By Isaac Atunlute
Gone are the days when stock trading was the domain of men in suits on the floors of the Nigerian Stock Exchange. Today, everyday Nigerians—from students to stay-at-home mothers—can become shareholders in the country’s biggest companies.
Using your cell phone, some research, and a shift in attitude, you can start investing in Nigerian stocks and build real wealth over time. But where do you start? What do you look out for? Is the Nigerian stock market really worth your time?
This guide will walk you through the essentials—from the basics to the risks and rewards, trusted platforms to buy from, and insights from real investors—to help you make informed decisions.
Understanding what a stock is can demystify the process. A stock represents partial ownership in a company. When you buy shares, you are essentially buying a piece of that business.
In Nigeria, you can invest in well-established companies like GTCO, Zenith Bank, Dangote Cement, MTN Nigeria, and others listed on the Nigerian Exchange Group (NGX).
As the companies grow and turn a profit, they may distribute part of those profits to shareholders as dividends. Alternatively, you could sell your shares for a higher price than you bought them.
To get started, you’ll need to open an account with a registered stockbroker or use an online platform such as Chaka, Bamboo, Risevest, or Trove. These platforms allow you to start investing with as little as ₦1,000. In addition to Nigerian equities, some even offer access to global stocks.
“People think the stock market is gambling,” says Nwalinma Nzubechi, a 32-year-old investor living in Abuja. “It’s a matter of informed choice.”
Nzubechi, who started buying bank shares during the pandemic lockdown, recalls monitoring firm reports to stay up-to-date with the Nigerian exchange prior to investing.
He emphasised the importance of maintaining a long-term perspective: “Do not anticipate double money within one week. It’s not crypto. But over months and years, with the right strategy, you’ll see real growth.”
What to know before you invest
- Before diving in, keep the following in mind:
- Know your risk tolerance: How much can you afford to lose without panic?
- Be mindful of market volatility: Stay informed and don’t panic sell.
- Stay updated on economic trends: Inflation, interest rates and economic policies all affect the markets.
- Diversify your portfolio: Don’t put all your eggs in one basket. Spread your investments across various sectors.
- Do your own research: Study company earnings reports, past performance and market outlook. Websites like Proshare and Nairametrics are excellent for reliable stock news and expert analysis.
Final Thoughts
The Nigerian stock market has its ups and downs, but for those who stay informed and patient, it remains one of the few local avenues where your money can truly grow. With a changing economy and expanding digital access, there’s never been a better time to learn, begin small, and aim high.
The article by Isaac Atunlute discusses the evolving landscape of stock trading in Nigeria, highlighting how it has become accessible to everyday citizens, including students and stay-at-home mothers, through digital platforms. It provides a guide on beginning investment in Nigerian stocks, explaining that stocks represent partial ownership in a company, with companies like GTCO, Zenith Bank, and Dangote Cement being notable options. Investors can earn dividends or profit from selling shares at a higher price than their purchase value.
To get started, individuals need to open an account with a registered stockbroker or use online platforms like Chaka, Bamboo, Risevest, or Trove, allowing investments starting from ₦1,000. These platforms may also offer access to global stocks. The piece includes insights from real investors like Nwalinma Nzubechi, who underscores the importance of informed choices and a long-term investment strategy, warning against expecting quick returns akin to cryptocurrency trading.
Before investing, it is crucial to understand one's risk tolerance, be aware of market volatility, stay updated on economic trends, diversify investments across various sectors, and conduct thorough research using resources like Proshare and Nairametrics. Ultimately, the Nigerian stock market presents opportunities for growth for those who remain informed, patient, and open to starting small with the intent to expand over time.
