Business leaders and financial investment stakeholders have urged the Nigerian youth to make certain business decisions and make conscious efforts to ensure that investing becomes a lifestyle in order to secure a future with better economic conditions.
With the emergence of several Financial Technology companies willing to grant loans and help manage finances, millennials are now open to a wide range of investment options rather than being confined to traditional investment routes such as stock market trading and property purchase which they may not understand.
Speaking on Tuesday at the ‘Money Moves: Investment Opportunities for Millennials’ session at the Social Media Week in Lagos, Zephia Ovia, head, business development, fintech initiative, at Vetiva Capital Management Limited, said that millennials need to understand that investing doesn’t have to wait until you have millions of naira.
“With as little as N5,000 or N10,000 you can find something to invest in that will give you returns on your money. It might not be large returns but it’s something and we need to cultivate the culture of investing,” she said.
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Ovia who moderated the panel session, suggested that it might be helpful if millennials had a more structured investment plan geared towards their income rate and frequency, as this might help in containing the urge to want quick, fast return on investment.
In Nigeria, risk-free government securities like Treasury Bills and FGN Savings Bonds offer between 10 percent to 14 percent per annum in returns. Corporate Bonds offer similar returns but require a larger capital outlay which keeps it out of reach for many.
Tomie Balogun, co-founder, Investment Club, said she decided to create a club that would educate young, working professionals and entrepreneurs on the powers of investment and how to create wealth.
“I realized that there were not enough books, resource tools on how to understand investment in this market, so millennials dabble into different things including Ponzi schemes and lose a lot of hard-earned, saved up money,” she said.
Mutual Funds are increasingly gaining wide adoption among a number of working-class millennials. For most of them, it is at least better than keeping the money in the bank. However, the returns provided by these investment options are not eye catching.
Also speaking as a panelist at the session was Chiwete John-Njokanma, co-founder, FINT Technology Limited, an impact investing fintech platform that intends to simplify access to credit for genuine MSMEs and individuals while also providing returns to lenders.
According to him, it is of utmost importance for millennials to generate credit worthiness by always making sure that money loaned is paid back in due time and that asking questions and carrying out research before investing, give an upper hand.
“It is important to know the reason for your investment so that you can plan appropriately and weigh your risk options. Millennials should also take time to find out more about what they are willing to invest in, ask questions, and get involved with factual things,” he said.
Although today’s youths are more interested in investing and making money from cryptocurrencies rather than the stock market; financial experts say that the Nigerian stock market is one that could deliver exciting returns if research and study is carefully carried out in selecting companies to invest in.
