Connect with us

Finance

How To Save And Invest Money In Nigeria

Published

on

save and invest money in Nigeria

How To Save And Invest Money In Nigeria

I used to think that keeping money in my box was the only method of saving money. As I grew, I began to think just keeping money in the bank is the ultimate. Following growth and financial literacy, I have come to understand that it might not be the best financial decision.

Saving is defined as keeping money aside for future use rather than spending it all at once.

Investing, according to Investopedia is the act of allocating resources usually money, with the expectation of generating an income or profit.

A simple analogy for investment is planting a grain of corn and reaping a plant containing 5 or 6 cobs.

It is absolutely possible to save and invest your way into wealth. All it requires is the right financial knowledge and consistency.

Related: 20 ways to save money every month in 2020

How to save and invest money

1) Stocks.

Buying stocks is a good way to save and invest money in Nigeria. People have been misguided over the years that stocks are only for the rich and have lost out on juicy opportunities. The rich get richer because of financial literacy.

According to Investopedia, a stock also known as equity is the security that shows ownership of a part or fraction of cooperation. Stocks are mainly sold through stock exchanges.

The purpose of selling stocks buy companies is to raise funds to enable the smooth run of the business.

The person who bought the stock is referred to as a shareholder.

With as little as 5,000 naira, you can acquire stocks or shares in several companies.  Stock trading is akin to killing two birds with one stone because you are saving and investing at the same time. With the maturation of the stock, you can make a profit of more than two times your down payment.

2) Mutual funds

With mutual funds, it becomes easy to save and invest money in Nigeria.

A mutual fund in layman’s terms is a collective Investment scheme or program set up by a money manager. The manager stands as a broker, gathers money from different individuals, and invests it into profitable financial schemes.

To use mutual funds, you do not have to be very informed about the financial market. The financial manager can stand in for you and also offer financial advice where necessary.

The average returns of mutual funds gross about 15%.

Some of the best mutual funds include Stanbic IBTC Equity Fund, ARM Aggressive Fund, United Capital Balanced Fund, FBN Money Market Fund, United Capital Money Market Fund, Stanbic IBTC Money Market Fund, ARM Money Market Fund, Cordros Money Market Fund, and Coronation Money Market Fund.

3) Online savings and investment applications

Technological advancement has made it easy and has shown how to save and invest money. Several online applications exist and can be used to save and invest money from the comfort of your home. It takes away the hassles and stress of going to a bank, queuing up, speaking to financial managers, and all.

Online savings applications can be connected to your checking account, where deductions are made on a weekly or monthly basis.

Examples of such online applications include

  • It is an automated online and Investment platform dedicated to helping Africans achieve financial literacy. Saving with Sumotrust earns you a yearly mouth-watering interest of about 10-15%. Saving with Sumotrust takes away the frustrating bank charges and hidden fees.

    It was founded to encourage the poor rate of savings and investment in Nigeria, especially amongst the younger age group. Sumotrust has a high-interest rate and one can join with as low as 100 naira. This top online investment platform is open to people from all walks of life and occupation ranging from freelancers to students, civil servants, etc.

    One of the good features that made SumoTrust number one on this list is its high taste for customer’s account security. Even if your Sumotrust account gets hacked, the hacker won’t be able to change your bank details and withdraw your money, a KYC form will be needed to be submitted before the approval to change bank details can be given. Sumotrust as the best digital savings platform also uses a powerful blockchain security protocol to protect accounts that has it activated.

    It is also on a quest to raise 1 Million African entrepreneurs in partnership with Entrepreneur Platform to access discounted-free Online Business Academy for its users and African business forum to collaborate and work with like minds in building better and sustainable businesses.

    With Sumotrust, you also get access to various business leaders in different industries at discounted fees (for business consultations) to help you grow and scale your business.

    Even though you can use Sumo Trust to save for any reason (Business, travel, school, emergency funds, school fees, shopping, property, etc) it’s a core value is tailored to helping young Africans build wealth with little efforts.

    Sign up and start saving with Sumo Bank at Sumotrust.com

    • Piggyvest:

    This is another online savings platform in Nigeria. It helps individuals achieve financial freedom by allowing you to save responsibly and on the go. It offers up to 10-15% interest on savings yearly and almost up to 25% interest in Investments.

    There are options available for co-investments with other Piggyvest users. With Piggyvest, you have the right to decide on your investment of choice and engagements. The application also has a feature for the best saver of the month which spurs other individuals to want to save more.

     

    • I-invest:

    This is an online Investment platform that enables people to purchase securities and other bank securities without the aid of a broker. It has a dashboard that helps customers track Investment portfolios and create a way for retail investors to save money.

    The online Investment platform also offers attractive interest rates. Examples of investments that can be done using the platform include Eurobond, which are Investments issued in a currency not native to the issuer’s home country.

    Other examples are equities and treasury bills.Getting started on the platform is as easy as just downloading the application, register, log in and invest. Visit here for more information.

    • Cowrywise:

    This is another great online Investment platform good for saving money and making Investments. Saving money on this platform can exist under different plans. It includes the regular savings where money can be saved on your own terms for up to three months. Life goal savings are great for long term plans and can last for up to one year with great interest rates. Halal savings are plans that exist for Muslims. Investment plans also exist.

     

4) Treasury bills

Another great method to save and invest money in Nigeria is to buy treasury bills. Treasury bills are guaranteed debt instruments by the government to finance expenditure. They are sold through a bi-weekly auction carried out by the Central Bank of Nigeria. Buyers make bids after which the minimum bid is selected.

Treasury bills can be bought through a dealer or can also be bought through the i-invest platform. They are sold for as low as #1000.

Conclusion

The above article has dealt extensively on how to save and invest money in Nigeria.

Saving could be for a long term or short term goal but whichever it is, saving is not just enough. Investing money brings greater returns and provides profit too.

Following Investment, you tend to sail above inflation tides. Saving does not protect you from inflation.

Investment helps you build wealth. It’s a steady process requiring consistency and effort in the right direction. Temptations may arise for the easy way out but one way of sidestepping it is by making financial goals.

 

 

 

 

 

Comments

comments

Ossi Samuel is a mafian thinker, an avid reader and writer, and political analyst. Am a humanitarian and fun loving person. I love Tech by the way and will always have your time if you have any ideas. I can be reached on Facebook

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Finance

The Key Challenges Facing Nigerian Banks

Published

on

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.

Comments

comments

Continue Reading

Finance

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

Published

on

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.

Comments

comments

Continue Reading

Finance

List of Online Shopping websites in Nigeria

Published

on

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.

Comments

comments

Continue Reading

Trending