I try to stay clear of topics that zero in on particular individuals and issues that are not timeless. To clarify what I mean, I always try to write on things that will be useful for a very long time, and not issues that will become history after a while. Principles, values, encouragements, motivations, useful experiences… all these are timeless and would still prove useful on the long run. Issues like Nospecto are however time bound, we all cannot guarantee that it will last for too long. I have however been in many discussions lately about Nospecto, and I have found out that I will not be doing good service to a lot of people if I don’t help them with the information I have that can help them succeed.
If you have never heard of Nospecto before, it is an investment opportunity where you put in 450,000 naira and get 40,000 naira returns monthly, it’s also a joint venture business arrangement, where you share profits with the owners of the company at a rate which makes your share 40 out of every 450 in a month. Nospetco’s arrangement is the standard convinient arrangement for devout muslims, who because of their beliefs in not collecting interests on their money can only be comfortable with sharing profit. Nospetco has made many Nigerians rich today, Nospetco is the reason some people feel more comfortable to live their jobs, but an interesting question we all need to be asking is -“How much longer does Nospetco have to live?”. If you think it’s not a critical question, read on.
If you are investing your money in any business, you need to have answers to a few questions otherwise you will be the owner of the money but for a while.
“He that gets gear before he gets wit, is but a short time the master of it.” – Charles Spurgeon
It is wit to be able to ask the right questions, know when to move in, and know when to move out. If you ask the generation that is between 45-60 today, they’ll tell you about the finance houses of the 70/80s and how in one little sweep, millionaires became paupers. Those who do not know the past are bound to repeat it!
What is Nospetco’s business?
Nospetco is an oil and gas marketing company. It claims to be, and the claim has been researched to be true. I have been able to track what they sell, who they sell to, and who they buy from. Their major business is diesel, they are big and have many customers and their sole supplier of diesel is Zenon (the sole supplier of diesel in Nigeria). This is the legitimate aspect of their business that is known to anyone who dares to find out, it is not impossible they are into other things that are not so simple.
Is the business so profitable?
The business is marginal, but the high turnover makes it very profitable.
Why are they sharing their profit and not lending money from banks?
Their financial model is islamic, they don’t believe in interests. This is not very clear though, since they still use banks too, I’m certain scholarly islamic people will be able to shed more light on this. “Owo ele” is what they call it in yoruba. Rather than go into interests, it makes sense for them to go into profit sharing.
Is it risky?
It is high risk. Apart from the fact that you sign an agreement that when there is a strike or unrest in the nation, you will not be getting revenue for those times, what you sign with them is also not binding. If anything happens and they go out of business, you are also out of business. It is also a business that thrives on our dependence on diesel. The 40kva generator in our office runs on diesel, it’s a pain in the neck for us, this business thrives on the instability in power generation. This business also solely depends on another company as its source for its most important product, when you shake the wind, the wind will shake the forest.
What are the realities today?
Nospetco is high risk, and an investment you should make with your eyes open and your brain alert. A read about a certain Ade guy who claimed to have bought as many as 50 units and quickly reduced it to 25 when he had recovered his initial investments. For him, he can’t loose anymore, he used good strategies that are more difficult today. I also played with it before, went in and out big time. It was easier back then, today you need to keep the funds there for 6 months before you can divest. There are intelligent ways to invest. There are however some current happenings that in my humble opinion are red lights for investmenting –
1. Zenon announced a few weeks back that they will now start selling diesel to the public in diesel stations, and at much lower prices. This is a deadly blow to all their distributors, Nospetco inclusive. If they retain their current agreements with this, then it means they are into other steady things and investing might not be so bad, but you still need to find out what.
2. I heard that the Intercontinental Bank MD forbade his employees from having anything to do with the company. He say the whole deal from a different angle, the company is gradually becoming a bank without having a licence. And certainly is already competing with banks for funds. If other banks wake up to this reality, we might witness an economic coup.
What do I advise?
I advise that if you want to invest in any scheme, do so wisely. There are sure investment vehicles, balance your portfolio. Don’t let greed lure you to the gallows. Use as many invesment vehicles as possible, fixed deposits, shares, venture captial, treasury bills e.t.c. If you must put all your eggs in one basket, make sure it’s the basket you are guarding with your life.
Are there more profitable investment options?
Yes! They do equal and some more returns with their unique appended risks as well. The unfortunate thing is that like Nospetco (no website, funny looking stressful office – I hear the office is better and has AC now), they also do not have websites and the information I have on them is limited. One is Hazonwao (I have the MD’s number, they are into more stable things) another is Wealthzone (I’ll get his number soon, I have his email address).
I hope someone finds this useful.