Omodele Adigun
As embargo placed by the Central Bank of Nigeria (CBN) on participation by individuals and non-bank corporates in its Open Market Operations (OMO) auctions subsists, savvy investors have been urged to turn their attention to real estate, shares and long term bonds for higher returns.
According to an expert in real estate ,Mr.Ayo Ibaru, real estate sector provides a better option for investors that are looking for where to put their money for long term purpose, as the sector has greater chance of appreciation.
Ibaru, who is the Chief Operating Officer/ Director of Advisory, Nourtcourt, a real estate investment solutions company which adopts a research-based approach to developing and managing property as well as providing real estate advisory services in West Africa, said, though element of risks exists
whenever one invests, but cautioned that there is need to invest wisely.
Speaking at the capacity building forum of the Finance Correspondents Association of Nigeria (FICAN)Tuesday in Lagos, on the topic “investment opportunities in 2020,” Ibaru, disclosed that the recurrent expenses in the retail sector is still huge, adding that most big malls spend about N30 million in diesel per month. whereas the value of land, for instance, is not static, which explains why it kept appreciating even during recession.
“If you have appetite for just short-term investment, then invest in shares, bonds and explore currencies,” he stated.
He wants retail investors who have been having sleepless nights over low T-Bill yields to be careful in 2020 because the CBN and other multilateral organizations might still take certain decisions that could change every market expectations.
Regretting that the real estate sector has a lot of dead capital, Ibaru argued that attention should be paid to unoccupied multi-million naira houses scattered across Nigeria, saying that their owners could pay a token every month to government.