is to keep your shipping methods in place to get the product to the consumers in the shortest time period.

·         #4. Real time analysis

In ecommerce, data is an invaluable source to gain insights into the customer behavior on the website. With traditional analytical methods, spotting trends and behavior is time-consuming. Actions to be taken by the seller are slowed down since they are unable to provide immediate assistance to the buyer.

Here comes real time analysis, the new hero of ecommerce. Issues or loopholes in the sales funnel are immediately identified by studying the customer interaction on the website. By offering a quick discount or assistance by live chat tools the problem can be easily solved. The conversion rates increase incrementally since the problem is solved while the consumer is on the website.

Real time analysis offers retailers an opportunity to fix customer issues immediately.

·         #5. Video Marketing

High quality product images and optimized product descriptions are vital for an ecommerce site. Now these are prerequisites.

Brands are using videos to build trust with the customer. These videos are entertaining and educating the customer with the aim to engage them. Behind the scene video clips, 360o videos, informative videos and live streaming is just the start of video marketing.

The importance of using videos includes – making the website SEO friendly (Google is planning to rank websites based on videos now), increases conversions and information is easier to consume. With Facebook including autoplay feature for videos last year, videos are now a primary source of consuming information.

Many brands have built huge YouTube networks while others user Vine, Instagram and Facebook to capture the consumer’s attention. Today there are more opportunities than ever to create a brand’s presence on websites/social networks where the target audience resides.

·         #6. Content is still the reigning king

Content is no more the means to optimize your ecommerce website for the purpose of SEO. Today, content is all about being informative. It is more essential than ever to stand out with uniquely helpful content.

Coming up with factual and actionable content is a difficult task. Many brands are involving their team members and the sales team to solve the customer related queries and build customer loyalty.

·         #7. Only retail players will be extinct

Brands are increasingly combining the online and offline experience. Before going to the physical store the customers would like to see if the stock is available in the store. The company website or the app tells the customer if the product is available, if not in stock then the customer is notified when the stock is refilled.

Going a step further, they let the customers see the stock in the local store and allow them to order from there, delivering within 24 hours.

·         #8. Rise of mobile shopping

When we think of “what next” in ecommerce, the answer is very obvious – mobile shopping. While this trend isn’t new, it consists of more than half the products purchased online. This means that ecommerce has to optimize their sales funnel for mobile.

A person spends upto 5 hours per day on his phone, this shows how mobile is now an integral part of life, so is online shopping. Mobile shopping removes barriers to comfort, brings simplicity in making and purchase and along with engaging the customer.

·         #9. More user friendly designs

UX/UI has massive influence on a customer. The branding has to be properly reflected, navigation easy and appeal the target audience. The entire experience has to be excellent or positive, if it’s substandard the website will get buried in the clutter.

While a good shopping experience can transform a visitor into loyal customer, the wrong shopping experience does more harm. The advantages of user friendly designs include – more sales because the purchasing is easy and the customer spends more time on the website leading to greater conversions and engagement.

·         #10. Connecting users with social channels is not enough

Getting consumers to like or comment on your social media pages is an outdated trend. With Facebook, Pinterest, and Twitter adding a buy button, brands are directly selling from their social networks.

In 2021, brands will have to find new ways to reach the right audience’s cutting through the clutter. With organic reach of social networks on a decline, ecommerce brands will have to find newer ways to engage their social media audience.

Concluding thoughts – Get creative and innovative, because ecommerce in 2021 will witness fascinating changes.

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List of Online Shopping websites in Nigeria

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There are many lists of online stores and shopping websites in Nigeria where one can shop online through the use of Phone or computer to access a website and a payment system. These E commerce shopping websites in Nigeria have become common among Nigerians as many prefer to Purchase things online while it is being delivered to them at home or office. Follow me as i am going to exposed to you the List of Online Shopping websites in Nigeria.

There has been some rapid growth in the Online shopping websites in Nigeria and most online stores have proven to be trust worthy as they discharge their duties. One can now but things at the comfort of their own home or office with varieties of payment system without the fear of loosing his or her money.  There are also other things you have to know before you shop online in Nigeria which I have previously published and you can read it here: This is the list of some Online Shopping websites in Nigeria according to their category of service.

List of Online Shopping websites in Nigeria

List of Online Shopping websites in Nigeria

List of Online Shopping websites in Nigeria

Perfume

  • http://www.perfumehouseng.com/
  • http://www.fragrances.com.ng/

General

  • http://www.kaymu.com.ng/
  • http://www.konga.com/
  • http://www.jumia.com.ng/
  • http://www.konga.com/
  • http://www.dealdey.com/
  • http://deluxe.com.ng/
  • http://www.adibba.com/
  • http://www.mystore.com.ng/
  • http://www.shopandmall.com.ng/
  • http://www.kara.com.ng/
  • https://www.webmallng.com/
  • http://zetashop.com.ng/

Wrist Watch

  • http://www.watchlocker.net/
  • http://www.watchaven.com/
  • http://timeless.com.ng/

Fashion

  • http://www.eshopng.com/
  • http://www.taafoo.com/
  • http://www.ozyet.com/
  • http://shopaholicng.com/

House products

  • http://gloo.ng/
  • http://www.dreamcare.com.ng/
  • Electronics/Computer/Phones
  • http://www.smartbuy.ng/
  • http://www.fouani.com/ng/
  • http://www.afriqbuy.com/
  • https://parktelonline.com/
  • http://www.lowcart.com/
  • http://www.blessingcomputers.com/
  • http://www.dsclng.com/

Furniture

  • https://www.domestico.com.ng/

Foods

  • http://www.forfoodonly.com/

Shoes

  • http://komoonline.com/
  • http://www.ohmashoes.com/
  • Health and personal Care
  • http://www.sizzelle.com/

Grocery

  • http://gidistores.com/
  • http://deeski.com/
  • http://www.jaramall.com/
  • http://lagmarket.com/store/

Auto Parts

  • http://www.autobox.ng/

Conclusion

Online Shopping in Nigeria is advisable if you can’t go to the mall or market yourself. It is relatively easy and almost anyone can do that provided you have a clear address and a correct payment system being requested by the websites. I have bought some few things online and it was a good experience with remarkable service.

Please share this post, like our Facebook page and I will like to have your suggestions and thoughts in the comment box.

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