Godbpraised:
Abi oooo. Coz he knows that something would go wrong down the line.

Erastus Akingbola, Fola Adeola, Tayo Aderinokun, Jim Ovia, Peterside Atedo and others sold their cars, their wives jewelries, houses etc when they wanted to start their Businesses.

emmanuelewumi:
Imagine a young guy needed 500k for a start up, the person he met said he would give him a loan of 500k @ 20% per annum, but must submit a collateral security that is worth N1 million and above.

The guy though he was smart, he dropped the keys and documents of his car with the lender, until the lender invited him to sign a memorandum of understanding with his lawyer, which will be stamped at the nearest high court.

Can you imagine, the start up enterpreneur said he doesn't want a loan again..


Why did he pull out if he was very sure of the business success?

Alot of them just have business ideas but deep down, they know it can either fail or succeed so they only want to take the risk with someone else's money.

When it's time to pay back they start talking about how their case was a spiritual attack and how "arrow" was fired at them.

emmanuelewumi:



Erastus Akingbola, Fola Adeola, Tayo Aderinokun, Jim Ovia, Peterside Atedo and others sold their cars, their wives jewelries, houses etc when they wanted to start their Businesses.

Actions like this show that the person is down for business

Well said, I guess government should double up to create the environment for investments. Government is not good at investing that why u see the looting.

The only way government can create the environment for competition and increased investments is that when u av some one at the helm of government who knows about economic investments etc. Not a cattle rearer.

DexterousOne:



Here is what I think
1) The rice ban was sudden, cos there was no lag between intent and implementation of policy

2)If you guys knew that you were gonna ban okada, why collect money from them (GoKada and co.) For regulation and licensing in the first place
I heard even Mc Oluomo (a no good riff raff) was even negotiating how much his body will collect from these companies via ticketing or so....
We do things in a very fo.olish manner in this country

That abrupt ban was a slap in the face
I ALSO HEARD THEY WERE GOING AFTER UBER OPERATORS


Until we can have a semblance of stability and normalcy in our investment space across different sectors, investing in Nigeria is akin to embarking on a journey into the wild west

Yeah u are right , the whole idea is put their money if u believe it would succeed thats why banks demand huge collateral them no be NGO.

I will do the same on my 500k too, if i am to leaned my money.

emmanuelewumi:



Erastus Akingbola, Fola Adeola, Tayo Aderinokun, Jim Ovia, Peterside Atedo and others sold their cars, their wives jewelries, houses etc when they wanted to start their Businesses.

OgogoroFreak:
Alot of them just have business ideas and deep down, they know it's can either fail or succeed so they only want to take the risk with someone else's money.

No wonder they are not happy that some people are investing in fixed income and portfolio Investments.

I know the returns on fixed income is too low, but people will invest in what they understand. They prefer losing money to inflation than investing in what they don't understand or have the time to monitor

My cousin lost N2 million in a digital agriculture investment operated by Menorah farms, I pray he gets his fund. I warned him but didn't listen

Godbpraised:
Yeah u are right , the whole idea is put their money if u believe it would succeed thats why banks demand huge collateral them no be NGO.

I will do the same on my 500k too, if i am to leaned my money.

Rather some people will want a total stranger met on the Treasury Bill thread of Nairaland to come and invest in their start up or current businesses .I have had and still having series of such invitations.

Then they will go out and start shouting, "no one wants to help"
Nigerian problem is 70% problem.

emmanuelewumi:



Rather some people will want a total stranger met on the Treasury Bill thread of Nairaland to come and invest in their start up or current businesses .I have had and still having series of such invitations.

Bros no be only you oh. On this faceless forum them plenty.


That was why i am saying the youths of today no sabi werin dey.

Them want the crown not the Cross ,

emmanuelewumi:



Rather some people will want a total stranger met on the Treasury Bill thread of Nairaland to come and invest in their start up or current businesses .I have had and still having series of such invitations.

Enterpreneurs should learn to crawl before standing, then walk, later jump and then run.

Trust is a big issue

Start small and grow. Create value and build your character. If your sibblings, cousins, parents, spouse, friends, colleagues, neighbours, old school mates, church and mosque members can't invest in your dream. It means you have not been able to create value, you are not resourceful or you lacked integrity.

[/b]Awesome and excellent comments you have said it all. [b]

author=emmanuelewumi post=92088587]Enterpreneurs should learn to crawl before standing, then walk, later jump and then run.

Trust is a big issue

Start small and grow. Create value and build your character. If your sibblings, cousins, parents, spouse, friends, colleagues, neighbours, old school mates, church and mosque members can't invest in your dream. It means you have not been able to create value, you not resourceful or you lacked integrity.[/quote]

emmanuelewumi:
Enterpreneurs should learn to crawl before standing, then walk, later jump and then run.

Trust is a big issue

Start small and grow. Create value and build your character. If your sibblings, cousins, parents, spouse, friends, colleagues, neighbours, old school mates, church and mosque members can't invest in your dream. It means you have not been able to create value, you are not resourceful or you lacked integrity.

Exactly.
The 3Fs of seeking early investors, you try Family, then Friends, then Fools.
People expecting someone to invest in them without protecting their investment as they deem fit are placing that someone in the last category.

OgogoroFreak:
The way u people keep shouting the real economy, I wonder if you are in Nigeria at all.

Almost everybody in Nigeria is selling one thing or the other. No jobs. Everybody don turn marketers expecially online. Most graduates, undergraduates are sellers, fashion designers etc. The numbers of Keke, bike, and commercial buses on the road causing traffic is almost suffocating. There are more businesses in Nigeria than white collar jobs, yet, we keep shouting the real economy. Haba!

This doesn't justify the fact that we need to invest in the real economy. I used to nurse this idea that the transportation business is already saturated hence the need not to trend with the crowd perhaps the money markets(still learning) however the too many investors in transportation business is an indicator of how lucrative it is... bro we are densely populated...

Obviously, everybody will not invest in fixed incomes and portfolio investments.

We've got billionaires in both sectors

emmanuelewumi:



No wonder they are not happy that some people are investing in fixed income and portfolio Investments.

I know the returns on fixed income is too low, but people will invest in what they understand. They prefer losing money to inflation than investing in what they don't understand or have the time to monitor

My cousin lost N2 million in a digital agriculture investment operated by Menorah farms, I pray he gets his fund. I warned him but didn't listen

Exactly.

Anyone who can't do a business by themselves should put their money into "sure" investment only, No matter how small the profit is.

Cos when you start a business for someone else to manage for you, there is 80% chance that they will steal from you and eventually run your business down - Commercial bus drivers for example, When you give them bus to drive they manhandled it but when they buy their own bus, they drive it like an egg. They can take unnecessary risk with your own but can't try it with theirs.

emmanuelewumi:



It is not an alternative. Sukuk has been around for long

Treasury Bills are for a minimum of 91 days, bonds and Sukuk are for a minimum 3 years.

Sukuk is not different from bond, it is a Sharia compliant debt instrument that does invest in lottery, brewery, pornographic and usury investments. Reason why they don't pay coupons but rental.


It is their money, it is their investments, it is their low returns on investment. Good luck to them..

I understand Sukuk is not a direct alternative but to Investors it is an alternative... For example, if you look at this thread like last January, everyone was rushing to invest in treasury bills cos of the high interest.... Now, most people are moving to Sukuk because they see that treasury rate has fallen... The fall of treasury rate is also driving down other interest bearing instruments in the money market, so few are very excited to seek direct alternatives to tbills because all of their interest are dragging who will start discover crude oil below the Sahara desert.


@OgogoroFreak

I understand how screaming real sector sounds like beating a worn out drum but believe me, it is were everyone needs to go into now if they are desirous of Saving their money, or better still, just buy gold and keep since gold always appreciate and immune from inflation.

Also, when I say real sector, I do not mean carry your money and go invest in a saturated market. That would be unwise.

Instead, there are markets where there is low competition and high demand for basic things that people can't do without...e.g food and shelter...

For food, how many people have the capacity and facilities to grow rice and process it, including it's byproducts? Rice is in high demand and will always be in demand because it is a staple food consumed by most households in Nigeria...

Since the ban on rice, do you see how price of Nigeria rice is climbing up due to insufficient supply?

We throw billions and trillions into treasury bills and sukuk that are waiting to be looted...

The government organised itself and created a means to pool/collect our money together for their use, in return for interest that inflation will wipe off... why can't we organise ourselves, pool our funds together and create a business like rice farming and processing... oil processing from palm kernel?

If we as citizens can't organise ourselves, is it the government peopled by thieves that will organise us?

The second basic need is shelter... The billions we keep throwing to government, what if we organise ourselves and go into real estate, building accommodation in areas with high demand for such?

Summary

I could go on and on listing examples but the summary is that one should look for opportunities that exist in the real sector, opportunities that are not saturated and can safely be executed with our existing level of infrastructure...and invest in such opportunities.

We can either organise ourselves and operate jointly or organise ourselves and operate independently... pool our skills and knowledge together and divert our resources into productive use.

Just like we have done here by coming together to share information on tbills when it was going good, now that tbills has become unprofitable, let's use the same means to organise ourselves and go into other profitable real sector investments...


Nigeria is not a place where you become rich from buying interest yielding securities... You will smile at the interest but inflation will steal it all away and some more, without using violence.

oluwaleokey:


This doesn't justify the fact that we need to invest in the real economy. I used to nurse this idea that the transportation business is already saturated hence the need not to trend with the crowd perhaps the money markets(still learning) however the too many investors in transportation business is an indicator of how lucrative it is... bro we are densely populated...

Obviously, everybody will not invest in fixed incomes and portfolio investments.

We've got billionaires in both sectors

The point is the money people are investing in fixed income is most likely coming from investment in the real sector and from salary jobs. Infact a good number of the funds is coming from the real economy.

Now telling someone already in the real sector to invest inthe real sector is silly and telling salary earners to invest in the real sector when they won't be available to manage their investment themselves, is suicidal.

emmanuelewumi:
Enterpreneurs should learn to crawl before standing, then walk, later jump and then run.

Trust is a big issue

Start small and grow. Create value and build your character. If your sibblings, cousins, parents, spouse, friends, colleagues, neighbours, old school mates, church and mosque members can't invest in your dream. It means you have not been able to create value, you are not resourceful or you lacked integrity.

Another hasty generalisation.

LandMann:


I understand Sukuk is not a direct alternative but to Investors it is an alternative... For example, if you look at this thread like last January, everyone was rushing to invest in treasury bills cos of the high interest.... Now, most people are moving to Sukuk because they see that treasury rate has fallen... The fall of treasury rate is also driving down other interest bearing instruments in the money market, so few are very excited to seek direct alternatives to tbills because all of their interest are dragging who will start discover crude oil below the Sahara desert.


@OgogoroFreak

I understand how screaming real sector sounds like beating a worn out drum but believe me, it is were everyone needs to go into now if they are desirous of Saving their money, or better still, just buy gold and keep since gold always appreciate and immune from inflation.

Also, when I say real sector, I do not mean carry your money and go invest in a saturated market. That would be unwise.

Instead, there are markets where there is low competition and high demand for basic things that people can't do without...e.g food and shelter...

For food, how many people have the capacity and facilities to grow rice and process it, including it's byproducts? Rice is in high demand and will always be in demand because it is a staple food consumed by most households in Nigeria...

Since the ban on rice, do you see how price of Nigeria rice is climbing up due to insufficient supply?

We throw billions and trillions into treasury bills and sukuk that are waiting to be looted...

The government organised itself and created a means to pool/collect our money together for their use, in return for interest that inflation will wipe off... why can't we organise ourselves, pool our funds together and create a business like rice farming and processing... oil processing from palm kernel?

If we as citizens can't organise ourselves, is it the government peopled by thieves that will organise us?

The second basic need is shelter... The billions we keep throwing to government, what if we organise ourselves and go into real estate, building accommodation in areas with high demand for such?

Summary

I could go on and on listing examples but the summary is that one should look for opportunities that exist in the real sector, opportunities that are not saturated and can safely be executed with our existing level of infrastructure...and invest in such opportunities.

We can either organise ourselves and operate jointly or organise ourselves and operate independently... pool our skills and knowledge together and divert our resources into productive use.

Just like we have done here by coming together to share information on tbills when it was going good, now that tbills has become unprofitable, let's use the same means to organise ourselves and go into other profitable real sector investments...


Nigeria is not a place where you become rich from buying interest yielding securities... You will smile at the interest but inflation will steal it all away and some more, without using violence.

.




Investors will always go to where they understand and where the security of their investments are assured.


We have more investments in the real sector compared to fixed income Investments.

Compare the total funds in fixed income Investments with the size of our economy. The stock market has a capitalisation of about N14 trillion, these are businesses operating in the real sector.


Are you suggesting that salaried workers should resign and jump into the real sector? Most of the small and middle scale businesses are all in the real sector and the largest employers of labour.


Investors will always invest in the businesses of players in the real sectors who complied with their investment objectives.


Operators should understand the language of finance and incorporate what financiers/Investors look out for.

Players in the real sector should have a system and structure in their businesses, and investors will be rushing to invest in them


Intelligent Investors are not gamblers.


Different strokes for different folks.

Investors are rational and not sentimental.


PE equity Investors are still investing hundreds of billions of Naira in real sector investments that scaled through their stringent criteria

LandMann:


I understand Sukuk is not a direct alternative but to Investors it is an alternative... For example, if you look at this thread like last January, everyone was rushing to invest in treasury bills cos of the high interest.... Now, most people are moving to Sukuk because they see that treasury rate has fallen... The fall of treasury rate is also driving down other interest bearing instruments in the money market, so few are very excited to seek direct alternatives to tbills because all of their interest are dragging who will start discover crude oil below the Sahara desert.


@OgogoroFreak

I understand how screaming real sector sounds like beating a worn out drum but believe me, it is were everyone needs to go into now if they are desirous of Saving their money, or better still, just buy gold and keep since gold always appreciate and immune from inflation.

Also, when I say real sector, I do not mean carry your money and go invest in a saturated market. That would be unwise.

Instead, there are markets where there is low competition and high demand for basic things that people can't do without...e.g food and shelter...

For food, how many people have the capacity and facilities to grow rice and process it, including it's byproducts? Rice is in high demand and will always be in demand because it is a staple food consumed by most households in Nigeria...

Since the ban on rice, do you see how price of Nigeria rice is climbing up due to insufficient supply?

We throw billions and trillions into treasury bills and sukuk that are waiting to be looted...

The government organised itself and created a means to pool/collect our money together for their use, in return for interest that inflation will wipe off... why can't we organise ourselves, pool our funds together and create a business like rice farming and processing... oil processing from palm kernel?

If we as citizens can't organise ourselves, is it the government peopled by thieves that will organise us?

The second basic need is shelter... The billions we keep throwing to government, what if we organise ourselves and go into real estate, building accommodation in areas with high demand for such?

Summary

I could go on and on listing examples but the summary is that one should look for opportunities that exist in the real sector, opportunities that are not saturated and can safely be executed with our existing level of infrastructure...and invest in such opportunities.

We can either organise ourselves and operate jointly or organise ourselves and operate independently... pool our skills and knowledge together and divert our resources into productive use.

Just like we have done here by coming together to share information on tbills when it was going good, now that tbills has become unprofitable, let's use the same means to organise ourselves and go into other profitable real sector investments...


Nigeria is not a place where you become rich from buying interest yielding securities... You will smile at the interest but inflation will steal it all away and some more, without using violence.

Alot of people have been duped on this same nairaland with this same "organise ourselves" and pulling funds together format. There is almost nobody in Nigeria with money to invest that is not busy. Unless, e get where the person dey steal free money from.

OgogoroFreak:
high interest, high interest.. A good business can double your millions within a year. Treasury bills can't. Even at 18% tbills rate, it's still insane for some business men to tie their money there for a year.

Like which businesses?

Between January and March 2019, private equity Investors invested N277 billion in the real sector.

emmanuelewumi:
Imagine a young guy needed 500k for a start up, the person he met said he would give him a loan of 500k @ 20% per annum, but must submit a collateral security that is worth N1 million and above.

The guy though he was smart, he dropped the keys and documents of his car with the lender, until the lender invited him to sign a memorandum of understanding with his lawyer, which will be stamped at the nearest high court.

Can you imagine, the start up enterpreneur said he doesn't want a loan again..


Why did he pull out if he was very sure of the business success?

As cliché as it sounds, did you see the biz plan?

OgogoroFreak:
Alot of people have been duped on this same nairaland with this same "organise ourselves" format. There is almost nobody in Nigeria with money to invest that is not busy. Unless, e get where the person dey steal free money from.

As a person, I am against the so called " organise ourselves"..


Sell your phone, gadget car etc and get the seed capital. Get a job no matter how small and save in order to get the seed capital for that business.

Sell your family land in the village to get your seed capital. Use your brothers car as a collateral to get a loan for the expansion of your business.

Better still small operators should combine resources together in order to derive the economies of scale.

How can 100 entrepreneurs have individual Businesses worth N5 million each? Why can't they combine resources to have a N500 million business and they become shareholders of the business?


Portfolio investors will prefer to own 1% of a N1 billion business, than owning 100% of a N10 million business

We have learnt a lot on this thread let us organize ourselves by investing and doing business with our sibblings, parents, in-laws, neighbours, parishioners, relatives, old school mates, colleagues, friends and other people who can vouch for our character and integrity.. We need to build community and generational wealth, that is what the Indians, Lebanese and the very rich in Nigeria do.


Charity they say, begins at home.

Well said .

emmanuelewumi:





As a person, I am against the so called " organise ourselves"..


Sell your phone, gadget car etc and get the seed capital. Get a job no matter how small and save in order to get the seed capital for that business.

Sell your family land in the village to get your seed capital. Use your brothers car as a collateral to get a loan for the expansion of your business.

Better still small operators should combine resources together in order to derive the economies of scale.

How can 100 entrepreneurs have individual Businesses worth N5 million each? Why can't they combine resources to have a N500 million business and they become shareholders of the business?


Portfolio investors will prefer to own 1% of a N1 billion business, than owning 100% of a N10 million business

CsRockefeller:


As cliché as it sounds, did you see the biz plan?

Memorandum of understanding is to make the use of the car as a collateral a legal agreement which gives the lender the right to become the owner of the car if the entrepreneur fails to pay back the loan with interest within 12 months.

The lender is not concerned about the business plan, but the security of his fund and the legal right to retrieve his fund immediately after 12 months without stories

Am currently attending a funeral price tag is now 5.1m i attend to understand why africans do this ....for now it seem an exploitation event ...

ahiboilandgas:
Am currently attending a funeral price tag is now 5.1m i attend to understand why africans do this ....for now it seem an exploitation event ...

No problem if they are enjoying the exploitation, and the person who exploited did not stop it

African just come up with unlogically events as burial ceremony..suprisely very educated people are involved .....the casket was dance with by some scammers called undertakers ....waiting smartly for mouners to spray money

emmanuelewumi:



No problem if they are enjoying the exploitation, and the person who exploited did not stop it

it seem the pull is their elder sister who grew up in the village .....she want to prove doing well in mist of high poverty

emmanuelewumi:



No wonder they are not happy that some people are investing in fixed income and portfolio Investments.

I know the returns on fixed income is too low, but people will invest in what they understand. They prefer losing money to inflation than investing in what they don't understand or have the time to monitor

My cousin lost N2 million in a digital agriculture investment operated by Menorah farms, I pray he gets his fund. I warned him but didn't listen

I wonder what he saw in that particular farm that gave him the confidence to invest such an amount. Agritechs are new but there are certain Agritechs you invest in that if they flop at least everybody will be surprised.

emmanuelewumi:



Memorandum of understanding is to make the use of the car as a collateral a legal agreement which gives the lender the right to become the owner of the car if the entrepreneur fails to pay back the loan with interest within 12 months.

The lender is not concerned about the business plan, but the security of his fund and the legal right to retrieve his fund immediately after 12 months without stories

I understand but, you should also be concerned if the loanee has d ability to pay easily from d biz at least that's what banks do even with the collateral as a bond.