Practically everyone wants to invest in Nigeria. Paradoxically, for a country with such a huge number of potential investors, there’s a crunching shortage of legit investment platforms.
The keyword is legit. Most of the (profitable) investment platforms available in Nigeria right now are outright scams masquerading as the next best thing since MMM. The majority of them will eventually fail, taking with them vast amounts of investors’ money. You only need to look at the recent crash of popular platforms like Racksterli for an example of what I mean.
So, what does this all mean for you, the willing and ready-to-make-your-next-million investor? Is all hope lost? Should you just put all your money into your church as tithe because, after all, there’s no better investment than that done in the lord?
Well, hold off on that thought. I’m sure your pastor will be angry. But, there are still legit online investment platforms in Nigeria. In this guide, I outline the best in no particular order.
Bamboo
If you’ve ever dreamed of owning US stocks, Bamboo makes it easy as pie to own some of the best performing US company stocks right from your smartphone. All you need to do is sign up, create an account, fund that account, and go a’buying.
For those who’ve never traded stocks before, you might wonder how this classifies as an investment? Well, stock prices go up as the holding company performs better. If you bought some Amazon stock back in 1997 when the company first went public, you’d be up over 2500% in profits right now. That’s a fantastic return, and there are several other new Amazons going public and listing their shares for purchase.
I should add, however, that just as stocks can go up, so also can they come down. The key to turning a profit with this investment strategy is to do your research, invest only in companies with solid fundamentals, and invest for the long term. People who bought Amazon shares and sold them off the following year didn’t get a chance to reap the massive rewards shareholders who persisted through the years until now do.
Strong points
- Opportunity to earn massive returns.
- Investment is secured from inflation in dollar-based stock offerings
- Solid long-term strategy
Drawbacks
- Potential to lose invested sum — mid risk investment strategy
- The threat of government sanctions in Nigeria
Piggyvest/Cowrywise
Piggyvest and Cowrywise share this spot on this best-of list because they pretty much do the same thing. And that is allow you to save money for interest paid monthly or quarterly depending on the savings plan you choose.
In a way, you could think of both Piggyvest and Cowrywise as traditional banks (and, in reality, are actually just well-packaged banks). They offer the same savings options as traditional banks; allow you to invest in bonds and treasury bills just like your bank would if you ever cared to speak to your account officer; and pay interest that almost parallels the interest rates of traditional banks.
The core difference between the two platforms and the average bank is that they’re oriented first for savings before banking, compared to the regular banks optimized first for banking then savings. For you, this means all the tools and features you’ll need to save better and faster.
Both can be configured to take defined cuts from your monthly salary as savings automatically. You can set up deposit-only accounts on Piggyvest. And, if you’re the type who finds it hard to resist the temptation of spending money, both also offer ‘lock’ savings plans that allow you to tie up money for a specific period as it earns interest.
Piggyvest and Cowrywise just make it all the more easier to save money, and sometimes the easier it is to put one hundred, two hundred, or five thousand Naira aside as savings, the easier it is to invest that money in an interest-paying savings account.
Strong points
- Insanely easy to use money-saving tools
- Opens up ways to invest in Nigerian bonds and treasury bills
Drawbacks
- Profit margin is a tad bit low
- Subject to devaluation and inflation since most savings plans are in Naira
Risevest
Risevest is a lot like Bamboo. Both allow you to trade stocks, but while Bamboo only focuses on foreign stocks, Risevest includes an option to invest in Nigerian stocks held by Nigerian companies. There’s also an option to invest in other diversified investment vehicles like real estate and fixed income savings accounts.
Unlike Bamboo, however, Risevest keeps tight control on the kind of stocks you can purchase on its platform. Plus, while Bamboo allows you to buy and sell stocks on a whim, Risevest approaches stock buying like it would a savings investment vehicle.
The company’s major investment strategy is buying index funds. You can join a pool of buyers to buy these index funds and earn interest (capped at 14%) over time as the investment pool appreciates. The obvious drawback is there’s a limit to how much you can earn, but the good thing is this investment model is safer — very much safer — than the Bamboo route.
Strong points
- Safe and secured way to earn money
- Easy to use even for beginners
Drawbacks
- Capped interest rates
Remicash
That’s us, and if you’ve never heard the name before, time for an introduction. Remicash is a dollar savings platform that allows you to save in dollars and earn cryptocurrencies as profit. Think of it as Cowrywise or Piggyvest, only this time, instead of stocking your money up in the rapidly devaluing Naira, we automatically convert it to USD and then pay you interest on your saved amount in cryptocurrencies.
Remicash effectively kills two birds with one stone. It protects your money from inflation and plugs you directly into the world of cryptocurrencies, which many regard as the future of digital finance. When you invest in Remicash, you’re investing in a legit online investment platform in Nigeria that pays you interest and allows you to earn interest on your interest. How you may ask.
The last few years have seen cryptocurrencies move from a niche concept to globally accepted payments and finance vehicles. In 2020 no less than 300 million people used cryptocurrencies in one form or the other. Just this year, in September, El Salvador, the Central American country, adopted Bitcoin (one of the most popular cryptocurrencies) as legal tender.
As cryptocurrencies gain more traction and as more countries adopt them into their financial systems, their value will only increase. Bitcoin is, for a fact, the best performing digital asset in the last decade, even better than Amazon stock which undoubtedly went on what’s best described as a meteoric rise.
When you invest with Remicash, you immediately begin earning Bitcoin or any other cryptocurrency of your choosing.
Just as Cowrywise and Piggyvest make it extremely easy to invest in bonds and own treasury bills, Remicash allows you to invest in cryptocurrencies and own USD without breaking a sweat. You don’t need any technical knowledge, special information, or sign-up details to get started.
And for the best part, we’re not forcing you to hold on to cryptocurrencies. If you’d rather just earn normal USD or Naira, you can always convert your money straight up and deposit it to your bank.
See more on how you can earn with a legit investment platform like Remicash here.
Strong points
- Inflation proof investing
- Opportunity to save in digital USD
- Opportunity to earn cryptocurrencies easily
Drawbacks
- Mid approaching low-risk investment strategy. Cryptocurrencies just like they’ve shot up in value can lose value
Wrapping things up
Which online investment platform will I recommend? Well, the answer to that question is down to your needs. Each legit online investment platform in Nigeria appeals to a particular set of needs.
- Bamboo works best for anyone who wants to own and profit from US Stocks.
- Piggyvest and Cowrywise are a decent way to earn stable (but relatively low) returns in Naira.
- Risevest is an equivalent of Piggyvest and Cowrywise, with the major difference being that your money is saved in USD. The earning potential is still relatively low.
- Remicash is for those who want to participate in the future of money. And not just participate but also get a chance to earn sizable returns on money invested. The main drawback is there’s a mid-level risk associated with the Remicash route, but as cryptocurrencies continue to gain adoption, that risk quotient continues to decrease.
Which will you choose? Let us know in the comments section.
