Since investment plans offer a flat rate over the duration of your contract, if you compare the race between your money growth and the decline of the naira, you'd realise that you are not really making money. Instead you are merely breaking even.
The only people who are actually making money are the companies that propose these investments. They can easily bump up their prices over time, beat the inflation, while you still collect the same ROI for months.
Let me make an example: supposedly you invested N1M over 6 months, and you are promised an ROI of 5% for 6 months, it means that at the end of your 6 months contract, you'd have made N300,000 on top of your initial investment. Cool.
The problem is that in Nigeria the inflation rate is currently at 13.25%. Prices keep doubling. You would think that you are making money with these investments plans, but you are not. Even worse, the longer you invest in these companies, the more money you lose.
In a country like Nigeria, investments of this type only work for the companies while it does almost nothing for the investors. So, think twice before you invest.
Unless a company is willing to review their rate every six months, do not make the mistake of investing for longer than that.
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