Your salary account is more than a place to receive your paycheck, it can be your gateway to smart investing and wealth building. By automating savings, opening investment accounts, and staying disciplined, you can turn today’s market opportunities into long-term financial growth. Don’t let your money sleep; make it work as hard as you do, TEMITOPE AINA writes

Introduction

In a season when the Nigerian Exchange is experiencing an impressive bullish run, many Nigerians still keep their salaries locked up in accounts that do little more than serve as a parking lot for bills, transfers, and momentary gratification. But with the right strategy, your salary account can do far more than just receive alerts; it can become a launchpad into the world of investment and long-term wealth building.

For the average Nigerian employee living from paycheck to paycheck, the idea of investing may seem like a distant dream. But with the right tools, discipline, and awareness of the growing fintech-banking ecosystem, you can start investing, right from your salary account, with as little as N5,000.

Why it matters

In Nigeria’s current economic climate, simply keeping your money parked in a savings or current account is no longer a safe financial strategy. The country’s inflation rate, which has been hovering above 20 per cent for several months, means that the cost of goods and services is rising rapidly. If your money is not growing at a rate equal to or higher than inflation, its purchasing power steadily diminishes.

For example, if inflation is 20 per cent but your savings account only yields three per cent interest, your money effectively loses 17 per cent of its value each year. In real terms, this means that the same amount you have today will buy significantly less tomorrow. This silent erosion often goes unnoticed until people realise their savings cannot keep up with everyday expenses.

On the other hand, the Nigerian Exchange has been registering impressive returns over the past few weeks, defying some of the broader economic challenges. Stocks in critical sectors such as banking, industrials, and energy have been leading this growth, delivering double-digit percentage gains to investors. For instance, major banks like Zenith and Guaranty Trust Bank, as well as industrial giants like Dangote Cement, have recorded strong performance fuelled by increased economic activities and improved corporate earnings.

Beyond equities, other investment vehicles like mutual funds, government and corporate bonds, and exchange-traded funds have also seen renewed interest from investors seeking to diversify their portfolios and earn better yields. Mutual funds offer an accessible way for individuals to pool their resources and gain exposure to a diversified mix of assets. At the same time, bonds offer more stable, fixed income streams, appealing to more risk-averse investors. ETFs combine the liquidity of stocks with the diversification of mutual funds, making them a popular choice in today’s market.

This contrast between stagnant bank interest rates and vibrant capital market returns presents a clear message: letting your money “sit” is no longer enough. To preserve and grow wealth, Nigerians must explore investment opportunities beyond traditional savings accounts. The market’s current upward trajectory offers a timely opening for those willing to step in, learn, and take control of their financial futures.

Turning your salary account into a launchpad

Here are practical steps to turn your monthly salary or allowance into growing wealth and a growing investment fund:

Automate your savings first

The investment journey begins with disciplined saving. For many Nigerians, the challenge is not just making money but managing it consistently. The best way to build this discipline is by automating your savings, setting aside a fixed portion of your salary as soon as it lands in your account.

Tier 1 banks in Nigeria understand this need and have introduced convenient features that allow salary earners to create standing orders or recurring transfers. This means you can programme your account to automatically move a certain amount, say 10 to 20 per cent of your income, into a dedicated savings or investment wallet every payday without manual intervention.

Some banks even offer “split salary” accounts, where your income is divided automatically into different “wallets” for expenses, savings, and investments. This reduces the temptation to spend what you should be saving.

Starting small is key. If you’re new to saving, begin with 10 per cent and increase gradually. The idea is to make saving habitual and painless so that you can build capital over time to deploy into investments.

Open brokerage or investment account

Saving sets the foundation, but investment makes your money grow. Today, opening a brokerage or investment account is easier than ever, no longer reserved for the wealthy or finance experts.

Many Nigerian banks now allow customers to open investment accounts directly through their mobile apps. These platforms are often linked to licensed stockbrokers and asset managers, simplifying access to stocks, bonds, and mutual funds.

In addition to banks, fintech companies like Risevest, Cowrywise, Bamboo, and Chaka have revolutionised investing by providing user-friendly platforms for Nigerians to invest both locally and internationally. With low minimum amounts, sometimes as little as N5,000, and intuitive interfaces, these platforms make investing accessible for first-timers.

When choosing a platform, consider your investment goals. Are you seeking growth, stability, or income? Stocks offer higher growth but come with risk; bonds provide steadier, fixed income; mutual funds offer diversification with professional management.

Link your salary account for seamless transfers

Consistency is the secret sauce to successful investing. To ensure you never miss an investment contribution, link your salary account directly to your chosen investment platform.

Most investment apps now support direct debit mandates, allowing automatic withdrawal of scheduled amounts weekly, biweekly, or monthly, right after your salary hits your account. This “pay yourself first” method makes investing effortless and reduces the temptation to spend before you save.

By automating transfers, you make investing part of your financial routine, not an afterthought that requires willpower every month. Over time, this disciplined approach helps build a sizeable portfolio that benefits from compounding.

Consider bank-backed investment options

While fintechs offer exciting alternatives, Nigerian banks remain powerful players in personal investing. Many are now expanding their product offerings beyond traditional savings to include curated investment solutions designed for their clients’ risk appetite and goals.

For instance, Access Bank’s Wealth Management Division provides access to fixed income products, treasury bills, and bonds that deliver relatively stable returns. Guaranty Trust Money Market Fund empowers customers to buy and manage shares, mutual funds, and bonds in one place through their digital channels. United Capital Asset Management Ltd’s arm helps clients design investment portfolios that balance capital preservation with growth, catering to different investor profiles.

If you are more comfortable staying within the traditional banking ecosystem, speak to your account officer or visit your bank’s website/app to explore these options. Banks combine regulatory oversight and customer support, which may appeal to conservative investors.

Track performance and reinvest

Investing is not a one-time event or a “set and forget” activity. It requires regular attention and review to ensure your money is working as effectively as possible. Many Nigerians fall into the trap of investing once and then neglecting their portfolios, unaware that periodic adjustments could improve returns or reduce risk.

Today’s digital investment platforms make it easier than ever to keep an eye on your portfolio. Most offer real-time dashboards accessible via mobile apps or web portals, providing transparent views of your investments, including current value, gains or losses, dividend payments, and other important metrics. This transparency empowers investors to make informed decisions, spot trends, and react to market changes.

As your investments generate dividends or interest, one of the smartest moves you can make is to reinvest those earnings instead of withdrawing them. This practice, known as compounding, allows you to earn returns not only on your initial capital but also on the returns generated. Over time, this snowball effect can significantly accelerate your wealth-building journey.

Moreover, diversification remains a fundamental principle of investing. Placing all your money in one stock or asset class can expose you to unnecessary risks. Instead, as you grow more confident, spread your investments across multiple asset types, including stocks, bonds, real estate investment trusts, and mutual funds. This approach cushions your portfolio against market volatility and enhances the likelihood of steady, long-term returns.

Why now?

The Nigerian Exchange is currently witnessing a surge in investor participation, driven by a combination of improved corporate earnings, macroeconomic optimism, and greater financial inclusion through digital platforms. This bullish trend has encouraged many companies to post solid results and declare dividends, signalling strength and profitability to the market.

Stocks such as banking, insurance, and telecommunication have been among the top performers, delivering impressive price gains and rewarding shareholders. This performance signals growing confidence among institutional and retail investors alike, many of whom had previously been hesitant to engage with the stock market due to fear or lack of understanding.

Adding to this positive momentum, banks and fintech companies have introduced a range of innovative digital investment products aimed at making market access easier and more affordable for everyday Nigerians. These include automated savings-to-investment solutions, mobile brokerage accounts, and low-minimum mutual funds, all designed to democratise wealth creation.

For Nigerians who have long avoided the capital market, this represents a golden window of opportunity. The market’s current trajectory offers not only the potential for attractive returns but also a chance to build financial resilience amid economic uncertainties. Now is the time to move beyond just saving your salary and to make your money work harder through strategic investing.

Conclusion

The journey to financial freedom is often misunderstood as something that requires vast sums of money or complicated strategies. But the truth is, it doesn’t start with millions in your bank. It starts with a clear intention, a decision to take control of your finances, and the consistent actions that follow.

Your salary account, which you may have long seen as just a place where your monthly paychecks land, is much more than a transactional tool. It holds untapped potential. It can be transformed into a powerful gateway for investing, saving, and growing your wealth.

With access to modern banking features and investment platforms, the same account you use for daily payments and transfers can become the launchpad for your financial growth. The key ingredients are the right information, the right digital tools, and, most importantly, the right mindset, one that sees your money not as something to be spent immediately, but as a resource to be multiplied.

Taking the first step might seem small, setting up an automated savings plan or opening a brokerage account, but these small steps compound over time, setting the foundation for long-term wealth. As your investments grow, so does your financial confidence, creating a positive cycle of growth and empowerment.

The Nigerian Exchange’s current bullish market is a reminder that opportunities exist for those ready to seize them. Don’t let this moment slip away. Make your money work just as hard as you do every day. By aligning your salary account with smart investment habits, you open the door to a future where financial freedom is not just a dream but a reality you actively create.