One thing that newbies who want to venture into investment don’t like is loss. That is why most of them are looking for a safe investment with high returns in Nigeria. But is there any investment that guarantees you the safety of your capital and has a high return?
In reality, no investment is completely risk-free, all the investment opportunities in Nigeria have risks attached to them. But one thing is some investments have a little risk compared to others. This type of low-risk Investment has little chance of collapsing and a high chance of yielding a good profit.
So, in this blog post, we are going to provide you with lists of investment that has a low risk and a reasonable return on your investment.
Low Risk Investment In Nigeria With High Return
Low-risk investments are those investments that have little risk attached to them and in the end, you will earn a good profit on your investment. So we have taken our time to compile the list of this low-risk investment that you can give a shot in Nigeria.
The list is:
1. Land Investment
Land Investment is considered one of the low-risk investments in Nigeria with a good return. Land Investment means buying land in areas that have a perspective of developing in some years.
You can get a hectare of land in this type of developing area; after the area has developed, you can sell it to a new person. You can buy this land from community leaders, direct owners, etc. And after making all the payments it becomes yours which you can sell anytime.
Before you buy any land, make sure it is located in a commercial area or area that has the potential to develop in a few years.
Despite buying land is considered to be of low risk, there are still some risks attached to it some of the risks observed in buying land as an investment are:
- Issue of land tenure system plaguing land system in Nigeria
- Government policies on land usage and acquisitions.
- Land fraud. Single land sold to many people.
The above-listed risks are some of the known risks observed in land investment in Nigeria.
2. Building House for Rental
Building a house for rentals is a very safe investment you can try in Nigeria. Due to the high cost of building many Nigerians are living in a rented apartment which they pay monthly, mid-yearly, or yearly depending on the agreement between you the landlord, and the tenant.
To invest in this business, you need to have a house or have built one and then you can lend it out to potential customers. Depending on the location of the building, you can easily realize your return on the investment within a short period.
Despite this investment being very lucrative there are still some risks attached to it which you need to consider whether it is worth your money. Some of the risks observed in building investment are:
- Tenant not complying with terms of agreement.
- The constant change of landlord-tenant agreement by the government.
- Risk of building collapsing due to mismanagement by tenants.
So if you are looking for a safe investment with high returns then consider building a house a putting it out for renting.
3. Fixed Deposit Banking
Fixed deposit banking is the process of saving your money on a fixed deposit account for a period after which you will be paid an annual interest for leaving your money with a bank.
Banks will use your money to borrow lenders and once the duration of which you want your money to remain fixed has reached, you will then withdraw the money with your interest.
This investment is considered to be a very safe investment but the return on your investment that is the percentage you will earn for keeping your money fixed in your bank account is not too high.
As we have said earlier, no investment is risk-free so some of the risks attached to keeping your money in a fixed deposit account are:
- Change in bank policies on the annual interest rate.
- Inflation risk which will take the real value of the money invested.
- Liquidity risk.
So these listed risks are some of the risks in Fixed Deposit investment.
4. Investing in Yourself
One of the greatest, safest, and high-returning investments you can ever make is investing in yourself. Many Nigerians underestimate this self-investment but it is one of the greatest investments you can make.
Investing in yourself can be acquiring new skills, learning new ideas, or doing things to improve yourself. There are many high skills you can learn that will bring you a good return in the future.
“An investment in self-development pays the highest dividends.”
―
So if you are thinking of a safe return investment you can do, then think of investing in yourself.
Conclusion
No investment is considered to be safe in Nigeria but some investments have low risk. You can invest in land property, build a house for rent, keep your money in a fixed account, and invest yourself which is considered to be the safest and best investment you can make.
“The wisest rule in investment is: when others are selling, buy. When others are buying, sell. Usually, of course, we do the opposite. When everyone else is buying, we assume they know something we don’t, so we buy. Then people start selling, panic sets in, and we sell too.” —Jonathan Sacks
