01/11/2025
How to invest in Nigeria stock market
Investing in the Nigerian Stock Market can be a smart way to build wealth over time if done carefully. Here’s a simple, step-by-step guide to help you get started:
Understand How the Nigerian Stock Market Works
The main stock exchange in Nigeria is the Nigerian Exchange Group (NGX), formerly known as the Nigerian Stock Exchange (NSE).
It allows investors to buy shares of publicly listed companies — such as MTN Nigeria, Dangote Cement, GTCO, and Zenith Bank.
When you buy shares, you become a part-owner of that company and can earn through:
Dividends (profit sharing)
Capital gains (when the share price increases)
Open a Stockbroking Account
You cannot buy shares directly on NGX. You must go through a licensed stockbroker.
Steps:
1. Choose a registered broker from the NGX website: https://ngxgroup.com
2. Open a trading account with them (similar to a bank account but for stocks).
3. Provide your BVN, valid ID, passport photo, and utility bill.
4. You’ll be given a CSCS account number (Central Securities Clearing System).
This number holds all your shareholdings electronically.
Popular brokers include ;
Afrivestor
CardinalStone Securities
ARM Securities
Stanbic IBTC Stockbrokers
Lead Securities
Fund Your Trading Account
Deposit money into your stockbroking account via transfer or debit card — your broker will guide you.
Start with any amount you’re comfortable with (many brokers accept as low as ₦10,000–₦20,000).
Choose the Right Stocks
Invest in companies with strong fundamentals and consistent performance.
You can research:
Company annual reports
Dividend history
Market trends
Top sectors to consider:
Banking (GTCO, Zenith, Access Holdings)
Telecoms (MTN Nigeria, Airtel Africa)
Consumer goods (Nestlé, Dangote Sugar)
Industrial (Dangote Cement, BUA Cement)
Or invest through Exchange Traded Funds (ETFs) if you prefer diversification.
Monitor and Grow Your Portfolio
Use your broker’s online platform or mobile app to track your stocks.
Stay updated with business news (e.g., Nairametrics, NGX daily reports).
Reinvest your dividends to grow faster.
Don’t panic over short-term market changes — focus on long-term growth.
Avoid Common Mistakes
Don’t buy “hot tips” without research.
Avoid emotional trading.
Diversify your investments.
Remember: profits take time — think long-term (3–5 years).
We provide the premier platform in Africa for raising capital; facilitate a thriving secondary market for trading securities and maintain a seamless flow of market information.
