If you live in Nigeria, chances are you’ve heard someone say, “Investing is for rich people.” But is that really true? Let’s break it down.

Do Nigerians Invest?

Not really… at least not as much as we should. According to the Securities and Exchange Commission, less than 5% of adult Nigerians invest in the capital market. Compare that to the 61% of U.S. adults who own stocks, and you see the gap.

So, where’s everyone putting their money?

Shifting to Fixed-Income Investments

With inflation hitting 34.60%, many Nigerians are choosing fixed-income investments like commercial papers, corporate bonds, and treasury bills over traditional stock investments. Why? Because these investments offer predictable returns and protect against inflation.

Even foreign investors are paying attention! Some are earning up to 25% on Nigerian bonds, seeing it as a smart way to grow their money.

How’s the Nigerian Stock Market Doing?

Surprisingly well! In 2024, the Nigerian Exchange (NGX) recorded a 37.65% increase, adding ₦15.41 trillion in capital gains. That means investors who stayed in the game made serious money.

But, there’s a catch; currency devaluation. Companies like MTN reported a 69% drop in earnings because of the naira’s decline. So while stocks are profitable, they also come with risks.

What Does This Mean for You?

If you’ve been sitting on the sidelines, thinking, “I’ll start investing later,” this is your sign to start now. Whether it’s fixed-income investments, bonds, or equity, there’s an option for every investor.

The best way to secure your financial future? Start today.

Sources: SEC Nigeria, NGX, Financial Times, Reuters.