Investment-for-Beginners-with-Little-Capital-in-Nigeria

Investment for Beginners with Little Capital in Nigeria.

[Audio] This training video will discuss the different types of investments in treasury bills in Nigeria. As a beginner, it is important to understand the available options before making any investment decisions. Treasury bills are considered one of the safest options for beginners, as they are short-term government debts and are very secure. These bills are issued by the Central Bank of Nigeria and are guaranteed by the government, with almost zero risk. There are various short-term duration options for investors, ranging from 91 to 364 days. This allows for a choice that best fits individual needs and investment goals. One advantage of investing in treasury bills is the discount purchase option, making it a more affordable choice for those with limited capital. In summary, treasury bills are a great option for beginner investors in Nigeria, offering government-backed security and various short-term duration options. Stay tuned for the rest of the presentation to learn more about investing in treasury bills..

[Audio] In this training video on investing in treasury bills in Nigeria, we will discuss the basics of how treasury bills work. Treasury bills are short-term investments issued by the Nigerian government to raise funds. They have a maturity period of 91 to 364 days and are commonly used by investors for their low-risk portfolios. One key feature of treasury bills is that they are sold at a discount, meaning that they can be purchased for less than their face value. For example, a ₦100000 bill may only cost ₦90000. This discount serves as the interest earned on the bill. On Slide 3, we will discuss in detail how treasury bills work. The next step after purchasing a treasury bill is to hold it until maturity, usually within 91 to 364 days. During this period, your money remains invested. Upon maturity, you will receive the full face value of the bill, including the discount you paid. Investing in treasury bills in Nigeria also comes with tax benefits, as the earned interest is exempt from personal income tax. In conclusion, treasury bills are a low-risk and attractive investment option with tax benefits. We hope this overview has given you a better understanding of how they work. Thank you for watching..

[Audio] As a beginner in the world of investing, it may seem overwhelming to navigate through different options and find the right fit for your financial goals. However, one option that has been gaining popularity in recent years is investing in treasury bills in Nigeria. These are government-issued short-term debt instruments, making them a low-risk and reliable investment opportunity. Understanding the current interest rates is crucial for those looking to enter the world of treasury bills. As of mid-2025, treasury bills offer impressive returns compared to regular savings accounts. These rates vary based on the tenure of the investment. For a 91-day tenure, the approximate annual yield is 18%, rising to 20.04% for a 182-day tenure and 24.31% for a 364-day tenure. While subject to change, these rates provide an idea of the potential returns from investing in treasury bills. Limited capital should not deter individuals from investing as treasury bills require a small investment and still offer attractive returns. The high interest rates make them a valuable addition to any portfolio and a way to secure financial future. This concludes the discussion on current interest rates for treasury bills in Nigeria. The next slide will cover the process of investing in these instruments. More information on how to get started on your investment journey with treasury bills will follow..

[Audio] Understanding the concept of risk assessment is crucial when making investment decisions. In Nigeria, treasury bills are a preferred option for investing with limited capital. This is because they offer low risk compared to other investments, backed by the Federal Government of Nigeria. In addition, treasury bills provide competitive returns with better interest rates than most fixed deposits offered by banks. This makes them a wise choice for those seeking to grow their money with minimal risk. In summary, treasury bills are a suitable option for inexperienced investors, as they offer low risk and high returns, supported by the Nigerian government. If you are ready to start investing, consider treasury bills as a viable choice. Thank you for watching and stay tuned for the remaining slides in our presentation..

[Audio] We will be discussing the costs and fees associated with investing in treasury bills in Nigeria with little capital on slide number 6. It is important to understand the fees that you will be required to pay before making any investments. There are three main types of fees - primary market fees, secondary/fintech fees, and custody fees - that you need to be aware of. Let's dive into each one in more detail. The primary market fees are charged by banks when you make a transaction in the market and typically include a flat fee of ~₦300 plus a 7.5% VAT. However, some platforms may include this fee in their overall platform fee. The secondary/fintech fees, which are usually included in the platform fee, do not require any additional payment. It is recommended to confirm this with your chosen platform. Lastly, the custody fees are typically a small percentage (0.05%) of the face value of your investment, plus VAT. It is usually included in your overall platform fee, but it's best to double-check. In addition, some banks and brokers may also charge a management fee ranging from 0.1-0.2% of your total assets under management (AUM) for pooled investments. It's important to note that a small service fee may also be included with this management fee. Understanding these fees is crucial when making informed decisions about investing in treasury bills. We advise thoroughly researching and comparing different platforms to find the one that best suits your investment goals and budget. Thank you..

[Audio] Slide number 7 in our presentation focuses on important factors to consider when investing in treasury bills in Nigeria with little capital. The first aspect to consider is liquidity constraints, meaning that once invested, the money will be locked until maturity or with a potential penalty for early withdrawal. Inflation concerns should also be kept in mind, as treasury bills may offer attractive returns, but may not always beat the high inflation rate in Nigeria. For small investors, using banks or investment apps may be more feasible due to the minimum capital requirement of ₦50 million for direct purchase from the Central Bank of Nigeria. Lastly, the platform selection is a crucial factor in the investment journey, as different platforms offer different interest rates and terms. It is important to do thorough research and choose the platform that aligns with your investment goals. In summary, be mindful of liquidity constraints, inflation concerns, capital requirements, and platform selection when considering investing in treasury bills in Nigeria with little capital. These factors will guide you in making informed decisions and maximizing your returns..

[Audio] Slide number 8 of our presentation on a beginner's guide to investing in treasury bills in Nigeria with little capital will cover the process of investing in treasury bills. The first step is to choose a platform, such as fintech apps like i-invest or Zedcrest Wealth, or banks like GTBank, Zenith, or UBA. Once a platform is selected, the registration process must be completed, which may involve downloading an app or visiting a bank branch. After registration, completing the KYC requirements is necessary. The next step is to fund the investment wallet through the chosen platform. Finally, investors can select their preferred tenure, ranging from a few weeks to a few months. This concludes our discussion on investing in treasury bills. Please proceed to the final slide for additional resources and tips..

[Audio] Our presentation on a beginner's guide to investing in treasury bills in Nigeria with little capital has now come to an end. Before we conclude, we would like to share some final tips to help you get started. Firstly, you can download the i-invest or Zedcrest Wealth app today if you're ready to begin investing. These user-friendly apps make the investing process much easier. After downloading the app, the next step is to register and complete KYC verification, which is a simple process that ensures the security of your account and compliance with regulatory requirements. Following this, you can fund your wallet with as little as ₦10000, so you don't need a large sum of money to start investing in treasury bills. You can then choose the tenure of your preferred treasury bill, whether it's a 91-day, 182-day, or 364-day bill, depending on your investment goals and risk appetite. It is important to diversify your investments by considering adding money-market funds to your portfolio. This will provide better returns and help mitigate any potential risks. Lastly, it's crucial to stay updated on the CBN auction dates and current rates through financial news. This will help you make informed decisions when buying and selling treasury bills. We appreciate you watching this training video and considering investing in treasury bills in Nigeria. We hope this presentation has provided you with valuable information and insights. Remember, with a little capital and the right knowledge, you can start your investing journey right now. Thank you for listening..