Where to Put Your Money in 2020 & Earn Better Returns than Treasury Bills

where to put your money

If there’s anything I can tell you about money, it is that you should fear one thing: inflation. Inflation in a lay man’s term measures how prices of goods we consume everyday change over time – the percentage (%) changes each year are called inflation rates.

Let’s say the price of a basket of tomato last year was N7,500 and this year, the same basket of tomato now sells at Mile 12 for N10, 200, we can say inflation rate is 36%. Although inflation isn’t measured by the percentage change in a single essential commodity, a collection of different varieties of food, I only used this scenario to educate an average non-finance individual.

Nigeria’s inflation rate increased to 11.61% in October 2019, the highest in 17 months – an increase that is not unconnected to increase in the price of bags of rice, carton of imported poultry outputs and raw materials following the border closure on August 2019. What does rising inflation means for you, your expenses and investments?

What this means is that if a small bag of rice, which was sold for 5,000 a few years ago, is 18,000 today, at the current inflation rate, this time next year, that same bag will cost you 20,089.8.

Now imagine you have to keep 100k aside for investments. What effects will inflation have on your plans? Let’s examine the possibilities:


To build wealth, you have to be mindful of investing in options that pay higher interest than the inflation rate. Investment opportunities are everywhere, but not all are what should you do?


Before we even start, let’s just remove your bank as a serious option. Storing money in your bank’s savings account will earn you a maximum of 3-4% interest. (8% below inflation rate) if you stored your 100,000 in the bank for a year, you’d have lost money at the end of the year. But because your bank won’t pay you high interest doesn’t mean you should listen to fraudsters. If anybody tells you to invest 20,000 for a 500% return in 1 month without a convincing business model, that is not a safe investment, so run as fast as you can.

See also  3 Reasons You Shouldn't Ignore Stocks in 2020 and Beyond

Good work so far. We have now removed both the official and unofficial crooks, so what’s left? What can you actually invest in without stress?

  1. TREASURY BILLS (also known as T-Bills): These are generally regarded as the most ‘secure’ investment to make because they are backed by the government.

As of this write-up, CBN has just banned local investors from accessing the primary and secondary market of its OMO instruments, one of the highly sort-after and high-yielding risk-free investments in Nigeria. As a result of this recent development, pension funds, insurance, non-banking institutions and corporate investors are now on queue for Treasury bills, hence pushing interest rates to lower levels.

Based on the last auction result published on BusinessDay Newspaper, the interest on a 365-day, 180-day and 90-day Treasury bill are now 10%, 9% and 7.8% respectively with no sign of recovery. And when you consider inflation rate at 11.6%, it becomes clear that this isn’t a place you should even think of investing right now.

The interest earnings on T-bills are currently at 10% (1.2% below inflation rate) for 364-day investment, and dropping fast. Remember that your 100,000? Investing in this option will yield 110,000 after 1 year, but by then, the price of things will be 111,000, no thanks to inflation. By all means, you have lost money – this is what people aren’t seeing!

It is understandable that the aim of CBN’s policies on OMO auctions is to channel funds to the real sector of the economy and boost credit flows to the SMEs, rather than piling them up in the fixed income market.  But as a smart investor who is looking for the best place to invest and earn an attractive return above inflation, I can’t afford to keep a large chunk of my idle cash in a savings account that cannot keep up with the cost of living.

See also  Here is Everything You Should Know About FGN Savings Bond

2. DIGITAL SAVINGS APPS: another option is these new savings apps, which are getting increasingly popular. But these apps will also invest the money you give them in the same T-Bills above, so their returns can never be higher than 9% – expect an average of 7-8% per year (4-3% below inflation rate). At the end of the day, you will still lose money.


As you can see, a lot of the popular available options are not the best. But there are still ways you can succeed at growing money, instead of losing it.

This is my passion for charting a path to building an alternative high-yielding portfolio with low risk for my private investing clients.

So, if you would like to know how I have been investing beyond Treasury bills and fixed deposit, read through the eye-opening investing ideas I am about to share. This will help you kick start your way to profit from a N16.1trillion industry that no one is talking about but have made Tier one banks N1.15 trillion in 2018 and also get a share of over $30.1 trillion stock market opportunities in the US.

The First N16.1 Trillion Industry

This industry is as old as the world’s financial system and in Africa, it is estimated to grow by 30-50% per annum as more people – based on increasing cost of living – falls into deficit gap.

In 2018, Tier 1 banks generated N1.15 trillion from this opportunity and a breakdown of this figure showed that GTB raked in N180b, FirstBank earned N260b, Zenith bank generated a whopping sum of N273b, while Access Bank and UBA booked N250b and N190b respectively. 

See also  How Do I Invest in Treasury Bills in Nigeria?

The model behind this opportunity is one of the reasons banks are in businesses; they take a deposit from you, pay you single-digit 2-3% interest on your savings and earn a double-digit annualized interest of 25-30%.

But the good news is that I am currently investing in a 23-year old finance firm that will pay you a 12-17% upfront interest per annum. Rather than putting all your money in a savings account or Treasury bill, you would be better off buying an alternative high-yielding treasury note from this CBN licensed finance house.

The second $30.1 trillion stock investing opportunities:

The US stock is the biggest and most profitable stock market in the world; the exchange is home to fast-growing global brands like Apple Inc, Facebook, Google, Microsoft, General Electrics, McDonald, Tesla and lots more. These companies share prices, from their IPO listing, have appreciated by over 1,500% 5,000% or 10,000% making their early investors millionaires in US dollars.

Even though these companies have different business models, they all share one thing in their early days: they grew earnings after tax by 20%, 30% or even 50% year on year before their share prices jumped up.

While I am not promising you the same return, I believe you can get your share of the billion-dollar opportunities if you learn the secrets of buying stocks of fast-growing companies by following my stock recommendations.

If these opportunities sound good and if you are interested in it, I’d like to invite you to our private investing platform on Telegram, Click the image below:


What do you think?

Share your comments

Newest Most Voted
Inline Feedbacks
View all comments
3 years ago

Please are u advising we invest in treasury certificate.
From my little findings, it spans between 1-2yrs right?

Oyelowo Joshua Oluwaseun
Oyelowo Joshua Oluwaseun
3 years ago

Notify me when the plan is fully out

Yekeen Kareem
Yekeen Kareem
3 years ago

Please just needs more understanding here, if I invest for N200,000 NGA how much would be the estimated interest per anum?

This Stock to Buy is Among the Bullish Leaders in the Insurance Sector

nigeria stocks to buy 2020

3 Growth Stocks You Should Add to Your Portfolio in 2020