Top Investments with monthly returns in Nigeria

Ufoh Uche

This Article was Reviewed by The Chief Editor, Godfrey

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Living in Nigeria, there is no doubt you have heard about investments and the regular returns they bring. Hence, you must have wondered if there are any investments with monthly returns in Nigeria you can venture into.

Well, there are, and you will find them in this article. You will find out the best investments and learn what investments are and the several benefits of investing.


What are Investments?

The dictionary defines investment as the action or process of investing money for profit. And it explains investing as putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

Connecting these definitions, we can say that an investment is any financial scheme, commercial venture, or asset you acquire to achieve a profit.

So what this means is that if the financial scheme, commercial venture, or asset is not for income generation, then it can’t be classified as an investment.

For example, it is not an investment if you acquire a property to live in, not lease it out or sell it. Only those properties that are sold or given to be rented out are considered investments because they bring income for you.

Having understood this, let’s learn further.

There are two major investment types that anyone can choose from. Each has its own set of characteristics, risks, and benefits. So, considering your circumstances and risk-tolerance level is advisable before choosing anyone.

Two Major Investment Types

  1. Growth Investments

Growth investments can help you grow the value of your original investment over a medium or long-term period. And since they grow over a long-term period, they can withstand market fluctuations.

Examples of growth investments are shares and property.

These growth investments are known to deliver higher returns than other investment types. However, the risk associated with this investment type is high because prices are usually volatile. To benefit from this type of investment, you need to be willing to become a long-term investor.

2. Defensive investments

Defensive investments are those investments that are designed to protect your money while also producing income. It is a conservative way of investing.

In this type of investment, the focus is usually more on generating consistent income rather than growing the value of the original amount invested. Hence, they are less risky than growth investments.

There are three options you can find under defensive investments. They are cash investments, investments with fixed interest, and viable businesses.


i) Cash investments

Cash investments are those investments that require that you leave your money in a bank account. This might be in a high-interest savings account, if there are any these days, or to keep them as fixed deposits.

You see, the aim is not to grow the money but to protect it.

ii) Investments with fixed interest

Bonds are the most well-known type of fixed-income investment. What happens is that when governments or companies come to borrow money from investors, they do that by issuing bonds, and then, in exchange, they pay back the total amount with a fixed interest.

Bonds are considered defensive investments because they typically provide lower potential returns and lower levels of risk than stocks or real estate.

iii) Viable businesses

A profitable business is another form of defensive investment. It is the most preferred among the list of defensive investments because it offers more profit.

By establishing a viable business, one will continue to make profits for many years.

Benefits from Investments

  1. Investments are opportunities to grow your money.

Have you discovered that wage growth and savings account rates are meager these days?

This situation is not only peculiar to Nigeria but also to other countries around the world. You see, just saving won’t suffice anymore. We need investments. 

Investments can help you grow your money and get returns, whether in a short or extended period. 

2. Investments help you stay ahead of inflation

Inflation happens when you discover that the prices of things are no longer the same as they were last year. Then, you realize that the purchasing power of your money has declined; you can no longer buy some things for a particular amount, which was possible to do some years ago.

So, investments help you increase the value of your money so you can keep up during these times. 

3. Investments provide a regular income

This is one of the primary reasons people invest. Investments provide an additional income that can be used to augment what we receive as wages or salaries.

4. Investments help you build wealth for financial security

Investing is the way to go if you want to build wealth, so you don’t have to worry about having enough. When you invest, you can enjoy the financial security you desire.

5. Early retirement

One exciting thing about investments is that they can earn compound interest on them when left for a long time. 

Once your investments yield enough, you can decide to stop your regular job and focus on diversifying your investments to make money for you. Anyone who has investments that have yielded enough money can retire early.

6. Meeting other financial goals

When you invest, you will be able to meet those financial goals you aren’t able to with a savings plan.

Though all types of investments, whether growth or defensive, can bring you these benefits, not all can bring you substantial monthly returns. 

Let’s see the list of investments guaranteeing you a substantial monthly income.

Investments with monthly returns in Nigeria

1. Food Business

We have said that an investment can be a commercial venture. A food business is one type of commercial venture that can serve as an investment. 

One way of investing in the food industry is by operating a restaurant or a minimart. 

Food is a basic necessity of life. And, no doubt, people must eat every day. It is a sure investment that can bring you a monthly income. But you must know that your food business must be in a strategic location if you want to turn a high profit each day.

Want to invest but don’t want to run the food business yourself?

It is still possible to invest. You can invest in any establishment that trades food as its primary source of income. As long as the business is open daily and monthly, you are assured of a handsome profit.

2. Transportation business

This is another viable business that you can’t go wrong investing in. Transportation businesses are very profitable in Nigeria, especially in cities with many people.

But you need at least a car to invest in this business. You can buy one or decide to get one through hire purchase.

Then, you next register as a driver with any ride-hailing company such as Uber or Bolt. In no time, you will be able to generate profits. And at the end of the week or month, depending on whether you own the car, you have something substantial as a take-home.

3. Investing in agriculture

Do you know that a new generation of millionaires is emerging from Nigeria’s agricultural sector? 

Agriculture investment is one of the most profitable businesses you can start and make it. You don’t need to operate on a big scale to make it. You need to invest in raw food and livestock production that have a high demand.

You can consider rice, cassava, maize, beans, and plantains for food farming. For livestock production, you can consider poultry, piggery, snail rearing, and fish farming (e.g., tilapia fish farming). 

Investing in agriculture cannot only be done directly; it can also be done indirectly. When you invest indirectly, you invest in organizations with expertise and involvement in large-scale farming.

Depending on the agreement, these companies then invest your money in these businesses and pay you returns on your investment regularly or at the end of your business deal. Agricultural investment is an option that can guarantee you a monthly income.

4. Body care industry

You can find profitable business opportunities in the body care industry. The body care industry provides haircuts, manicures, pedicures, cosmetics, and more. 

People need these services to groom themselves and look good. Venturing into any of these business opportunities will no doubt guarantee you monthly returns.

4. School Business

An actual school would cost you more than some businesses. But, it is a worthwhile investment. In the long run, as the number of students increases, you will be able to generate a higher income percentage than what you spent.

However, it is not mandatory to build a school before you can earn from the education sector.

A tutorial center can suffice. You need to be able to offer extra and memorable lessons for students preparing to write different examinations. Then profit can begin to come in monthly and regularly for you.

6. Real Estate

Real estate refers to properties, whether commercial or residential. 

When you lease out your residential property so people can live in it and they pay you in exchange, that is an investment.

It’s the same thing when you lease out your commercial property for people to do business in.

The rent for each occupant is usually calculated monthly. But because it can accumulate to a lump sum at the end of a year’s tenure, most property owners prefer to be paid then.

Real estate is one of the most profitable industries to invest in. You can either choose to invest directly and hire an organization to manage your investments on your behalf, or you can do it indirectly through an organization and own shares in their properties. 

7. Mutual funds

Mutual funds pay an annual interest rate to all investors. It is a good investment provided by financial institutions.

With high dividend mutual funds, you could earn up to 12% per year, depending on how well they perform.

Mutual funds provide monthly returns in dividends cumulated as the stipulated annual interest.

8. Treasury Bills

Treasury bills make the list of investments with monthly returns in Nigeria. This is because of the attractive interests they can generate.

It is another investment that financial institutions offer. Investing in Treasury Bills is unlike most other investments.

This is because it pays you all the interest on your investment once after the first month. As a result, it is seen as a safe investment and one of the best investments with monthly returns in Nigeria.

9. Haulage Business

The haulage business is considered to be one of the investments with monthly returns in Nigeria because goods require transportation all the time.

Depending on the materials you transport and how fast you can make a return trip, you can make a lot of money by providing the transportation services needed.

It is a business that promises a handsome profit every month. To get started, you’ll need a truck, after which you’ll need to find different manufacturers who want their goods transported and sign a contract with them.

Signing a contract with them doesn’t only guarantee a monthly income; it also gives you indemnity in one way or another. 

10. Buying High-Yield Dividend Shares

Like mutual funds, a high dividend stock can be profitable. You must select the company you want to invest in carefully, make sure you understand how the market works so you can choose the best stocks to invest in, and then reinvest the dividends you receive.

Many people have amassed wealth by investing in dividend-paying stocks. Once you invest in a high-yield dividend share, you receive payments (dividends), usually once a quarter, as a thank you for investing in and holding their stock. 

11. Digital Investments

Digital investments used to be an in-thing that brought monthly returns to Nigerians. But now, it is no longer an investment that works in Nigeria.

This is due to the Central Bank of Nigeria (CBN) ban on cryptocurrency transactions and payments for crypto exchanges.

But if the ban is ever lifted, this is one of the profitable investments you should try. However, it would help if you gained enough experience trading it before venturing into it.

Start Now

There are several more investments with monthly returns in Nigeria. But these are the top-performing ones that come to mind.

So, start now! Choose from the list above and begin to enjoy the benefits of investment. 

But before you do, understand its recent performance and potential returns.

Don’t make rash investments; they will result in losses.


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About the Chief Editor

Godfrey Ogbo, the Chief Editor and CEO of AtlanticRide, merges his environmental management expertise with extensive business experience, including in real estate. With a master's degree and a knack for engaging writing, he adeptly covers complex growth and business topics. His analytical approach and business insights enrich the blog, making it a go-to source for readers seeking thoughtful and informed content.

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