Investment You Should Do Right Now to Beat Inflation in Nigeria

Inflation in Nigeria has continued to rise, eating away at the value of the naira and diminishing the purchasing power of ordinary citizens. According to the National Bureau of Statistics (NBS), inflation reached a high of 31.7% in February 2025 — the highest in over two decades. As prices of goods and services surge, individuals and investors alike are seeking smart, reliable ways to preserve and grow their wealth.

If you’re looking to outpace inflation and safeguard your financial future, here are four strategic investments you should consider right now: Real Estate, Gold, Bitcoin ETFs, and Foreign Currency – Kuwaiti Dinar. Each of these investment vehicles offers unique benefits, and when properly managed, they can help you hedge against Nigeria’s volatile economic environment.

Real Estate

Real estate remains one of the most reliable and rewarding investment options in Nigeria, especially in growing cities like Abuja, Lagos, and Port Harcourt. As inflation rises, the value of property tends to appreciate, offering a built-in hedge against currency devaluation.

Why Real Estate is a Hedge Against Inflation

Properties appreciate over time, and rental income can be adjusted in line with inflation. Unlike cash savings, real estate investments grow with the economy. Whether you’re purchasing residential buildings, commercial spaces, or land in developing areas, the long-term prospects remain strong.

Key Opportunities in Nigerian Real Estate

• Abuja Real Estate: The capital city is experiencing a surge in demand for both luxury and affordable housing. Areas like Guzape, Lokogoma, and Jabi are rapidly expanding with infrastructural developments, making them ideal for early investment.
  
• Short-let Apartments: With the rise of digital nomads and frequent travelers, investing in short-term rental properties through platforms like Airbnb can yield lucrative returns.
  
• Off-plan Projects: Buying property off-plan allows you to invest at a lower price before development is completed, with potential for significant ROI upon project completion.
  

Pro Tip

Work with a reputable real estate agency that understands the local market and legal processes. Platforms like Abuja Real Estate offer vetted listings, investment guides, and opportunities tailored for both local and international investors.

Gold

Gold has stood the test of time as a reliable store of value. In uncertain economic times, such as high inflation or currency devaluation, gold becomes even more attractive to investors.

Why Invest in Gold?

• Preserves Wealth: Gold maintains its purchasing power even as currencies fluctuate.
  
• Global Demand: Gold is a globally accepted commodity. Its value is not confined to the Nigerian economy, making it an excellent diversification tool.
  
• Liquidity: You can quickly convert gold into cash almost anywhere in the world.
  

How to Invest in Gold in Nigeria

• Physical Gold: Purchase gold bars, coins, or jewelry from certified dealers. Ensure authenticity through reputable sources.
  
• Gold ETFs: These are exchange-traded funds that track the price of gold. While not yet common in Nigeria, some international brokers allow Nigerians to access them.
  
• Gold Savings Accounts: Some fintech platforms and banks offer gold-backed savings accounts where your deposits are pegged to the price of gold.
  

Risk Note

While gold is less volatile than many assets, prices can dip in the short term. It’s best viewed as a medium to long-term investment strategy.

Bitcoin ETFs

Cryptocurrencies, particularly Bitcoin, have gained popularity in Nigeria, especially among younger investors. However, due to the risks associated with directly holding digital assets, many are now turning to Bitcoin Exchange-Traded Funds (ETFs).

What Are Bitcoin ETFs?

A Bitcoin ETF allows you to invest in Bitcoin through traditional financial markets without owning the cryptocurrency directly. It tracks the price of Bitcoin and is traded like a stock, making it more accessible to risk-conscious investors.

Benefits of Bitcoin ETFs

• Regulated Exposure: ETFs are regulated by financial authorities, offering a safer entry point for crypto investment.
  
• No Digital Wallet Needed: You don’t need to worry about managing private keys or using crypto wallets.
  
• Liquidity: Bitcoin ETFs can be bought and sold on stock exchanges, allowing for quick liquidation if necessary.
  

How Nigerians Can Access Bitcoin ETFs

• Use International Brokerage Accounts: Platforms like eToro, Robinhood, or Fidelity offer Bitcoin ETFs. Nigerians can access these through domiciliary accounts or international investment brokers.
  
• Stay Updated: The Nigerian SEC has not yet approved any local crypto ETFs, so ensure you’re complying with any cross-border investment regulations.
  

Caution for Crypto Investors

Despite their promise, Bitcoin and crypto assets remain volatile. Never invest more than you can afford to lose, and always diversify your portfolio.

Invest in Foreign Currency – Kuwaiti Dinar

One of the most underrated but powerful inflation-beating strategies is foreign currency investment, particularly in strong, stable currencies like the Kuwaiti Dinar (KWD).

According to a recent guide on Abuja Real Estate, the Kuwaiti Dinar is the highest-valued currency in the world. Investing in it not only protects your wealth from the naira’s volatility but also opens up access to lucrative real estate opportunities abroad.

Why the Kuwaiti Dinar?

• Stability: Backed by Kuwait’s oil wealth and prudent fiscal policies, the KWD has remained strong for decades.
  
• High Exchange Value: With 1 KWD exchanging for over ₦4,800 as of 2025, holding assets in this currency significantly enhances your net worth in naira terms.
  
• Global Trust: The KWD is widely recognized as a trusted and stable store of value.
  

How to Invest

• Currency Accounts: Open a foreign currency account (domiciliary or offshore) that allows you to hold and trade in KWD.
  
• Real Estate in Kuwait: Foreigners can legally invest in real estate in designated zones. The process is streamlined and often more secure than in some emerging markets.
  
• Forex Platforms: Use regulated forex trading platforms to convert naira into KWD. Ensure you’re dealing with brokers that offer transparent fees and credible conversion rates.
  

Strategic Tip

Consider pairing your KWD holdings with real estate investments in Kuwait for a double-layered hedge against inflation — currency plus property.

Conclusion

In times of high inflation, preserving your wealth requires more than just saving in naira. By diversifying your investment portfolio across real estate, gold, Bitcoin ETFs, and foreign currency like the Kuwaiti Dinar, you can reduce your financial risk and maintain the real value of your money.

Each of these investments plays a unique role:

• Real Estate: Tangible, appreciating asset with income potential.
  
• Gold: Safe-haven commodity with global demand.
  
• Bitcoin ETFs: High-growth digital assets made accessible.
  
• Kuwaiti Dinar: Currency strength and international leverage.
  

To beat inflation in Nigeria, the key is action. The earlier you invest, the better your position to withstand economic uncertainty and grow your wealth in the long run.