Why you must invest in real estate in Nigeria

Why you must invest in real estate in Nigeria

Femi Omosehin

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Why you must investment in real estate in Nigeria are enormous is a question that needs answer.  In an unpredictable time like this when the economy of Nigeria is being blighted by inflations and interest rates are reaching for the sky, real estate has become a suitable and top investment with which to cushion the impact of the harsh economy on your financial future.

Through real estate, you can enjoy amazing returns on investment and leverage real estate to build enviable wealth. Below are the five top reasons why real estate investment being the right investment for you in an austere time like this.

Real Estate Delivers Higher Returns Than the Stock Market with Less Volatility

Real estate is not subject to the kind of volatility that plagued stock markets around the world. Your property investment appreciates in value as the market improves, thus giving you the edge to build equity. However, in the stock market, the risk remains as there are numerous unpredictable factors outside your control that can negatively impact your investment. In real estate, you have more control of your investment because your property investment is a tangible asset that you can leverage to create new channels of wealth while your capital keeps appreciating.

Real Estate Has a High Tangible Asset Value

Apart from the fact that homeowner’s insurance will protect your investment in real estate, your property investment will always have appreciated value.

Asset for Collateral

Your real estate investment can stand as collateral to secure loans from financial institutions for your business expansion. Real Estate investment is the most valid collateral from all over the world to secure a lot and that is because the value of landed properties keeps appreciating.

It Guarantees Financial Stability

Why you must invest in real estate in Nigeria is also because of the crunching economic condition, your real estate investment can give you financial stability through returns on investment on your property investment. Throughout history, real estate investment has withstood economic instability. An investment in property is an investment in financial stability.

An Investment in Real Estate Can Diversify Your Portfolio

Portfolio diversification is a vital way to grow financially by spreading out your risk and real estate investment gives you that opportunity. Real estate will always serve as a way to secure fixed assets to mitigate the risk in your portfolio. As they say, it is not safe to put all your eggs in a single basket. Real estate gives you that golden opportunity to have many baskets with which to grow your wealth.

Conclusion

Why you must invest in real estate in Nigeria is something you need to give a thought. As you invest in other business, you can also give the option of investing in real estate where many have taken advantage of the value of appreciation to their investment.

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Written by: Femi Omosehin

Email: babafemifelix@gmail.com

Edited by: Ohimai Consulting

Audit Quality and Financial Performance of Quoted Firms in Nigeria

Abstract: This study examined the impact of Audit Quality and Financial Performance of Quoted Firms in Nigeria. The study spanned from 2000-2017 which is 18 year period. The independent variable is audit quality which is proxy with auditor’s independence, audit size and audit committee while the dependent variable is Financial Performance and proxy with earnings per share and return on asset. Three firms were chosen for this study, which are: Unilever Nigeria Plc., Oando Plc. and C & I Leasing Company. Time series data were used and gotten from annual report and account of the firms under study. The study applied Ordinary Least Square (OLS) estimation technique through E-view 7.0 version. The result revealed that for model 1 Company is below 5% significant level. The study thereby concludes that audit quality does not have significant impact on returns on asset of quoted firms in Nigeria. The study recommended that management of quoted firms in Nigeria can improve the financial performance and audit independence of their firms by increasing the amount of audit fees paid to the audit firm. This might seem like a profit reducing decision in the short run, but the benefits it will bring to the firm far outweighs the cost. Also management of quoted firms should employ the services of one of the Big 4 audit firms because their character and integrity is beyond question.

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(PDF) Audit Quality and Financial Performance of Quoted Firms in Nigeria (researchgate.net)

Carbon Emission Accounting and Economic Growth in Nigeria

Abstract

This study investigated the relationship between carbon emission and economic growth in Nigeria for a period ranging from 1981-2018. The proxy for carbon emission is carbon dioxide CO2 and the proxy for economic growth is gross domestic product. The study used causal research design to mobilize data from the World Bank and Fact Fish publications while gross domestic product is sourced from the Central Bank of Nigeria Statistical Bulletin. The methods of descriptive statistics, Phillip-Perron, dynamic ordinary least Square and bivariate granger causality test are employed to analyze the data. The results show evidence of autoregressive effect of previous records of gross domestic product on its future value; there is an inverse relationship between carbon emission and gross domestic product. The bivariate granger causality confirms no existence of causality running between the variables. On the basis of the findings, the study concludes that there is an insignificant and negative relationship between carbon emission and Gross domestic product. It also concludes that CO2 and GDP are causally neutral to each other. It therefore recommends that earnest effort should be made by government to reduce greenhouse gas (GHG) in Nigeria by adhering to all relevant protocol and standards. Emissions not connected to the production of industrial and consumer goods should be taxed and avoided completely except the inevitable domestic emissions by practically applying the necessary laws both national and international. Precisely, focus should be shifted to going green in terms of energy generation, ensuring positive multiplier effect of constant power supply and the economics of clean air on the human health and productivity.

Download full publication here

(PDF) Carbon Emission Accounting and Economic Growth in Nigeria (researchgate.net)