Economy
6 Tips to Help Young Nigerians Start their Investment Journey
According to statistics, Gen Z, the demographic group succeeding Millennials, is the most prevalent in Nigeria. One in every four Nigerians belongs to the Gen Z group and they tend to be more financially sophisticated than previous generations were at their age. This might be a result of growing in a recession and watching the financial mistakes made by previous generations. Recently, the COVID-19 pandemic has even made Gen-Zers more self-aware with money.
Gen Z adults are the most aware of financial literacy. This is evident as seen in their adoption of technology in becoming savvy savers, their acceptance of digital banking and their knowledge of investment platforms like NFTs, cryptocurrencies and stocks. Still, most of them who are not investing say it’s because they do not know where to start.
Here are 5 tips that can help young Nigerians start their investment journey with ease.
1. Prioritize investing money
You can start your investment journey by being deliberate and prioritising a fraction of your income. Most investment professionals advocate that 20% of your income should be put aside as an investment. As you build up an investment culture, you can then increase the percentage of your income for investment, without any pressure. You can also automate your investment in line with when you typically receive income such as your payday. As you allocate some money for expenses, you need to also prioritize investing. And while people tend to associate investing with large sums, the SFS Fund Mobile App which is an AA-rated fund and licensed by the Securities and Exchange Commission (SEC) debunks that myth as it allows individuals to begin their investment journeys with as little as N5,000.
2. Invest in Mutual Fund
Investing in a mutual fund presents an easy way to start your investment journey because it is convenient, with built-in diversification that makes investment less volatile and it is managed by experienced fund managers. With Mutual funds, investors get to pool their money, investing in securities such as stocks, treasury bills and money market instruments. Interests made are added to your investment daily allowing you to have a steady stream of income.
The SFS Fund is an open-ended collective investment scheme duly registered by the SEC. It is an AA-rated carefully designed financial planning product that is fit for those who are just starting out when it comes to investing in Mutual Fund.
3. Do your research
Nigerians have been hit hard by a lot of fraudulent investment schemes. This has made people very weary of investing. It is important that if you want to start your investment journey, you need to engage in personal research. There are different things to look out for when choosing an investment scheme. The company’s financials, its leadership team, competition and its relationship with regulatory bodies are crucial information needed before deciding whether to invest.
For instance, the SFS Fund under multiple award-winning SFS Capital is managed by investment professionals with over two decades experience of in managing investment portfolios. All investments with SFS Capital are also held by an independent and highly regulated custodian and all investment decisions are reviewed by an independent trustee.
4. Ask for Independent Ratings
It is good to also ask for independent ratings, SEC-approved rating agency and possibly the rating report. Though ratings follow a slightly different format, they are mostly in 7 levels; CC, CCC, BB, BBB, A, AA, AAA- ranging from most risky to least risky. We strongly recommend you avoid investments without independent rating or with a rating less than BBB. Therefore, consider only BBB, A, AA AND AAA. SFS Fund has a AA rating, the second highest possible rating.
5. Embrace technology
You will be amazed to know that young people get more information about investing from social media. Choosing the right investment app online with reviews from social media might be tricky without the right guidance and it could hinder young people who are just starting their investment journey. Picking the right investment app can help with building a lifetime of a strong wealthy base that secures the future.
An example of a secure and on-the-go investment app is the SFS Fund Mobile App which is available for download on Android and iOS devices for free. Upon downloading the app, you can start your Mutual Fund investment journey on an easy-to-use dashboard that encourages transactions on the go with seamless and interactive features.
6. Think long term
Investing in the long term is greater for achieving larger success. Starting an investment at an early age is advantageous because it creates a healthy appetite for risk. Young people have a chance to build more vigorous portfolios that can be more erratic, thereby producing more gains over time. Young investors also have the flexibility and time to study and learn about their wins and losses in investing when they start their investment journey early.
With these five tips for investing, young people can be on their way to securing a future they truly envision. Young people also need to understand that while patient investing may be difficult, it is imperative that they endure long periods of underperformance. They need to stick to their investment plan in order to achieve their investment goals.
By Adedapo Adesanya
The Central Securities Clearing System (CSCS) Plc has declared the first interim dividend in its history after posting its financial results for the first half of 2026, reflecting robust earnings growth, improved operating efficiency and stronger capital market activity.
The board approved an interim dividend of N1.00 per ordinary share for the six months ended June 30, 2026, citing the company’s strong cash generation, resilient balance sheet and confidence in the sustainability of its earnings.
The interim payout represents about 56 per cent of the total dividend of N1.78 per share paid for the 2025 financial year, underscoring its strong earnings momentum while preserving financial flexibility to invest in technology, innovation and future growth.
CSCS recorded one of the strongest financial performances in its history during the review period, with total operating income rising by 92 per cent to N18.51 billion from the corresponding period of 2025.
The growth was driven by higher transaction fee income as capital market activity strengthened, continued expansion in depository services, increased collateral management revenues and stronger contributions from data and technology-enabled services. Investment income also improved as the company optimised its investment portfolio.
Despite the sharp rise in revenue, operating expenses increased by only 38 per cent, reflecting disciplined cost management and the scalability of the company’s business model.
As a result, operating profit surged by 186 per cent to N10.11 billion, while profit before tax climbed by 115 per cent to N13.21 billion. Earnings per share also rose significantly to 190.1 kobo from 109.1 kobo in the corresponding period of 2025.
The organisation also recorded improvements in operating efficiency. Its cost-to-income ratio declined to 45.4 per cent from 63.2 per cent a year earlier, while operating profit margin improved to 54.6 per cent from 36.8 per cent.
According to the company, the results demonstrate not only the benefits of stronger market activity but also the resilience of its operating model and its ability to convert revenue growth into higher profitability, improved shareholder returns and sustainable long-term value creation.
Commenting on the interim dividend, the Chairman of CSCS Plc, Mr Temi Popoola, said the board’s decision reflected confidence in the firm’s financial strength, earnings quality and long-term strategic direction.
He said the strong performance was driven not only by increased market activity but also by sustained improvements in operational efficiency, disciplined cost management and the continued diversification of revenue streams.
Mr Popoola noted that the Board remained committed to balancing shareholder returns with investments in technology, innovation, resilience and new growth opportunities that would strengthen CSCS’ position as Nigeria’s leading financial market infrastructure and one of Africa’s foremost post-trade institutions.
The chief executive of CSCS Plc, Mr Shehu Yahaya Shantali, attributed the strong performance to the resilience of the entity’s business model, the dedication of its workforce and the confidence of market participants.
He said the first-ever interim dividend demonstrated the company’s ability to translate strong earnings growth and improved operating efficiency into enhanced shareholder value.
Mr Shantali added that CSCS would continue to strengthen its core market infrastructure, invest in technology and innovation, diversify its revenue base and enhance value creation for stakeholders while supporting the development of Nigeria’s capital market.
By Aduragbemi Omiyale
The national scale long-term issuer rating of Axxela Limited has been upgraded by GCR Rating to A+(NG), just as its short-term issuer rating was affirmed with a stable outlook.
The rating firm upgraded the long-term issue rating for Axxela Funding 1 Plc’s N16.4 billion series 1 senior unsecured bond to A+(NG), while the N11.5 billion series 1 senior secured bond was lifted to A+(NG)(EL).
GCR noted in a note that the actions reflect the leading gas and power portfolio company’s robust business model, strong earnings performance, and sustained financial profile, reinforcing its ability to deliver long-term value while maintaining financial discipline.
Axxela’s recent achievements have been driven by its continued focus on responsible growth, customer satisfaction, and creating lasting value for national development.
“The ratings upgrade by GCR is a strong endorsement of Axxela’s disciplined approach to business. Beyond recognising our financial strength, it reflects the resilience of our business model and the confidence in our strategic direction.
“Over the past few years, we have continued to make significant strides across the business by expanding our natural gas infrastructure, strengthening our operational footprint, advancing our sustainability agenda, and maintaining an unwavering commitment to operational excellence and safety,” the chief executive of Axxela, Mr Moshood Olajide, commented on the development.
As the company continues to advance its long-term growth strategy, the upgraded ratings reinforce confidence in Axxela’s credit profile, financial resilience, and ability to create enduring value for investors, customers and other stakeholders.
By Adedapo Adesanya
The Ministry of Solid Minerals Development and the National Identity Management Commission (NIMC) have strengthened their partnership to deploy digital identity technology, aiming to combat illegal mining and enhance security in Nigeria’s mining sector.
Speaking while receiving the Director-General and management of NIMC on a courtesy visit to his office in Abuja, the Minister of Solid Minerals Development, Mr Dele Alake, described the commission as a critical institution in Nigeria’s development architecture, stressing that effective governance could not be achieved without a credible identity management system.
“NIMC occupies a critical position in translating policy into reality. It is pivotal to the development of any nation because governance today is driven by data, technology and credible identity systems,” he added.
He noted that inadequate identification systems had weakened enforcement efforts over the years, allowing illegal mining activities to flourish in mineral-rich communities.
“Without identification, we cannot trace or track, and insecurity will flourish. In the solid minerals sector, we need effective monitoring of both legal and illegal operations.
“A credible identity ecosystem will strengthen regulation, improve enforcement and support our efforts to sanitise the sector,” Mr Alake said.
The minister identified technology, statistics, data gathering and digital identity as critical enablers for evidence-based policymaking, improved regulatory oversight, efficient licensing, investment promotion and national development.
On her part, the DG of NIMC, Mrs Abisoye Coker-Odusote, highlighted several opportunities for collaboration between both institutions, noting that the newly enacted NIMC Act has positioned Nigeria to fully embrace a digital governance ecosystem.
She explained that deeper integration of identity management into the solid minerals sector would facilitate database integration across government institutions, enhance regulatory compliance, strengthen security and law enforcement, improve monitoring of operators, and provide stronger support for the implementation of Community Development Agreements (CDAs) in mining host communities.
Mrs Coker-Odusote added that NIMC’s upgraded digital infrastructure is capable of supporting government institutions in building reliable databases, improving transparency and delivering more efficient public services.
Both institutions said they would immediately begin implementing technology-driven initiatives under the partnership, expressing confidence that expanding access to trusted digital identities for miners and other eligible residents would enhance accountability and strengthen governance in the solid minerals sector.
