By Chinelo Audrey Ofoegbunam, Esq, ACIARb(UK), ACArb, AICMC, ACIS
Introduction
As Nigerian lawyers, you know the value of making solid arguments, but how solid are your financial decisions? While legal work can be rewarding, investing ensures that your money works for you even when you are not in the courtroom. This week, we will explore various investment options available to Nigerian lawyers and how you can tailor them to your career and financial goals.
1. The Case for Investing: Why It Matters
Most lawyers rely on fees and salaries for income, but these can fluctuate. What happens during a slow period or after retirement? Investments provide:
Financial Security: A steady source of passive income.
Wealth Growth: Your money multiplies over time.
Independence: Freedom to make career decisions without financial pressure.
Think of it as diversifying your portfolio in court—investments reduce your risk of relying on a single source of income.
2. Investment Options That Work for Nigerian Lawyers
a. Stock Market
Investing in stocks means owning shares of companies, either in Nigeria or globally.
Why it’s great: High potential returns over time.
Platforms to use: Apps like Trove, Chaka, and Bamboo allow you to buy shares in Nigerian companies or global giants like Tesla or Apple.
Pro tip: Start with blue-chip stocks (companies with a solid track record) and diversify across sectors.
b. Mutual Funds
For lawyers too busy to manage their investments, mutual funds pool money from multiple investors and are managed by professionals.
Why it’s great: Low risk and diverse portfolio.
Types to consider: Fixed-income funds, equity funds, or balanced funds.
Providers in Nigeria: Companies like Stanbic IBTC, ARM, and FBN Quest offer excellent mutual fund options.
c. Real Estate
Lawyers often earn substantial lump sums from big cases—real estate is an excellent way to invest this income.
Options to consider:
Buy-to-let properties (rental income).
Land banking (buying land in developing areas and selling later).
Pro tip: Pool resources with colleagues for larger investments or explore real estate crowdfunding platforms like Coreum or Estate Intel.
d. Treasury Bills and Bonds
These are government-backed investment options, making them low-risk and reliable.
Treasury Bills: Short-term investments (91 to 364 days) with moderate returns.
Bonds: Long-term investments with higher returns than T-bills.
Why it’s great: Ideal for cautious investors looking for stable income.
e. Agriculture Investment
The agricultural sector in Nigeria is booming, and you don’t need to own a farm to profit.
Platforms to explore: ThriveAgric, FarmCrowdy, and Agrorite connect investors with farmers.
Why it’s great: Offers high returns and supports local farmers.
f. Dollar-Denominated Investments
Given the naira’s fluctuations, dollar investments are a hedge against inflation.
Options to consider: Dollar savings accounts, Eurobonds, or global ETFs (Exchange-Traded Funds).
Platforms to use: Risevest, Bamboo, or Trove.
3. How to Choose the Right Investment Option
As a lawyer, your financial goals, risk appetite, and career stage will influence your choices:
Newly qualified lawyers: Start small with mutual funds or T-bills while you learn.
Mid-career professionals: Diversify into stocks, real estate, or agriculture.
Senior lawyers: Explore high-yield investments like dollar funds or rental properties for stable, long-term income.
Remember: Not all investments are created equal. Research thoroughly and consult a financial advisor before committing.
4. Common Mistakes to Avoid
Jumping on trends: Investments like crypto may be lucrative but are highly volatile.
Ignoring due diligence: Fraudulent schemes abound—verify before investing.
Over-concentration: Diversify your portfolio to spread risk.
5. The Lawyer’s Edge: Using Your Skills in Investing
Your legal skills can give you an advantage as an investor:
Negotiation: Apply your expertise when buying properties or discussing deals.
Attention to detail: Analyze contracts and terms carefully.
Risk assessment: Evaluate investment risks like you would in a legal case.
Conclusion
As a lawyer, you have spent years sharpening your mind and advocating for others. Now is the time to advocate for your financial future by making smart investment decisions. Whether you start with mutual funds, real estate, or agriculture, the key is to begin today.
Your financial independence awaits—what’s your first investment move?
Chinelo Audrey Ofoegbunam is the Immediate Past Treasurer of NBA Abuja Branch
