₦airaland Forum

chimex38:
Take a case of water. The most important life element on earth.

I learnt wike inaugurated water supply projects in parts of Abuja few months ago.
I thought capital city already had connected water supply?
With bloated house rentage and ownership costs
So it's all individual boreholes running the capital city?
with maintenance costs if at all they are ever maintained.

How much more unsafe water in other areas and states in Nigeria.

A business that depends on water, rather than just pay service fees and get outsourced pipe-connected to its business via FG or sub-national clean and well maintained water infrastructure agency will have to now own boreholes, buy more land spaces, build tanks, etc change filters amongst other maintenance costs from time to time.
The point is, the long term effect of this potential developmental growth and exciting days ahead for the country will be extremely and extremely long even for long term holders.

Public water supply is limited to the earlier developments around the city centre.New developments, are on their own.Developers charge new homers a fortune as development/infrastructure fees yet don't deliver any utility.

emmanuelewumi:
What is bad is using leverage based on the current valuation of our portfolio. Eg having a portfolio valued at N100 million, but the dividend paid in 2025 is N3 million and it is expected to grow by 10% for the next 5 years but you got a loan of N50 million against the portfolio. How can the dividend service the loan.
……

Let’s stop speaking hypothetically, this is not a Masters class where we are learning just to get good grades. We are here to learn to earn.

“Hypothetically” speaking leverage is not all bad.

Realistically speaking the person (I can bet he is a banker, or something along that line) you quoted already gave you solid facts and figures why trying use a loan to buy stocks is the worst of the worst idea you can have in the current Nigeria

Mankind2024:
High-Interest Debt: A Guaranteed Path to Losing Ground
In Nigeria, consumer loans and credit card debt often carry interest rates of 27–36% annually. Meanwhile, long-term stock market returns historically average far lower (global benchmarks hover around 7–10% after inflation, with Nigerian equities showing volatility but no consistent outperformance of debt costs). Borrowing at these rates to invest mathematically erodes wealth: debt compounds against you, reversing the power of growth into compounding losses.

Read again. Maybe you didn’t see his solid points.

This has been addressed many times, In 1st world countries with single digits interest rates.it is “Maybe to Yes” for leverage. In Nigeria, is a capital NO except you don’t value your well being.

Leverage, margin loans and borrowed funds for investment all depends on our risk appetite. I really learnt a lot from this morning discussion. Some are for it others are against it. Like i will always say everyone is right from their perspective.

Lesson learnt: Follow what works for you. There are many ways that leads to the market.

I share in your sentiments too. Barring any black swan events, 2026 will likely be one of the best years for our economy in recent years.

This is not a political statement as some tend to construe such. Well, there is near unanimity amongst analysts, home & abroad, about this. Those that cover SSA & EM are all saying they'd long Nigeria. PZ just told you so too.

One hopes that the FGN stays the course & improves its fiscal performance especially since CBN's stellar performance is largely fuelling this renewed confidence.

nosa2:
In my opinion buy and hold is what will pay now in Nigeria oh. The removal of subsidy, building of refinery and liberalization of the FX market is going to do wonders for our economy over the next 30 years. Forget the short term pains, Nigerian economy is going to the MOON.

I AM ULTRA BULLISH ON EVERYTHING NIGERIAN IN THE LONG TERM

Harddiskng:
Let’s stop speaking hypothetically, this is not a Masters class where we are learning just to get good grades. We are here to learn to earn.

“Hypothetically” speaking leverage is not all bad.

Realistically speaking the person (I can bet he is a banker, or something along that line) you quoted already gave you solid facts and figures why trying use a loan to buy stocks is the worst of the worst idea you can have in the current Nigeria



Read again. Maybe you didn’t see his solid points.

This has been addressed many times, In 1st world countries with single digits interest rates.it is “Maybe to Yes” for leverage. In Nigeria, is a capital NO except you don’t value your well being.

In the first world countries we use discount rates of 10% to 12%.

In Nigeria you use discount rates of over 20% and you should target a Return on Invested Capital that is higher than that.

Just make sure you are not over leveraged.


The problem with most of the people who think it is wrong to use leverage in the stock market is lack of investment cash flow, thereby praying and fasting for a bull market in order to have capital appreciation

Mankind2024:
Ordinary People Achieving Extraordinary Things in NSEMPA

The world, including our beloved Nigeria, is filled with ordinary people accomplishing extraordinary feats through determination, patience, and smart decisions.

I remember back in 2017 when I began real-life investing with just ₦5,000. Before that time, I lacked confidence in navigating the stock market and often sought validation from others. The NSEMPA thread on Nairaland was incredibly welcoming in those early days. It felt like a community where investors celebrated wins together and navigated volatility as a team. There was no aggressive promotion of questionable stocks for XMAS ram—just genuine sharing and support. It was a peaceful space that attracted many readers and active participants.

Sadly, things have changed. Today, envy, doubt, and condemnation often dominate the discussions. The influx of younger generations (Gen X and Z) has contributed to making the forum more toxic. Imagine someone on an anonymous and faceless platform trying to inspire others by sharing their journey, only to face demands for full portfolio details or accusations of "showing off."

The Bible highlights envy as one of the things the Lord detests (Proverbs 6:16-19 lists seven abominations, including a proud look and sowing discord, which often stem from envy). Neutral observers can easily spot this on the NSEMPA forum. Some even dismiss genuine success stories as mere luck or market manipulation.

For the record, negative comments do not discourage me. I will continue sharing my success stories to motivate others.

2025 has been a year full of valuable lessons for investors. The markets faced extreme uncertainty: intense daily volatility, prolonged bull runs, periods of forbearance, the introduction of capital gains tax, and other challenges.

The key lesson I've learned is to ignore the noise and let "Mr. Market" do what it does best—fluctuate unpredictably. This same patient strategy has served me well in foreign markets. In 2025 alone, my international portfolio endured over 20 significant downturns, triggered by events like escalating tariff wars, the Israel-Iran conflict, weak US job reports, government shutdown threats, deepfake scandals disrupting stocks like NVIDIA, concerns over an AI bubble, market correction, Trump vs Musk war, and leadership shifts in Warren Buffett's Berkshire Hathaway holdings.

Through it all, I stood firm—like the Rock of Gibraltar—and never sold my holdings. At one point, my portfolio was down by $22,000, but I remained unshaken. The golden rule? Never sell at the peak of panic during a downturn.

Fast forward to today: As I write this on Christmas Eve 2025, my foreign portfolio has grown to $205,000, while my NGX made an unrealised gain of over N85M today.

This proves that ordinary people like me can achieve extraordinary results through discipline and long-term thinking.

Don't give up. You could be the next success story—like Mr. Nosa, Mr. Emmanuel, Madam Mercy, Mr Agbalowomeri or even my humble self. And when that happens, the skeptics will definitely say it was impossible, just luck, or demand proof, claiming it was manipulation.

This is a brief celebration of ordinary Nigerians turning into extraordinary investors in our beautiful nation.

For the record: Keep investing wisely, stay patient, and focus on your own journey. Merry Christmas!
But the butcher refused to show up today for my Presco goat, telling me he is going to come on 26th December.
No prob, i would wait for him to do the needful.

How were you able to grow your portfolio up to the level you have now considering you started with 5k and within a space of 8years.... how was your salary or source of income like as at then... please help shed more light if you don't mind.

Another reason to buy and hold is CBT. Until the application of the 30% tax is clear one may have to reduce frequent trading.

nosa2:
In my opinion buy and hold is what will pay now in Nigeria oh. The removal of subsidy, building of refinery and liberalization of the FX market is going to do wonders for our economy over the next 30 years. Forget the short term pains, Nigerian economy is going to the MOON.

I AM ULTRA BULLISH ON EVERYTHING NIGERIAN IN THE LONG TERM

Looking to go into the nigerian stock market come 2026. I look forward to connecting, learning and growing with y’all

Raider76:
Another reason to buy and hold is CBT. Until the application of the 30% tax is clear one may have to reduce frequent trading.

CGT you mean.

I agree as well.
Buy and hold.
Buying into an industry that can sustain ones patience and discipline during trying times is the koko.

stronglink:
How were you able to grow your portfolio up to the level you have now considering you started with 5k and within a space of 8years.... how was your salary or source of income like as at then... please help shed more light if you don't mind.

Miracle no dey tire Jesus

stronglink:
How were you able to grow your portfolio up to the level you have now considering you started with 5k and within a space of 8years.... how was your salary or source of income like as at then... please help shed more light if you don't mind.

Abuja civil servants are not the regular civil servants you know

Agbalowomeri:
Miracle no dey tire Jesus

You sef see am

Harddiskng:
Let’s stop speaking hypothetically, this is not a Masters class where we are learning just to get good grades. We are here to learn to earn.

“Hypothetically” speaking leverage is not all bad.

Realistically speaking the person (I can bet he is a banker, or something along that line) you quoted already gave you solid facts and figures why trying use a loan to buy stocks is the worst of the worst idea you can have in the current Nigeria



Read again. Maybe you didn’t see his solid points.

This has been addressed many times, In 1st world countries with single digits interest rates.it is “Maybe to Yes” for leverage. In Nigeria, is a capital NO except you don’t value your well being.

The person you quoted is giving you both his real life and real time examples and facts and you still say it's "hypothetical" and saying its a no. Like it isn't possible

chimex38:
The person you quoted is giving you both his real life and real time examples and facts and you still say it's "hypothetical" and saying its a no. Like it isn't possible

Leverage is a big NO for 90% of us, but it is NOT bad for maybe 10% or less of us.

What I don't want is the blanket labeling of it as bad

A bank won't give you a business loan based on the current market price of your business, but will give you a loan based on the average cash flowing into and out of your business account

emmanuelewumi:
In the first world countries we use discount rates of 10% to 12%.

In Nigeria you use discount rates of over 20% and you should target a Return on Invested Capital that is higher than that.

Just make sure you are not over leveraged.


The problem with most of the people who think it is wrong to use leverage in the stock market is lack of investment cash flow, thereby praying and fasting for a bull market in order to have capital appreciation

I agree with you.
Leverage can help scale if one knows his/her onions.

Businesses still use leverage to operate and sometimes pay shareholders little to nothing and keep growing until they decide to surprise shareholders.

Likewise shareholders can also use leverage to operate and pay themselves little to nothing until they grow their worth and surprise themselves in future.


But while businesses are limited in liability, individuals are not.
Individuals should discount their leverage or be more conservative in their projections.

chimex38:
The person you quoted is giving you both his real life and real time examples and facts and you still say it's "hypothetical" and saying its a no. Like it isn't possible

You are not reading to understand. Remember we are talking about leverage to buy Stock (not run a business).

Fact 1 - it is the most terrible idea you can come up with in present day Nigeria.

It’s very simple maths. Best loans you can get are going for 30 - 45% rate per annum. Again remember rule of 72 - meaning the amount you would repay would double at earliest 2.5 years.

Mind you that poster isn’t speaking from experience, he is not in a 1st world country. He is here with you and I in Nigeria. He hasn’t even tried the idea is he postulating. He has never taken loan to buy stock, y’all need to careful when being exposed to other people’s ideas.

Let me give you a perfect illustration of what the idea is in the Nigerian context - it is like skydiving, you jumping off a plane, but here is a catch. There is a 50% chance your parachute will open or not (these stocks can appreciate or tank, you are not God). Would you take such a risk?

At a time when Donald Trump the President of another country, is staying awake day to day inside a War Room, strategizing with the leadership of American Military, on how to destroy the terrorists in Nigeria, that are harming innocent citizens, President Tinubu of same Nigeria is in Lagos State dancing to Eyo and every other Owambe parties.

Nigeria is truly a disgraced country.

emmanuelewumi:
Leverage is a big NO for 90% of us, but it is NOT bad for maybe 10% or less of us.

What I don't want is the blanket labeling of it as bad

A bank won't give you a business loan based on the current market price of your business, but will give you a long based on the average cash flow in and out of your business account

Like I said, I agree. I am even included in the 90%
I can't use leverage in stocks for now. I need to also develop my knowledge, analysis, onions of stock businesses and improve my convictions for that.

But:
"It's bad"
"it's hypothetical"
"it's not possible"
"it's a no"
seem like all blanket labels without all the context considered.

jonnysessy:
I won't. Though, there is a saying " never say never". If this ever happens, i sell off my stocks and retire to my village. Go and save this post.

Just be getting ready to retire to the village oh. FBNH is now at 53 and not looking back. I saved the post.

I am a self-employed sole proprietor with predictable and significant daily, weekly, and monthly cash flow from my business. Despite this, I live well below my means by avoiding lifestyle inflation.
I am a consistent, disciplined, and patient investor.
My motivation for writing about leverage stems from the daily barrage of emails from commercial banks in Abuja offering me unsecured loans of ₦10 million and above.
After studying the macroeconomic environment, including the ongoing bank recapitalisation exercise, I anticipate an aggressive lending campaign by banks targeting retail customers and investors in 2026. This could be driven by excess liquidity in the system, even as the government intensifies pressure on citizens and businesses through multiple taxes.
Just a few days ago, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, was a keynote speaker at the Tax Reform Summit 2026 organised by Lagos State. He highlighted the enormous untapped potential in property taxation, noting that Lagos could generate over ₦1 trillion annually if the state properly harnesses property data, valuation, and administration—emphasising that every property in the state represents a sustainable revenue opportunity for state and local governments.

stronglink:
How were you able to grow your portfolio up to the level you have now considering you started with 5k and within a space of 8years.... how was your salary or source of income like as at then... please help shed more light if you don't mind.

Harddiskng:
You are not reading to understand. Remember we are talking about leverage to buy Stock (not run a business).

Fact 1 - it is the most terrible idea you can come up with in present day Nigeria.

It’s very simple maths. Best loans you can get are going for 30 - 45% rate per annum. Again remember rule of 72 - meaning the amount you would repay would double at earliest 2.5 years.

Mind you that poster isn’t speaking from experience, he is not in a 1st world country. He is here with you and I in Nigeria. He hasn’t even tried the idea is he postulating. He has never taken loan to buy stock, y’all need to careful when being exposed to other people’s ideas.

Yes, currently, it's tough and at over 30-40% interest. It's difficult for businesses to scale at that pace relative to loan repayment deadline.

I won't also advice any newbie or those who aren't knowledgeable on stocks to leaverage even if they have the capacity.

I think it's mainly for those who have been into stocks trading and investing for a while and it's a personal decision.
Psychologically alone, they (we) have a better advantage. Thats why I only support it in forums like this.

You also make a point with the 72months rule. Interest payment alone may likely erode compounding effect as stated by the earlier post.

But presently, stock firms offer leverage flexibility unlike rigid banks.(may not even give)
According to discuss in this platform, one may pay only Interest within the 2.5yrs and one can constantly roleover the capital payment provided interest is paid within 6months interval.
They seem to be the go-to firms for things like this these days.

Harddiskng:
Let me give you a perfect illustration of what the idea is the Nigerian context - it is like skydiving, you jumping off a plane, but here is the catch. There is a 50% chance your parachute will open or not (these stocks can appreciate or tank, you are not God). Would you take such a risk?

As for this analogy, before I jump off the plane, I will discount worse-case scenario of where I might land.
On a mountain, Ocean, dry land, dense forest, roof top of building, heap of desert sand, or a thick vitafoam mattress. .

After assessment, I might just take the leap where the likelyhood of a direct vertical fall on a failed parachute might just be one of the latter two.

Mpeace:
Just be getting ready to retire to the village oh. FBNH is now at 53 and not looking back. I saved the post.

Don't mind him. The chase is unending. Human wants are insatiable . When you achieve a certain level, you suddenly see another set above you and you begin to chase that level again

chimex38:

As for this analogy, before I jump off the plane, I will discount worse-case scenario of where I might land.
On a mountain, Ocean, dry land, dense forest, roof top of building, heap of desert sand, or a thick vitafoam mattress. .

After assessment, I might just take the leap where the likelyhood of a direct vertical fall on a failed parachute might just be one of the latter two.

Lmao. This man!

If you are not a science student, atleast did you do further maths?

Is acceleration due to gravity a joke to you lol.

At that altitude and acceleration, falling in ocean would make no difference as to hitting a concrete slab lol

Zero or negligible chances of survival in every scenario. If you do, it can only be God. Na to start preaching the gospel all over the world.

hopeful95:
I share in your sentiments too. Barring any black swan events, 2026 will likely be one of the best years for our economy in recent years.

This is not a political statement as some tend to construe such. Well, there is near unanimity amongst analysts, home & abroad, about this. Those that cover SSA & EM are all saying they'd long Nigeria. PZ just told you so too.

One hopes that the FGN stays the course & improves its fiscal performance especially since CBN's stellar performance is largely fuelling this renewed confidence.

I don't know about the 2026 prediction but I totally agree with you.

Agbalowomeri:
Don't mind him. The chase is unending. Human wants are insatiable . When you achieve a certain level, you suddenly see another set above you and you begin to chase that level again

He no know Ote$. Man that is s lling Geregu at over 1k. Geregu wey no suppose worth more than N150.
There are stocks we buy simply because of the owner.
Anything Ote$ or BUA, them no dey follow common sense movement.

Harddiskng:
You are not reading to understand. Remember we are talking about leverage to buy Stock (not run a business).

Fact 1 - it is the most terrible idea you can come up with in present day Nigeria.

It’s very simple maths. Best loans you can get are going for 30 - 45% rate per annum. Again remember rule of 72 - meaning the amount you would repay would double at earliest 2.5 years.

Mind you that poster isn’t speaking from experience, he is not in a 1st world country. He is here with you and I in Nigeria. He hasn’t even tried the idea is he postulating. He has never taken loan to buy stock, y’all need to careful when being exposed to other people’s ideas.

Let me give you a perfect illustration of what the idea is in the Nigerian context - it is like skydiving, you jumping off a plane, but here is a catch. There is a 50% chance your parachute will open or not (these stocks can appreciate or tank, you are not God). Would you take such a risk?

Unfortunately I see my stock as a business.

That is why I can't buy some stocks, I will ask myself assuming if asked to buy 100% of this stock and take it private, can I buy it at this price, can I buy it at this level of profitability and efficiency.

And if you see a business or stock that is selling at a ridiculously low price based on it growth potential can I take a loan to buy it based on the expected dividends to be paid and profit to be paid.


I buy stocks every month. At times if I look at stock that is selling at a price that is too good to be ignored. Instead of buying it every month for the next 2 years why can't I get a loan and buy it to stock pile

I have been buying Nahco every month for the past 4 years.

I got a loan to buy some units of Nahco in January 2023 at around N7.00. I also bought Presco shares with the loan apart from the monthly purchase.


By the time I liquidated my loan within 2 years and decided to buy additional shares of Nahco in January 2025. I bought the stock at over N45.

I still bought the same Nahco for over N100 in December 2025.


Nahco is a stock I have held since it was listed almost 20 years ago

Harddiskng:
Lmao. This man!

If you are not a science student, atleast did you do further maths?

Is acceleration due to gravity a joke to you lol.

At that altitude and acceleration, falling in ocean would make no difference as to hitting a concrete slab lol

Zero or negligible chances of survival in every scenario. If you do, it can only be God. Na to start preaching the gospel all over the world.

Lol..
Heap of sand and thickness wasn't specific.

Nice chatGpt insight all the same.

just cruising with the possibility.

Mankind2024:
I am a self-employed sole proprietor with predictable and significant daily, weekly, and monthly cash flow from my business. Despite this, I live well below my means by avoiding lifestyle inflation.
I am a consistent, disciplined, and patient investor.
My motivation for writing about leverage stems from the daily barrage of emails from commercial banks in Abuja offering me unsecured loans of ₦10 million and above.
After studying the macroeconomic environment, including the ongoing bank recapitalisation exercise, I anticipate an aggressive lending campaign by banks targeting retail customers and investors in 2026. This could be driven by excess liquidity in the system, even as the government intensifies pressure on citizens and businesses through multiple taxes.
Just a few days ago, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, was a keynote speaker at the Tax Reform Summit 2026 organised by Lagos State. He highlighted the enormous untapped potential in property taxation, noting that Lagos could generate over ₦1 trillion annually if the state properly harnesses property data, valuation, and administration—emphasising that every property in the state represents a sustainable revenue opportunity for state and local governments.

At the bolded, i guess is the game changer for you when you start with respect to your source of income... thanks

chimex38:
Yes, currently, it's tough and at over 30-40% interest. It's difficult for businesses to scale at that pace relative to loan repayment deadline.

I won't also advice any newbie or those who aren't knowledgeable on stocks to leaverage even if they have the capacity.

I think it's mainly for those who have been into stocks trading and investing for a while and it's a personal decision.
Psychologically alone, they (we) have a better advantage. Thats why I only support it in forums like this.

You also make a point with the 72months rule. Interest payment alone may likely erode compounding effect as stated by the earlier post.

But presently, stock firms offer leverage flexibility unlike rigid banks.(may not even give)
According to discuss in this platform, one may pay only Interest within the 2.5yrs and one can constantly roleover the capital payment provided interest is paid within 6months interval.
They seem to be the go-to firms for things like this these days.

The 72 rule also applies to what you have invested in. Influence by the dividend yield and sustainable earning growth when the stock was bought.That is why Nahco that I bought at N7 in January 2023 grew to N48 in January 2025 when I liquidated the loan. This happened within 2 years.

Return on Invested Capital of Nahco is close to 50%, 5 years compounded annualized earning growth rate is over 30%