If you are an entrepreneur, reflecting on the passive income ideas to make money in Nigeria as an Nigerian would always come to your mind.
There is nothing as comforting as making making money every single minute of the day as an entrepreneur even while sleeping.
If you don’t already know, every wealthy person you think of today has a money-making machine that consistently generate revenues for him whether he or she is present or not.
The consistent money generation systen or preferably called money-making machine is called Passive Income. It is money that renegenrate extra money 24/7.
I’m sure you must be aware of the saying “rich people don’t work for money, money works for them”.
The saying is accurate and it’s because rich people have created systems that generates them money even when they are not actively working.
Let me stop right there. Enough of the rich people and how they make consistent money. Let’s focus on you and how you can do the same too.
But first, let’s start with these questions before highlighting the passive income ideas to make money in Nigeria.
• Do own a money-making machine?
• Do the income come actively or passively?
• Do you have to show every day at work before you can earn an income?
• If you mistakenly fall sick or lose your current job, will you still be able to cope with your daily living?
I know that’s a lot of questions to take in at once, especially when you are yet to set your finances in order.
However, the aim of the questions is not to oppress you, but to motivate you to do something about your income.
And the good news is that, you’ll be learning not just the passive income ideas to make money in Nigeria in this guide but also how to make it an easy-to-start business that can generate you constant passive income.
Additionally, majority of the passive income ideas listed on this guide are suitable for individuals who don’t want to go through the much hassle and stress that comes with starting up a business in Nigeria.
But, before we dive into the list of the passive income ideas to make money in Nigeria, it’s best you know some of the basics.
What is Active Income?
From the word “active” which means being present, an active income is the earnings you get as a result of your direct inputs. It is the most common way people earn money in Nigeria.
So, to better understand what active income means, it is any money you make as a result of something you did. It can be in the form of rendering services (in most cases).
Examples of active income:
Here are some of the examples of active income.
• Your salary at the end of the month.
• Income you earn from wrapping up a client’s project.
• Income you earn from freelancing
And lots more…
What is Passive Income?
Unlike active income, passive income is the money you earn from your assets. It is not a criteria for you to work before you can earn passive income because it is the revenue that is being generated for you without your active participation.
Take for instance, you have assets that generates incomes such as real estates that pays you rent fees, stocks that pay out dividends to you, or even a regular business that yields profits.
Examples of Passive Income:
Here are some examples of passive income.
• High profitable self-sustaining business
• Affiliate marketing
• Marketing your expertise
• Real estate rent fees
• Royalties from your published books.
Passive Income Ideas to Make Money in Nigeria
It is crucial to know that before you can start generating passive revenues from your assets, you would have put in a lot of work upfront.
Don’t get me wrong or sugar-quote what I said about passive income at the beginning. Passive income don’t just happen overnight.. You must nurture them over time to keep bringing in income.
Keeping that in mind and you have decided to put in the initial efforts to grow a residual source of income, here are highlights of passive income ideals to make money in Nigeria.
1. Affiliate Marketing
Affiliate marketing is unarguably one of the best passive income ideas to try out today. It is one good way you can consistently earn passive income for life.
And the good part, you can do affiliate marketing anywhere, anytime, and whether online or offline.
Here’s a layman man interpretation of what affiliate marking is. Take for instance, if you have been to places like Alaba Market or Ladepo in Lagos, you would have noticed some guys standing on the roadside to direct you to owners of the goods you want to buy.
After you successfully transact with the owners of these goods, those guys get commission from the sale.
That’s a perfect example of what affiliate marketing is all about.
Therefore, in a nutshell, affiliate marketing entails selling other people’s products and getting commission from each sale.
Below are some points to take note of when doing affiliate marketing;
• You don’t necessarily need to own those products.
• You should have a marketing skills to sell online or offline.
• You should have a blueprint that brings in prospective buyers.
• Promote only products that you can vouch for.
Since the aim of this guide is to generate passive income through affiliate marketing, you should focus on creating systems that are automated and can generate you income continously.
Fortunately, there are several courses online that can guide you on how to make passive income from affiliate marketing. Neil Patel has an outstanding free course on affiliate marketing to start with and you can also get paid courses on Udemy too if you want to take your affiliate marketing business to the next level.
2. Self-Publish Books on Kindle
Do you know the popular book by Robert Kiyosaki? Rich Dad, Poor Dad? It has generated millions of sales and will continue to generate sales no matter how old the book gets.
Publishing books is an effective means of generating passive income. And when done the right way, you could earn royalties for life from each book.
For starters, getting a publisher to publish their books can be difficult which is why Amazon Kindle Direct Phblishing is an easy to use platform to sell your book across millions of people all over the world.
Basically, what you will be doing with Amzon KDP is leveraging its established market to easily sell your books.
To get started publishing books on Amazon, sign up for an account on Amazon KDP , upload your books and follow all the instructions on how you should submit your book.
Once you’re done filling out the form, you can hit the publish button to get your book circulated to millions of people.
Keep in mind that at the beginning, it is advisable to self-promote your book in addition to the promotion done by amazon. By doing this, you increase your chances of making sales in your first month.
3. Invest in Real Estate Investment Trust (REIT)
No matter what, excluding real estate investment on this list of passive income ideas to make money in Nigeria will make the list inconclusive.
Real Estate Investment Trust is long-term means of generating passive income especially if you’re interested in benefiting from real estate business, but don’t have substantial capital to start with.
Think of REIT as a fund that is strictly dedicated to investing in real estate assets only.
Before you kickstart any investment in a REIT, you may want to consider the available funds, whether or not you should invest in traded funds.
Without any doubt, each type of REIT have its own perks and disadvantages. For more detailed information on investing in traded and non-traded REIT funds check out this resource.
Also Check Out – 5 Best Places To Get Business Grants In Nigeria (2022)
4. Dividend Investing
Whenever you hear real estate you hear stock alongside. Although, dividend investing is probably for financially savvy people with an enthusiasm for trading the stock market, it is unarguably one of the best passive income ideas to make money in Nigeria.
But the question you may be asking yourself right now is “Can a person without a technical knowledge about investing earn from dividend investing? Yeah, sure, though you need to put in a lot of efforts to learn all the essentials of dividend trading.
And like with every other passive income ideas listed here, you’ll need to put a considerable amount of efforts upfront to learn to invest before you can begin to get passive residual income from it.
As a Nigerian, it is important you implement any of these passive income ideas to make money in Nigeria if you desire to have something to fall back on whenever you quit your regular 9 to 5 daily job.
However, keep in mind that growing a passive income system doesn’t happen overnight. You’ll have to work it out before it begins to generate consistent revenues for you.