2022: Navigating Alternative Investments

Welcome to a new week and newsletter.

As a follow-up to last week’s article, we will be discussing investment alternatives available to investors since many people are understandably exiting positions in Agrictech companies.


Coupled with the fact that prices of goods and services have been on an upward trajectory for some time and have put further strain on disposable income; there is a need to be circumspect in investing one’s hard-earned funds.


The universally acceptable target is to invest classes that outperform the market/economy during a period of inflation (as we still are in).


There are some specific asset classes such as real estate and gold (jewelry & commodity) that are regarded as anti-inflation assets as they help hedge against the impact of inflation.


  • Gold is normally favoured as a hedge against inflation and also an alternative currency especially when the local currency loses value. Because it is a real physical asset it can also be used as a store of value.

In fact, during the lockdown in 2020 many Indian Temples pledged some of their gold in exchange for much-needed cash.


  • Real Estate as we have mentioned several times does not necessarily refer to residential properties but any type that has commercial or money generating capabilities.

During periods like this, cash-rich investors buy real estate to hold on to till the market improves and then sell at a premium.

Do note that this strategy is only advisable for those who are prepared to wait.


  • Fixed Income assets – treasury bills and government bonds remain a safe bet for the conservative and risk-averse investor.

The major con here is that rates are still low although they are expected to increase in the short run. Many analysts expect the CBN to increase the MPR (the benchmark rate) this year.

The advantage remains the certainty of repayment since governments hardly ever default on their obligations to subscribers.


  • Another investment type that is very common in Nigeria now is dollar-based assets whether it be US stocks or mutual funds/ Eurobonds. This class of investment has helped in no small way to hedge against the double whammy of inflation and devaluation.

Whilst they remain highly recommended, it is key to note that many analysts expect some US stocks to lose value in the face of expected interest rate increases by the Fed.

It is key to note that this list is not exhaustive and there is no “one size fits all” in personal finance. In addition, it is always recommended that we keep saving and investing no matter how restrictive the landscape is.


We will all do well to remember that the Omicron variant of COVID 19 is very contagious though mild. Please maintain social distancing, wear your face masks in public, and if qualified to do so; take your booster shot.

See you next week.


Toyin Oguntuyi