Introduction To Investment Companies In Nigeria
…Remember to save for the rainy day? These 12 top investment companies in Nigeria are exactly what you need.
What is Investment?
Succinctly put, investment is the action, process of putting money into financial schemes. Which are shares property, or a commercial venture for profit. Ultimately creating a passive income stream.
Who is an Investor?
An investor is any person that puts money into a financial scheme. Not without cause, but with the hope of creating profit passively.
What does it mean to Invest?
Although you may have internalized many terms, what does it really mean to invest?
In a nutshell:
It is using money to purchase an asset while hoping for a rise in the asset’s value. Or yielding a stream of income.
You understand the basic terminologies associated with the term “investment companies in Nigeria”. Read on to know just what to keep an eye out for as an investor.
What Do Investors Look For When Investing In A Company In Nigeria?
A Flawless Business Plan
A business plan describes in detail how a business sets its objectives. Also, it states how it is to go about achieving its goals.
But what makes a business plan flawless?
The objectives of a good business plan, where Investors are concerned at least, is to;
- Describe where the opportunity lies in the target market;
What this entails is:
Establishing the untapped potential in the company’s target market. As well as how the company is positioned to take advantage of these opportunities.
- Describe the problem in the current market;
A good business plan identifies a problem in the target market. It may be something small or large, something relatively simple or complex and technical.
It is a problem identified. Only with this can it come into perspective: How the company is positioned to address this problem and profit in doing so.
- Propose a solution; the business itself. Here, the business must fill all holes in the strategies involved, to be acceptable.
This article will present you with the 12 top legit investment companies in Nigeria. Each of which examines these factors in a business before putting your money there.
Investors want great value for their money.
No one wants to earn a loss. Instead, they expect a net positive return on investment i.e. profit.
Now, what brings about profit faster and bigger than the next big thing?
It may be a spin-off on an existing product. Or a particularly innovative solution to a lingering problem. It might be a revolution in technology or just a change in the way of doing business in a sector.
Originality is key where investment companies in Nigeria are concerned.
A Captivating Narrative
…….Everyone loves a good story. Even investors.
When pitching to investors, they are on the lookout for a potential cash cow. They pay particular attention to a narrative that can grab their attention. It doesn’t matter what type of investment it may be:
Online investment companies in Nigeria, forex investment companies in Nigeria, Islamic investment companies in Nigeria, a narrative is required.
This narrative must provide:
- A brief history of the business,
- The nature of said business, and
- The demands which the business plans to supply, all without losing the riveting attention of the golden child; investors.
Clearly Defined Goals;
- What is your aim with this business?
- What do you intend to achieve?
- What are your goals?
The answers to each of these must be clear-cut and well define. Not vaguely established if even present.
- Establish Specific Goals; While the goal must be ambitious, it must be something within the realm of possibility.
- Publicize Said Goals; the purpose for this is transparency. It suggests a degree of accountability and nothing spurs on investor confidence better.
- Set a Deadline; Without a deadline, goals will inevitably fail. It grants a sense of urgency that indicates a full commitment to investors. The deadline must also be reasonable like the goals themselves. Ambitious but not impossible.
- Practicability; Can the business model and the intended delivery of service be put into practice? If it cannot, the business becomes a white elephant.
To circumvent this, your business model should have:
- The Existence Of A Viable Market For The Business Offerings
- Evaluation Of Strategies And Business Models
- Understanding SWOT; the Business’s Strengths, Weaknesses, Opportunities, and Threats.
Types of Investment Companies In Nigeria
First off, a quick explanation of what investment companies are first!
What Are Investment Companies?
Investment Companies are corporate entities that assist individuals in managing their investment portfolio.
This is what an investment company does: it helps invest and manage individuals’ securities. This is done in exchange for a previously agreed-upon proportion of gains. This is also termed as return on investment (ROI).
Below are the two types of investment companies in Nigeria
Open-End Investment Companies
What sets an Open-End Investment Company apart from its Close-End counterpart? That is the former’s method of gathering capital.
An Open-End Investment Company is a mutual fund by nature. This means that it is a corporate entity that pulls together the monies of various investors to invest in other securities.
It raises capital by issuing shares that are not traded on the public stock exchange. But instead, in over-the-counter transactions, while handled by a specified dealer.
It is the money obtained from this investment that is spread out among other securities. As well as investments by the company.
Of course, there are advantages and otherwise to this Investment Company type;
Advantages of Open-End Investment Companies
- Net Asset Value Per Share; This net asset value is summarily the market value of the Investment Company’s holdings deducting all debt. Before proceeding to then dividing by the number of shares.
This method ensures that new investors are unable to dilute the value of the company by simply buying more shares.
- Legitimacy: open-end investment companies are largely legit. If you’ve fallen into Ponzi schemes earlier on, you may want to consider these. As they are the forms of the most legit investment companies in Nigeria
Disadvantages of Open-End Investment Companies
- Lack of Leverage; while an Open-End Investment Company can secure a loan, its structure precludes it from gaining access to as much borrowed funds.
Closed-End Investment Companies
Ever heard of a closed-end investment company?
Here is what a closed-end investment company is: It is a securities exchange that pulls funds from the public through the flotation of equities. It then invests the money usually in listed securities.
A Closed-End Investment Company has a fixed issuance of shares to be traded on the stock exchange. Just like any other public company.
They have fixed capital and may be referred to as investment trust companies.
While both open-ended and closed-ended companies are mutual funds, what is the difference?
A stark difference in their structure has made advantages under certain circumstances and disadvantages under others.
Here’s a breakdown;
Advantage of Closed-End Investment Companies
Leverage; while a Closed-End Investment Company also primarily pulls together the funds of investors:
It can go beyond and gain access to greater leverage in the form of borrowed funds with which it can carry out its investments.
Disadvantages of Closed-End Investment Companies
If the funds are not properly managed, the resultant returns are made worse when stocks are falling.
- Investor Ignorance of price fluctuations;
Much like a normal public stock, the price of the Closed-End Investment Companies fluctuates, not just according to their net asset value. But also according to the laws of demand and supply.
Types of Investment Instruments
When choosing an investment, there is a wide range of securities that can be chosen from.
This mix ratio depends on several factors;
- Safety of capital,
- Regularity of interest payments and,
- Capital appreciation.
With this in mind:
Here is a list of the numerous investment Instruments available to the investment companies in Nigeria;
Company and Government Bond Issues
Like most securities and their issuance, the issuance of these is primarily to raise capital. This capital might be for operational needs or strategic purposes.
Government Bonds are safer than Corporate Bonds since they are backed by whichever country’s government issues them. For instance, US Treasury bonds being free of risk since they are backed by the US Government.
In either case:
Investors who put their money in bonds receive interest payments regularly. Also, after the maturation of the specified period, gain their principal back.
There is always a risk that the issuer of a bond will fail to honor it. This is where credit rating agencies come in with their bond-assigned risk ratings. Helping to measure if the issuer of a bond can meet its pursuant financial obligations among other things.
Stocks and Equity Investment
Stocks can be traded on a specified stock exchange. These exchanges are regulated and highly scrutinized by law. It is possible to trade stocks on over-the-counter markets.
An equity investment is a money invested in a company through the purchase of shares II a specified Stock Exchange.
Like all other traded goods:
Prices of stocks often rise and fall. This impacts investment portfolios, and while a host of things could make prices rise. The attendant drop in price causes investment portfolios to suffer during periods of market volatility.
Mutual Funds and ETFs
Mutual Funds have a single focus; diversification. This is its primary selling point that it protects against market volatility and turbulence.
Various sectors might experience a sudden decline in stock price or bond price for any number of reasons.
This uncertainty that is associated with the field of investment has caused many investors to develop cold feet. Ultimately backing out of the prospect. Nobody wants to lose money.
Mutual funds recognize that and take appropriate steps towards preventing the occurrence of such. The Funds spread their fees and expenses across a sizable asset base. Specialization in the manner of investments results in a variety of mutual fund classification;
- Stock Funds; These trade stocks, either privately in over-the-counter transactions or on the stock exchange.
- Bond Funds; These trade bonds, either government-issued or privately so.
- Balanced Funds; to ensure a maximum spread of possible risk, an investment company may adopt an investment strategy of investing in a mix of stocks and bonds.
- Exchange-traded funds (ETFs), are similar to mutual funds in concept. The key difference is that they trade on the stock exchange like stocks. They also track market indexes and sub-indexes.
They can offer diversification of investments and increased convenience at a lower cost than the typical mutual fund.
Commodities and Precious Metals;
Commodities like gold and silver have a long history of being used as a store of value as precious metals.
The prices of these commodity assets are however volatile. Therefore, there is a risk of experiencing a significant loss in a short period as prices fluctuate.
The following helps novice investors who have little knowledge about the market. As well as to assist individual investors cost-effectively:
They are essentially mutual funds and ETFs that invest in commodities on behalf of their investors.
12 Top Investment Companies in Nigeria.
In this section, I examine the twelve top investment companies in Nigeria that cut across these 3 sectors:
- Forex investment companies in Nigeria
- Online investment companies in Nigeria
- Islamic investment companies in Nigeria
All legit investment companies in Nigeria are highlighted as a kick start to your financial journey!
So, let’s get started with investment company number 1…
STANBIC IBTC ASSET MANAGEMENT LTD
Stanbic IBTC Asset Management Ltd operates in investment management, in Victoria Island, Lagos State, Nigeria.
The business is structured as a Limited Liability Company (Private Limited Company) it operates under the Chief Executive Office, Bunmi Dayo-Olagunju.
Stanbic IBTC Asset Management Ltd is located at The Wealth House, 1678 Olakunle Bakare, Close Victoria Island, Lagos, Nigeria. It was founded on 20th November 1992.
The Company operates in the financial sector of the Economy. It provides investment advisory and asset management services to high net-worth individuals and institutions.
The company’s primary objective is to achieve a long-term capital appreciation of its assets. This is done primarily by investing in a carefully selected portfolio of high-quality equity securities quoted on the Nigerian Stock Exchange. But then also, in other securities approved by the Securities & Exchange Commission.
This company is rather simple to invest in. All it takes is taking a step into any Stanbic IBTC branch and requesting.
AFRINVEST ASSET MANAGEMENT LIMITED
Afrinvest Asset Management Limited (AAML) is a wholly-owned subsidiary of Afrinvest West Africa and a leading independent investment manager in Nigeria.
The business is a financial advisory firm, structured as a Limited Liability Company. Its focus on West Africa and is active in four principal areas:
- investment banking,
- securities trading,
- asset management and,
- investment research.
The Nigerian branch of the company was founded by Godwin Obaseki, in 1994. It has its headquarters at 27 Gerard Road, Ikoyi, Lagos, Nigeria. AAML aspires to be the preferred asset management firm in Nigeria.
Consequently, it consistently exceeds its clients’ investment objectives by ensuring that it provides:
- relevant products;
- efficient processes
- skilled professionals and,
- excellent customer service.
Afrinvest maintains established offices in Lagos, Abuja, and Port-Harcourt, and is licensed by the Nigerian SEC as a portfolio manager.
PENINSULA ASSET MANAGEMENT & INV. CO. LTD
Peninsula Asset Management Limited is a Nigerian financial service outlet for corporate finance and investment advisory services.
The company is structured as a Limited Liability Company and majors in:
- assets/funds management,
- brokerage and dealings,
- investment advisory services.
The firm operates under the Ag MD/CEO, Lucky Idudu. The firm is located at Radmed Building (2nd Floor), 1E, Ligali Ayorinde Street, Victoria Island, Lagos. It was incorporated as an investment management firm on the 10th February 2004.
Its services are targeted at:
- Quasi-governments, and
- Corporate and high net worth individuals.
The company’s mission is:
- To be the preferred financial services provider
- Operating with the highest standard of corporate governance and integrity.
- Essentially to deliver returns to all stakeholders bearing in mind its social responsibility.
The company seeks to be the leading center for individuals and corporations seeking investment outlets for funds. And who also wish to channel such funds to the deficit sectors of the economy for development purposes.
It will also provide easy access to equity markets worldwide for trading in assets round the clock. The company has an authorized share capital of N750m with N500m issued and fully paid up.
CITITRUST ASSET MANAGEMENT LIMITED
CitiTrust Asset Management Limited is a Nigerian financial service firm, structured as a Private Company Limited by Shares.
The firm was incorporated in YABA, Nigeria with Registration Number 1532997. It was registered on 18 October 2018 and its current status is active.
The company’s registered address is 24, Montgomery Road, Yabba, Lagos, Nigeria.
The company is a leading asset management firm established to do business. Asset management firms were established to do business in Nigeria. It is a wholly-owned subsidiary of Cititrust Financial Services Plc. licensed by the Securities & Exchange Commission (SEC) to operate as Fund/Portfolio Manager.
MERISTEM SECURITIES LIMITED
Meristem Securities Ltd is a brokerage firm. The company offers mergers and acquisitions, divestiture, restructuring, valuation, and debt and equity capital-raising advisory services.
The company operates in the Financial Services Sector of the Nigerian Economy. It is structured as a Limited Liability Company.
The headquarters of the company is located at 124 Norman Williams Street, South West Ikoyi, Lagos, 23401 Nigeria.
It operates under Chairman Ishaya Shekarri Oon, the Vice-Chairman, Olusegun Olusanya, and the Managing Director/CEO, Oluwole O. Abegunder.
The company was founded in 1994 and was responsible for 13.3% of the value of the stocks traded on the floor of the Nigerian Stock Exchange.
Piggyvest is a platform that helps individuals and businesses manage their finances effectively.
If you are on the look for legit online investment companies in Nigeria, PiggyVest is just for you.
It is the first online “Savings and Investment” app in West Africa. The firm first launched Piggybank.ng on the 7th of January, 2016 as a savings-only platform. For 3 years, it offered only savings to its users.
In April 2019, it rebranded to “PiggyVest” and began offering direct investment opportunities to users in addition to savings. 4 years on, it has continued to deliver excellent services to 1,000,000 users and counting, helping them manage their finances with simplicity and transparency.
Its users save and invest billions of naira every month that they would have instead squandered. PiggyVest is on a mission “to give everyone the power to better manage & grow their finances” and it intends to be the best at it. The company operates under Co-founder and COO, Odunayo Eweniyi.
Cowrywise is a fintech firm that provides :
- Financial planning,
- Investment and,
- Wealth management solutions for individuals and businesses.
It is one of the largest Fintech investment companies in Nigeria.
Cowrywise’s headquarters is in Ikeja GR, Lagos. Cowrywise has a revenue of $3M and 100 employees. Cowrywise has raised a total of $3.3M in funding. Cowrywise’s main competitors are Chaja, Rise, and Trove.
The company was founded in 2017 and is a Private, Independent Company, that operates under the CEO, Razaq Ahmed.
The goal of the company is to help Africans make sense of money. And to do this, the company is beginner-friendly, as it lets you in on practical financial advice through its team of experts to help you achieve your goals.
The company also learns from the best, by leveraging the knowledge of professionals in finance. Investing, business, and lifestyle to provide the best advice that can help serve as a basis for sound financial decisions.
The company provides advice to match your know-how and the dexterity of its sound advice grows with you. Finally, the company offers the best financial advice without making it feel like a maths class.
Farmcrowdy is a global Agrotech company focused on helping stakeholders in the food value chain. Also, it maximizes their output and increases their profits with technology.
Its game-changing platform (Farmgate) leverages technology to connect over 420,000 food value chain participants. it has a large network with access to finance, reduce the cost of production, open market access and harvest better yields – all in one place.
The firm has a 424,966 Farmer network; $15m deployed for farming projects in three years. 3 million chickens raised with a lower than average mortality rate. Works in 36 states across Nigeria and has 319,775 agriculture enthusiasts and followers.
The vision of the company is to be the foremost digital agricultural platform in Africa by being:
Admired for its impact on collaborative food production and boosting food security across the continent.
It achieves this by being humble; constantly and consistently thinking out of the box and re-inventing new ways. Among these includes being excellent, people smart, and maintaining integrity.
The headquarters of the company is located at 2, Opeyemisi Bamidele Crescent, Off Freedom Way, Ikate, Lekki, Phase 1, Lagos, Nigeria, and at Suite 3, 4th Floor, Sinoki House, Plot 770, Off Samuel Ademulegun Ave, Central Business District, Abuja, Nigeria.
The firm operates under the founder and CEO, Onyeka Akumah.
Carbon Finance and Investments Limited (RC 1044655) is a company that empowers individuals with access to credit, simple payments solutions, high yield investment opportunities, and easy-to-use tools for personal financial management.
The company is structured as a Limited Liability Company, licensed and regulated by the Central Bank of Nigeria. Carbon is headquartered in Lagos, Nigeria. It is a global company of over 90 employees with operations in Nigeria, Ghana, and Kenya.
The company aims at empowering all people with the financial access they need.
Seeking a cryptocurrency investment company in Nigeria, Trove is your go-to company.
Trove Technologies Limited is a firm that created the Trove investment app which aims to make the process of finding and selecting investments. Specifically cryptocurrencies, stocks & bonds – easy and approachable for beginners.
With Trove, you will find stock from public companies from Nigeria and the U.S. As well as various bonds, 10 cryptocurrency assets, and mutual funds.
- KYC and sign-up process
- Range of financial assets offered by the Trove platform,
- Buying and selling
- A display of a personalized news feed of finance headlines about the stocks and assets you trade,
Trove makes the whole process around micro-investing seamless from start to finish. The company is structured as a Limited Liability Company and was founded on July 10, 1998. It operates under the founders, Austin Akagu, Desayo Ajisegiri, and Oluwatomi Solanke.
I-invest is a product of Parthian Partners Limited, a company regulated by the Securities and Exchange Commission (SEC).
I-Invest is another leading legit online investment company in Nigeria.
The mobile application allows current and aspiring investors to purchase securities and other related instruments without the aid of the broker.
The application provides a UI dashboard to track diverse investment portfolios. It provides a convenient way for retail investors to save money. Whilst earning attractive interest rates, and allows retail investors to help fund infrastructure projects in Nigeria, whilst earning an income.
The mother company is located at Osborne Foreshore Estate, 22A Udi St, Ikoyi 101233, Lagos, and operates under Oluseye Olusoga, its CEO.
The next few companies in this review happen to be in the forex sector. Seeking a legit forex investment company in Nigeria? This list is just for you.
ForexTime is a financial investment company that provides online trading services to both private and institutional investors. They were founded in 2011 with a mission to become a global leader in forex trading.
Unlike other investment platforms in Nigeria, FXTM has a local phone line on which their clients can reach them.
They are also one of the best when it comes to how quickly they respond to client inquiries.
For added customer ease and user interface of the entire system:
There are nineteen deposit and withdrawal options available for users. Added to this the availability of a demo creation for novice users to use in learning the basics of Forex trading.
ALPARI Forex Investment
At Alpari International, they’re dedicated to hard work and providing their clients with the best trading experience. With them, you can make the best decisions and trade in the forex market with ease.
Alpari International has been around for over 20 years and is currently in 8 global locations. They have a local office in Abuja and operate a 24-hour customer service line.
Their entire operation is making certain that their clients make the best decisions when it comes to Forex Investment.
Frequently Asked Questions About Investment Companies In Nigeria
What is the biggest investment company in Nigeria?
The type of Investment Company, as well as the manner of investment Instruments that is focused on by the said company, introduces a spread of factors in determining the single biggest investment company in Nigeria.
Whether the criteria used are profit-making, the return on investment, capital appreciation, or total capitalization of the investment company, it is an impossible task to determine the biggest investment company in Nigeria.
Where can I invest money online in Nigeria?
You can invest in multiple companies and assets such as stocks, mutual funds, exchange-traded funds (ETFs). Or real estate, debt, venture capital, commodity market, and private equity investment.
While there are a lot of options available, it is best to choose a company with a;
- Proven track record
- Excellent Customer Reviews
What are the 5 types of investment?
Equity Investments Both stocks and bonds are the quintessential types of investment. While bonds have long-term growth potential, stocks offer the highest risk and highest potential for return.
However, they both come with very different risk profiles.
To find a suitable investment, you should consider the risk involved, and the long-term potential, as well as the growth potential. With that in mind, here are the five types of investment summarily;
- Options and Futures
- Mutual Funds
- Exchange-traded Funds
There are far more than just these of course, but these are exceedingly principal where investors are concerned.
What should I invest in now in Nigeria?
The Nigeria of today features a wide range of financial portfolio accumulation options. Part of that is forex, another part bonds, government-issued or not. Then there’s the golden child of investments, stocks.
It is best to rely on an investment company that is fully armed with the expertise to examine the market trends and come to a conclusion about the financial climate.
Of course, it is hard to go wrong with stocks.
What Type of Investment is best in Nigeria?
We have examined stocks, bonds, international currency also known as forex.
The question of the type of investment that is best in Nigeria is at most, subjective like its questions.
Depending on your goals; capital appreciation, regular interest payments, there are a wide variety of options to choose from.
Which Investment company has the best return?
Multiple best investment companies put their focus on different aspects of the financial market.
What this means is that while an investment company may issue greater month’s end dividends. It is going to be different to match up to another in capital appreciation.
Therefore, it is somewhat impossible to decide for certain, which investment company has the best return on investment.
Final Verdict of 12 Top Investment companies in Nigeria
While multiple investments have been springing up, before delving into any of them, as a rule of thumb always ask yourself, what am I willing to lose?
In the investment pool, there is a plan for everyone. High returns, high risks, low returns, low risks, medium risks and returns et cetera. Now that you’re better equipped with knowledge about most investment, online, forex, stocks, and bonds:
You can finally delve into one. Good luck in your financial journey!
Ibrahim Clouds, here.
I am a blogwriter, a copywriter, a keyword researcher, and a product reviewer. On the side of creating website contents and outreaches for businesses online, I blog about sports, business, entertainment, pets, education, and betting on my blogsite, Henrisoul.com. Whenever I am not writing or blogging, I am either sitting in a lotus pose meditating like a real Tibetan monk or trying to make a balance between sanity and insanity. If you don’t find me doing any of those, call the police, please. I might just have been kidnapped.