Financial Experts Speak On How Nigerians Can Invest To Beat Inflation
Nigeria, Africa’s most populous country with a Gross Domestic Product of $394 billion, is grappling with challenges following economic policies initiated by President Bola Tinubu right after he assumed office in May 2023.
Although the policy was lauded by renowned financial world bodies like the World Bank, Nigerians have been faced with the soaring cost of living, particularly caused by the removal of fuel subsidy and the government’s exchange rate policies which plummeted the value of the naira.
However, during a recent webinar organised by First City Monument Bank Asset Management Limited, financial experts provided attendees with actionable strategies for taking charge of their financial future by leveraging the power of compounding and the accessibility of investing to hedge against soaring inflation in the country.
FCMB Asset Management Limited, established in 1997, provides portfolio management and investment advisory services to individuals and institutions.
Tinuola Odufuye, Head of Business Development at FCMB Asset Management, who moderated the insightful webinar, set the stage for an educative discussion with financial experts who spoke on various ways of investing.
The webinar, themed ‘Smart Retirement – Investing Ahead,’ had experts speak on the various steps Nigerians can invest for their retirement.
Nduka Offiah, Head of Alternative Assets at FCMB Asset Management, sharing insights on the potential investment portfolio benefits of the Alternative Assets class such as Real Estate, Commodities, and Private Equity, offered strategies to diversify portfolios and navigate challenging market conditions.
From investing in the Nigerian stock exchange where only 5 percent of Nigerians have exposure, to Retirement Savings Account (RSA) where only 10 million Nigerians have an account, the webinar provided steps for various investment opportunities in Nigeria.
Here are the strategies and options available for building a secure financial future provided by the experts.
Start Early: It is important to start investment early. Starting early provides a longer runway for your money to grow and compound, potentially leading to a larger nest egg.
Investing is for Everyone: The panel debunked the myth that significant capital is required to invest. The panellists encouraged attendees to begin their investment journey with as little as N1,000 in Mutual Funds offered by FCMB Asset Management Limited, making financial security accessible to all Nigerians.
Estate Planning: Apart from wealth preservation, Wills and Trusts provide a clear plan that ensures a smooth transition for beneficiaries. It fosters communication and reduces the risk of conflict.
Unlocking Your RSA: The webinar explored the benefits of the RSA Mortgage option offered by FCMB Pensions Limited. This option allows individuals to access a portion of their Retirement Savings Account (RSA) to secure a home purchase, facilitating wealth creation beyond retirement savings.
Financial Inclusion for Business Owners: FCMB Pensions’ micro-pension plans cater to business owners with up to three employees, promoting financial inclusion within the informal sector. The flexibility of withdrawing up to 40% of contributions acknowledges the unique needs of business owners who may require access to funds for operational purposes.
Combating Inflation: Alternative Assets investments and currency hedging options were discussed as tools to preserve wealth and purchasing power.
Investing for Young Minds: Valuable advice was offered to students interested in starting their investment journey early to maximise the benefits of compound interest.
Retirement savings remittance from overseas: The webinar clarified the possibility for Nigerians working abroad to set up Naira-denominated pension plans with FCMB Pensions Limited, subject to their employer’s remittance policies.
Staying Ahead of the Curve: The expert panel highlighted the importance of staying informed on current investment strategies to ensure that your financial roadmap adapts to changing circumstances and economic realities, to build a sustainable financial future.
