As the year 2026 commences, Nigerians are looking forward to new opportunities and financial growth.
One trend that’s gaining momentum is the shift from traditional savings to smart investments. With the Nigerian economy showing signs of resilience, now’s the perfect time to explore investment options that can grow our wealth.
Imbibing an investment culture in the New Year involves developing financial discipline, setting clear goals, starting early, and making regular, diversified investments. The goal is to move beyond saving to building sustainable wealth and achieving long-term financial security.
Stockbrokers in Nigeria, particularly through the Chartered Institute of Stockbrokers (CIS) and other financial institutions, are actively and consistently calling for Nigerians to imbibe an investment culture.
They emphasised that this is a vital step for individual wealth creation and overall national economic development.
Key Steps To Imbibe An Investment Culture
Prioritise Financial Literacy: Understand the basics of personal finance, including the difference between saving and investing, risk tolerance, and the power of compounding.
Create a Budget and Track Spending: Establish a clear budget to understand your income and expenses. Tracking expenses helps identify areas where you can cut back and free up funds for investing. Prioritise “saving first” before budgeting for spending.
Set Clear Financial Goals: Define what you are investing for (e.g., retirement, a down payment on a house, children’s education). Goals provide direction and help break down financial needs into achievable targets.
Build an Emergency Fund: Before significant investing, establish a reserve fund (ideally 3-6 months’ worth of living expenses) in a low-risk, easily accessible account to cover unforeseen events, preventing the need to cash out long-term investments prematurely.
Start Now And Start Small:
The best time to start investing is as early as possible. You don’t need large sums of money; consistency is key. Even small, regular contributions can grow significantly over time due to the effect of compounding.
Develop A Disciplined And Regular Approach: Make investing a consistent habit, much like paying a bill. This approach, often called regular investing, helps average out market fluctuations and reduces the risk of trying to “time” the market.
Diversify Your Investments: Don’t put all your money into one asset class or single stock. Diversification across various assets (e.g., stocks, bonds, real estate) helps manage risk and volatility in your portfolio.
Leverage Technology: Utilise financial apps and digital platforms that make investing convenient and accessible. Many apps offer automated savings and investment features, simplifying the process.
Seek Professional Advice: If you are unsure, consider consulting with a financial advisor or working with accredited financial institutions and regulators like the Securities and Exchange Commission (SEC) in your region to ensure your investments are secure and aligned with your goals.
Key Investment Channels
The primary investment channels in Nigeria include various asset classes such as stocks, bonds, real estate, mutual funds, and dollar-denominated assets. These can be accessed through traditional financial institutions and modern digital investment platforms.
Nigerian Equities (Stocks): Investing in shares of publicly traded companies on the Nigerian Exchange (NGX) offers potential for capital appreciation and dividend income. It can also act as a hedge against inflation.
Bonds And Treasury Bills (T-Bills): These are debt instruments issued by the government (FGN Savings Bonds) or corporations. They are generally considered low-risk, stable, and offer regular interest payments. They can be accessed via investment apps or traditional brokers.
Mutual Funds: These professionally managed funds pool money from multiple investors to purchase a diversified portfolio of assets (stocks, bonds, money market instruments). They offer an accessible way to diversify, often with low minimum investment requirements.
Real Estate: This can involve directly buying property or investing through Real Estate Investment Trusts (REITs), which allow for exposure to the real estate market with a smaller capital outlay.
Dollar-denominated Investments: As a hedge against the depreciation of the Nigerian Naira, many platforms offer access to investments in USD, such as dollar mutual funds or foreign stocks. This allows investors to access global markets and earn returns in a more stable currency.
Infrastructure Debt Funds: Funds dedicated to long-term infrastructure projects provide stable, high-yield returns and are known for consistent distribution payments.
