Smart investment choices to make in Nigeria

Nigeria is a developing country with lots of business opportunities available online and offline. Unfortunately, not all of these business opportunities can fetch you real cash over time. As a matter of fact, some business have a short lifespan, while others are seasonal in nature and cannot guarantee a constant income stream. With a population of more than 180 Million people and a vast variety of mineral and material resources at ones disposal, Nigeria is obviously an investor destination. With the right innovation, resources and knowledge, one can make some smart investment choices and reap the benefit in years to come.

I will be sharing on three of such smart investment choices that are guaranteed to make one sufficient income stream if properly implemented. Some of them are relatively known while others may be new. What is required is the ability to create a brand around such investment option and make it unique and viable. The initial setup for each of these smart investment choices is different, but the end results are relatively the same.

Buying, selling and leasing of Land

This is a relatively old business, which has made people who are smart enough to become billionaires in the space of 20 years or less. A few smart individuals have keyed into this business with ease. It requires a minimal capital that will be sufficient enough to acquire plots of land in places that are not too developed. After a year or two, the value of that same plot of land would have appreciated by 40% or more. You can then go ahead and sell, while investing part of the proceeds in acquiring other plots. It’s a business that has a high ROI.

There are different options available for the smart investor: You can either buy or sell, or you buy and lease out the plots of land for a specific period of time. Both options depend on the location of the land and the best returns on investment. If you have a good land in a commercial location for example, and the funds to develop it is not there yet, you can make much money from the land without even selling it. All you simply do is lease it out plot by plot to business owners who will in turn pay you monthly or yearly royalties. And if by chance you do not own such land yet, you can also purchase one if you have the capital. Lands in urban area are very expensive, but you can find a strategic location like Ibeju Lekki area, where Dangote will be building a refinery and other business are already springing up.

Getting a land in Ibeju Lekki express, Lagos for example is a smart business move for anyone who has available funds to go into this particular business. In 2015, a plot of land of dimension 100 by 80 ft was going for between N600, 000 to N800, 000, but that same plot now sells for between N2.5 to N3 Million. The reality of those figures is that a smart investor who bought about three or five plots then is already swimming in money. The advantage of buying, selling and leasing business is that its value appreciates over time, unlike some other businesses whose value fluctuates depending on the force of demand and supply.

Setting up a POS terminal

These days, people are frustrated trying to queue up in ATM’s in the bank or even inside the bank hall for withdrawal purposes. Apart from the long hours wasted in the process, the possibility of the money in the ATM getting exhausted is high. It has happened to me severally and each bank I visited was same old story of their ATM been out of service. I was just frustrated and tired after moving around various banks for more than two hours that I had to go back home. The good news is that a smart investor who has noticed these lapses in the banking sector can create a lucrative business out of it.

It is called POS terminal business. The business involves acquiring a POS machine and renting a small space in a busy location where the population is moderately high. All you need to do next is ensure you have lots of cash available for those who may be requesting for withdrawals. Customers usually come to your POS terminal shop with their ATM and use same card to transfer funds to your account. Once you confirm that the transfer is successful and a credit alert has been received, the transaction slip is printed and you pay the customer the exact amount he transferred to you, while he in turn pays you a small commission for the transaction. The commission is not fixed, but depends on the volume of transaction and also on the POS terminal owner. In most cases, some of the POS terminal centers I have patronized charge between N200- N300 per N10, 000 collected. What it means is that if you transferred say N40, 000 to the POS terminal owners account, he will give you the N40, 000 cash while you will pay him between N800 – N1200 in commission.

The business is flexible, in the sense that if you don’t have your bank debit card handy, but you have your mobile phone with mobile banking facility, all you do is make a transfer and the same process of transaction is done. It saves time and it’s far more convenient. The only clause in the business is the fact that you need to get a security personnel around for the safety of clients. You also need to operate at a reasonable commission per transaction to guarantee an increase in patronage.

Building of Hostels

Information is the key to this business. If you are lucky to receive advance information about plan to build a higher institution in an area within your state or local government, such information should help a smart investor to buy a plot of land close to the proposed location where the higher institution will be cited. After buying the land, you wait for further development and once the actual date for project implementation has been confirmed, you can go ahead and start developing your plot of land, by building sets of hostels. It usually takes a while before the building can be completed, so it is best you start on time if there is sufficient funds and get the hostel ready before the University, Polytechnic or College of Education is ready.


Hostels are given out for rent on a yearly basis and they are hot cakes in a school environment, as lots of students are always looking for accommodation every academic session. You can put a real estate agent in charge of the property, while you visit once in a while to check the state of the hostel. Like I mentioned earlier, information is key, so get close to politicians, local government workers and try to be social media savvy, because most information flow though the social media.


Please enter your comment!
Please enter your name here