Fixed Income Investments in Nigeria

18 Fixed-Income Investments in Nigeria

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One of the ways billionaires make more money is through fixed income securities because they protect their principal and turn in interest. It is one of the sweetest ways to protect ones hard-earned money while you concentrate on other money-generating tasks. But is it specifically designed for the rich? Can an average earner invest in fixed income? Here are the 18 fixed-income securities you can talk to your stockbroker about.

But first…

What is a fixed income?

A fixed-income is a debt instrument issued by the government, financial institutions, corporate bodies to expand their operations or to undertake rewarding projects while investors received interest on the amount invested based on an agreed percentage.

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Fixed-income securities do not have the same interest rate, the interest depends on the issuer and the investor gets their interest and the principal on maturity. It’s a win-win way: bring in your money to execute some projects and receive your interest, that’s how it works.

For instance, if the minimum investment in a treasury bill is NGN10,000 with an interest of 2.55% per year and you invested NGN50,000,000, a maturity, you get NGN1,275,000 PLUS your principal (NGN50Million).

Examples of Fixed-income investment in Nigeria

The samples below aren’t limited to Nigeria, they are also obtainable in some parts of the world, They are:

  • Foreign corporate bond
  • Domestic bonds
  • Domestic Treasury Bills
  • Savings
  • Shariah fixed income fund
  • Eurobonds

Note:

Investment wise, T-bills are the safest type of short-term debt instrument issued by a federal government. This is where you find 30-day, 60-day, 90-day, 120-day, 180-day, 270-day, and 365-ay treasury bills. It is ideal for investors seeking a short term investment period. It is secured and highly liquid.

Should I invest in fixed-income securities?

There are some advantages of fixed-income that make it one of the best ways to stay safe, they include:

  • It is secured
  • It’s a way of generating a steady flow of income
  • Low-risk investment
  • It provides a guaranteed return if an investor can hold to maturity

Best 18 Fixed Income Investments in Nigeria

Investment Type Minimum Investment Interest rate Maturity Date
30 Day T-Bill NGN10,000  2.94% per annum Jan. 19, 2022

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60 Day T-Bill NGN10,000 3.1% per annum Feb 18, 2022
90 Day T-Bill NGN10,000 1.7% per annum March 20, 2022
120 Day T-Bill NGN10,000 3.79% per annum April 19, 2022
180 Day T-Bill NGN10,000 2.55% per year June 18, 2022
270 Day T-Bill NGN10, 000 4.87% per annum Sept 16, 2022
365 Day T-Bill NGN10,000 5.45% per annum Dec 20, 2022
Wealth Cash NGN1,000 6 percent Dec 20, 2022
Zenith EuroBond $500 0.73% Dec 23, 2023
Republic of Nigeria 2022 EuroBond $500 2.24% Jan 20, 2024
UBA Eurobond $500 3.32% Feb 28, 2024
Fidelity Eurobond $500 4.66% May 10, 2024
FGN 3 Year Bond NGN10,000 7.4% Dec 19, 2024
Republic of Nigeria 2023 EuroBond $500 3.77% Feb 3, 2025
ETI Eurobond $500 4.81% Nov 11, 2025
FGN 4 Year Bond NGN10,000 8.2% Dec 19, 2025
FGN 5 Year Bond NGN10,000 9.4% Dec 19, 2026
Republic Of Nigeria 2025 $500 5.41% per annum June 16, 2027

The top eurobond investments in Nigeria include:

  • Republic of Nigeria 2023 EuroBond
  • ETI Eurobond
  • Fidelity Eurobond
  • UBA Eurobond
  • Zenith EuroBond
  • Republic of Nigeria 2022 EuroBond

Where Can I Invest in Fixed Security in Nigeria?

There are investment financial institutions and wealth management firms in Nigeria that have fixed-income as one of their products.
Some of them are:

  • Standard Chartered,
  • Stanbic IBTC Assets Management,
  • Axa Mansard,
  • WealthTech Limited.

WealthTech Limited which is owned by the founders of Sankore Investment Limited, one of the reputable stockbrokers and wealth management firms in Nigeria

Through them, you invest in Eurobond, Fidelity Eurobond, Zenith Eurobond, UBA Eurobond among others

Recap:

The fixed-income product represents a loan by the investor to the issuer which provides a guaranteed return if an investor can hold to maturity.

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