| Term |
Explanation |
| Active Fund Management |
An investment strategy where fund managers actively buy and sell securities to outperform the market. |
| Active Investing |
A strategy where investors actively make decisions to buy and sell assets to outperform the market. |
| Agricultural Commodities Exchange |
Platforms like AFEX where Nigerian farmers and traders buy and sell agricultural products. |
| Agricultural Investments |
Investments in farming or agribusiness, including crowdfunding platforms like Farmcrowdy. |
| Agricultural Value Chain Financing |
Investments in various stages of agricultural production, from farming to processing and distribution. |
| Alpha |
A measure of an investment’s performance compared to a benchmark. |
| Alternative Assets |
Non-traditional investment assets like real estate, private equity, or collectibles. |
| Alternative Investments |
Non-traditional assets like private equity, venture capital, or commodities. |
| Angel Investor |
A wealthy individual who provides capital for Nigerian startups in exchange for equity. |
| Annuitization |
Converting an investment into a stream of regular payments, often during retirement. |
| Annuity |
A financial product providing a steady income stream, often used in retirement planning. |
| Arbitrage |
Buying and selling the same asset in different markets to profit from price differences. |
| Arbitrage |
Buying and selling the same asset in different markets to profit from price differences. |
| Asset |
Anything of value that can be owned or invested in, like property, stocks, or bonds. |
| Asset Allocation |
The process of dividing investments among different types of assets (e.g., stocks, bonds, real estate). |
| Asset Allocation |
Dividing investments among different asset categories like stocks, bonds, and real estate. |
| Asset Management Company of Nigeria (AMCON) |
A government agency established to stabilize the Nigerian financial system by resolving bad debts. |
| Asset Monetization |
Turning underutilized Nigerian assets, such as land or intellectual property, into income-generating resources. |
| Asset-Backed Security (ABS) |
A security backed by assets like loans or receivables, providing regular payments to investors. |
| Asset-Based Financing |
Loans secured by collateral such as land, equipment, or receivables, common in Nigerian businesses. |
| ASUU Savings Scheme |
A savings plan tailored for members of the Academic Staff Union of Universities in Nigeria. |
| At-Source Deduction |
A system where investments or loan repayments are automatically deducted from an income source. |
| Automated Teller Machine (ATM) Savings |
Funds left in savings accounts linked to Nigerian ATMs that can earn interest. |
| Balance of Trade |
The difference between Nigeria’s exports and imports, affecting the value of investments. |
| Balance Sheet Financing |
Using a company’s assets to secure loans or investments, common among Nigerian businesses. |
| Bank Verification Number (BVN) |
A unique identifier required for all banking and investment transactions in Nigeria. |
| Bankers’ Acceptance (BA) |
A short-term debt instrument guaranteed by a Nigerian bank, often used in trade finance. |
| Banking Consolidation |
A process where Nigerian banks merge to meet regulatory capital requirements, impacting investments. |
| Bear Market |
A market where prices are falling, typically by 20% or more, signaling pessimism. |
| Bearer Bonds |
Bonds that can be transferred by possession without registration, rarely used due to fraud risks. |
| Beta |
A measure of how much an investment moves compared to the overall market. |
| Blockchain Investments |
Investments in blockchain-based projects, gaining popularity in Nigeria’s tech ecosystem. |
| Blue-Chip Companies |
Large, established, and financially sound companies with a history of reliable performance. |
| Blue-Chip Companies |
Large, established companies in Nigeria like Dangote and MTN, known for stable returns. |
| Blue-Chip Stock |
Shares of large, stable, and well-established companies with a track record of reliability. |
| Blue-Chip Stocks |
Stocks of well-established, financially stable companies with a history of reliability and growth. |
| Bond Yield |
The return on a bond, expressed as a percentage, crucial for evaluating Nigerian government bonds. |
| Bonds |
A loan made by an investor to a government or corporation that pays interest over time. |
| Book Value |
The value of a company based on its balance sheet, calculated as assets minus liabilities. |
| Broker |
An individual or firm that buys and sells investments on behalf of clients. |
| Budget Deficit |
When Nigeria’s government spends more than it earns, affecting bond issuance and interest rates. |
| Building Society |
Financial institutions offering housing-related savings and loans in Nigeria. |
| Bull Market |
A market where prices are rising, signaling optimism. |
| Bureau de Change (BDC) |
Licensed operators in Nigeria that buy and sell foreign currency. |
| Buy and Hold |
An investment strategy of holding assets long-term regardless of market fluctuations. |
| Buy-Back Agreement |
A deal where a seller agrees to repurchase an asset at a future date, used in Nigerian banking. |
| CAGR (Compound Annual Growth Rate) |
The annual growth rate of an investment over a specific period, adjusted for compounding. |
| Call Option |
A contract giving the buyer the right to buy a stock at a specific price within a set time. |
| Call Option |
A financial contract giving the buyer the right to purchase an asset at a set price before expiration. |
| Callable Bond |
A bond that the issuer can repay before its maturity date. |
| Capital Appreciation |
The increase in the value of an investment over time. |
| Capital Flight |
The movement of funds out of Nigeria to safer or more profitable foreign markets. |
| Capital Gain |
Profit made from selling an asset for more than what you paid for it. |
| Capital Importation Report |
A report from the Nigerian Bureau of Statistics detailing foreign investments into Nigeria. |
| Capital Market |
A market for buying and selling long-term financial instruments, such as equities and bonds. |
| Capital Market |
Markets for buying and selling long-term debt and equity instruments, like the NGX. |
| Capital Preservation |
A strategy aimed at maintaining the original investment without taking on significant risk. |
| Carried Interest |
A share of profits earned by private equity fund managers, prevalent in Nigerian venture capital. |
| Cash Flow |
The money moving in and out of a business or investment. |
| Cash Reserve Ratio (CRR) |
The percentage of a bank’s deposits that must be kept as reserves with the Central Bank of Nigeria (CBN). |
| Cash Reserve Ratio (CRR) |
The percentage of a bank’s total deposits that must be held with the CBN, influencing liquidity. |
| Cashless Policy |
A CBN initiative promoting electronic transactions to reduce the use of physical cash in Nigeria. |
| CBN Intervention Funds |
Funds provided by the CBN to support specific sectors of the Nigerian economy, like agriculture or SMEs. |
| Central Bank of Nigeria (CBN) |
Nigeria’s regulatory authority overseeing monetary policy and financial stability. |
| Central Securities Clearing System (CSCS) |
Nigeria’s clearing and settlement infrastructure for securities transactions. |
| Certificate of Deposit (CD) |
A savings product with a fixed interest rate and maturity date offered by banks. |
| Certificate of Deposit (CD) |
A fixed-term savings product offered by Nigerian banks with a guaranteed interest rate. |
| Certificate of Investment |
A document issued as proof of an investment in Nigerian financial instruments. |
| Certificate of Occupancy (C of O) |
A legal document certifying property ownership, critical for real estate investments in Nigeria. |
| Chamas |
Informal savings and investment groups, similar to cooperatives but more grassroots. |
| Clean Energy Bonds |
Investments in bonds issued to fund renewable energy projects in Nigeria. |
| Co-Investment |
Two or more investors pooling resources to invest in a single Nigerian project. |
| Collective Investment Scheme (CIS) |
Investment funds like mutual funds or ETFs that pool resources from multiple Nigerian investors. |
| Commercial Bank Loans |
Loans offered by Nigerian banks to individuals and businesses for various purposes. |
| Commercial Paper |
Short-term, unsecured debt instruments issued by corporations to meet funding needs. |
| Commercial Paper (CP) |
Short-term, unsecured debt instruments issued by Nigerian companies for working capital. |
| Commodities |
Physical goods like gold, oil, or agricultural products traded in markets. |
| Commodities Trading |
Trading physical goods like crude oil, cocoa, or gold in Nigerian or international markets. |
| Commodity Exchange Market |
A market for trading agricultural and mineral commodities in Nigeria, like the AFEX Commodities Exchange. |
| Community Development Fund |
Funds established to promote local development projects in Nigeria. |
| Compound Interest |
Interest calculated on the initial investment plus any previously earned interest. |
| Consumer Price Index (CPI) |
A measure of inflation in Nigeria, affecting investment returns and purchasing power. |
| Contributory Housing Loan Scheme |
A program that provides loans for housing, tied to employment or cooperative memberships. |
| Contributory Pension Scheme |
Nigeria’s mandatory retirement savings scheme for employees in the formal sector. |
| Convertible Bonds |
Bonds that can be converted into shares of the issuing company, attractive to Nigerian investors. |
| Cooperative Society Investment |
Investment through a group of people pooling resources to achieve shared financial goals. |
| Cooperative Thrift |
A community savings and credit scheme common in Nigeria for pooled savings and investments. |
| Corporate Bond |
A bond issued by a corporation to raise money, usually offering a fixed interest rate. |
| Corporate Bond |
Bonds issued by Nigerian corporations to finance business activities. |
| Corporate Governance |
Practices and policies ensuring accountability and transparency in Nigerian businesses. |
| Corporate Social Responsibility (CSR) Investments |
Investments by companies in Nigerian communities to address social and environmental issues. |
| Cost Basis |
The original value of an asset for tax purposes, including the purchase price and fees. |
| Credit Bureau |
Agencies like CRC Credit Bureau that maintain credit information on Nigerian individuals and businesses. |
| Credit Rating Agency (CRA) |
Organizations like Agusto & Co. and GCR that rate the creditworthiness of Nigerian entities. |
| Crowdfunding |
Raising funds for a project or business from a large number of people, typically online. |
| Crowdfunding |
Raising small amounts of money from a large number of people, popular in Nigeria’s creative and tech sectors. |
| Crowd-Investing Platforms |
Platforms like Thrive Agric and Farmcrowdy enabling individuals to invest in projects collectively. |
| Crypto Regulations |
Policies in Nigeria affecting trading and investments in cryptocurrencies. |
| Cryptocurrency |
Digital currencies like Bitcoin or Ethereum used as investments or for transactions. |
| Cryptocurrency Wallet |
A digital tool for storing and managing cryptocurrencies like Bitcoin, popular in Nigeria. |
| Custodian Services |
Financial institutions that safeguard investment assets, ensuring compliance with Nigerian laws. |
| Day Trading |
The practice of buying and selling stocks within the same trading day to profit from price changes. |
| Debenture |
A type of unsecured bond backed only by the issuer’s creditworthiness. |
| Debenture |
A long-term loan issued by Nigerian companies, backed only by the company’s general credit. |
| Debt-to-Equity Ratio |
A measure of a company’s financial leverage, calculated as total debt divided by total equity. |
| Debt-to-Equity Ratio |
A measure of a company’s financial leverage, showing the proportion of debt to shareholder equity. |
| Derivative |
A financial contract whose value depends on an underlying asset like stocks or bonds. |
| Derivative Instruments |
Financial contracts like futures or swaps whose value depends on an underlying asset, emerging in Nigeria. |
| Development Finance Institutions (DFIs) |
Specialized banks like BOI (Bank of Industry) providing financing for development projects. |
| Diaspora Bond |
Bonds issued by the Nigerian government targeting Nigerians living abroad for investment. |
| Digital Lending Platforms |
Online platforms like Carbon and FairMoney offering quick loans to Nigerians. |
| Discount Rate |
The interest rate used to calculate the present value of future cash flows. |
| Discretionary Portfolio Management |
Investment management where a professional makes decisions on behalf of Nigerian clients. |
| Diversification |
Spreading investments across different assets to reduce risk. |
| Dividend |
A payment made by a company to its shareholders, usually from profits. |
| Dividend Reinvestment Plan (DRIP) |
A program allowing investors to reinvest dividends into more shares of the company. |
| Dividend Yield |
The annual dividend payment as a percentage of a stock’s current price, used to measure income potential. |
| Dollar Investments |
Investments made or denominated in USD, popular for hedging against currency devaluation. |
| Dollar Mutual Funds |
Mutual funds that invest in assets denominated in US Dollars, popular in Nigeria for currency hedging. |
| Dollar-Cost Averaging |
Investing a fixed amount regularly, regardless of the asset’s price, to reduce risk. |
| Dollar-Denominated Bonds |
Bonds issued in foreign currencies like USD, offering protection against Naira devaluation. |
| Dual Listing |
Nigerian companies listed on both Nigerian and international stock exchanges. |
| Earnings Per Share (EPS) |
A company’s profit divided by the number of its outstanding shares. |
| Economic Diversification |
Efforts to reduce Nigeria’s dependence on oil by promoting investments in other sectors like tech and agriculture. |
| Economic Indicator |
Data points like GDP, unemployment rates, or inflation used to gauge the economy’s health. |
| Economic Recovery and Growth Plan (ERGP) |
A Nigerian government plan aimed at driving investment and economic diversification. |
| Economic Sustainability Plan (ESP) |
A Nigerian government initiative to stimulate post-pandemic economic recovery through investments. |
| Education Bonds |
Bonds issued to fund educational projects, popular among Nigerian state governments. |
| EFCC Asset Recovery Auction |
The sale of seized or forfeited assets by Nigeria’s anti-corruption body, often presenting investment opportunities. |
| Electronic Fund Transfer (EFT) |
The electronic transfer of funds between Nigerian bank accounts, often used for investment payments. |
| Emerging Markets |
Economies in developing countries with high growth potential but higher risks. |
| Endowment Funds |
Investments set aside to fund nonprofit activities, commonly by Nigerian universities or religious organizations. |
| Equities |
Ownership interests in companies, represented by shares of stock. |
| Equity |
Ownership in a company, typically through stock or shares. |
| Equity Crowdfunding |
A method for Nigerian startups to raise capital by selling shares to the public online. |
| Equity-Indexed Annuity |
An annuity tied to the performance of a stock market index, available to Nigerian retirees. |
| Escrow Account |
A temporary account where funds are held until specific conditions are met, common in property transactions. |
| ESG (Environmental, Social, Governance) |
Investment strategies focusing on sustainable and socially responsible businesses in Nigeria. |
| ETF (Exchange-Traded Fund) |
A type of investment fund that holds a collection of assets and is traded on stock exchanges. |
| Ethical Funds |
Investment funds excluding companies involved in harmful practices, aligned with Nigerian values. |
| Eurobond |
Bonds issued by Nigerian companies or the government in foreign currencies, typically USD or EUR. |
| Exchange Control Regulations |
Laws governing foreign exchange transactions in Nigeria, impacting cross-border investments. |
| Exchange Rate Risk |
The risk of loss due to changes in currency exchange rates. |
| Exchange Rate Volatility |
Frequent changes in the Naira’s value, impacting foreign investments in Nigeria. |
| Exchange Traded Fund (ETF) |
A security that tracks an index, commodity, or sector, traded on Nigerian stock exchanges like the NGX. |
| Ex-Dividend Date |
The date when a stock begins trading without the right to receive the next dividend, important for Nigerian investors. |
| Export Credit Insurance |
Insurance for Nigerian exporters against the risk of non-payment by foreign buyers. |
| Export Expansion Grant (EEG) |
Incentives offered by the Nigerian government to encourage exports, indirectly benefiting investors. |
| External Reserves |
Nigeria’s foreign currency reserves held by the CBN, affecting import capacity and investor confidence. |
| Faith-Based Investments |
Investments aligned with religious principles, such as Islamic or Christian finance products. |
| Family Business Investment |
Investing in small, family-run businesses, common in Nigeria’s informal economy. |
| Family Office |
Private wealth management services for wealthy Nigerian families or individuals. |
| Farmcrowdy |
A Nigerian platform allowing individuals to invest in agriculture by sponsoring farms. |
| Feasibility Study |
An analysis to assess the viability of a Nigerian investment project before committing resources. |
| Federal Government Bonds (FGN Bonds) |
Long-term debt instruments issued by the Nigerian government with fixed interest. |
| Federal Ministry of Finance Bonds |
Bonds issued to finance specific Nigerian government projects. |
| Fidelity Bond |
Insurance protecting investors or employers from losses due to employee dishonesty or fraud. |
| Financial Derivatives |
Contracts like forwards and options, used for hedging or speculation in Nigerian markets. |
| Financial Technology (Fintech) |
Technology-driven companies offering innovative financial services, popular in Nigeria for payments and investments. |
| Fiscal Policy |
Government decisions on taxation and spending to influence the economy. |
| Fisheries Investment |
Investments in fish farming, a growing sector in Nigeria’s agriculture industry. |
| Fitch Ratings |
A global credit rating agency assessing Nigerian government and corporate bonds. |
| Fixed Deposit |
A savings product offered by banks with a fixed tenure and interest rate. |
| Fixed Deposit Receipt |
A document issued by Nigerian banks to confirm a fixed deposit investment. |
| Fixed Income |
Investments that provide regular payments, like bonds or savings accounts. |
| Fixed Income Bond Auction |
A method by which the Nigerian government sells fixed-income securities to raise capital. |
| Fixed Income Securities |
Investments that provide regular income, like Nigerian government bonds or corporate debentures. |
| Fixed Tenure Investment |
Investments in Nigeria with a fixed duration, such as fixed deposits or specific savings bonds. |
| Fixed Term Savings |
A savings plan where funds are locked for a predetermined period, offering higher interest rates. |
| Fixed-Income Security |
An investment that pays fixed interest, such as bonds or preferred stock. |
| Flex Dollar Investments |
Investments in USD with flexible entry and withdrawal terms, popular among Nigerian investors. |
| Floating Exchange Rate |
Nigeria’s current exchange rate system where the Naira’s value is determined by supply and demand. |
| Foreign Direct Investment (FDI) |
Investments by foreign entities in Nigerian businesses, real estate, or infrastructure. |
| Foreign Exchange (Forex) |
Trading or investing in foreign currencies to profit from exchange rate changes. |
| Forex Hedging |
Protecting against currency fluctuations in Nigeria using forward contracts or options. |
| Forex Trading Platforms |
Online platforms for trading foreign currencies, popular in Nigeria for speculative investments. |
| Forward Integration |
A company expanding its operations into downstream activities, common in Nigeria’s manufacturing sector. |
| Free Trade Zone Investments |
Opportunities in Nigerian free zones offering tax incentives, like Lekki Free Trade Zone. |
| Fund Manager |
A professional who manages investment portfolios or funds on behalf of clients. |
| Futures Contract |
An agreement to buy or sell an asset at a predetermined price on a specific date, emerging in Nigerian markets. |
| Gas Utilization Investment |
Investments in Nigerian projects converting natural gas into usable products like LPG. |
| Gold ETFs |
Exchange-traded funds that track gold prices, an emerging investment in Nigeria. |
| Government Guaranteed Bonds |
Bonds backed by the Nigerian government, offering low risk to investors. |
| Government Intervention Funds |
Funds provided by Nigerian government agencies for specific sectors like healthcare or agriculture. |
| Government Savings Scheme |
Savings products backed by the Nigerian government, like the FGN Savings Bond. |
| Green Bond |
A bond issued to finance environmentally friendly or sustainable projects. |
| Green Finance |
Investments in environmentally sustainable projects in Nigeria. |
| Greenfield Investments |
Establishing new facilities or businesses in Nigeria, often by foreign companies. |
| Gross Domestic Product (GDP) |
The total value of goods and services produced in a country, often used to measure economic health. |
| Growth Stock |
Stocks of companies expected to grow faster than the average market. |
| Healthcare Investments |
Capital allocated to building hospitals or manufacturing pharmaceuticals in Nigeria. |
| Hedge Fund |
A private investment fund that uses advanced strategies to earn returns for its investors. |
| Hedge Fund |
A high-risk, high-return investment fund not commonly available in Nigeria but increasingly popular. |
| Hedging |
Using strategies or investments to reduce the risk of losses in a portfolio. |
| High-Yield Savings Account |
A bank account offering higher-than-average interest rates, suitable for Nigerian savers. |
| Housing Fund Contribution |
Mandatory contributions for housing development under the Nigerian National Housing Fund (NHF). |
| Hybrid Funds |
Mutual funds that invest in a mix of equities, bonds, and other assets. |
| Impact Bonds |
Investments tied to measurable social outcomes, used to fund development projects in Nigeria. |
| Impact Investing |
Investments aimed at generating financial returns and measurable social or environmental impact in Nigeria. |
| Independent Power Projects (IPPs) |
Private sector-led power generation initiatives offering investment opportunities in Nigeria. |
| Index Fund |
A type of mutual fund or ETF designed to follow the performance of a specific index, like the S&P 500. |
| Index Investing |
Investing in funds that track the performance of a market index, like the NSE All-Share Index. |
| Inflation |
The rate at which the general level of prices for goods and services rises, reducing purchasing power. |
| Inflation-Linked Bonds |
Bonds whose principal and interest payments rise with inflation to protect against purchasing power loss. |
| Inflation-Linked Bonds |
Bonds that adjust payouts to match inflation, protecting Nigerian investors’ purchasing power. |
| Infrastructure Bonds |
Bonds issued to finance projects like roads, railways, or power plants in Nigeria. |
| Infrastructure Concession |
Private sector investments in Nigerian public infrastructure projects through agreements like PPPs. |
| Infrastructure Development Fund |
Funds established to support large-scale Nigerian infrastructure projects like roads and power plants. |
| Initial Coin Offering (ICO) |
A method of raising capital for cryptocurrency projects, popular among Nigerian tech startups. |
| Initial Public Offering (IPO) |
The first time a company offers its shares to the public. |
| Insider Trading |
The illegal practice of trading based on non-public information, strictly regulated in Nigeria. |
| Insurance Premiums |
Regular payments made to Nigerian insurance companies for coverage against risks. |
| Insurance-Linked Securities |
Financial instruments linked to insurance events, gaining interest in Nigeria’s financial markets. |
| Interbank Rates |
The interest rates Nigerian banks charge each other for short-term loans, influencing other investments. |
| Interbank Settlement |
Transactions between Nigerian banks to settle payments, ensuring liquidity in the financial system. |
| Interest Rate |
The percentage charged or paid for the use of money, typically on loans or savings accounts. |
| International Financial Reporting Standards (IFRS) |
Accounting standards followed by Nigerian companies for transparency. |
| International Money Transfers |
Funds sent into Nigeria from abroad, often reinvested in businesses or real estate. |
| Intrinsic Value |
The real, underlying value of an asset, based on its fundamentals, not just its market price. |
| Investment Club |
A group of individuals pooling resources for joint investments, popular among Nigerian professionals. |
| IPO Allotment |
The allocation of shares during an Initial Public Offering, relevant to Nigerian investors seeking new opportunities. |
| Islamic Banking Bonds (Sukuk) |
Sharia-compliant bonds issued by Nigerian governments and companies to finance projects. |
| Islamic Finance |
Sharia-compliant financial services, including Sukuk bonds and profit-sharing investment accounts. |
| Joint Stock Company |
A company owned by shareholders, popular in Nigeria for large-scale enterprises. |
| Joint Venture (JV) |
A partnership between Nigerian and foreign firms for shared investment in projects or businesses. |
| Junk Bond |
A high-risk, high-yield bond issued by companies with lower credit ratings. |
| Land Banking |
Investing in undeveloped land with the expectation of future appreciation, common in Nigerian real estate. |
| Land Title Investment |
Buying lands with verified titles, such as “Governor’s Consent,” to avoid disputes. |
| Lease Financing |
Acquiring assets through leasing agreements, common for Nigerian businesses needing equipment. |
| Leverage |
Using borrowed money to increase the potential return on an investment. |
| Life Annuities |
Investment products offering periodic income for life, common in Nigerian retirement plans. |
| Line of Credit |
A flexible loan arrangement often used for business or trade investments in Nigeria. |
| Liquidity |
How easily an asset can be bought or sold in the market without affecting its price. |
| Liquidity Risk |
The risk of being unable to sell an asset quickly without a significant price reduction. |
| Listed Securities |
Shares, bonds, or ETFs traded on Nigerian exchanges like NGX. |
| Livestock Investment |
Funding projects for rearing animals like poultry, cattle, or fish for profit, prevalent in Nigeria. |
| Local Bonds |
Bonds issued in Nigerian Naira for domestic investors. |
| Long-Term Investment Scheme |
Investment strategies focusing on assets held for years, such as real estate or blue-chip stocks. |
| Margin Loan |
A loan to invest in stocks or other securities, offered by Nigerian financial institutions. |
| Market Capitalization |
The total value of a company’s outstanding shares of stock, calculated as stock price × shares. |
| Market Capitalization |
The total value of a company’s shares on the Nigerian Stock Exchange. |
| Market Order |
An order to buy or sell a stock immediately at the current market price. |
| Market Risk |
The possibility of losing money due to changes in the overall market. |
| Merger and Acquisition (M&A) |
The process of combining or purchasing companies, often seen in Nigeria’s banking and telecom sectors. |
| Micro Pension Plan |
A pension plan designed for Nigeria’s informal sector workers to save for retirement. |
| Microfinance Bank Investment |
Investments in Nigerian microfinance banks that provide loans to small businesses and individuals. |
| Microfinance Investment Vehicles (MIVs) |
Funds invested in microfinance institutions supporting Nigeria’s informal sector. |
| Microfinance Investments |
Investments in microfinance institutions that provide loans to small businesses or individuals. |
| Micro-Lending |
Small loans provided to individuals or small businesses, often through Nigerian microfinance banks. |
| Mobile Money |
A system allowing financial transactions through mobile phones, prevalent in rural Nigeria. |
| Mobile Money Investments |
Capital invested in mobile payment solutions, a growing sector in Nigeria’s fintech ecosystem. |
| Monetary Policy |
Central Bank actions, like setting interest rates or controlling money supply, to manage the economy. |
| Money Laundering Risk |
The threat of illegal financial activities, mitigated by strict regulations in Nigeria. |
| Money Market Fund |
A mutual fund investing in short-term, low-risk securities like Treasury bills. |
| Money Market Instruments |
Short-term financial instruments, such as T-bills and commercial papers, with high liquidity. |
| Monthly Rent Income |
Regular income generated from renting out property, a popular investment in Nigeria. |
| Mortgage-Backed Securities |
Investments backed by mortgages, allowing investors to earn from real estate without owning property. |
| Mutual Fund |
A pool of money collected from many investors to invest in a diversified portfolio of stocks, bonds, etc. |
| Mutual Funds |
A pool of funds managed by professionals to invest in various assets, including stocks and bonds. |
| Mutual Guarantee Fund |
A fund where Nigerian businesses collectively guarantee each other’s loans. |
| Naira Devaluation |
The reduction in value of the Nigerian Naira relative to other currencies. |
| Naira Mutual Funds |
Mutual funds that are denominated in the Nigerian Naira (NGN). |
| Naira Yield Curve |
A graph showing the relationship between interest rates and the maturity of Naira-based debt instruments. |
| National Bureau of Statistics (NBS) |
Nigeria’s official agency providing economic data critical for investment decisions. |
| National Infrastructure Fund |
A government-backed fund for financing large-scale Nigerian infrastructure projects. |
| National Savings Certificate |
A fixed-interest savings product offered by the Nigerian government. |
| National Sovereign Investment Fund (NSIF) |
A fund established by Nigeria to manage surplus revenues and promote investments. |
| Natural Resources Revenue |
Income generated from Nigeria’s abundant natural resources, often reinvested in development. |
| Negative Carry |
When the cost of holding an investment exceeds the income generated, relevant in Nigerian currency trades. |
| Net Asset Value (NAV) |
The value of a mutual fund or ETF, calculated as total assets minus liabilities per share. |
| NEXIM Bank |
The Nigerian Export-Import Bank supporting export-oriented investments and businesses. |
| Nigerian Agricultural Credit Scheme |
A CBN program providing loans for agriculture, often with low interest. |
| Nigerian Financial Inclusion Strategy (NFIS) |
A national policy aimed at increasing access to financial services for Nigerians. |
| Nigerian Inter-Bank Settlement System (NIBSS) |
A platform facilitating real-time fund transfers and payment settlements. |
| Nigerian Social Investment Trust Fund (NSITF) |
A government fund providing social security benefits and investment opportunities. |
| Nigerian Stock Exchange (NGX) |
The primary stock exchange in Nigeria for buying and selling equities and other securities. |
| Non-Interest Financing |
Sharia-compliant financing models, gaining traction in Nigeria. |
| Non-Performing Loans (NPLs) |
Loans that are not being repaid as agreed, affecting banks’ ability to lend and investors’ returns. |
| Off-Plan Property Investment |
Buying property before it’s built, usually at lower prices, common in Nigerian real estate. |
| Offshore Investments |
Investments made in foreign markets outside Nigeria. |
| Offshore Investments |
Nigerian investments in foreign assets, offering currency diversification. |
| Offshore Remittances |
Funds sent from abroad into Nigeria, often invested in local real estate or businesses. |
| Offshore Stock Brokerage |
Firms offering Nigerian investors access to international stock markets. |
| Oil and Gas Royalty Investment |
Income earned from the production of oil and gas, common in Nigeria’s resource-rich regions. |
| Online Savings Platforms |
Nigerian platforms like PiggyVest and Cowrywise that help individuals save and invest. |
| Open Market Operations (OMO) |
CBN’s tool for managing liquidity by buying or selling government securities in the market. |
| Operational Risk |
Risks arising from day-to-day operations, such as fraud or system failures in Nigerian investments. |
| Over-the-Counter (OTC) Market |
A decentralized market for trading securities directly between parties, common for Nigerian bonds. |
| P/E Ratio (Price-to-Earnings) |
A ratio that shows how much investors are paying for each dollar of a company’s earnings. |
| Pay-As-You-Go Investments |
Investments that allow gradual contributions, like flexible mutual fund plans in Nigeria. |
| Payroll Deduction Investment |
Investment schemes where funds are automatically deducted from employees’ salaries. |
| Peer-to-Peer Lending |
Platforms that allow individuals to lend money directly to others, bypassing traditional banks. |
| Pension Fund |
A retirement savings plan that invests contributions to provide income in retirement. |
| Petroleum Industry Investments |
Investments in Nigeria’s oil and gas sector, including shares of companies like NNPC or Seplat. |
| Portfolio |
A collection of investments held by an individual or institution. |
| Portfolio Diversification |
Spreading investments across various asset classes to reduce overall risk. |
| Post-Listing Requirements |
Rules Nigerian companies must follow after being listed on the NGX. |
| Preferred Shares |
A class of shares offering fixed dividends before common shareholders get paid. |
| Preferred Stock |
A type of stock with fixed dividends and priority over common stockholders in case of liquidation. |
| Premium |
The cost of an option contract or the amount above face value for a bond or insurance. |
| Primary Mortgage Institution (PMI) |
Specialized Nigerian financial institutions providing mortgage loans. |
| Private Equity |
Investments in privately held companies, not listed on a stock exchange. |
| Private Placement |
A method of raising capital in Nigeria by selling securities directly to selected investors. |
| Private Placement |
Selling securities directly to select Nigerian investors without a public offering. |
| Property Development Scheme |
Investments in Nigerian real estate projects, often through partnerships or cooperatives. |
| Public Offering |
The sale of securities to the public, such as through an IPO or bond issuance. |
| Put Option |
A contract giving the buyer the right to sell a stock at a specific price within a set time. |
| Quasi-Government Bonds |
Bonds issued by state governments or government-backed agencies in Nigeria. |
| Real Asset Investments |
Investments in physical assets like real estate, gold, or infrastructure projects in Nigeria. |
| Real Estate |
Investment in property, such as land, buildings, or commercial real estate. |
| Real Estate Investment Trust (REIT) |
A company that owns, operates, or finances income-producing real estate. |
| Real Estate Investment Trust (REIT) |
Investment vehicles that pool funds to invest in income-generating real estate. |
| Rebalancing |
Adjusting a portfolio’s asset allocation to match an investor’s goals or risk tolerance. |
| Recapitalization |
Increasing a company’s financial strength by raising more capital, common in Nigerian banks. |
| Registered Investment Advisor |
Professionals licensed to provide investment advice in Nigeria. |
| Return |
The gain or loss made from an investment, typically measured as a percentage of the initial amount invested. |
| Revenue |
The total money earned by a business from selling goods or services. |
| Rights Issue |
Offering additional shares to existing shareholders, common in Nigerian stock market practices. |
| Risk |
The chance of losing money or not achieving the expected return on an investment. |
| Risk Tolerance |
The degree of risk an investor is willing to take when making investment decisions. |
| Robo-Advisor |
An automated service that provides financial advice based on algorithms and customer preferences. |
| Rural Savings Schemes |
Savings programs tailored for rural Nigerians, promoting financial inclusion and investment. |
| Savings Bond |
A retail bond issued by the Nigerian government, targeted at small investors. |
| Secondary Market |
A market where investors buy and sell securities from other investors, not directly from issuers. |
| Sector |
A specific industry or category in the economy, like technology, healthcare, or finance. |
| Securities and Exchange Commission (SEC) |
Nigeria’s regulator for the securities market, ensuring investor protection. |
| Security |
A financial asset that can be traded, such as stocks, bonds, or options. |
| Short Selling |
Selling an asset you don’t own, hoping to buy it back at a lower price to make a profit. |
| Short-Term Investment |
Investments held for a short period, usually less than a year. |
| Small and Medium Enterprises (SME) Fund |
Funds set up to finance and support Nigerian small and medium businesses. |
| SME Investments |
Capital provided to small and medium-sized enterprises to foster growth and innovation. |
| Speculation |
Investing in high-risk assets with the hope of making significant returns. |
| Start-Up Investment Grant |
Government or private grants for Nigerian startups, often in technology or agriculture. |
| Stock Market |
A platform where shares of publicly listed companies are bought and sold, like the Nigerian Exchange (NGX). |
| Stocks |
Shares of ownership in a company, which entitle the holder to a portion of the company’s profits. |
| Sukuk Bond |
Islamic bonds compliant with Sharia law, avoiding interest payments. |
| Tax-Free Investments |
Investments exempted from taxes, such as specific bonds in Nigeria. |
| Telecom Shares |
Investments in Nigerian telecom companies like MTN and Airtel. |
| Term Loan |
A loan with a fixed repayment schedule, often used for Nigerian business expansion. |
| Treasury Bills (T-Bills) |
Short-term debt instruments issued by the Nigerian government to raise funds for up to one year. |
| Treasury Bond |
A government bond with a fixed interest rate and long maturity. |
| Treasury Certificate |
A short-term government debt instrument with a maturity of one to two years. |
| Treasury Single Account (TSA) |
A unified government account for managing public funds, impacting how government bonds are handled. |
| Underwriting |
The process by which an investment bank raises capital for a company by selling its securities. |
| Utility Stocks |
Shares in companies providing essential services like electricity and water, common in Nigerian portfolios. |
| Value Investing |
An investment strategy focused on finding undervalued assets. |
| Volatility |
The amount of price change an asset experiences over time; higher volatility means higher risk. |
| Wholesale Investment |
Large-scale investments made by institutional investors or wealthy individuals in Nigeria. |
| Yield |
The income return on an investment, expressed as a percentage of the investment’s value. |
| Yield |
The return or income earned on an investment, expressed as a percentage of its cost. |
| Yield Curve |
A graph that shows the relationship between interest rates and bond maturity dates. |
