Making money while you sleep is the dream, right?
And that is absolutely possible!
Passive income is the holy grail of income-generating opportunities - you can make money while you sleep, take a vacation, or do pretty much anything else you want.
There are several ways to create passive income streams in Nigeria. You could, for example, invest in stocks, real estate, or mutual funds. Some of these methods are easier than others, but they all have the potential to bring in some extra cash each month.
Thankfully, many financially-savvy Nigerians have mastered the art of earning money “in their sleep.” And you can do that too!
This post will explore 8 of our favorite smart and easy passive income ideas in Nigeria.
So, let’s get started.
What Is Passive Income?
As we explained earlier, Passive Income is money you earn without putting in so much effort. It's the perfect way to make some extra cash on the side, even if you have a day job or business.
Most people earn passive income by marketing their hobbies or talents like arts, handcraft, digital skills, etc. However, this would require effort and time to make it work. Additionally, you could invest money in your areas of interest to earn passive income without having to do the work yourself. For example, investing in real estate, agriculture, transportation, stock market, etc.
In a nutshell, passive income is the money you make without putting in active work.
But Hey. Wait. That’s not all there is to it.
Just like we hear people say, “Rome wasn’t built in a day,” You don’t also expect to start earning passive income from a day-old business. It might take weeks, months, or even years to start earning a substantial amount of money. However, what matters most is putting in the effort or money to get there.
With that said, let's go through our top picks for passive income sources in Nigeria.
10 Smart and Easy Ways to Make Passive Income in Nigeria
So you're looking for lucrative passive income ideas in Nigeria? We've got you covered. Here are 10 smart and easy ways to earn money on the side. They include:
1. Invest in Real estate
Real estate has become a popular means of amassing wealth for the rich and affluent all over the world. This is because real estate appreciates over time due to the high demands and limited supply, inflation, urbanization, etc. These factors increase the value of real estate, even if the house is old or the land is in a remote area.
That said, investing in real estate is one of the smartest and easiest ways to create passive income. You can either buy a property and rent it out or develop a land and sell it later. Depending on the location, you can buy a land in Nigeria for as little as #450,000 or as much as #250,000,000.
Real estate is a great investment because it's always in demand. People will always need a place to live, so your property will always be in demand. Not to mention, the Nigerian market will only continue to grow in the future.
2. Rent Your Car or Home on Airbnb
You've probably heard of Airbnb - a platform that allows people to rent out their homes or cars to others.
It's a great way to make extra money and much easier than you think. All you need is a car or home available for rent, and you can start making money immediately.
The best part is that Airbnb takes care of everything for you. They handle the payments, the booking, and the communication. All you have to do is sit back and wait for the money to start rolling in. This is also another reason that shows you why investing in real estate is top tier.
You can also invest in transportation by leasing your vehicles to drivers while they make monthly returns for you. Doing so can also help you keep your engines up and running.
Another way to invest in transportation is registering a business name and having drivers sign up on your platform. People feel safer with vehicles from a registered company than otherwise. This way, you create income streams from drivers who sign up on your platform and earn commissions from each passenger who uses their services.
3. Invest in agriculture
Did you know you can make money from farming without lifting a finger?
It's quite simple. invest in Agriculture.
There are lots of investors who are doing this and making a killing. The Nigerian agriculture sector is booming, and there's a lot of growth potential.
So if you're looking for a sustainable passive income stream with good potential for growth, then agricultural investing is a great option. You could start by partnering with farmers/livestock rearers that you can trust. Or, sign up on any Agrovest companies in Nigeria to help you get started.
Examples of Agricultural Investment companies in Nigeria are:
- Agro partnership
- Pay farmer
- Farm360, etc.
4. Crypto/Forex Trading
Thanks to the crypto boom in 2017, many people all over the world can now trade crypto. With some countries acknowledging crypto as a legal tender. Some other countries have also drafted laws on how to trade and curb the risks of the cryptocurrency market for their citizens.
Our point is; you can make passive income from cryptocurrency trading. All you need to do is buy low and sell high, or invest in it long term.
On the other hand, You can also trade or invest in forex, which is the buying and selling foreign currencies. The crypto and Forex market is known for its volatility and high risks. So, make sure to research before you trade and also invest within your means. The unwritten rule is to trade or invest in crypto or forex with money you can afford to lose.
Another option is to sell NFTs. These are non-fungible tokens, which means that each one is unique. They're digital assets that can be used to represent anything from virtual goods to real-world assets.
Many NFT-savvy Nigerians have made cool cash by turning their digital artworks into NFTs. NFT sales also have lower risks compared to Crypto and forex. You can research popular NFT platforms where you can mint or sell these artworks to start earning money from NFTs.
5. Start a Blog and Sell Advertising Space
Blogging is a great way to generate passive income because you'll make money even when you're not actively working on your blog.
To make it clearer, let's paint a scenario.
So Mary works as an Admin officer at a company that pays her #180,000 monthly. Then she also runs a blog where she writes about beauty and skincare products. The traffic and google ads on her blog generate about $350 monthly, while she also earns up to $200 on accumulated commission from the products she recommends to her audience.
From this scenario, you would see that Mary has a day job that requires her daily efforts and attention. However, her digital skills (blogging and affiliate marketing) bring her even more money than she earns from her 9-5.
And the best part is that you can do this from anywhere in the world. All you need is a laptop and an internet connection.
Just find a profitable niche, and write informative content based on what people are searching for. You could be their go-to source for information.
6. Affiliate Marketing
With affiliate marketing, you partner with a company that sells a product or service and promote it on your website. And earn a commission when someone buys the product or service through your link. It's a great way to make passive income; all you need is a website and some traffic - just like Mary in the example above.
There are a lot of affiliate programs out there, so it's important to choose ones that are relevant to your audience. And remember, the key to success is providing valuable content that helps your readers solve their problems. So think about what type of content your audience would appreciate and start promoting some great products and services.
7. Dropship or Sell products on e-commerce Sores
Dropshipping is another way to make money on the side. You can dropship products from AliExpress and sell them at higher rates. Many dropshippers can comfortably sell these products by marketing them on social media platforms like Whatsapp, Instagram, Facebook, or Twitter.
You can also sign up on popular eCommerce stores in Nigeria like Jumia, Konga, Ubuy, JiJi, etc. These platforms have already-existing traffic, which you can piggyback to your online storefront. Making it easy for entrepreneurs to sell their products without hassles. Plus, there's no shortage of products to choose from.
Just be sure to research what's popular and selling well in your niche and find products you can easily source at a good price. Then, put together a killer marketing strategy to drive traffic to your store, and you're good to go!
8. Social Media Influencing
Social media platforms are a great place to share videos, pictures, and ideas, buy and sell goods and services, but most importantly - sell yourself as a brand.
Over the years, businesses have used celebrities and brand ambassadors to influence people’s buying decisions, and that strategy still works to date. The entry barrier has even lowered over time - normal individuals with a large following can now work as social media influencers. And this is where you and I come in.
If you have a knack for promoting products on social media, you can easily make extra bucks monthly. All you need to do is build your following and reach out to companies willing to pay you to promote their products. The good side is that companies can also reach out to you if you share posts that resonate with their target audience or have followers who are their target. Either way, it's a win-win for you.
Social media influencing is a smart and easy way to generate passive income in Nigeria. However, it takes time and consistently showing up to get there.
What Are the Risks of Passive Income?
So, what are the risks of passive income? Well, the biggest one is that you might not put in enough work and could end up not making as much money as you would if you worked harder.
But there are ways to minimize this risk. One is to ensure that you're investing your time in a project that you know will be successful. You also need to be realistic about how much money you can make with a passive income stream and not take on more than you can handle.
And finally, it's important to have backup plans in place if something goes wrong. This could mean having a savings account that you can fall back on or having other sources of income that can tide you over until your passive income picks up again.
What Are the Benefits of Passive Income?
- Passive income promotes financial freedom - it helps to reduce your dependence on a day job and gives you the freedom to live a comfortable life.
- Passive income also provides you with a safety net. If you lose your job or experience some other form of financial difficulty, you'll still have a stream of income to help you get through it.
- Passive income is a great way to save for retirement.
- Passive income can also help you fund your business. Also, it can be a great way to keep your business afloat during slow periods.
- Finally, saving or investing more money is easier when you have multiple passive income sources. Because you're not relying on just one revenue stream to support you in your golden years.
Passive income is one of the smartest ways to build wealth and cushion yourself against the unexpected. But it's not just about making money. Passive income gives you the freedom to do what you want with your time, and that's a precious commodity in today's world. You can use it to travel, spend time with your family, or take a break from work. The possibilities are endless!
Nigeria is blessed with an abundance of money-generating opportunities. The 8 sources of passive income we've listed are a great starting point, but feel free to explore other creative opportunities. We recommend you start with one or two methods and expand as you progress.
So, whether you're just starting or looking for something more, you can easily create a stream of passive income to help you achieve your financial goals. And with a little effort and some smart planning, you could be generating passive income in Nigeria in no time!
The sky is your starting point!