₦airaland Forum

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

chidekings:
if this is really the case,why is successive governments not creating a state of emergency on poverty. i have this notion that atleast 35 percent of Nigerians are rich.

chidekings:
if this is really the case,why is successive governments not creating a state of emergency on poverty. i have this notion that atleast 35 percent of Nigerians are rich.

chidekings:
good morning,i have been following you right from the treasury thread,how can u tap in on Nigerian stocks,and which ones do you believe i should buy now.i am fine with 15-20 percent growth every year.

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

megawealth01:
How did you arrive on this

emmanuelewumi:
I don't give stock recommendations. But if you observe my body language, when I start analysing a stock, quoting facts and figures, you should know that the stock is on my radar or I am currently buying.

And I hold for a minimum of 5 years

chidekings:
it was my assumption based on what I see.

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 🎬

ojeysky:
Cash is king really. The main deal is in making huge investment in very few stocks. With starting capital of 30m, LOCO's 10m units of champion @3naira has made him 100m and now he plans to triple that with C&I. He will sure retire early.

30m turn to 300m. Just 1 zero makes the difference!

Happy retirement in advance chairman

ositadima1:
Less than ₦3.5 million on ₦100 million in revenue is just 3.5% — I seriously doubt that. Maybe on ₦800 million, but not ₦100 million.

Normally, the lower the revenue, the higher the net profit margin, because operations are less complex. Also, remember that inflation doesn't only affect costs — it also increases returns.

Businesses typically find ways to pass on some, and in many cases all, of that inflation to customers. After all, nearly every product in the market has gone up in price.

emmanuelewumi:
I don't give stock recommendations. But if you observe my body language, when I start analysing a stock, quoting facts and figures, you should know that the stock is on my radar or I am currently buying.

And I hold for a minimum of 5 years

Pesuzok:
We should have more than 20m Nigerians with total assets more thsn 200m.

How many houses do will have in Nigeria? What are the value of these houses in today's market.

What of the traders? Those in building materials, cars dealers, etc, what is the value of there inventory?

So yes, 20m Nigerian have up to 200m in assests, but maybe these assets are not liquid which might be why we don't feel it in the economy.

Pesuzok:
We should have more than 20m Nigerians with total assets more thsn 200m.

How many houses do will have in Nigeria? What are the value of these houses in today's market.

What of the traders? Those in building materials, cars dealers, etc, what is the value of there inventory?

So yes, 20m Nigerian have up to 200m in assests, but maybe these assets are not liquid which might be why we don't feel it in the economy.

ojeysky:
Cash is king really. The main deal is in making huge investment in very few stocks. With starting capital of 30m, LOCO's 10m units of champion @3naira has made him 100m and now he plans to triple that with C&I. He will sure retire early.

30m turn to 300m. Just 1 zero makes the difference!

Happy retirement in advance chairman

PuristForest:
We will consider the idea that five waves ended at 9.20 for wave 3 and we are in a wave 4, we then expect Ellahlakes to make a final push to make wave 5 before the correction commences.
https://ewnation.com/ellahlakes-will-bulls-yet-continue/
With the key level at ~₦58.15 broken, there is sufficient evidence that NB will continue to wave 3 extreme around ~₦102 region.
https://ewnation.com/nb-time-to-shine/

megawealth01:
WARREN BUFFETT, the WORLD RICHEST AND MOST SUCCESSFUL INVESTOR just made his largest donation in over 20 years — giving away $6 billion worth of stock to charity.

The 94-year-old billionaire donated 12.36 million Class B shares to the Gates Foundation, the Susan Thompson Buffett Foundation, and three charities run by his children. This brings his total charitable giving to more than $60 billion since he began donating in 2006.

Buffett still holds 13.8% of Berkshire Hathaway stock and remains the world’s fifth-richest person with a net worth of $152 billion.

Buffet has over the years been one of the greatest philanthropy giving away huge portion of his wealth and will still keep giving.

Buffet has been a great mentor to many and if he has not been giving his wealth away, by now should be the wealthiest man in the world.

ositadima1:
Less than ₦3.5 million on ₦100 million in revenue is just 3.5% — I seriously doubt that. Maybe on ₦800 million, but not ₦100 million.

Normally, the lower the revenue, the higher the net profit margin, because operations are less complex. Also, remember that inflation doesn't only affect costs — it also increases returns.

Businesses typically find ways to pass on some, and in many cases all, of that inflation to customers. After all, nearly every product in the market has gone up in price.

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.

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

ositadima1:
This sounds like a hasty generalization. I’ve already made it clear that inflation affects both the buy and sell sides. Unless the business owner doesn’t understand their business and is just cruising, a seasoned entrepreneur should know how to adapt.

For a well-run operation, a ₦100 million turnover should not yield anything less than ₦10 million in profit. I believe we have real business people here on this forum — let them speak, because honestly, I don't think you know what you're talking about.

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.

emmaodet:
Japaul diluted their shares from 4b in december to 14.2b shares and now wants to dilute it more to 100b shares.
That is craze.
It will turn the share price from #2.7 to 39 kobo.
To even think their expected TTM revenue by this month would be around 5.43b and with an estimated net margin of 30%, the net profit should be around 1.6b.
Dividing that by 100 ordinary shares would render the EPS useless. That is 2 kobo eps...Omohh
I know they need money, they are broke.
Just 300m in cash and cash equivalent and seriously burning money in FCF but damn....14b to 100b shares is craze unless the are raising that money to acquire a currently functioning and profit generating company, if not, i wash my hands comot.