8 Popular Types of Investments in Nigeria – January 2025

Investing is the act of putting your money into assets or ventures with the expectation of earning a profit or gaining value over time. It’s a smart way to grow your wealth and achieve financial goals. You could be saving for retirement, buying property, or just looking to build a safety net.

This article is for both beginners and experienced investors looking for reliable investment opportunities in Nigeria. I’ll cover the most popular types of investments in Nigeria, explain how they work, and answer questions to make it easy for you to understand and take the next steps. 

Top 8 Investment Options in Nigeria

Investments are essential for anyone who wants to grow their money faster than saving in a regular bank account. The earlier you invest, the more time your investments have to grow through compound interest or market appreciation. With the existence of investment apps, it is easy to make various types of investments on the go. 

That being said, let’s take a look at the best 8 most popular types of investments in Nigeria:

1. Stocks
2. Real Estate
3. Mutual Funds
4. Government Bonds & Treasury Bills
5. Exchange-traded Funds
6. Agriculture 
7. Fixed Deposits
8. Commodities

1. Stocks

Stocks are a popular way to make money and build wealth by owning shares in companies. When you buy a stock, you own a portion of the company, and your investment grows as the company’s value increases.

There are two main types of stocks: common and preferred. Common stocks give you voting rights and dividends, while preferred stocks provide higher dividends without voting rights. Investing in stocks can offer high returns, but it comes with risks due to market fluctuations.

You can invest in Nigerian companies listed on the Nigerian Exchange Group (NGX) or diversify into international markets using apps like Risevest, Bamboo, Trove, or Chaka. All you have to do is download your preferred app, sign up, and get investing!

2. Real Estate

Real estate is one of the most stable and profitable types of investments in Nigeria. It involves buying, owning, or renting property to earn income or make a profit.

Real estate is an excellent investment because it can generate passive income through rent. Additionally, properties tend to appreciate in value over time, which means you can sell them later for a higher price. Real estate is also a good hedge against inflation, as property values typically rise with inflation rates.

This option is ideal for individuals looking for a long-term investment that doesn’t rely on market fluctuations like stocks. You can invest in residential properties, commercial spaces, or land in rapidly developing areas. You can use fintech apps like Risevest allow you to invest in real estate. Also, crowdfunding platforms like Wealth.ng and Crowdyvest even offer opportunities to invest in real estate with lower capital.

3. Mutual Funds

Mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other assets. They are managed by professional fund managers, making them a great option for beginners or those who don’t want to manage their investments actively.

One of the biggest benefits of mutual funds is diversification. By investing in a mutual fund, you spread your money across various assets, reducing the risk of significant losses. Additionally, mutual funds are flexible. You can choose funds based on your risk tolerance, such as equity funds (higher risk, higher return) or money market funds (lower risk, steady return).

Many Nigerian investment platforms, such as Stanbic IBTC, ARM, and FBNQuest, offer mutual fund options. You can start with a small amount, making it accessible for everyone.

4. Government Bonds & Treasury Bills

Government bonds and treasury bills are among the safest investment options in Nigeria. They are issued by the government to raise funds and pay investors interest over time.

Treasury bills are short-term investments, often maturing in less than a year, while government bonds are long-term, with maturities ranging from two to 20 years. These investments are ideal for risk-averse individuals who want guaranteed returns. 

5. Exchange-traded Funds (ETFs)

ETFs are investment funds that trade on stock exchanges, similar to individual stocks. They hold a collection of assets like stocks, bonds, or commodities, making them a diversified investment.

ETFs are popular because they offer lower fees compared to mutual funds and allow you to invest in various sectors with one purchase. For example, the NewGold ETF allows you to invest in gold without owning physical gold.

This is another good option for investors who want diversification without actively managing a portfolio.

6. Agriculture 

Agriculture is one of the biggest cornerstones of Nigeria’s economy, contributing around 30% of the GDP. It’s also one of the most impactful investment options, as it supports food production and rural employment.

Investing in agriculture can take many forms. For instance, you can fund farmers through platforms like Farmcrowdy or ThriveAgric. These platforms connect investors with farmers, and you earn returns after the harvest season. Another option is purchasing farmland for crop production or leasing it to others.

This type of investment requires patience since returns may take months to materialize, but it offers stability and contributes to the economy.

7. Fixed Deposit

Fixed deposits are one of the low-risk types of investments in Nigeria. It involves locking your money in a bank for a specific period at a fixed interest rate. Most Nigerian banks, like Access Bank or Zenith Bank, offer fixed deposit accounts at different interest rates.

They are ideal for those who want stable, predictable returns with little risk. They’re a great option for beginners who are cautious about investing or for experienced investors who want to balance riskier assets in their portfolios. However, if you need to withdraw your money before its maturity period, you won’t receive your full interest. 

8. Commodities

Commodities include physical goods like gold, crude oil, and agricultural produce. Investing in commodities can be done directly by purchasing the goods or indirectly through ETFs or trading platforms.

Gold is a popular commodity investment because it retains value during economic downturns. Crude oil investments are also significant in Nigeria due to the country’s oil-based economy. For example, you can trade gold or other soft commodities like cocoa, sugar, etc on investment platforms like FXTM.

Factors to Consider When Choosing an Investment Type

Choosing the right types of investments in Nigeria depends on several factors:

1. Financial Situation: Assess your current income, savings, and expenses. Only invest money you can afford to lock away for a while without affecting your daily needs.
2. Investment Goals: Define what you want to achieve. Are you saving for retirement, a home, or a child’s education? Your goals will guide your choice.
3. Risk Tolerance: Some investments, like stocks, offer high returns but have higher risks. If you’re risk-averse, consider safer options like government bonds or fixed deposits.
4. Time Horizon: Determine how long you’re willing to wait for returns. Short-term goals may require more liquid investments, while long-term goals can handle less accessible but higher-yield investments.

Frequently Asked Questions About Investment Types in Nigeria

1. What is the best investment in Nigeria?

The best investment for you depends on your financial goals and risk tolerance. Stocks, real estate, agriculture, and government bonds are popular options.

2. What are the four main types of investment?

The four main types are stocks, bonds, real estate, and cash equivalents. Cash equivalents include mutual funds, ETFs, fixed deposits, etc. 

3. What are safe investments with high returns in Nigeria?

Government bonds, treasury bills, and fixed deposits are safe and offer steady returns.

4. Where can I invest money to get good returns in Nigeria?

Platforms like PiggyVest, Bamboo, and Farmcrowdy offer diverse options for good returns.

Conclusion

Investing is a powerful tool to grow your wealth, achieve financial independence, and secure your future. From stocks and real estate to agriculture and commodities, there’s an option for everyone. Make sure to assess your goals, financial situation, and risk tolerance before making a choice.

Start small, stay consistent, and watch your money grow.