November investment guide: T-bills at 18.75%, CPs up to 23%, equity funds near 99% YTD
Nigerian investors entering November can still lock in returns above September's 14.63% inflation. The October 28 one-year Treasury bill auction yielded 18.75% annualised—about 4.1 percentage points above inflation. Commercial papers from MeCure (21%) and Daraju (23%) offer wider spreads but carry repayment risk. Money-market funds reported yields ranging from ARM's 16.53% to First Ally's 21.30% (SEC data, Oct 23).
Equity opportunities exist after October's sector divergence: industrial goods surged 16.85% (driven by Dangote Cement's 33% rise) while banking fell 10.42%. Zedcrest Equity Fund leads YTD returns at 98.74%, followed by Zrosk Magna (69.05%) and Halo (68%), though all three declined in the latest week. Dollar assets provide currency protection—Nigerian Eurobonds yield ~7% annually, while dollar funds like Futureview (12.47% YTD) and Norrenberger (11.12%) add naira gains if the currency weakens further.
Key context: CBN benchmark rate sits at 23% after September's cut. FMDA projects ₦13.79 trillion liquidity inflows this November from maturing investments and government payments. Foreign reserves reached $55.22 billion but monthly growth slowed to $295 million as the naira slipped to ₦1,346/$.
For a ₦10 million portfolio targeting 30% annual return, the article illustrates allocating ₦6 million to equities, ₦3 million to T-bills, and ₦1 million to money-market funds—requiring equities to deliver ~38% to hit the target. Lower risk tolerance means lowering return targets and shifting to predictable income.
Match maturity to when you need the money, verify fund fees and withdrawal terms, and assess commercial paper issuers' cash generation before committing. November 4 T-bill auction results will update the reference rate.