Monday, June 11

Where To Find Profitable Markets To Invest In Nigeria- After Recession, What Next?

During the turmoil of the precarious economic recession that struck the world’s economy since 2007, nobody could precisely predict what the situation would look like in time to come. Now that it is hitting the bottom, what do we look out for good market to invest in Nigeria
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.