In this short except, as a response to investor’s question
about investment and risk, I will be sharing simple tips on where to find profitable market to invest in
Nigeria at lower risk and high probability return using the Nigeria Capital And
Money Market as an investment window. Here are short tips on how to find the
best place to invest your money:
I will also be using what I call Top FDI strategy (Foreign Direct
Investment). You do not need an MBA or many years of investment experience to
master this strategy.
TIPS: A sector is a segment of Nigeria economy. Examples of
sectors are technology, energy, consumer cyclical, financial and health sector.
Here is what you should do to learn and know a profitable market to invest in Nigeria- follow government
spending and monthly fiscal allocations by pouring through financial papers
like Business Day, Finance and Investment watch, Financial Nigeria or other
business journals and publication.
The idea is to choose a sector that is hot, doing
well and attracting funds from government and foreign direct investors. Some of
the top sectors attracting billions of Naira from funding partners include
infrastructure, energy, agriculture, health care services, real estate,
construction, and education. According to Sugan Palanee in an article published
in Financial Nigeria, titled: Africa is
the next big frontier for Indian companies, Infrastructure alone-in
particular road construction is expected to attract fifteen billions of
dollars annually for 10 years. If the sector attracts investors, money
should pour
into construction related companies within the sector and as more
contracts are
awarded to firms in the sector, the companies value reflected in
sectoral fund
flows and market price per share should increase more: that is if the
company
is quoted. So what you should do is to put your money in companies like
cement
manufacturers, auto sellers, gravels, sand retailers among others that
are attracting
funds within these sectors.
In a nutshell, the idea of this article is to look for sectors that are attracting FDI flows
and government attention which will help you find profitable market in Nigeria so that
you can know where to invest.
While this report can help you get started, please note that
this strategy is my own investment decision system and I am not assuring you
that its 100% accurate so please seek financial advice before executing any
transaction or you may back test this system by following market issues for
three months and company’s performance.
Please share your opinion in the comment box.