“The best investment you can make is in yourself. The more you learn, the more you earn." – Warren Buffet
The Nigerian Investor’s Dilemma
Many Nigerians struggle with finding the right investment options due to our unusually high inflationary environment, which makes it difficult for investments to earn real returns. Inflation erodes the value of saved cash, and “get-rich-quick” schemes often end in disappointment.
The good news? You don’t need to take unnecessary risks to grow your money. You can earn solid returns while protecting your wealth with the right investment choices.
In this article, we’ll explore some of the best places to invest your money in Nigeria, backed by expert insights and real opportunities available in today’s market.
Best Investment Options for Nigerian Investors
- Money Market Funds – Low Risk, Steady Returns
What It Is: A type of mutual fund that invests in short-term, low-risk financial instruments like Treasury Bills, Commercial Papers, and Fixed Deposits.
Why It’s Good for You:
✔️ Low risk with stable returns.
✔️ Low minimum initial amount of ₦5000 and multiples of ₦1000 thereafter
✔️ Higher interest rates than traditional savings accounts.
✔️ Easy access to funds when needed.
🔹 Expert Pick: The Chapel Hill Denham Money Market Fund currently offers a 24% gross yield and makes quarterly interest payments, making it an excellent choice for stable and competitive returns.
💡Pro Tip: Use money market funds as a place to park emergency savings or idle cash while earning significant returns.
- Government & Corporate Bonds – Reliable Long-Term Income
What It Is: Bonds are fixed-income investments where you lend money to the government or reputable companies in exchange for periodic interest payments.
Why It’s Good for You:
✔️ Guaranteed interest payments and principal repayment upon maturity.
✔️ Less volatility compared to stocks.
✔️ Great for long-term wealth building.
🔹 Expert Pick: The Chapel Hill Denham Nigerian Bond Fund is an affordable and excellent way to access high-quality bonds with professional fund management.
🚩 Mistake to Avoid: If you need liquidity in the short term, don't chase too many long-term bonds. Instead, keep a balance of investments based on your financial goals.
- Nigerian Equities – High Growth Potential
What It Is: Investing in shares of publicly traded companies on the Nigerian Exchange (NGX).
Why It’s Good for You:
✔️ Opportunity for capital appreciation (share prices rising over time).
✔️ Dividend income from well-performing companies.
✔️ Hedge against inflation as companies adjust prices with the economy.
🔹 Expert Picks – Top Nigerian Stocks to Consider: Based on Chapel Hill Denham’s Paramount Index. For more details, please check the InvestNaija TradeIN module for our Recommended stocks list.
💡Pro Tip: Consider the Chapel Hill Denham Paramount Fund (Equity), an actively managed equity fund that offers professional guidance on investing in high-performing stocks. The Fund has outperformed inflation and the NGX 30 benchmark index over the past five years with an exceptional return of 222.9%.
- Real Estate Investment Trusts (REITs) – Own Property and Earn USD without the Hassle
What It Is: A REIT is a professionally managed investment that pools money to invest in income-generating real estate properties like commercial buildings, malls, and housing estates.
Why It’s Good for You:
✔️ Earn rental income and potential property appreciation without owning physical real estate.
✔️ Less capital-intensive than buying a physical house or land.
✔️ Provides portfolio diversification.
🔹 Expert Pick: The Chapel Hill Denham Nigerian Real Estate Investment Trust (NREIT) offers exposure to Nigeria’s thriving real estate sector and the opportunity to invest in Naira but earn USD.
💡Pro Tip: REITs are perfect for passive income seekers who want exposure to real estate without dealing with tenants or property maintenance.
- Dollar Investments – Protect Against Inflation
What It Is: Investments denominated in U.S. dollars, such as dollar mutual funds and foreign stocks.
Why It’s Good for You:
✔️ Hedge against naira depreciation and inflation.
✔️ Access top global markets and dollar-based returns.
✔️ Diversifies your investment portfolio.
🔹Expert Pick: The Chapel Hill Denham Nigeria Dollar Income Fund is an excellent way to earn stable dollar returns while preserving your wealth in USD. For the full year 2024, the fund posted a strong return of 11.4% in dollar terms and 73.9% in Naira terms.
🚩Mistake to Avoid: Currency Risk — Don’t hold all your assets in naira, consider some dollar-denominated investments to protect purchasing power.
- Nigeria Infrastructure Debt Fund (NIDF)
What It Is: The largest and first listed closed-ended infrastructure debt fund in Nigeria is dedicated to long-term infrastructure projects that generate reliable revenue streams. NIDF provides the highest yield on the NGX, boasting a total return of 343.2% since its launch, and is well-known for its quarterly distribution payments.
Why It’s Good for You:
✔️ Stable, long-term cash flows with strong asset backing.
✔️ High-yield, low-risk, and inflation-resistant.
✔️ Portfolio Diversification & Stability.
✔️ Ideal for wealth preservation & passive income generation.
🔹 Expert Pick: The Nigeria Infrastructure Debt Fund (NIDF) offers high-yield, inflation-beating returns with low risk. With a 343.2% total return since inception and quarterly payouts, it’s a smart choice for steady, long-term growth. 🚀
🚩Mistake to Avoid: Overlooking liquidity constraints. While NIDF offers high yields and steady returns, it’s a long-term investment, meaning it’s not as easily accessible as a savings account. Ensure you have enough liquid funds before committing to avoid needing an early exit. 🚨
Key Takeaways & Action Steps
✔ For Stable Returns: Invest in Chapel Hill Denham’s Money Market Fund.
✔ For Growth Potential: Build a stock portfolio with strong Nigerian companies like MTN, Seplat, GTCO, and Airtel or Invest in the Paramount Fund (Equity) by Chapel Hill Denham Management.
✔ For Real Estate Investments: Explore the Chapel Hill Denham Nigerian Real Estate Investment Trust
✔ For Currency Protection: Consider the Chapel Hill Denham Nigeria Dollar Income Fund.
✔ For Impact and Attractive Dividends: Invest in income-generating economic and social infrastructure debt investments through the Chapel Hill Denham Nigeria Infrastructure Debt Fund
Final Thoughts: Where Should You Start?
Investing in Nigeria is all-inclusive. Whether you start with N5,000 or N500,000, the key is to start. By making informed decisions, you can achieve financial growth despite economic uncertainty.
📲 Want to Start Saving and Investing in any of the above-mentioned products? Download the InvestNaija app today via the Apple App Store or Google Play Store to explore LearnIN, SaveIN, PlanIN, and InvestIN.
💬 What are you investing in today? Drop a comment below and let’s discuss!
