Long Term Investing In the Nigerian Stock Market
Investment in the Nigerian stock exchange might be worth it or not depending on what you aim to achieve. However, note that Nigeria stock exchange is not as efficient as the NASDAQ or NYSE so there would be lots of tricks which experience would be handy.
Scenario 1 :
If you are a Nigerian with mostly naira expenses an little to no foreign currency exposure, there is absolutely nothing wrong, and yes it is worth it to invest in stocks that have value.
Look for dividend companies for income, growth companies for capital gains but never forget VALUE is the watchword.
Scenario 2 :
You’re a Nigerian or foreigner with dollar expenses/ international exposure with little naira exposure. It might worth it to a certain level, But remember that there is always a risk of devaluation.
Scenario 3 :
You don’t have any naira expense. Definitely advise against going to the stock exchange as there are better ways to utilize such capital to tied more returns, such as agro crowdfunding, etc. Investing in emerging markets certainly have risks and a correlating return however the risk undertaken is much more than the expected return
This article is for informational purposes only, it should not be considered Financial or Legal Advice. Not all information will be accurate. Consult a financial professional before making any major financial decisions.
