As 2021 is coming to an end, and the new year is setting before us, most Nigerians are already seeking new and insightful ways they can invest their money safely in 2022.
The Nigerian economy is estimated to rise by 1.5% in 2021 and 2.9% in 2022. This is as a result of improvements in crude oil prices and production. The country can be said to be profitable for investment in 2022.
With this positive outlook, here are some financial assets that Nigerians can invest their money in 2022, according to experts.
MTN Nigeria and Zenith Bank
MTN Nigeria and Zenith Bank are projected to most likely benefit from local equities. Zenith Bank is attractive to investors because of its strong fundamentals, steady dividend payout, and high dividend yield. MTN on the other hand, has a positive revenue and profit outlook, even without a Payment Service Bank (PSB) license.
Oluwaseun Agbejimi, AVP/COO, TradeFi at Comercio Partners Asset Management, stated that the increased investment instruments in this space are currently discounted, next year will provide favourable entry points for both local and overseas investors.
Given the planned borrowing of N6 trillion to fund the 2022 budget and the apex bank’s constant unorthodox Cash Reserve Ratio (CRR) deficit, we expect rates (returns) to be more attractive in the fixed income space.
Agriculture, Dollar funds, Stocks & Real Estate Ventures
Thelma Ugoing CFA Management Associate with First Bank of Nigeria spotlights direct agriculture, digital currency, dollar funds/Eurobonds, value stocks, and real estate ventures as her ideal places for investment in 2022.
She stated that the Covid-19 virus has spread over the world in three waves, and its influence on global economies cannot be overstated. With the prospect of a fourth wave, higher commodity prices, and high inflationary pressures, 2022 will be a year of transitioning from recovery to resilience. She talked about investing in herself by acquiring new skills in the year to come.
Asset in Companies: How to Spot Shares that will Skyrocket
Investors should get ready to position their assets in companies that have recently recovered from a low base revenue stream and have also increased profitability, alongside their shares market investment plan for the year 2022.
Victor Ofili believes that in the first quarter of 2022, the share prices of this group of firms will become more appealing as they are likely to offer larger dividend payouts to those who invest in them. Between December 2021 and March 2022, this strategy is projected to reward investors as quickly as possible.
Oil, Gold & Stocks
It’ll be crucial to monitor the markets for oil and gold. Stocks are a good long-term inflation hedge because of their growth potential, especially if you focus on companies with pricing power.
Mosope Arubayi expects the Interest rates to rise somewhat from their current low levels in 2022. Rising rates might result in low or even negative returns on fixed income, which is why I prefer equities over bonds.
Cryptocurrencies & Leading Foreign
If you’re a daring investor, consider investing in cryptocurrencies. To invest in foreign stocks, ensure that you keep dollar savings.
Leading companies such as Apple, Amazon, and Netflix are among the best investments in the US stock market.
Adaobi Okonkwo a senior treasury associate at Leatherback advises that a varied portfolio is essential for maintaining safe investments and financial prosperity. Cash is king, especially in an unpredictable economy, therefore put a significant amount of your profits locally in liquid investments (T-bills, commercial papers, money market funds).