Investors urged to test five fundamentals before committing funds
Investment advisers are warning Nigerians against schemes promising unusually high or guaranteed returns. They recommend checking licensing, the source of profits, potential losses, fees and withdrawal conditions before transferring money, particularly when offers rely on influencers, luxury imagery or unverifiable payment screenshots.
Nigerians considering investments should ask five basic questions before committing money, according to advice presented by PUNCH. The guidance comes amid rising living costs and growing interest in ways to protect savings from inflation. The article warns that social media schemes often promise unusually high or guaranteed returns through real estate, agriculture, foreign exchange or cryptocurrency ventures.
Investment expert Eniola Teru says investors should first establish whether a company is licensed. A Corporate Affairs Commission certificate confirms incorporation but does not necessarily authorise a business to manage investments or collect investment funds. She advises checking the Securities and Exchange Commission’s register.
Investors should also ask how a business generates returns, how much they could lose, what fees apply and how quickly funds can be withdrawn. Teru says offers that promise large yields without explaining the underlying activity may resemble Ponzi arrangements. The article recommends requesting audited financial statements, verifying operational assets and obtaining a full breakdown of charges and exit penalties.
Experienced investor Adeyemi Sunday says investors should understand redemption timelines and whether a genuine secondary market exists before locking away their money.
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