A financial expert, Israel Paul, has counselled Nigerians that making wise investments is crucial for financial security and growth.
Paul urged Nigerians not to put all their money into a single investment but diversify across different asset classes, such as stocks, bonds, real estate and possibly alternative investments like cryptocurrencies.
The financial expert, who noted that diversification can help spread risk, added that other steps to consider in making wise investments include setting clear financial goals, risk tolerance, research and education, time horizon, cost management, regular monitoring and rebalancing, as well as avoiding emotional decisions and seeking professional advice.
The founder of Become Rich Africa, an organization dedicated to delivering financial, business and investment education in Africa, said the government can improve the economic wellbeing of the people by investing in infrastructure projects like roads, energy and telecommunications to boost economic activity and create jobs.
“Investing in education and skills development can improve the workforce’s productivity and earning potential. SMEs are often the backbone of the economy, so governments can provide financial support, reduce red tape and offer training to help them grow,” he said.
According to him, reduction of trade barriers while promoting international trade can expand economic opportunities and access to global markets.
Paul, who argued that governments can use monetary and fiscal policies to manage inflation, interest rates and government spending to stabilize the economy, added that tax incentives for businesses can also encourage investment and job creation.
“Promoting access to financial services for underserved populations, allowing them to save, invest and access credit, as well as the development of safety net programmes to help vulnerable populations during economic downturns can improve their economic wellbeing,” he added.
He called on the government to address issues around corruption, which he said can hinder investment by increasing the cost of doing business and reducing transparency.
Paul, who founded Zenith Hill City Ltd, a real estate investment company, named frequent changes in government policies and regulations, infrastructure deficits, insecurity, economic volatility, bureaucracy, currency risk, as well as income inequality and poverty levels as some of the factors limiting investments in the country.
“Navigating these challenges requires careful planning and risk management when considering investments in Nigeria or any other emerging market. Consult with experts and conduct thorough due diligence before making investment decisions,” he counselled.
