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5 Passive Income Examples You Can Replicate

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5 passive income examples to replicate

In a country like Nigeria where the cost of living keeps rising and job security is far from guaranteed, building passive income streams is becoming a smart necessity. Passive income is money earned with little to no daily effort once the initial setup is done. While it’s not “easy money,” it can offer financial freedom and long-term security if done right.

If you’re looking for realistic, replicable passive income examples in Nigeria, here are five proven strategies to consider.

Invest in Dividend-Paying Stocks

One of the most traditional and accessible passive income examples is investing in dividend-paying stocks. When you own shares in a publicly listed company, you’re entitled to a portion of the company’s profits paid out as dividends.

Several Nigerian companies, such as GTCO, Zenith Bank, MTN Nigeria, and Nestle, pay consistent annual or quarterly dividends. You can start investing through local or global platforms like Chaka, Trove, or Bamboo with as little as ₦5,000.

Pro Tip: Reinvest your dividends to take advantage of compounding over time.

Create and Sell Digital Products

Digital products are one of the most scalable passive income options available today. These are items like eBooks, online courses, Canva templates, or even music loops, which you can create once and sell repeatedly with little to no inventory or overhead.

Nigerians are successfully selling:

  • eBooks on Amazon KDP

  • Courses on platforms like Selar or Udemy

  • Templates and designs on Gumroad or Paystack Storefront

If you have a skill—like graphic design, writing, coding, or fashion—you can turn that expertise into a digital product and earn money while you sleep.

Pro Tip: Promote your digital products using automated email funnels and social media scheduling tools.

Rent Out Property or Unused Space

Real estate remains a tried-and-tested way to earn passive income. In Nigeria, you can:

  • Rent out residential property for monthly income

  • List a room or apartment on Airbnb in cities like Lagos or Abuja

  • Lease out unused land for farming or events

  • Rent out shops or storage space in busy urban locations

While this method often requires a higher upfront investment, it can generate steady cash flow with minimal ongoing effort—especially if you use property managers or automated rental systems.

Pro Tip: Consider co-investing in property through real estate investment clubs if you’re short on capital.

Affiliate Marketing

Affiliate marketing allows you to earn a commission every time someone purchases a product or service through your referral link. It’s especially suitable for content creators, bloggers, and social media influencers.

You don’t need a website to get started—just a strong online presence. Platforms like:

  • Expertnaire (for digital products)

  • Jumia/Konga Affiliates (for e-commerce)

  • Amazon Associates (for physical/digital goods)

…allow Nigerians to earn by promoting relevant products to their audience.

Pro Tip: Focus on evergreen content like tutorials, reviews, or comparison guides to drive consistent traffic.

Monetized YouTube Automation Channels

You don’t need to appear on camera to earn from YouTube. Automated YouTube channels use voiceovers, stock footage, and AI tools to create engaging content in niches like tech reviews, finance, health, or storytelling.

Once monetized, these channels can earn income from:

  • YouTube AdSense

  • Sponsored content

  • Affiliate links

There are Nigerians making $200–$2,000 monthly from YouTube automation with smart content strategies and tools like Canva, Pictory, and ChatGPT for scripting.

Pro Tip: Stay consistent, optimize your SEO, and publish at least twice a week during the growth phase.

Final Thoughts

Building passive income in Nigeria is very doable—but it takes time, upfront effort, and consistency. Whether you choose to invest in stocks, create digital products, rent property, or build an automated YouTube channel, the key is to start small and grow steadily.

As you build multiple income streams, you’ll reduce financial stress and move closer to true financial independence. Start today—with what you have—and watch it grow.

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In Personal Finance & Investments

How to Buy Shares in MTN Nigeria: A Straightforward Guide

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how to buy mtn nigeria shares

MTN Nigeria is one of the largest telecom providers in Africa and a dominant player in Nigeria’s mobile and internet market. Listed on the Nigerian Exchange (NGX), buying shares in MTN Nigeria  offer Nigerians a chance to invest in a solid, dividend-paying company with strong market fundamentals.

Whether you’re a beginner or a seasoned investor, this guide will walk you through the easy steps to buy shares in MTN Nigeria from the comfort of your home.

Is it Advisable to Buy MTN Shares?

While we are not providing financial advice (you should always do your own research before investing in any opportunity) MTN Nigeria consistently delivers strong revenue, serves over 70 million subscribers, and pays regular dividends. It’s position as the major telecom service provider in Nigeria holding over 51% of the market makes it attractive to long-term investors seeking income and capital appreciation. As part of Nigeria’s growing digital economy, MTN is well-positioned for continued expansion.

What You Need to Get Started

Before buying shares, make sure you have the following:

  • A valid means of identification (NIN, international passport, etc.)

  • Bank Verification Number (BVN)

  • A bank account for transactions

  • A CSCS (Central Securities Clearing System) account

  • An account with a licensed stockbroker or investment platform

Step-by-Step Guide to Buying MTN Shares

1. Choose a Licensed Stockbroker

Start by selecting a registered stockbroker or digital investment platform. Options include Chaka, Trove, ARM Securities, Meristem, Bamboo, Cardinal Stone, Chapel Hill Denham, APT Securities etc. Choose your preferred stockbroker based on ease of use, fees, and whether they offer mobile trading.

2. Open a Trading Account

Sign up on your chosen platform, complete the KYC process by uploading your ID and BVN, and your CSCS account will be created or linked in the process.

3. Fund Your Account

Most platforms accept Naira deposits through bank transfer, card payments, or USSD. There’s no fixed minimum, but ₦5,000 to ₦10,000 is a good starting point.

4. Place a Buy Order

Search for MTN Nigeria (usually listed as “MTNN” on the NGX). Choose the number of shares you want and place either a market order (buy at current price) or a limit order (set your preferred price). Confirm and place your order.

5. Monitor Your Investment

Once the shares are allocated, you can monitor your holdings via the app or by requesting a CSCS statement. MTN also pays dividends to shareholders—either into your bank or broker account.

Tips for First-Time Investors

  • Start small and scale as you gain confidence

  • Diversify—don’t put all your funds in one stock

  • Track MTN’s financial performance via investor updates

  • Hold for the long term to maximize returns

Common Mistakes to Avoid

  • Not completing KYC properly, leading to account delays

  • Ignoring brokerage fees and tax implications

  • Buying based on hype without doing research

  • Panic selling during temporary market downturns

Frequently Asked Questions

Can I invest with ₦5,000?
Yes, many brokers allow small-ticket investments.

Do I need to go to the stock exchange?
No. Everything can be done online via investment apps.

How will I receive dividends?
Dividends are credited to your bank or brokerage account linked to your CSCS.

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In Money

Best Forex Trading Platforms Open to Nigerians

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Forex trading has gained significant traction in Nigeria, with millions of individuals seeking to tap into the global currency market for profit and diversification. As demand grows, so does the need for reliable, user-friendly, and well-regulated trading platforms. Fortunately, several international brokers now offer services tailored to Nigerian traders, including Naira accounts, local payment options, and beginner-friendly tools.

In this article, we explore the best forex trading platforms available to Nigerians—highlighting their features, pros, and what sets them apart. Whether you’re a novice or seasoned trader, these platforms offer something for every trading style.

Exness

  • Regulated by FCA, CySEC, FSCA, among others

  • Minimum deposit: from just $1 (≈₦16,000)

  • Spreads: from 0.0 pips on ECN accounts

  • Platforms: MT4, MT5, and Exness Trader app

  • Pros: Ultra-low spreads, high leverage (up to 1:2000), fast withdrawals, negative balance protection

  • Cons: Limited research tools compared to some rivals

OctaFX

  • Regulation: CySEC, FSCA, SVGFSA

  • Deposit: ₦15,000 (~$25)

  • Spreads: EUR/USD ~0.9 pips; no commissions on standard accounts

  • Platforms: MT4, MT5, proprietary OctaFX Trader

  • Pros: No overnight or inactivity fees; local bank funding & fast withdrawals; 24/7 support

  • Cons: Less regulated overall; fewer currency pairs

IC Markets

  • Regulated by ASIC, CySEC, FSA Seychelles

  • Minimum deposit: $100–$200

  • Spreads: From 0 pips with ~USD 7/lot commission on Raw Spread

  • Platforms: MT4, MT5, cTrader

  • Pros: True ECN execution, competitive fees for scalpers and automated traders

  • Cons: No Naira-based accounts—deposits are in USD via wire or e-wallets

AvaTrade

  • Regulated by ASIC, FSCA, CySEC, Central Bank of Ireland

  • Minimum deposit: $100

  • Spreads: ~0.9 pips; no commission on standard accounts

  • Platforms: MT4, MT5, AvaTradeGo mobile

  • Pros: Excellent educational resources; copy‑trading options; strong mobile experience

  • Cons: No Naira accounts; deposit via card or wire

HotForex (HF Markets)

  • Regulated by FCA, FSCA, plus SVGFSA for Nigerian clients

  • Min deposit: ~$5 or ₦1,800 (NGN-based Micro account)

  • Spreads: Micro ~1.3 pips; Zero‑Spread ~0.1 pips + ~$6 commission

  • Platforms: MT4 & MT5

  • Pros: Variety of account types, NGN accounts, local bank transfers, bonus offers

  • Cons: Commission fees on zero-spread, summarising complexity

Pepperstone

  • Regulated by ASIC, FCA, CySEC, DFSA, CMA (Kenya)

  • Minimum deposit: $200

  • Spreads: From 0 pips (with commission) in ECN Razor

  • Platforms: MT4, MT5, cTrader, TradingView

  • Pros: Low-latency trading, ideal for high-frequency and ECN strategies

  • Cons: No Naira deposit; high leverage risk

7. FP Markets

  • Regulated by ASIC, CySEC, FSCA

  • Min deposit: ~$100

  • Spreads: From 1 pips on standard; 0 pips + $3/lot commission on Raw accounts

  • Platforms: MT4, MT5, IRESS, cTrader

  • Pros: Deep asset range (10,000+ instruments), ECN execution, multi-platform support

  • Cons: No direct NGN account

How to Choose the Right Platform

  1. Check regulation & fund security — prefer FCA, ASIC, CySEC, SPGFS

  2. Start small — demo accounts help test strategies risk-free

  3. Match your trading style — ECN for scalpers, standard for beginners

  4. Account currency — NGN accounts avoid FX fees

  5. Costs matter — assess spreads, commissions, overnight charges

  6. Toolset & support — essential for serious trading

Final Take

  • Beginners: Go with Exness or HotForex for low deposits, NGN accounts, and demo features

  • Scalpers/High‑frequency traders: IC Markets, Pepperstone, or FP Markets offer ECN access with low latency and tight spreads

  • Long‑term or mobile traders: AvaTrade is a safe and user-friendly platform with strong educational support

Most platforms support MT4/MT5, and local deposits (via banks or e-wallets) are available on many. Always verify trading fees, fund security, and ease of withdrawal before opening an account.

By aligning your trading style, budget, and risk tolerance with available platform features, you’ll be better positioned for success in the forex markets from Nigeria. Trade responsibly!

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In General

8 Tips to Develop Good Public Speaking Skills

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8 tips to develop good public speaking skills

Public speaking skills are important to have in today’s social and interactive world. Having the right public speaking skills can elevate your career, boost your confidence, and help you make a lasting impression in business.

Many people fear it, but like any skill, it can be improved with intentional practice. Here are eight actionable tips to help you speak confidently and effectively.

Practice, Practice, Practice

Repeated practice builds familiarity with your content and reduces anxiety. Record yourself, seek feedback from peers, and make adjustments. As Harvard notes: “The best way to overcome anxiety is to prepare, prepare, and prepare some more”

Know Your Audience

Every speech is unique and specific to a particular audience. Understanding this is important to being a good public speaker. Know the audience and tailor your message by understanding your listeners’ needs, background, and interests. Harvard Business Review emphasizes that the best speakers “find out what’s in the heads and hearts of your audience” and design their message accordingly

Start with a Strong Opening

First impressions matter. Begin with a bold story, a surprising fact, or a question to immediately engage your audience. A strong opening makes your message memorable.

Learn Confident Body Language

Non-verbal cues account for much of your presence. Keep your hands visible, stand tall, and use natural gestures. According to Time, visible hands increase trust and engagement

Reframe Nervousness as Excitement

Feeling jittery is normal. Instead of trying to avoid nerves, reframe them as excitement. This mindset shift can turn stress into positive energy.

Focus on Clarity and Simplicity

Organize your talk around 3–5 key points. Use simple language, avoid jargon, and repeat essential ideas. Less is more—focus on making each point clear and impactful.

Invite Interaction and Feedback

Encourage questions or brief input during your talk. It makes the session interactive and allows you to connect more deeply. Adjust your delivery based on audience reactions.

Join a Speaking Group

Joining clubs like Toastmasters gives you regular speaking practice and constructive feedback—ideal for honing your skills over time. Seek out groups where you will have to practice and do actual speeches. These can include speaking clubs, social clubs, professional organisations etc. 

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In Money

What are the Virtual Cards Available for Online Payment in Nigeria (2025)?

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virtual cards for online payment

The past decade plus has seen massive growth in online payments in Nigeria, fueled by the rise of e-commerce platforms, mobile banking, fintech apps, and international subscriptions. Services like Netflix, Amazon, Spotify, and even Facebook Ads require seamless and secure online payment methods—something traditional banking services in Nigeria have often struggled to support, especially for foreign transactions.

With this growth in online transactions has come significant risks which result in international card usage restrictions and forex limitations. Virtual cards have emerged as a significant solution to these challenges for Nigerians. They offer the same functionality as physical debit or credit cards but exist entirely in digital form, providing better security, control, and convenience.

This article explores the best virtual card options available in Nigeria, comparing features, fees, limitations, and use cases to help you find the right option for your online financial needs.

What Is a Virtual Card?

A virtual card is a digitally generated payment card used primarily for online transactions. Like physical cards, they come with a 16-digit number, CVV, and expiry date, but they exist only on your phone or computer. Many are tied to fintech wallets or bank apps, offering easy issuance and management. Most virtual cards should be available for online payment

Benefits include:

  • Improved security (no risk of physical theft)

  • Disposable or limited-use features

  • International payment access

  • Easy funding via local bank transfers or debit cards

An instance of the use of Virtual cards: You can create a disposable virtual card for a one-time purchase on Amazon, then delete it for security.

Some Virtual Cards Available for Online Payment in Nigeria

1. ALAT by Wema Bank

  • Offers both Naira and Dollar virtual cards
  • No issuance or monthly fee for Dollar card
  • Ideal for Netflix, Facebook Ads, Canva, and Amazon

2. Kuda Bank

  • Provides a virtual Naira Visa card
  • Free for the first card
  • Great for local platforms like Showmax and Spotify

3. Eversend

  • Offers dollar virtual cards for global payments
  • $1 creation + $1 monthly fee
  • Supports international transactions for freelancers

4. Opay

  • Offers virtual Naira cards for online payments
  • Accepted by over 1,000 merchants
  • No maintenance fees

5. Other Reliable Options

Provider Setup Fee Currency Notable Feature
Cardtonic $1.50 USD No monthly fee
Vesti Free USD Global acceptance
Grey $4 (with $1 rebate) USD Low FX fees
GeePay $3 Multi Supports USD, GBP, EUR

What You Should Consider Before Choosing a Virtual Card Provider

  • Currency Support: Choose USD for international platforms
  • Funding Methods: Bank transfer, debit card, or wallet top-up
  • Fees: Issuance, maintenance, FX markup
  • Spending Limits: Some cards restrict daily or monthly usage
  • Accepted Platforms: Ensure the card works for Netflix, PayPal, etc.
  • Customer Support: Check for active service channels

Potential Challenges with Using Virtual Cards in Nigeria

  • CBN restrictions limit international transactions on Naira cards
  • Service shutdowns like Flutterwave’s Barter in 2022 disrupted users
  • Forex scarcity sometimes affects card funding

What Does The Future of Virtual Cards in Nigeria Look Like?

As Nigeria’s fintech ecosystem grows, we can expect:

  • More multi-currency card options
  • Better mobile app experiences
  • Flexible cards tailored to freelancers, SMEs, and remote workers

Conclusion

Whether you’re a student, entrepreneur, or remote worker, virtual cards help you shop online, subscribe globally, and get paid internationally.

Some Picks for Virtual Cards in Nigeria:

Card Best For Type
ALAT Ads & SaaS subscriptions USD
Kuda Local streaming services Naira
Eversend Freelancers & digital nomads USD
Chipper Cash General international use USD
Vesti/Grey Low-cost multi-currency USD

Tip: Always confirm card functionality and terms before making major payments.

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In Business

What are Top 10 Most Successful Businesses to Start Today With Minimal Capital

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top 10 most successful businesses to start

Everyone looking to start a business is looking for a business that potentially succeeds. Starting a business today doesn’t necessarily require a hefty investment. With the right idea, strategy, and determination, many have launched successful ventures with minimal capital. If you’re thinking – What are some of the top 10 most successful businesses to start, this article throws the light on some of the least capital intensive but potentially successful ones to consider.

What Makes a Business Successful?

Success in business isn’t solely about the amount of capital invested. There are important factors, asides funding, that contribute to making a business successful. These include:

  • Market Demand: Are the products or services you intend to offer fulfilling a genuine need/demand?

  • Scalability: Is it possible to grow the business without a proportional increase in costs making profitability difficult?

  • Unique Value Proposition: What differentiates your business from competitors.

  • Effective Marketing: Have you figured out effective and low cost ways to reach and capture your target audience?

  • Adaptability: How will you respond to market changes and feedback from clients/customers

Understanding the above can guide aspiring entrepreneurs toward ventures with higher success potential.

For anyone with limited funds, lots of time and enough skills these are 10 of the most successful businesses you can start with minimal capital.

1. Freelance Writing and Content Creation

The global gig economy is flourishing, with businesses constantly seeking specialized skills such as content writing/creation without the overhead of full-time staff. If you have decent content writing skills you can start a business with little or no initial costs.

Choose Focus Areas: Do you want to be a generalist writer or choose specific areas to focus on. The more you focus and horn your skills the better your chances of landing higher paying writing gigs from businesses and publications. For eg if you focus on writing on business and technology, marketing, cryptocurrency.

Curate a compelling portfolio: Showcase your best work through case studies or samples. Create online portfolio urls you can easily share to showcase useful work you have done. When making pitches to prospect clients this can be very handy.

Determine competitive rates: Research what others in your field are charging.

Actively market yourself: Utilize platforms like Upwork, Fiverr; Use social media like LinkedIn, Twitter etc to show snippets of your content, build an audience and attract inbound offers; Actively network within your target industries.

2. Offer Digital Marketing Services

In the current digital age, every business, regardless of size, needs a robust online presence. A lot of businesses need help with Search Engine Optimization (SEO), social media marketing, content strategy, email campaigns, and paid advertising. Digital Marketing is one of the top 10 most successful businesses to start, if you have the skills.

Acquire these skills, if you don’t have them, by taking high quality online courses, Build your portfolio by offering cheap or free services to small businesses. Focus on one or two specific aspects of digital marketing to improve and become very good.

3. Online Tutoring/Coaching

If you possess deep knowledge in an academic subject, a specific skill (e.g., musical instrument, coding), fitness, accounting or even life/business strategy, you can teach what you know to hundreds or even thousands of people.

Define your area of expertise: What subjects or skills can you effectively teach or coach?

Develop your methodology: Create a structured curriculum or coaching framework for your sessions.

Select appropriate platforms and tools to use: Utilize video conferencing tools (Zoom, Google Meet) and specialized online learning or coaching platforms.

Market your services: Promote yourself through social media, educational forums, and your personal and professional networks.

4. Cleaning Services (Residential/Commercial)

This is a perennially in-demand business that offers consistent opportunities. You can begin by serving residential clients and gradually expand into more lucrative commercial contracts.

Acquire essential cleaning supplies: Start with high-quality, efficient tools.

Market locally: Distribute flyers, engage in local community groups online, and actively seek referrals from satisfied clients.

Cultivate an impeccable reputation by delivering consistently excellent service is key to retaining clients and attracting new ones.

Minimal Capital will be required for initial cleaning supplies, reliable transportation, and basic business insurance

5. Social Media Management

Businesses often need help with managing, growing and turning their social media handles into good awareness or prospect channels for their business.

If you know your way around content creation and growing social media pages you can turn it into a lucrative business.

Low startup costs knowledge of platforms and content creation tools.

Getting Started: Offer services to local businesses, create content calendars, and manage engagement.

6. Affiliate Marketing

Affiliate marketing involves promoting products or services to earn a commission for every sale made through your referral.

Startup costs are minimal: You may require just your computer, and a platform to produce content and promote products (eg A blog, Youtube channel, social media page etc)

You can join affiliate programs like Amazon Affiliates, etc. Check out guide on how to start affiliate marketing.

7. Virtual Assistant Services

Virtual Assistants help businesses or busy professionals manage several aspects of their work such as organising their calendar, handling administrative tasks or even handling customer/client support tasks. 

To startup you’ll need just a computer and access to internet as well as skills like email management, data entry, customer service, content creation etc.

As a virtual assistant you can support a few clients on monthly retainers

Check out this guide on how to become a virtual assistant

8. Podcast Show

With more and more people beginning to listen to podcasts and online talk shows, it is a viable low cost business to start.

You’ll have to have the knack for interviewing people and having interesting conversations. 

Startup costs are typically low. You’ll need just quality microphone, editing software, headphones and a good/quiet location to host your podcast.

9. Start a Consultancy

If you have knowledge in anything people can benefit from and demand solutions for, you can start making money providing solutions to those things. From event planning to interior decoration, building a website, digital marketing etc. 

Create content answering questions to challenges people face in that particular niche. Grow your social media presence, engage with relevant questions and always display how people can reach you for consulting.

You can price your consulting per session or based on periodic retainers.

10. Newsletter Business

If you have sufficient knowledge, curiosity in any niche/field or broad topic you can start a newsletter, publish quality email articles/content, grow your subscribers.

This particularly may not cost you anything aside your time to start. You can take advantage of free newsletter platforms like Substack to create your first newsletter.

Ideally you should start a weekly newsletter where you publish/send out a newsletter on a particular day weekly.

To grow subscribers you can start sharing snippets of your work on social media, guest post on relevant blogs etc.

Monetisation: When you reach a few thousand subscribers there are several ways you can monetise your newsletter. These include; setting up a premium subscriber plan (these paid subscribers get more detailed content, indepth analysis or access to more quality resources), paid sponsorships from other businesses, brands etc.

 

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In Business

How Do I Register My Business? Everything You Need to Know

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how do i register my business: tips to register your business name

If you are asking the question – how do I register my business? Hopefully this guide gives you the clear steps and details you need to do that yourself.

Starting a business can be exciting even if laced with challenges. For most businesses it is important to formalise through business registration with the appropriate authorities.

In Nigeria, there are processes with registering your business. Registering your business not only gives it legal recognition but it also helps build credibility when people know they are dealing with a legally registered entity.

Rather register a company? See How to Register a Company in Nigeria

Why Register a Business Name in Nigeria?

There are several benefits to registering your business name. Some of these include;

Legal recognition: Your business becomes an official entity recognized by the Nigerian government and potential partners, customers etc.

Brand protection: When you register your business name it means no one one else can legally use your registered business name.

Access to opportunities: With a registered business, you can open a business bank account, apply for grants or loans, and bid for contracts.

Trust and professionalism: Customers, clients, and investors take your business more seriously.

Types of Business Registration in Nigeria

There are different forms of business structures, but for small businesses and startups, registering a Business Name (also known as an Enterprise) is the most common and cost-effective option.

Other types include:

  • Limited Liability Company (LLC): For those looking for a more structured corporate setup.
  • Incorporated Trustees: Usually for NGOs, religious bodies, and associations.

In this guide, we focus on registering a Business Name.

Requirements for Registering a Business Name

Before you begin the registration process, make sure you have the following:

  • 2–3 proposed business name options
  • Brief description of the business activities
  • Full name and personal details of the owner
  • Valid ID (National ID, Voter’s Card, International Passport, or Driver’s License)
  • Passport photograph (scanned or digital copy)

Step-by-Step Guide to Registering Your Business Name

Step 1: Conduct a Name Availability Search

Visit the Corporate Affairs Commission (CAC) portal to check if your desired business name is available. Submit at least two name options to increase your chances of approval.

Step 2: Fill Out the Pre-Registration Form (CAC-BN 1)

Create an account on the CAC portal and complete the online form with the required details. Be accurate and consistent with your personal information and business description.

Step 3: Pay the Filing Fee

The official filing fee for Business Name registration is currently N10,000. You can pay directly through the CAC portal using Remita or other approved payment gateways.

Step 4: Upload Supporting Documents

Scan and upload your valid ID, passport photo, and any other required documents. Review everything carefully before submission to avoid delays.

Step 5: Certificate Issuance

Once approved (usually within 1–3 working days), you will receive a Business Name Certificate. You can download and print this certificate directly from your CAC dashboard.

Post-Registration Steps

After successfully registering your business, here are the next steps:

  • Get a Tax Identification Number (TIN) from the Federal Inland Revenue Service (FIRS).
  • Open a business bank account using your CAC documents and TIN.
  • Register with regulatory bodies (e.g., NAFDAC, SON, depending on your industry).
  • File annual returns to maintain your business name status.

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In Personal Finance & Investments

6 Best Money Market Funds in Nigeria With the Best Yield in 2025

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best money market funds

Money market funds (MMFs) have long been a favoured investment vehicle for individuals and institutions looking to invest in assets characterised by high yield, low risk, and high liquidity. As of 1H24, the total value of MMF assets under management (AUM) globally had increased to $10.6 trillion.  

In Nigeria, these funds have become increasingly popular due to their advantages over other asset classes such as savings accounts, equities and bonds. This post explores the concept of MMFs and highlights the top six MMFs in Nigeria that offer the best yield in 2025.

Money Market Funds Explained

A money market fund is a type of mutual fund that invests in short-term (usually 365 days and below), low-risk, high yield and liquid financial instruments such as Treasury bills, certificates of deposit, commercial papers, repurchase agreements, and others. The primary goal of an MMF is to offer investors a safe and easily accessible place to invest their money while generating returns.

MMFs operate by pooling funds from multiple investors to invest in these short-term instruments. The returns generated from these investments are typically paid out as interest to the fund’s investors based on the number of units they hold.

Features of Money Market Funds

  1. Safety: MMFs invest in low-risk securities such as government-issued Treasury bills or highly-rated commercial papers, making them relatively safe.
  2. Liquidity: Investors can access their funds quickly, often with little or no penalties, making MMFs ideal for short-term investments.
  3. Lower returns than stocks, but higher returns than savings accounts: While their returns may not be as high as riskier investments like stocks, MMFs generally offer better returns than traditional savings and fixed deposit accounts.
  4. Diversification: By pooling resources from many investors, MMFs enable small investors to benefit from diversified holdings in various short-term securities.

6 Best Money Market Funds in Nigeria With Most Returns to Consider in 2025

The money market funds market in Nigeria is huge and growing. It is the mutual funds industry’s most popular naira-denominated AUM and marginally leads the entire industry with a market share of 45.61% as of January 17 2025, according to Nigeria’s Securities and Exchange Commission (SEC).

The interest rate on MMFs is often tied to the prevailing short-term interest rates in the economy, such as the monetary policy rate and Treasury bill rate of the Central Bank of Nigeria (CBN). Analysts say that the major growth driver in Nigeria’s MMF arena is the CBN’s monetary policy rate increases which have triggered high yields in money market instruments. High yields tend to attract more savers to MMFs.

Other data from the SEC indicates that the following are the top six money market funds with the best yields (year to date) as of January 17 2025:

1.     EDC Money Market Fund Class B

Fund Manager: EDC Fund Management Limited

Net asset value: ₦1,966,736,563.32

Unit price: ₦1,000,000

Minimum investment amount: ₦5,000

Yield (YTD): 25.64%

To invest in EDC Class B MMF:

  • Visit the Ecobank asset management page. 
  • On the page, click on “Open An Account Today” and follow the instructions.

2. Meristem Money Market Fund

Fund Manager: Meristem Wealth Management Limited

Net asset value: ₦19,506,484,310.39

Unit price: ₦10

Minimum investment amount: ₦10,000.

Yield (YTD): 24.11%

To invest in Meristem MMF:

  • Visit Meristem’s wealthbuddy.ng page and click on “Get Started”.
  • Sign up and follow the instructions on the site

3. Coronation Money Market Fund

Fund Manager: Coronation Asset Management Limited

Net asset value: ₦11,013,314,857.38

Unit price: ₦1

Minimum investment amount: ₦10,000.

Yield (YTD): 23.88%

To invest in Coronation MMF:

  • Visit the Coronation money market fund product page.
  • Click on “Contact Us” and a money market fund quotation form will appear.
  • Enter the required information and then click on “Request Quote”.

4. Chapel Hill Denham Money Market Fund

Fund manager: Chapel Hill Denham Mgt. Limited

Net asset value: ₦13,892,111,482.0

Unit price: ₦100

Minimum investment amount: ₦5000

Yield (YTD): 23.55%

To invest in Chapel Hill Denham MMF:

  • Download the InvestNaija App from the Apple App Store or Google Play Store.
  • Sign up by creating an account.
  • Complete your KYC process for a secure and verified profile.
  • Go to the “InvestIN” section.
  • From the “Mutual Funds” option, choose “Money Market Funds”. 

5. EDC Money Market Fund Class A

Fund Manager: EDC Fund Management Limited

Net asset value: ₦32,264,293,650.92

Unit price: ₦1,000,000

Minimum investment amount: ₦5,000

Yield (YTD): 23.20%

To invest in EDC Class A MMF:

  • Visit the Ecobank asset management page.
  • On the page, click on “Open An Account Today” and follow the instructions. 

6. Zedcrest Money Market Fund

Fund Manager: Zedcrest Investment Management Limited

Net asset value: ₦3,230,836,112.53

Unit price: ₦1

Minimum investment amount: ₦1000.

Yield (YTD): 23.16%

To invest in Zedcrest MMF:

  • Download the Zedcrest Wealth app.
  • Create your account.
  • Push the “Invest” button.
  • Tap “Mutual Funds”.
  • Choose your preferred option based on your risk profile.

Conclusion 

MMFs are a big component of Nigeria’s thriving mutual funds industry. Nigerians love them because of their attractive features such as low risk and higher yields when compared to options like savings accounts. A ₦1 million investment into an MMF with a 19% annual yield will earn you ₦190,000. Compare that with a savings account offering a 9% yield (₦90,000) for the same ₦1 million.

However, before investing in MMFs, conduct serious due diligence to ensure that their risks are acceptable to you. For example, it has been reported that the NDIC does not insure MMFs. So unlike savings accounts, you run the risk of not getting government assistance if your money is trapped in a failed MMF company.

NOTE: This is not financial advice. Please consult your financial advisor before making any financial investment decisions. Nairabrains will not liable/responsible for the information contained in this article or your use of same.

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In Business

Peer to Peer (P2P) Lending Platforms in Africa

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peer to peer lending platforms in Africa

The fintech revolution has continued to positively impact the global finance industry in recent years. Among its several offshoots is peer-to-peer (P2P) lending, a disruptive phenomenon that has gained significant traction across the globe. As the popularity and adoption of peer to peer lending platforms increases, so does its market value which is projected to increase from USD 517.2 billion in 2024 to USD 1,709.6 billion by 2034.

So what exactly is peer to peer (P2P) lending? Think of P2P lending as a decentralised kind of lending that facilitates direct borrowing between individuals or businesses (often through online platforms), bypassing intermediaries such as traditional financial institutions, e.g., banks. P2P lending is also known as crowdlending or social lending.

This article explores the rise of P2P lending in Africa, the challenges it faces, and highlights some successful P2P lending platforms operating across the continent.

The Rise of Peer to Peer (P2P) Lending in the African Continent

The OECD notes that fintech lending has grown significantly over the last decade. In Africa, this growth is due to several key factors that have created a conducive environment for P2P lending. Here are some of them:

Limited Financial Inclusion

A significant portion of Africa’s population of over 1.5 billion remains unbanked or underbanked. The lack of advanced banking infrastructure, especially in the continent’s rural areas, means that many individuals and small businesses are unable to access much-needed credit. 

According to the AfricaNenda 2022 Annual Report, over 350 million adults in Africa are unbanked and the majority of them cannot access the formal economy. Therefore, to satisfy their financial needs, these excluded people depend on cash or informal sources, a dependence that is characterised by higher costs and risks.

P2P lending platforms take care of all these by providing alternative solutions to traditional financial systems.

Increasing Penetration of the Internet and Mobile Telephony

Africa has witnessed a rapid increase in mobile phone and internet usage in recent years. Mobile phone penetration in Africa has increased rapidly over time, for example, from 1% in 2000 to 54% in 2012, according to Deloitte’s report titled The Sub-Saharan Africa Mobile Observatory. As of 2023, the ITU estimates that 63% of Africans owned a mobile phone.

Between 2019 and 2022, more than 160 million Africans had access to broadband internet connectivity. In sub-Saharan Africa, there was a 115% increase in internet users between 2016 and 2021 while an additional 191 million persons either made or received a digital payment between 2014 and 2021.

These technological advancements have helped pave the way for the growth of P2P lending platforms whose services can easily be accessed through a smartphone with an internet connection.

Growing Need for Alternative Financing

Small and Medium Enterprises (SMEs) constitute the backbone of many economies in Africa. This notwithstanding, SMEs often struggle to secure funding from traditional lenders like banks, no thanks to strict lending criteria such as collateral requirements, and high interest rates.

P2P lending offers an effective alternative to traditional bank loans, enabling SMEs to source funds directly from individuals or investors willing to take the risk. Similarly, individuals requiring personal loans or emergency funding can also benefit from P2P lenders.

Favourable Regulatory Frameworks

As P2P lending and other fintech products and services continue to mature in the continent, African countries are beginning to recognise their potential, thus introducing regulations to support growth in these industries.

A CCAF report notes that Nigeria has an established regulatory framework for lending that encompasses P2P lending activities. Similarly, Kenya’s Central Bank released guidelines for digital lenders in 2021, (the amended Central Bank Act, 2021). The guidelines were aimed at boosting transparency and fairness within that country’s lending environment.

Although regulation in this area across the continent remains a work in progress, these early steps are a clear indication of the willingness of African governments to promote P2P lending as a viable alternative to traditional lenders.

Challenges Facing P2P Lending Adoption in Africa

Despite the potential and growth projections for P2P lending, the following are some challenges bedevilling its adoption across Africa:

Trust and Security Concerns

P2P lending relies heavily on trust between lenders and borrowers (as well as the platforms that connect them). In several African countries, the lack of awareness and understanding of the P2P lending concept creates scepticism, especially among older or more conservative users.

Additionally, the risk of fraud, loan defaults and lack of consumer protection can discourage potential users from engaging with P2P platforms.

Lack of Regulatory Clarity

The presence of clear regulations or supportive pronouncements by P2P lending regulators seems to be correlated with increased market activity. Though some African nations are evolving regulations for digital lending, there are others still lacking clear, comprehensive laws governing the industry. This regulatory uncertainty presents risks for investors,  borrowers and other stakeholders.

According to the CCAF, as of 2021, the coverage of regulatory frameworks for P2P lending in sub-Saharan Africa (SSA) stood at 35%, significantly lower than in the MENA and APAC regions which recorded coverages of 58% and 72% respectively.

Without appropriate legal frameworks, disputes over situations such as loan defaults, fraud, and platform failure could be difficult to resolve, potentially undermining the credibility of P2P lending services.

Limited Data and Credit Scoring Systems

One of the most notable obstacles to P2P lending in Africa is the paucity of reliable data about borrowers. Credit scoring systems are either underdeveloped or nonexistent in many countries, making it difficult for lenders to critically evaluate the creditworthiness of potential borrowers.

Where reliable data and credit scoring models are not available, risk-averse lenders may be reluctant to offer loans, and borrowers may be subjected to higher interest rates due to perceived risks.

Economic Instability

Africa has some of the world’s poorest countries struggling with inefficiently managed economies.  Economic instability, inflation, and currency volatility in some African countries make investing in P2P lending platforms riskier. Additionally, many African economies are highly susceptible to political unrest and fluctuations in global commodity prices.

Such economic woes can act as a deterrent for both local and international investors while also negatively impacting the repayment capacity of borrowers and the returns for lenders.

Examples of Peer-to-Peer (P2P) Lending Platforms in Africa

Presently, several P2P lending platforms have emerged across Africa, helping to bridge the financing gap for individuals and businesses such as SMEs. Some of these platforms include:

Platform Website
FairMoney https://fairmoney.io/
KiaKia https://www.kiakia.co/
Aella https://aellaapp.com/
PeerLender https://peerlender.app/
P2Vest https://www.p2vest.com/
RainFin https://www.rainfin.com/
Qardy https://eqardy.com/home
FunderJet https://www.funderjet.co.za/
Lendico https://lendico.ng/
UbaPesa https://ubapesa.com/
Zidisha https://www.zidisha.org/apply/NG
Kiva https://www.kiva.org/
Pezesha https://pezesha.com/
MNT-Halan https://mnt-halan.com/

Conclusion

The growth of P2P lending is not only evident in Africa but is a global phenomenon, according to the OECD. However, despite its rising profile in the continent, P2P lending in Africa is fraught with a number of challenges. Despite these obstacles, several P2P platforms are successfully operating in every part of the continent.

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