In Times Like This, Should You Invest in Nigerian Businesses or Take Your Money Abroad?
Introduction
For decades, Nigerians have wrestled with a difficult question: Is it safer and more profitable to invest at home, or should we send our money abroad? With economic volatility, political uncertainty, and the persistent dream of "greener pastures," the debate is more relevant than ever.
But in 2025, the answer isn’t black or white. Let's dive into the numbers, stories, and realities shaping this decision.
1. The Allure of Foreign Investment
According to the Central Bank of Nigeria (CBN), Nigerians remitted over $22 billion abroad in 2023 alone. A large portion of this went into real estate in Dubai, UK, and Canada, foreign stock markets like S&P 500, and crypto investments. Why?
- Perceived Stability: Western economies often offer more predictable returns.
- Currency Preservation: With the naira experiencing over 40% devaluation in 18 months (2023–2024), holding assets in USD, GBP, or CAD feels safer.
- Ease of Access: Platforms like Robinhood, eToro, and Binance make it easy to invest abroad with a smartphone.
Real Story:
Ngozi, a 35-year-old banker in Lagos, invested $10,000 in Tesla stock in 2019. By 2024, her investment had more than tripled—even with market fluctuations. Meanwhile, her cousin who invested in a local agro-processing business is still battling regulatory red tape and power outages.
2. The Case for Investing in Nigerian Businesses
Despite the challenges, investing in Nigeria can yield extraordinary returns—especially in underserved sectors.
- SMEs Drive 48% of GDP and employ over 80% of the workforce (SMEDAN, 2023).
- The average ROI for successful local ventures in tech, agriculture, and services is 35-60% annually—much higher than many foreign options.
- Youth-driven innovation is booming. In 2024, Nigerian startups attracted $1.2 billion in funding, with fintech, healthtech, and edtech leading the charge.
Real Story:
Chuka, a young entrepreneur from Enugu, started a solar-powered cold storage business with ₦5 million in 2021. By 2024, he had scaled to four locations, generating over ₦70 million in revenue yearly. His investors earned back their capital in 18 months—with ongoing profit sharing.
3. Risks on Both Sides
| Local Investments | Foreign Investments |
|---|---|
| FX devaluation | Regulatory hurdles (e.g., FATCA, KYC) |
| Infrastructure gaps | Limited local impact |
| Policy inconsistency | Market volatility |
| High inflation | Capital control risks |
The Real Issue: It's not always about geography—it's about strategy.
4. A Hybrid Approach: The Smart Investor’s Path
The most successful Nigerian investors today don’t choose either-or. They diversify. Here’s a sample strategy:
- 50% in local high-growth sectors (tech, agriculture, essential services).
- 30% in foreign-denominated assets (real estate, stock index funds).
- 20% in alternative vehicles (crypto, diaspora bonds, impact investments).
This approach hedges currency risk while supporting Nigeria’s real economy.
Conclusion: Invest Where You Understand and Can Influence
Pulling your money out of Nigeria may feel safe, but it also limits your impact and potential returns. Meanwhile, blindly investing in local businesses without due diligence can be costly.
The best path? Build a portfolio that balances security with social and economic returns. As Nigeria rebuilds and restructures, those who invest wisely today could shape—and benefit from—the country’s future.