Diyke4rich:
To me dont look at the rental value for now, look at future prospective for example 2015 december i bought 5bedroom duplex at ikota villa estate.
agent, lawyer and all chargers everything amount to 59million naira, the rental value is 3m annual of which i have collected 3 annual rent which amount to almost 10m includ deposit and money i get from the agreement, yes i did some renovations but i dont think is up to 2.5m in dat case i have made about 7.5m without thinking of losing my money to quick rich investment if i want to sell the property today i think will be look at 65m to 70m so to me is not a bad investment especially if you are not in the country, from the rent money i get have contributed 30% my new house i want to live in my state.

Until when you sell and have the money in your account or your bank accepts the property as a collateral and offers you a loan of N50 million to expand your business or create more wealth.

Diyke4rich:
To me dont look at the rental value for now, look at future prospective for example 2015 december i bought 5bedroom duplex at ikota villa estate.
agent, lawyer and all chargers everything amount to 59million naira, the rental value is 3m annual of which i have collected 3 annual rent which amount to almost 10m includ deposit and money i get from the agreement, yes i did some renovations but i dont think is up to 2.5m in dat case i have made about 7.5m without thinking of losing my money to quick rich investment if i want to sell the property today i think will be look at 65m to 70m so to me is not a bad investment especially if you are not in the country, from the rent money i get have contributed 30% my new house i want to live in my state.

It is when you put it up for sale that you would know the actual price.

CBN Auctions OMO Bills to Non-Resident Investors at 12.75%
https://businesspost.ng/economy/cbn-auctions-omo-bills-to-non-resident-investors-at-12-75/

Diyke4rich:
To me dont look at the rental value for now, look at future prospective for example 2015 december i bought 5bedroom duplex at ikota villa estate.
agent, lawyer and all chargers everything amount to 59million naira, the rental value is 3m annual of which i have collected 3 annual rent which amount to almost 10m includ deposit and money i get from the agreement, yes i did some renovations but i dont think is up to 2.5m in dat case i have made about 7.5m without thinking of losing my money to quick rich investment if i want to sell the property today i think will be look at 65m to 70m so to me is not a bad investment especially if you are not in the country, from the rent money i get have contributed 30% my new house i want to live in my state.

thats not how capitalism works , u look at it from every angle ( it earning potentials )

ahiboilandgas:
thats not how capitalism works , u look at it from every angle ( it earning potentials )

That is from an investor's point of view, the person marketing the property will not want him to reason that way

Hello guys can we share investment or money management lessons we learnt during this lockdown.

I learnt three major lessons.

1. Cash is king

2. Live below your means

3. Be cautiously optimistic

A civil servant bought a phone of about 400k in February 2020, only to offer the phone for sale in the second week of April for 100k.

emmanuelewumi:
Hello guys can we share investment or money management lessons we learnt during this lockdown.

I learnt three major lessons.

1. Cash is king

2. Live below your means

3. Be cautiously optimistic

Indeed cash is king,but might be very hard to have liquid when you are into trade.
There is always that inventory to purchase for profit.
Like me I just buy 2 bags of rice to resell before shutdown and all my money is in rice right now
No be to chop the rice remain?

No matter how you invest or chase money making opportunities, always have a cash reserve that can take care of emergency.


A self employed professional (a land surveyor), spent over N15 million buying a plot of land and building a house in the last 2 years.

He made steady daily and weekly income from professional practice. After deducting his expenses and running costs, the extra funds were invested towards the building of his property and block of 4 flats.
Lockdown started he could not continue with his building project, the house is uncompleted and can't generate rental income. He is also cashless.

There are some real estate investors who look forward to destress sale from people like the land surveyor.

Hence cash will always be king

emmanuelewumi:


That is from an investor's point of view, the person marketing the property will not want him to reason that way

yes oh dangote always finished productions line and ware house before construction of staff office ....obajana was operating from temporary containers office while rolling out 500 truck daily....i taught Alh was stingy but i later found out it was a strategy for time value of money (capital) is must be generating income as the soonest possible time( not waiting for fancy offices )

Theconglomerate:
Indeed cash is king,but might be very hard to have liquid when you are into trade.
There is always that inventory to purchase for profit.
Like me I just buy 2 bags of rice to resell before shutdown and all my money is in rice right now
No be to chop the rice remain?

It requires discipline. A good businessman should be credit worthy. You can always get a standing overdraft facility from your bank in order to harness business and investment opportunities, but at anytime you should have a cash reserve.

Like wise my ibo friends tend to build mulitple floors of 12 units( 2 bedrooms) and 20 shops on a coner piece.....investing around 70m while other will be fencing ,during car park to build 4 apartments and gen house,security post , over head tank , garden......to generate less income....the ibo man finish inside and start renting immediately while paintings outside while other people are still doing garden

emmanuelewumi:



It requires discipline. A good businessman should be credit worthy. You can always get a standing overdraft facility from your bank in order to harness business and investment opportunities, but at anytime you should have a cash reserve.

The credit weh I collect before lockdown,na my girlfriend dey pay am off now ooo....
So you actually think any bank will give you credit now?Haaa!!!
This is called "force majeure" na asusu ndi oyibo.
Nothing anyone can do about it honestly.

dipoolowoo:
CBN Auctions OMO Bills to Non-Resident Investors at 12.75%
https://businesspost.ng/economy/cbn-auctions-omo-bills-to-non-resident-investors-at-12-75/

Can nigerian in oversees tap into it? What's the procedure?

Theconglomerate:
The credit weh I collect before lockdown,na my girlfriend dey pay am off now ooo....
So you actually think any bank will give you credit now?Haaa!!!
This is called "force majeure" na asusu ndi oyibo.
Nothing anyone can do about it honestly.

How can you get credit now?

A typical businessman should have credit facilities as one of his financial, business and investment tools.

It is wrong for any savvy person to say it is because of Investments or business opportunities that did not allow them to have an emergency cash reserve. This reserve is best kept in money market fund, call deposit or saving account.

I will rather owe my bank N5 million which is used for business or Investment and still have N2 million in cash or almost cash


Than not owing my bank, using N4 million of my personal fund for business and left with zero cash balance

emmanuelewumi:



How can you get credit now?

A typical businessman should have credit facilities as one of his financial, business and investment tools.

It is wrong for any savvy person to say it is because of Investments or business opportunities that did not allow them to have an emergency cash reserve. This reserve is best kept in money market fund, call deposit or saving account.

I will rather owe my bank N5 million which is used for business or Investment and still have N2 million in cash or almost cash


Than not owing my bank, using N4 million of my personal fund for business and left with zero cash balance

Is business not an emergency too?
You can never leave 1m lying fallow in a bank when you know there is a springing opportunity that will produce 200k with it.
Its basic human instinct.
The people that do that kind of model you talk about are elites that have so much that capital isn't a problem no more,not us still battling with life problems.
You know I've got to hold my belle with my 30k capital so I always reinvest round the clock and keep little change for myself incase of emergencies(like N200 for hot market rice and crayfish stew ).
So we make up for that expenses by purchasing all goods we can and try and have a lot of variety to be able to build a sustainable cash flow.
Like I bought 2 bags of rice and 3 cartons of tomatoes plus one pack of seasoning so that if you no but rice,you go buy another thing.capitalist
Now how on earth do I keep savings wen I don't even have enough inventory?untop 30k capital again??
Bottom line is you have to cross a certain threshold before you start having actual savings as an entrepreneur,especially TRADE.
FROM 100MILLION NAIRA capital base traders and below have got no damn SAVINGS,not even 100k!Everything is reinvested in that business!!!!
That is why if their shop burn,them dey want kill themselves by jumping in the fire to safeguard goods

Theconglomerate:
Is business not an emergency too?
You can never leave 1m lying fallow in a bank when you know there is a springing opportunity that will produce 200k with it.
Its basic human instinct.
The people that do that kind of model you talk about are elites that have so much that capital isn't a problem no more,not us still battling with life problems.
You know I've got to hold my belle with my 30k capital so I always reinvest round the clock and keep little change for myself incase of emergencies(like N200 for hot market rice and crayfish stew ).
So we make up for that expenses by purchasing all goods we can and try and have a lot of variety to be able to build a sustainable cash flow.
Like I bought 2 bags of rice and 3 cartons of tomatoes plus one pack of seasoning so that if you no but rice,you go buy another thing.capitalist
Now how on earth do I keep savings wen I don't even have enough inventory?untop 30k capital again??
Bottom line is you have to cross a certain threshold before you start having actual savings as an entrepreneur,especially TRADE.
FROM 100MILLION NAIRA capital base traders and below have got no damn SAVINGS,not even 100k!Everything is reinvested in that business!!!!
That is why if their shop burn,them dey want kill themselves by jumping in the fire to safeguard goods

Business opportunities that you are to harness should be well though out and planned for. Your banks are there to help with certain too good opportunities. Your cash will help as a down payment which will signify commitment.


Always get a standby over draft facility. Depending on the size of your business you can draw down beyond your balance from 500k to billions of Naira.


There is no astute and savvy businessman who does not have an emergency cash reserve and make use of credit facilities to create more wealth, grow their investments and expand their businesses.

During this lockdown my wife still redeemed some good amount of funds from her money market fund account. That is the importance of having an emergency cash reserve.

Julius Berger business is cyclical, their are years they don't make profit but because of having a reserve they are able to pay dividends.

It is Prudent for a businessman to have up to 6 months living expenses as an emergency cash reserves.

Computer village Ikeja, Ladipo market and other markets were locked down before the general lockdown in Lagos. It is unfortunate some of the traders who did not prepare for this are suffering.


As a businessman your bank should not be a place to only keep money, your bank should be able to give you leverage and should be your partner in growing your business.

Theconglomerate:
The credit weh I collect before lockdown,na my girlfriend dey pay am off now ooo....
So you actually think any bank will give you credit now?Haaa!!!
This is called "force majeure" na asusu ndi oyibo.
Nothing anyone can do about it honestly.

Every business started small, but the founder will struggle not to remain small..

Start small and think big.

Common esusu contribution of N500 everyday will grow to almost N40,000 in three months.


Little drops of water forms the big ocean.
A journey of a thousand miles starts with a step



Some traders make crazy profit margins during festive periods, but they lavish everything in December and start the rat race again


Not possible to have a cash reserve if you don't live below your means


When you want to expand your business and you need credit facility,your bank will need the cash flow from the business and your savings from the business. If the business does not have savings and positive cash flow, it can't qualify for a loan

emmanuelewumi:



Business opportunities that you are to harness should be well though out and planned for. Your banks are there to help with certain too good opportunities. Your cash will help as a down payment which will signify commitment.


Always get a standby over draft facility. Depending on the size of your business you can draw down beyond your balance from 500k to billions of Naira.


There is no astute and savvy businessman who does not have an emergency cash reserve and make use of credit facilities to create more wealth, grow their investments and expand their businesses.

During this lockdown my wife still redeemed some good amount of funds from her money market fund account. That is the importance of having an emergency cash reserve.

Julius Berger business is cyclical, their are years they don't make profit but because of having a reserve they are able to pay dividends.

It is Prudential for a businessman to have up to 6 months living expenses as an emergency cash reserves.

Computer village Ikeja, Ladipo market and other markets were locked down before the general lockdown in Lagos. It is unfortunate some of the traders who did not prepare for this are suffering.


As a businessman your bank should not be a place to only keep money, your bank should be able to give you leverage and should be your partner in growing your business.

Oga I say I dey owe bank already as we dey talk.Them no cancel credit repayment.
So how do I borrow from bank again weh I dey owe them?
Na my girlfriend dey pay off the monthly remittance sef as me and you dey talk right now because she's an employee for a stable firm and her salary is steady.
However the loan I took was used to expand my business in terms of acquiring new kind of inventory and opening other routes.
How do I pay off when we don't sell anymore?
I will still reiterate,all traders of capital base of 100million and below have no savings.
Are you trying to say someone that built something from nothing to a 100m naira isn't smart because he doesn't access credit or haven't got emergency savings fund?
You don trade before so?

Theconglomerate:
Oga I say I dey owe bank already as we dey talk.Them no cancel credit repayment.
So how do I borrow from bank again weh I dey owe them?
Na my girlfriend dey pay off the monthly remittance sef as me and you dey talk right now because she's an employee for a stable firm and her salary is steady.
However the loan I took was used to expand my business in terms of acquiring new kind of inventory and opening other routes.
How do I pay off when we don't sell anymore?
I will still reiterate,all traders of capital base of 100million and below have no savings.
Are you trying to say someone that built something from nothing to a 100m naira isn't smart because he doesn't access credit or haven't got emergency savings fund?
You don trade before so?

I am also owing my bank, but I still have a cash reserve. Some dividends came in from Zenith bank about 3 weeks ago which I saved part and reinvested the remaining. Some are expected to drop from 28th April to 30th April 2020

emmanuelewumi:


Every business started small, but the founder will struggle not to remain small..

Start small and think big.

Common esusu contribution of N500 everyday will grow to almost N40,000 in three months.


Little drops of water forms the big ocean.
A journey of a thousand miles starts with a step

True,even though I see no sense in trying money somewhere when I can always reinvest that money in thesame business to gain these advantages;
-build more clientele as I would have more variety of inventory by constantly reinvesting.
-build capital base.
-Access to loans
-Market dominance by being the one with more variety.
Etc...
Oga all the people we know weh been dey play essusu still dey for their table year to year ooo.Back to back,no progress.
Removing capital and investing elsewhere is only done when the business have hit satiety.
Only a mad man will have a business that still need expansion and will start investing in capital market and mutual funds and all the like.
Who does that

Without having the right prudential practices and risk management policies in place we have seen Investors, businesses and traders retrogress from hero levels to zero levels.

The best bet is to be cautiously optimistic of the future, live below your means, pray for the best but be prepared for the worst.

There are reasons why we have very few Nigerian businesses and brands that have been around for 50 years and above and still growing.


The current recession in the country and global financial crisis, will definitely kill some businesses for good.

May God help us all. Amen

emmanuelewumi:
Hello guys can we share investment or money management lessons we learnt during this lockdown.

I learnt three major lessons.

1. Cash is king

2. Live below your means

3. Be cautiously optimistic

I learnt that there is need to always have a reasonable sum in a transferable account for urgent/ quick transaction and need.

Theconglomerate:
True,even though I see no sense in trying money somewhere when I can always reinvest that money in thesame business to gain these advantages;
-build more clientele as I would have more variety of inventory by constantly reinvesting.
-build capital base.
-Access to loans
-Market dominance by being the one with more variety.
Etc...
Oga all the people we know weh been dey play essusu still dey for their table year to year ooo.Back to back,no progress.
Removing capital and investing elsewhere is only done when the business have hit satiety.
Only a mad man will have a business that still need expansion and will start investing in capital market and mutual funds and all the like.
Who does that

If have a business and your bank doesn't assist you to grow your business, it is time to stop doing business with such banks

freeman67:



I learned that there is need to always have a reasonable sum in a transferable account for urgent/ quick transaction and need.

Very true.

Cash gives confidence and peace of mind during periods like this.

The daughter of the owner of Bigi drinks, who is a director of Sterling Bank. Bought an additional N300 million worth of Sterling Bank shares on Wednesday, that can only be done by liquid business people

emmanuelewumi:



How can you get credit now?

A typical businessman should have credit facilities as one of his financial, business and investment tools.

It is wrong for any savvy person to say it is because of Investments or business opportunities that did not allow them to have an emergency cash reserve. This reserve is best kept in money market fund, call deposit or saving account.

I will rather owe my bank N5 million which is used for business or Investment and still have N2 million in cash or almost cash


Than not owing my bank, using N4 million of my personal fund for business and left with zero cash balance

Sir, what about the interest rate from banks.
If the return from the business is less than the interest rate from the bank. Will it still be nice to take a loan from bank?

emmanuelewumi:



Business opportunities that you are to harness should be well though out and planned for. Your banks are there to help with certain too good opportunities. Your cash will help as a down payment which will signify commitment.


Always get a standby over draft facility. Depending on the size of your business you can draw down beyond your balance from 500k to billions of Naira.


There is no astute and savvy businessman who does not have an emergency cash reserve and make use of credit facilities to create more wealth, grow their investments and expand their businesses.

During this lockdown my wife still redeemed some good amount of funds from her money market fund account. That is the importance of having an emergency cash reserve.

Julius Berger business is cyclical, their are years they don't make profit but because of having a reserve they are able to pay dividends.

It is Prudential for a businessman to have up to 6 months living expenses as an emergency cash reserves.

Computer village Ikeja, Ladipo market and other markets were locked down before the general lockdown in Lagos. It is unfortunate some of the traders who did not prepare for this are suffering.


As a businessman your bank should not be a place to only keep money, your bank should be able to give you leverage and should be your partner in growing your business.

my strategy is that if i buy ( invest ) in a truck for 12m and it generates 500-600m monthly .....i open a sub account for the truck A and all income is save after repairs and salary, insurance untill the 12 million is back to the investment accounts....then the truck is now strictly profit income .....even if i exit after 24 months i can still sell truck for 8m ...so i have grow the investments to 20m within 24 months ....this are traditional business model ....i pay my self from each truck like 50k (cost of adminstration) x ......number of fleets ...this is my monthly salary i live within that range and even save ...i dont act like the owner (i separated the company from my self )

schoolboi:


Sir, what about the interest rate from banks.
If the return from the business is less than the interest rate from the bank. Will it still be nice to take a loan from bank?

Interest rate from the banks are between 20% to 25%, big businesses like MTN, Dangote, etc can get at lower rates


If a trader gets a 91 day overdraft facility of N1 million at 24% per annum. That means the trader will pay an interest of 60k on the N1 million after 3 months when the loan matures

A trader who can't make up to 150k profif on a loan of N1 million in 3 months have no business being in that business.

ahiboilandgas:
my strategy is that if i buy ( invest ) in a truck for 12m and it generates 500-600m monthly .....i open a sub account for the truck A and all income is save after repairs and salary, insurance untill the 12 million is back to the investment accounts....then the truck is now strictly profit income .....even if i exit after 24 months i can still sell truck for 8m ...so i have grow the investments to 20m within 24 months ....this are traditional business model ....i pay my self from each truck like 50k (cost of adminstration) x ......number of fleets ...this is my monthly salary i live within that range and even save ...i dont act like the owner (i separated the company from my self )

Unfortunately most traders and businessmen co-mingle both business and personal accounts. They pay girl friends and side chicks salaries from the business accounts.

emmanuelewumi:



Unfortunately most traders and businessmen co-mingle both business and personal accounts. They pay girl friends and side chicks salaries from the business accounts.

my side chic enjoys from a boom..only strictly from my rules ...so make she they pray make t.b nove back to 18.5 above my 12.5 target or some crazy cement sale

ahiboilandgas:
my side chic enjoys from a boom..only strictly from my rules ...so make she they pray make t.b nove back to 18.5 above my 12.5 target or some crazy cement sale

I hope say your madam is not on Nairaland.

emmanuelewumi:



I hope say your madam is not on Nairaland.

Good question for ahiboilandgas.