In this edition, we share more perspectives from the entries on the challenge we had thrown three weeks ago. Interestingly, the second proposal from Abiola Kabiru caught our attention, and we are sharing it in this edition. His first proposal was published last week.


Abiola Kabiru

This idea is to demonstrate the versed opportunities that abound in the emerging digital economy space across Africa.


I am thrilled to submit my proposal for the N50 Million ThisDay Life Lessons Investment Challenge. My investment idea is centred on the creation and expansion of RENTA, a revolutionary platform for rental services and expert hiring in Nigeria. RENTA aims to tap into the burgeoning sharing economy in the country, facilitating the easy rental of items and hiring of professional services, all while generating an attractive return on investment.


Rental services in Nigeria face a common challenge – the absence of a unified platform where users can conveniently access a diverse array of items available for rent. RENTA steps in to bridge this gap by providing an all-encompassing platform that empowers users to discover and lease anything they require, whether it’s something as small as cameras or as substantial as heavy machinery like bulldozers. Moreover, RENTA introduces a distinctive feature that enables users to enlist the services of skilled professionals and experts to cater to their specific project or event needs.

RENTA represents a groundbreaking web and mobile platform with the primary goal of digitising and streamlining the rental services landscape in Nigeria. Its mission is to connect individuals in searching for equipment, gadgets, machinery, vehicles, clothing, event accessories, and more for rent.

Furthermore, RENTA is committed to simplifying the process of hiring professionals and experts across various fields to support various projects and events. This document serves as a comprehensive overview of the key facets of RENTA.

Problem Statement

  • Fragmented Rental Market: The rental market in Nigeria lacks a unified platform, making it challenging for users to find a wide range of rental items.
  • Limited Access to Professionals: Locating and hiring professionals and experts for various projects or events can be time-consuming and uncertain.
  • Lack of Transparency: Users often face difficulties accessing information about rental items and expert services, such as rates, availability, and reviews.

Solution: RENTA Platform

RENTA is a one-stop platform that solves these problems by providing a user-friendly solution for renting items and hiring professionals. Here’s how RENTA works:

  • Rental Services: Users can easily search for and rent a wide range of items, including equipment, machinery, clothing, and event accessories. The platform offers a secure and convenient rental process.
  • Expert Services: Users looking to hire professionals can browse profiles, view job references, and connect with experts in fields such as web development, public speaking, tailoring, and more.
  • Transparency: RENTA ensures transparency by displaying detailed information about rental items and expert services, including rates, availability, and user reviews.

Mission Statement:

Our mission is to empower individuals and businesses in Nigeria by providing a trusted, convenient, and innovative platform for renting a wide range of items and hiring expert professionals. “We are dedicated to simplifying lives, fostering collaboration, and driving economic growth while ensuring user safety and satisfaction.”


The rental market in Nigeria is a significant and growing segment of the economy. According to a recent report, the rental industry in Nigeria is estimated to be worth over N100 billion annually. This market includes products and services, from equipment and machinery rentals to clothing and event accessories.

Sharing Economy Growth: Nigeria has seen a substantial increase in sharing economy activities in recent years. Reports indicate that the sharing economy in Nigeria has experienced annual growth rates of approximately 30%. This trend reflects a shift in consumer behaviour towards sharing and renting rather than ownership.

E-commerce and Mobile Penetration: With the increasing penetration of smartphones and the growth of e-commerce, more Nigerians are looking for convenient online platforms to access rental services and hire experts.


§ User-Centric Approach: Our core marketing strategy revolves around placing the user at the centre of everything we do. We aim to provide a seamless and intuitive user experience that fosters trust and encourages engagement.

§ Digital Marketing: We will leverage digital marketing channels, including social media, search engine optimization (SEO), and online advertising, to reach our target audience. These channels will allow us to connect with potential users and promote the benefits of RENTA.
§ Partnerships: Building strategic partnerships with rental item owners, professionals, event organisers and businesses will be a key part of our marketing strategy. These partnerships will help us expand our inventory and expert pool while promoting RENTA to a wider audience.
§ Customer Education: We will focus on educating our target audience about the advantages of using RENTA, including cost savings, convenience, and access to a wide range of items and services.


a. Transaction Fees with Escrow: We will charge a transaction fee when users opt to use our inbuilt escrow system for payments. This fee covers the cost of providing a secure transaction environment and builds trust among users. It ensures both buyers and sellers have a safe and transparent rental experience. (Proposed – N5,000 or 10% of the value of items whichever is smaller).
b. Premium Listings: To help our users stand out in the crowded marketplace, we offer premium listings. Rental item owners and experts can choose to feature their offerings prominently on our platform for a fee. This enhances their visibility and increases the chances of attracting users’ attention, ultimately benefiting from more rentals and hires. (Proposed N1,000 per listed items).
c. Featured Promotions: We provide businesses and individuals with the opportunity to promote their products or services through featured promotions. This avenue not only benefits our users by exposing them to exciting offers, it also contributes to our revenue stream. It’s all about creating value for both sides. (Proposed N1000 per 10,000 display).
d. Subscription Plans: We understand that some users seek additional benefits and features. To cater to their needs, we offer premium subscription plans. Subscribers enjoy exclusive perks and advanced features, creating a reliable and recurring revenue stream for RENTA. (Proposed N3,000 per month or N20,000 per annum).
e. Advertising: Collaborating with relevant businesses is another way we generate revenue. By displaying targeted ads on our platform, we create a win-win situation. Businesses reach their target audience and RENTA benefits from advertising revenue. It’s an excellent way to monetise our growing user base.



  • 20,000 vendors on-boarded in Year 1. (Targeting 200,000 vendors by Year 3).
  • Only 10% of the vendors go premium. (Targeting 25% premium subscribers by year 3).
  • 30,000 items were listed in Year 1. (Targeting 1,000,000 items by Year 3),
  • 15% of items were listed on premium space.
  • Projected 1,000 escrow transactions in Year 1.

Project Revenue Year 1:

§ Subscription – N40 million + premium listing: N4.5 million + transaction fee: N5 million => Total: N49.5 million.
Please note that these revenue projections are estimates and may vary based on factors such as user adoption rates, market dynamics, and economic conditions.
§ Adjusting for operation expenses @ 36% of the revenue;
§ Thus, we can project Year 1 revenue of about N30 million (i.e. 60% RoI).

Year 2 and Beyond: As RENTA gains popularity, we expect exponential growth in both user base and revenue. With monetisation strategies such as transaction fees, premium listings, subscription plans, and advertising, we aim to achieve a return on investment that far surpasses the 200% million initial investment.

II. Step-by-Step Strategy:
a. Platform Development and Enhancement (Months 1-3)

  • Allocate initial funds to develop a robust web platform with essential features.
  • Hire a skilled development team and establish partnerships with payment gateways for secure transactions.
  • Conduct market research to identify the most demanded rental categories and professional services in Nigeria.
    b. Pilot Launch and User Acquisition (Months 4-6)
  • Launch a pilot version of RENTA in a selected Nigerian city.
  • Implement digital marketing strategies to acquire users and rental item listings.
  • Gather user feedback and fine-tune the platform based on early insights.
    c. Geographic Expansion (Months 7-9)
  • Use funds to expand RENTA’s coverage to additional cities and regions in Nigeria.
  • Strengthen partnerships with rental item owners, experts, and event organisers in these areas.
  • Invest in marketing campaigns to promote RENTA’s expanded presence.
    d. Mobile App Development and AI Integration (Months 10-12)
  • Develop dedicated mobile apps for Android and iOS platforms to enhance user experience.
  • Implement AI-powered recommendation systems to suggest relevant rental items and experts.
  • Continuously optimise the platform for scalability and user satisfaction.

III. Budget allocation

  1. Platform Development and Maintenance (30%): N15 million
  • Web and mobile app development: Hosting and server costs; software licenses; continuous improvement of the platform; implementing user feedback and technology upgrades.
  1. Marketing and User Acquisition (40%): N20 million
  • Digital marketing campaigns; advertising (online and offline); user education and trust-building initiatives and content creation and marketing.
  • Expansion to additional cities or regions in Nigeria; marketing and promotion in new areas and partnering with local businesses.
  1. Operational Costs (24%): N12 million
  • Salaries and benefits for employees, office space and utilities and legal and insurance.
  1. Contingency and Miscellaneous (6%): N3 million

Total Budget: 100% (N50 million)

This budget allocation is a general guideline and can be adjusted as needed based on actual financial performance, market conditions, and the company’s growth trajectory. Regular financial reviews and adjustments will help ensure the optimal allocation of resources for RENTA’s success.

In conclusion, RENTA presents a compelling investment opportunity that aligns with the growing sharing economy and the demand for rental services and professional expertise in Nigeria. The proposed N50 million investments will be utilised strategically to develop, launch, and scale the platform, ultimately generating an attractive return on investment.
I am excited about the potential of RENTA to transform the rental and expert services industry in Nigeria while delivering substantial financial returns.

RENTA presents a compelling investment opportunity that aligns with the growing sharing economy and the demand for rental services and professional expertise in Nigeria. The proposed N50 million investment will be utilised strategically to develop, launch, and scale the platform, ultimately generating an attractive return on investment.

Thank you
Abiola Kabiru


Rose Ebiloma

  1. Investment Allocation:
    Given the freedom to choose any instrument, a diversified approach would be the key to balancing risk and return.

Here’s how I would allocate the N50 million:

I. Equity Investments (55% – N27.5 million): I would invest about 60%, that is N27.5 million in a mix of blue-chip stocks, technology companies, and emerging markets.

Diversification within the stock market would spread the risk.

II. Bonds and Fixed Income (25% – N12.5 million): I would also invest about 25%, that is N12.5 million in government bonds and corporate bonds because they provide stability to the portfolio. Also, they offer lower but steady returns and act as a cushion against market volatility.

III. Real Estate Investment Trusts (REITs) (10% – N5 million): Also, I would invest in REITs because they allow exposure to real estate without the hassle of property management. They offer a balance of income and potential appreciation.

IV. High-Yield Savings Account/Money Market (5% – N2.5 million): Finally, the fourth investment is that I would put 5%, that is N2.5 million because keeping a portion in a high-yield savings account or money market fund provides liquidity and acts as an emergency fund.

  1. Step-by-Step Strategy: a. Research and Analysis: I would first of all thoroughly research potential stocks, bonds, and REITs. Analyse historical performance, company financials, market trends, and economic indicators. b. Diversification: I would allocate the funds as per the plan, ensuring balanced diversification, and I shall avoid putting all eggs in one basket to mitigate risks. c. Regular Monitoring: I would keep a close eye on market trends, news, and geopolitical events. Rebalance the portfolio periodically, to adjust to changing market conditions. d. Risk Management: I would use a portion of the funds for options like protective puts or stop-loss orders to limit potential losses in case of market downturns.
  2. Expected Returns:
    Returns on investments are subject to market fluctuations and economic conditions. Assuming a balanced and well-diversified portfolio, a conservative estimate would be an annual return of 10-15%. This estimate is based on historical data and past market performance. The exact return would depend on the performance of individual assets within the portfolio.

Investment Note: Maximising Returns through Diversified Investments

In today’s volatile market, prudent investment decisions are paramount. The allocation of funds into diverse instruments provides a cushion against uncertainties. The chosen approach aims to balance risk and reward. Equities offer high returns but come with volatility; bonds and REITs provide stability and regular income. The high-yield savings account ensures liquidity.

Equity Investments:
Investing in a mix of established companies and emerging markets offers potential for high returns. Research-backed decisions will be made, focusing on companies with strong fundamentals and growth potential.

Bonds and Fixed Income:
Government bonds and corporate bonds provide steady income. The strategy involves investing in bonds with favourable credit ratings and monitoring interest rate movements to optimise returns.

Real Estate Investment Trusts (REITs):
REITs are an attractive option, providing exposure to the real estate sector without the complications of property management. Careful selection of REITs with a track record of consistent dividends and capital appreciation will be made.

Risk Management:
Options like protective puts and stop-loss orders will be used judiciously to protect the portfolio from significant losses during market downturns. Regular monitoring and rebalancing will ensure the portfolio aligns with the investment goals.

In conclusion, the proposed investment strategy aims to harness the potential of various financial instruments to generate an attractive return on the investment. Diversification, research-based decisions, and vigilant monitoring are the cornerstones of this approach. While market conditions are unpredictable, a well-balanced portfolio can weather the storms and capitalise on the opportunities, ultimately maximising returns for the investor.

Finally, it’s advisable to consult with a financial advisor before making any investment decisions. So, if not a challenge, I would table all my ideas before a financial advisor before taking any step.

In today’s volatile market, prudent investment decisions are paramount. The allocation of funds into diverse instruments provides a cushion against uncertainties. The chosen approach aims to balance risk and reward.

CAVEAT: Please note that none of the investment opinions expressed in the two propositions above represent those of THISDAY NEWSPAPERS and THISDAY LIFE LESSONS. Readers interested in experimenting with any of them are advised to consult their investment experts.

Related Articles