₦airaland Forum

Itzlinda:
There's limit to what inflation can be passed on to consumers. At some points, businesses have to give up some of their profits because the consumers are tapped out

starpower:
Sometimes I just laugh when people talk about “high-margin businesses” in Nigeria like it's a ticket to wealth.
Many of these businesses are just surviving on overdrafts from microfinance banks charging 45% interest like it’s small chops money. 🤣

Let’s be real—
If you’re lucky enough to find a business with impressive margins, 9 times out of 10, it’s not scalable with more capital.
You pour in more money and discover that the returns don’t follow—it just swells the inventory and expands your headaches.

Recently I’ve tried working with people to buy or invest in some private businesses—
pharmacies, diagnostic centres, chemical retail shops… in theory, solid models.
But once you start peeling the onion 👇🏽

Remove depreciation → profits vanish

Remove interest expenses → fantasy ends

Remove wishful optimism → you’re left with cashflow wey no fit buy data


Naija is full of businesses that look good on paper but rotten inside.
Inventory is often overstated like JAMB scores, staff dey run side hustle inside your own shop, and internal controls na story for the gods.

Yet somehow, I still believe in the Nigerian hustling spirit.
We’re a people that can turn palm kernel to export and potholes to business ideas.

But make una no deceive una self—
Before you throw capital at a business, sit down and ask:
“After I remove the accounting grammar, wetin remain for pocket?”

Numbers no dey lie bros—but plenty business owners do including managers and promoters of listed companies. 😎
Na high expectations dey cause disappointment.

starpower:
You see why many people make terrible investment decisions and allocate capital like they're buying gala at traffic light.
Most folks are numerically blind—they don’t understand margins, returns, inflation, or even basic depreciation. If Excel had a voice, it would scream daily in this country.

Nigerian businesses?
More than half are running on vibes and borrowed time. You’ll see turnover of ₦100M and think, “Ah! Big boy!”
Meanwhile, net profit is ₦3.2M, and that’s before they remember NEPA, diesel, and cousin’s emergency naming ceremony.
Margins are razor-thin, inflation is eating their faces, and yet assets are not being depreciated—because, well, why should a generator that cries every week lose value, abi?

Even professionals with ₦800K salary are living one haircut away from bankruptcy. Let that salary drop by 30–50%, and you’ll hear motivational speakers become real-life comedians.

People are struggling more than the Instagram filter will ever show you. But because everyone’s posting car keys, lunch dates, and Canada visa updates, others think they're falling behind—then rush to allocate capital based on peer pressure, not real data.

Until you learn to read numbers like you read gossip, you'll keep buying liabilities and calling them assets.

Stay grounded. Do the math. And for heaven’s sake, log off once in a while—Instagram is not an accounting standard

starpower:
Sir, this reminds me of one gathering I attended not long ago.
A gentleman confidently declared he can pull 45% annual returns trading stocks—with a straight face, o. I calmly asked, “How consistent are those returns?”
Next thing, he went full-blown emotional, even dropped the ₦100 million hypothetical starting capital like it’s sachet water money.

I just smiled. Because honestly, this is the same delusional energy I see here on the forum daily—especially in penny stock fantasyland.
Some of you will say things like “I bought 5 million units of XYZ in 3 days”, like NGX is a crypto exchange with infinite liquidity.

Let’s be real:
Most penny stocks on the NGX can’t even absorb 1 million units at a fair price in a week without pushing the price up. Unless you’re doing cross-dealing or moving paper off-market, you’re lying—or worse, deceiving yourself.

This market has shallow depth. Liquidity is highly fragmented, and volume doesn’t always equal opportunity. Just because you see 10 million units traded doesn't mean you can enter and exit with size at the price you want.
Try dropping ₦100 million into some of these tickers, and you’ll be left holding the bag while the market trades around you with tissue-paper volume.

A lot of people here forget:
Making money in stocks is one thing—scaling it up is another beast entirely.
And until you’ve tried to get out of a large position in a thin stock without breaking your back or the price, you haven’t graduated.

So when next someone throws wild return figures around, especially with big capital, ask one thing:
“Show me the track record. And show me the liquidity.”

Because if it can't scale, it’s just another story for the boys at the beer parlour. 🍻
Same way they use small sample statements to generate statistics, outright delusional 🎬

ppogba:
When did " some Fulani men " suddenly translates to 20% of Nigerian?

Now, the arguments are getting crazier.
I have seen an analogy of someone mentioning the number of houses in his village.

Another person mentioned that most people he knows fall in the category hence 20% of Nigerians are worth the amount.

But my simple question is, what will be your reaction if statisense or UNDP suddenly comes up with such information tommorrow. What will you say of it?

ppogba:
Well-done for this your analysis oo.
At least, it will help some educated ignorant .
I keep wondering whether it is the 20 percent of Nigeria' s population that people do not know what it translates to or the sum of N200m itself.

A clown talked about the number of houses in his village to argue his position while another said most people he knows are in the category of those that owns houses with SUVs.

Like I said earlier, I just hope that the kids are not migrating here surreptitiously.

bovali:
So they have less than 500k in the bank but they are hiding 200m naira somewhere else? Okay got it . No counter data or anything, Just vibes. How would i have amassed the 200m in the first place?

bovali:
Let’s take a step back and look at the numbers. Nigeria has approximately 64.8 million BVN-linked bank accounts, yet only 5% of these accounts hold balances above ₦500,000. That’s just about 3.24 million individuals. In a country with a population exceeding 230 million, this means only around 1.4% of Nigerians have access to more than ₦500,000 in their accounts.

Now consider this: if only 1.4% have over ₦500,000, it is highly unlikely that up to 1% of the population has a net worth of ₦200 million or more — even when you factor in non-cash assets.

Zoom in on Lagos, Nigeria’s commercial capital, with a population of about 15 million. How many of its residents can realistically be classified as wealthy? Then extend that question to the rest of the country — from smaller cities to rural communities.

Even in government, the numbers don’t stretch far. How many politicians do we actually have? Not nearly enough to tilt the wealth statistics significantly. And if we look at the private sector, Dangote — Nigeria’s largest private employer — has fewer than 50,000 employees. That’s a drop in the ocean compared to the labour force.

So when we talk about wealth in Nigeria, let’s be honest and grounded. The numbers paint a clear picture: true wealth is held by a very small fraction of the population.

Also, see image. Can download report with last link.

Sources:
https://nairametrics.com/2024/02/24/only-about-5-of-nigerians-have-over-n500000-in-their-bank-accounts-wale-edun/
https://punchng.com/bvn-enrolments-hit-64-8m/
https://intelpoint.co/report/the-nigerian-financial-services-market/

starpower:
You're absolutely spot on. Most people confuse visible assets with financial health. That ₦40M house? It’s not liquid, and the resale market isn’t your friend when you need to sell. Worse still, some fund it with debt, not surplus.

The leverage trap is real — lifestyle funded by loans, not cash flow. They’re just one income hiccup away from unraveling. The sad part? They don’t even know they’re overexposed because society claps for outward success, not cash flow discipline.

As for portfolios — 100%. Someone’s half-year gain is another person’s total year’s hustle. The wealth gap is wider than many realize because compounding doesn’t show off — but it works.

The Pareto Principle? It rules everything — wealth, returns, even wisdom. Most just follow noise. Few study the game.

We need to start celebrating sustainable liquidity over visible lifestyle.

vacanci:
This man can argue for Africa. As soon as I saw that cut out report from SEC posted, I knew you will also know more than SEC.

Always on the opposite side. If they have initially taking your ideas as the terms to define a high net worth, you will still argue it to the opposite direction.

Why do I have this feeling that you could be arguing with yourself as well.

You will always argue without evidence. And when others bring out evidence, you argue with evidence

You sure say u go even agree with OXFORD so?

Men you are just too much. You are one of a kind

opadiya:
I feel 500 Million Naira is even small. By international standard, high net worth individuals are those with liquid assets of minimum of One Million Dollar and above.

emmanuelewumi:
SEC might need to review their definition of a High Networth Investor to about N500 million, from N100 million


Note, SEC does not recognize the value of your car,house, furniture and other personal belongings.

opadiya:
The generally acceptable assets that are relevant in computing net worth are very liquid assets like stocks, bonds, cash, etc and not fixed assets.

emmanuelewumi:
N200 million is not small in Nigeria.

Probably just 1% of Nigerians have a networth of N200 million, although that is debatable

Mankind2024:
A third-party audit report is as good as a pure accounting exercise and regulatory requirement until proven otherwise. Consider the Tingo Farms case, which was audited by an audit firm before listing on the NYSE, despite the company not existing. Have you forgotten the audit scandals that rocked Nigeria in the 2000s, where many audit firms had to pay severe penalties to the Federal Government?

https://www.sec.gov/newsroom/press-releases/2024-157
https://dailypost.ng/2018/06/04/kpmg-sack-400-employees-amid-corruption-scandal/

https://www.bbc.com/news/business-39801990

HesInMe:
LOL. You can credibly accuse me of many things. Making fact-free claims isn't one of them.

See below the outlook they gave in 2021 about their business. Does the business look anything like this 4 years later? And then there's the promised pigs (culled); the downsizing of the oil mill after promising the world; the shelving of the plans for cassava, soybeans, etc.

The better question is: Which operating guidance has the company ever met?

HesInMe:
Lol. Ellah is not an agro firm; it's a private equity firm. Its expertise na scamming financial engineering. They have almost never met any guidance on farm operations, but they know how to rejig their finances.

EDUECO:
Stocks that I can't buy and hold for 10 years,I never buy and hold even for 1 week.

EDUECO:
Ellah lakes has greater risk than my type of stocks(Zenith Bank, UBA and ACCESSCORP)

Ellah lakes (above 70% risk)

My type of stocks (below 10% risk).

EDUECO:
What if there is no buyer for your Keke(Ellah lakes); and that's were earning through dividend comes to play..

In this case,your Keke(Ellah lakes) has poor or no earning that cannot guarantee consistent dividends.

EDUECO:
What is the earning per share from 2022 to 2024?

The stock price of Ellah lakes is not sustainable in the long run.

The stock price is being pumped.

Agbalowomeri:
There are loopholes in tax laws in all countries. The rich do not pay personal income tax. They do all sorts to avoid PIT especially with the use of debt and they proudly announce these publicly. So, na normal thing

Omooloriredade:
As you are aware, OP is quite bullish about the stock. "I hope for your sake" means I wish him well and hopes his dreams are realised.

I'm not buying the stock for his sake.

Good research on C&I by the way. Way to go.

yMcy56:
Welldone billionaire.
You've been noticed.
Now can you allow junk buyers breathe..

Omooloriredade:
In my humble opinion only, that's just one piece of the puzzle. The stars have been aligning but not everyone can spot them.

Ellah Lakes is primed for success. Fundamentals are not always about P/L especially for early stage growth stocks. You gotta watch out for the green shoots and pounce while the market is not yet excited about it. Identify value before others see it.

High risk vs high reward end of the market spectrum.

yMcy56:
OANDO
Q1 performing magic.......
Lots of improvement.....
PBT: over +250% increase.....
PBT: over +90% increase......
Retained earnings: from (506) in 2024 to (181) in 2025.........lots of improvement......

** OANDO doing press up......when upward movement starts, e go loud gan ni 😁

* Over to the critics.......

https://doclib.ngxgroup.com/Financial_NewsDocs/44334_OANDO_PLC-_QUARTER_1_-_FINANCIAL_STATEMENT_FOR_2025_FINANCIAL_STATEMENTS_JUNE_2025.pdf

wanaj0:
Different blocs are under different contracts. From JV, to PSC to RSC etc. The contracts defines the rights and entitlements.

GeneralDae:
True. NNPC is also a big partner in most of their recent deals especially in gas operations.

Mpeace:
The are not owing the FG. They are being taxed at 85% of profit.

They need FG approval to transition to the PIB where they will be taxed at 65% of profit. I don't see FG giving such approval soon.

Either way, the tax is too much.