Thanks to the Ponzi Scheme debacle of the past decade, Nigerians have become increasingly aware of the need for financial literacy. The money magic rave stood to teach the Nigerian populace how money works or more accurately, how money does not work. Though money doubling is a myth, the search for profitable and secure means to get return on investment has increased especially for low and middle-income earners; leading to the rise of Micro Investment. Micro Investment is a means through which users can save small amounts of money while receiving returns on their savings as well as invest in a range of sectors with relatively little capital. By removing standard deposit and investment limits established by formal institutions, these micro-investment platforms enable users to earn money on spare change and help them make informed investment decisions:
1. PiggyVest
Formerly known as PiggyBank, this micro-investment app was fundamentally savings centred. The rebranding introduced investment services where users can become “investors” with as little as N5,000. Investmentment sectors include agribusiness, transport and fixed income securities. The interest rate on savings is 10-15.5% per annum.
2. Cowrywise
This platform is committed to helping customers to plan, save and invest their money. Targeting students, working professionals, business founders, and local traders; it offers investment advisory and automated saving features for users. The interest rate on savings is 10% per annum.
3. ALAT by Wema
As Africa’s first fully digital bank, Alat offers simple automated savings plans at 10% annual interest as well as short term loan services.
4. FarmCrowdy
This agribusiness based platform creates opportunities for Nigerians to sponsor farmers and invest in their business with up to 25% annual returns on their investments. For risk-averse investors, Farmcrowdy provides the option to first follow farms for updates on their progress without financial commitment.
5. KoloPay
The savings app formerly known as MyKolo helps users save little by little and receive an annual interest of 10% for their savings. It also doubles as an e-commerce store where revenue is generated from sales of products and services on the platform.