If you’ve been wondering how to invest in the stock market in Nigeria but don’t know where to start, you’re not alone. Many Nigerians want to grow wealth beyond savings accounts and fixed deposits, but fear losing money due to lack of knowledge.
The truth? The stock market isn’t gambling. It’s a proven wealth-building tool used by the world’s richest people. When done right, stock market investing can give you financial freedom, beat inflation, and build generational wealth.
My name is Iking Ferry, widely recognized as Nigeria’s #1 Digital Marketer, a Financial Literacy Advocate, and the Founder of Pulseford Business School, Nigeria’s leading institute for digital marketing, financial literacy, and wealth-building education. Over the years, I have trained thousands of Nigerians, from entrepreneurs and professionals to students and everyday individuals, to master personal finance, build wealth, and confidently invest in the Nigerian stock market.
With years of hands-on experience in investment strategies, stock market education, and business growth, I have guided people to invest wisely, avoid costly mistakes, and grow their money through shares, dividend-paying stocks, and long-term portfolio building. our training is practical, Nigeria-focused, and results-driven, designed to work in our real economy, not just in theory.
In this comprehensive guide, I will show you how to invest in the Nigerian Stock Market step-by-step, starting from the basics of the Nigerian Exchange Group (NGX) to advanced strategies for stock trading and portfolio growth. Whether you’re a complete beginner who has never purchased a single share or an experienced investor looking to sharpen your strategies, this article will give you everything you need to make informed, profitable investment decisions in Nigeria’s stock market.
By the end of this guide, you will understand how to start investing in Nigerian stocks, build a profitable investment portfolio, and take advantage of wealth-building opportunities on the Nigerian Stock Exchange, while managing risks and maximizing returns like a pro.
What is the Stock Market in Nigeria?
The Nigerian Stock Market is the official marketplace where shares of publicly listed companies in Nigeria are bought and sold. It is operated by the Nigerian Exchange Group (NGX), which was formerly known as the Nigerian Stock Exchange (NSE). This market plays a crucial role in the country’s economy by connecting investors with businesses that need funding to grow.
When you buy a stock in Nigeria, you are essentially purchasing a small ownership stake in that company. This means you share in the company’s success, and sometimes its risks. If the company performs well, the value of your shares can rise, giving you the opportunity to sell at a profit. Additionally, many companies on the Nigerian Exchange (NGX) pay dividends, which are regular cash payouts to shareholders from the company’s profits.
In simple terms, the Nigerian Stock Market is where everyday Nigerians, business owners, and large institutions invest their money to grow wealth over time. Understanding how it works is the first step to becoming a successful stock market investor in Nigeria.
Why You Should Invest in Nigerian Stocks
Investing in the Nigerian Stock Market is one of the smartest ways to grow your wealth and protect your money from the effects of inflation. Here are some powerful reasons why buying shares in Nigeria can be a game-changer for your finances:
Beats Inflation in Nigeria
With Nigeria’s inflation rates constantly reducing the value of money, keeping your cash in a regular savings account often means losing purchasing power over time. Investing in stocks offers the potential for returns that outpace inflation, allowing your money to grow faster than it would in a bank account.Ownership in Top Nigerian Companies
When you buy stocks, you become a shareholder in some of Nigeria’s most profitable and influential companies, such as Dangote Cement, MTN Nigeria, Zenith Bank, and many others listed on the Nigerian Exchange (NGX). This ownership gives you a stake in their success and growth.Passive Income Through Dividends
Many companies listed on the NGX pay dividends, regular cash payouts to shareholders from company profits. This means you can earn passive income without working extra hours, making your money work for you even while you sleep.Long-Term Growth Potential
Historically, the NGX All-Share Index has shown steady growth over decades. By investing in Nigerian stocks with a long-term strategy, you position yourself to benefit from the country’s economic expansion and corporate profitability over time.
In short, investing in Nigerian stocks is not just about making quick gains, it’s about building generational wealth, achieving financial independence, and creating a sustainable income stream.
How the Nigerian Stock Exchange (NGX) Works
The Nigerian Stock Exchange, now officially known as the Nigerian Exchange Group (NGX), is the central marketplace where stocks, bonds, and other securities are bought and sold in Nigeria. It operates under the regulation of the Securities and Exchange Commission (SEC) of Nigeria, ensuring that all trading activities are transparent, fair, and in line with Nigerian investment laws.
Just like major stock exchanges in the United States or the United Kingdom, the NGX provides a platform for investors to trade shares of publicly listed Nigerian companies. However, it is uniquely tailored to Nigeria’s economic environment and regulatory framework.
Fully Electronic Trading
Gone are the days of physical trading floors. Today, all stock trading in Nigeria is done electronically, making it faster, more efficient, and accessible from anywhere in the country. Investors can buy and sell shares online through licensed Nigerian stockbrokers or digital trading platforms approved by the NGX.
How It Works in Practice
Companies List Their Shares – Businesses raise capital by listing their shares on the NGX through an Initial Public Offering (IPO).
Investors Buy and Sell – Once listed, shares can be bought and sold daily during market hours.
Price Determination – Share prices change based on demand, supply, and company performance.
Dividends and Capital Gains – Investors earn through price appreciation and dividend payouts from profitable companies.
Understanding how the Nigerian Stock Exchange works is the first step to becoming a confident investor. Once you know the rules and how trades are executed, you can make smarter decisions and maximize your returns in the Nigerian capital market.
Types of Stocks You Can Buy in Nigeria
When investing in the Nigerian Stock Market, it’s important to understand the different categories of stocks available. Each type comes with its own risk level, profit potential, and investment strategy. Here are the main types of stocks you can buy on the Nigerian Exchange Group (NGX):
1. Blue-Chip Stocks
These are shares of large, financially stable companies with a long track record of strong performance. They usually have high market capitalization, reliable earnings, and a history of paying consistent dividends. Examples in Nigeria include Guaranty Trust Holding Company (GTCO), MTN Nigeria Communications Plc, and Dangote Cement Plc. Blue-chip stocks are ideal for long-term investors seeking stability and steady returns.
2. Growth Stocks
Growth stocks belong to companies that are expanding rapidly and are expected to outperform the market in the future. They may not pay dividends immediately because profits are often reinvested into the business for expansion. In Nigeria, some emerging tech, fintech, and manufacturing companies fall into this category. These stocks are great for investors seeking capital appreciation but willing to accept higher risks.
3. Dividend Stocks
These are companies that regularly pay a portion of their profits to shareholders in the form of dividends. Examples include Zenith Bank Plc, Seplat Energy Plc, and Nestlé Nigeria Plc. Dividend stocks are perfect for investors looking for passive income while still enjoying potential capital gains from stock price increases.
4. Penny Stocks
Penny stocks are low-priced, small-cap shares that trade at relatively low values, often below ₦5 per share. They can offer huge growth potential but are also highly risky due to market volatility and low liquidity. In Nigeria, penny stocks can be found in smaller, less established companies. These are best suited for experienced investors who can manage high risk.
By understanding these types of Nigerian stocks, you can build a diversified portfolio that balances risk and reward while taking advantage of different sectors in the Nigerian capital market.
How to Get Started in the Nigerian Stock Market
Getting started with stock market investing in Nigeria is easier than most people think. Whether you have ₦10,000 or ₦10 million, you can begin building wealth through shares listed on the Nigerian Exchange (NGX). Here’s what you need:
1. Open a CSCS Account
Before you can buy or sell shares in Nigeria, you need a Central Securities Clearing System (CSCS) account. This account holds your stocks electronically and records all your transactions. Think of it as your digital wallet for Nigerian stocks. You can’t open a CSCS account directly; it must be done through a licensed stockbroker.
2. Choose an SEC-Licensed Stockbroker
Your stockbroker acts as the middleman between you and the NGX. They handle your stock purchases, sales, and market orders. In Nigeria, reputable brokers include Meristem Securities, ARM Securities, Chapel Hill Denham, CSL Stockbrokers, and Stanbic IBTC Stockbrokers. Make sure the broker is registered with the Securities and Exchange Commission (SEC) for your safety.
3. Fund Your Investment Account
You don’t need millions to start investing in Nigerian stocks. With as little as ₦10,000, you can begin purchasing shares in promising companies. However, always invest based on your financial goals, risk appetite, and long-term strategy.
4. Maintain a Bank Account for Dividends & Funding
Your Nigerian bank account is essential for transferring money to your brokerage account and receiving dividend payments directly. Many companies in Nigeria now offer e-dividends, which are credited straight into your bank account for convenience.
Iking Tip for Beginners: Start small, learn the market trends, and gradually grow your portfolio. Don’t rush into speculative stocks; focus on stable, dividend-paying companies first.
Step-by-Step: Buying Your First Stock in Nigeria
If you’re ready to start investing in Nigerian stocks, here’s a clear, beginner-friendly guide to help you make your first stock purchase on the Nigerian Exchange (NGX):
1. Choose a Reliable Stockbroker
Your journey begins by selecting a Securities and Exchange Commission (SEC)-licensed stockbroker. Look for one with low fees, a user-friendly online trading platform, and responsive customer service. Popular options in Nigeria include Chapel Hill Denham, Meristem, ARM Securities, CSL Stockbrokers, and Stanbic IBTC Stockbrokers.
2. Open a Trading & CSCS Account
Once you choose your broker, you’ll need to open both a trading account and a Central Securities Clearing System (CSCS) account. This requires completing Know Your Customer (KYC) verification, including:
A valid government-issued ID (e.g., National ID, BVN, Passport, or Driver’s License)
Proof of address (utility bill or bank statement)
Passport photograph
3. Fund Your Investment Account
Transfer funds from your Nigerian bank account into your brokerage account. You can start with as little as ₦10,000, though higher capital allows for more diversification.
4. Select the Right Stocks
Use NGX market data, company reports, and financial news to research stocks. Beginners are often safer starting with blue-chip companies like MTN Nigeria, Dangote Cement, Zenith Bank, and GTCO, known for stability and dividend payouts.
5. Place Your First Order
You can choose between:
Market Order – Buys the stock immediately at the current price.
Limit Order – Buys only when the stock reaches your set price.
6. Monitor and Hold Your Investment
After buying, track your stock’s performance using your broker’s platform or the NGX website. Avoid panic-selling during market dips; successful investing is often about patience and long-term holding.
Iking Ferry Tip: Reinvest your dividends to grow your portfolio faster.
Common Mistakes to Avoid When Investing in Nigerian Stocks
Many beginners in the Nigerian stock market lose money, not because the market is bad, but because they make avoidable mistakes. If you want to grow your portfolio and protect your capital, avoid these common pitfalls:
1. Chasing “Hot Stock Tips” Without Research
It’s tempting to follow rumors or so-called insider tips, but most of these are unreliable. Always verify information using NGX market data, annual reports, and reputable financial news sources before buying any stock.
2. Failing to Diversify Your Portfolio
Putting all your money into one company’s shares can be risky. Instead, spread your investments across different industries, for example, banking, telecom, manufacturing, and consumer goods. This way, if one stock drops, others can balance your portfolio.
3. Letting Emotions Control Your Trades
Fear and greed are the biggest enemies of investors. Don’t panic-sell during market dips or buy aggressively when prices spike. Stick to your long-term investment strategy and trust your research.
4. Ignoring a Company’s Fundamentals
Before buying a stock, study the company’s financial statements, debt levels, dividend history, and growth potential. Strong fundamentals often lead to sustainable long-term growth.
Iking Tip: Always have an exit plan before you buy a stock, know when you’ll take profits and when you’ll cut losses.
Long-Term vs. Short-Term Stock Investing in Nigeria
When it comes to investing in Nigerian stocks, your success depends on your strategy. The two most common approaches are long-term investing and short-term trading, each with its own risks and rewards.
Long-Term Investing (5+ Years)
This is the strategy of buying and holding quality Nigerian stocks for years.
It is best for wealth building, retirement planning, and financial freedom.
Long-term investors rely on the power of compound growth and dividends from top companies like Dangote Cement, MTN Nigeria, Zenith Bank, and Nestlé Nigeria.
Less stressful since you don’t need to monitor daily price movements.
Historically, the NGX All-Share Index has rewarded patient investors over time.
Short-Term Investing (Trading)
Focuses on buying and selling stocks within weeks, days, or even hours.
Higher risk, but can generate faster profits if you have the right skills.
Requires deep knowledge of technical analysis, market trends, and trading psychology.
Traders must stay updated with economic news, government policies, and company earnings reports that move stock prices.
Best suited for Nigerians who can dedicate time, discipline, and research daily.
Iking Tip: Many beginners in Nigeria succeed with long-term investing first, then gradually add short-term trading once they have experience and a strong financial base.
How to Read the Nigerian Stock Market Index
To become a smart investor, you need to understand how the Nigerian Stock Market Index works. The main one is the NGX All-Share Index (ASI), which measures the overall performance of all companies listed on the Nigerian Exchange (NGX).
What is the NGX All-Share Index (ASI)?
The ASI is a benchmark that shows whether the Nigerian stock market is gaining or losing value. It tracks the price movements of every listed company.When the ASI is going up (Bullish Market):
This means most Nigerian stocks are performing well, and investor confidence is high. It’s often a good sign for long-term investors.When the ASI is going down (Bearish Market):
This signals that stocks are generally declining in value. While it may cause fear, smart investors often use bearish markets to buy strong stocks at cheaper prices.Why It Matters for Investors:
Helps you understand the direction of the market.
A tool to time your investments better.
Used by analysts, brokers, and the media as the pulse of Nigeria’s economy.
Iking Tip: Don’t just follow the ASI blindly. Always combine index performance with company fundamentals, sector performance, and economic trends before making investment decisions.
Best Strategies for Beginners in the Nigerian Stock Market
If you’re new to stock investing in Nigeria, the key is to start simple and stick to proven strategies. The Nigerian Exchange (NGX) offers different ways to grow your money, but as a beginner, these three strategies work best:
1. Buy and Hold Strategy
This is one of the safest and most effective approaches for beginners. Instead of chasing quick profits, you invest in strong, profitable Nigerian companies like MTN Nigeria, Dangote Cement, or Zenith Bank, and hold your shares for several years. Over time, the value of your stocks grows, and you also earn dividends along the way.
2. Dividend Investing
Many Nigerian companies pay out dividends, a portion of their profits shared with shareholders. By investing in dividend-paying stocks, you earn passive income regularly (usually quarterly or annually). This is perfect if you want consistent cash flow while also building long-term wealth.
3. Index Fund & ETF Investing
If picking individual stocks feels overwhelming, you can invest in Exchange-Traded Funds (ETFs) that track the NGX index. With ETFs, you’re investing in a basket of Nigerian stocks at once, reducing risk and giving you broad market exposure without needing deep analysis of each company.
Iking Tip for Beginners: Start small, stay consistent, and don’t panic when the market fluctuates. Focus on long-term growth instead of short-term trading.
Advanced Tips for Experienced Stock Market Investors in Nigeria
Once you’ve mastered the basics of stock investing in Nigeria, you can explore advanced investment strategies to maximize returns and outperform the market. These approaches require deeper research, patience, and discipline, but they can yield significant rewards if done correctly.
1. Value Investing
This strategy involves identifying and buying undervalued Nigerian stocks from companies trading below their true worth. Experienced investors study financial statements, debt ratios, earnings reports, and long-term performance to find bargains. For example, if a blue-chip stock like GTCO or Access Bank is undervalued compared to its earnings potential, it may be a great long-term buy.
2. Growth Investing
Growth investors focus on fast-growing sectors in Nigeria, such as technology, fintech, renewable energy, and telecommunications. These companies may not pay high dividends but have the potential to expand rapidly and multiply investor wealth over time. Examples include fintech startups listed on the NGX or telecom giants with aggressive expansion plans.
3. Sector Rotation Strategy
The Nigerian economy moves in cycles, and different sectors perform better at different times. For instance, banking and financial services often do well during economic growth, while consumer goods and agriculture may thrive during inflationary periods. Sector rotation means adjusting your portfolio by moving funds into the sectors most likely to perform well in the current economic climate.
Iking Tip for Experienced Investors: Combine these advanced strategies with continuous market research, monitoring of the Nigerian Exchange (NGX) All-Share Index, and global economic trends. Always back your decisions with data, not emotions.
Tax Implications of Stock Investments in Nigeria
Before you start investing in the Nigerian Stock Market, it’s important to understand the tax rules that apply to stock investments. Many beginners ignore taxes, but smart investors factor them into their overall wealth-building strategy.
1. Capital Gains Tax (CGT)
Capital Gains Tax is a tax on profits you make when you sell shares at a higher price than you bought them.
In Nigeria, Capital Gains Tax is currently 10%, but it only applies if your annual stock trading profits exceed ₦100 million.
This means most small and medium investors are exempt. However, high-net-worth individuals and institutional investors need to take note.
Example:
If you buy ₦20 million worth of stocks and later sell them for ₦150 million, your gain is ₦130 million. Since your profit exceeds ₦100 million, you’ll pay 10% Capital Gains Tax on ₦30 million (which equals ₦3 million).
2. Dividend Tax (Withholding Tax)
When Nigerian companies declare profits, they often share part of it with shareholders as dividends. However, these dividends are taxed before you receive them.
The withholding tax rate is 10%.
This tax is automatically deducted by the company before paying dividends to your bank account or CSCS account.
Example:
If MTN Nigeria declares a ₦100,000 dividend, you’ll actually receive ₦90,000 because ₦10,000 (10%) is deducted as withholding tax.
3. Other Considerations
Unlike income tax, you don’t need to file extra paperwork for dividend tax since companies handle the deductions.
Investors should still track their gains and dividends for proper financial planning and wealth management.
Iking Tip: Always reinvest your dividends or allocate them into other investment opportunities to compound your returns. Also, consult a tax advisor if you’re trading at high volumes or running a portfolio worth over ₦100 million.
How to Build a Diversified Stock Portfolio in Nigeria
One of the smartest ways to reduce risk in the Nigerian Stock Market is through portfolio diversification. Simply put, diversification means not putting all your money in one stock, one sector, or one type of investment.
When you diversify, a loss in one stock or sector may be balanced by gains in another, helping you protect your money and grow steadily.
1. Spread Across Different Sectors
The Nigerian Exchange (NGX) lists companies across multiple industries such as:
Banking & Finance (e.g., Zenith Bank, GTCO)
Telecommunications (e.g., MTN Nigeria, Airtel Africa)
Cement & Manufacturing (e.g., Dangote Cement, BUA Cement)
Oil & Gas (e.g., Seplat, Oando)
Consumer Goods (e.g., Nestlé, Nigerian Breweries)
By holding stocks in at least 3–4 sectors, you avoid being exposed to the risks of just one industry.
2. Mix Different Types of Stocks
Don’t only buy one category of stock. Instead, combine:
Blue-Chip Stocks → Stable, reliable companies like Dangote Cement, MTN, and Zenith Bank.
Dividend Stocks → Companies that pay consistent dividends, giving you steady income.
Growth Stocks → Companies with high potential for future growth, like fintech or technology-related businesses.
ETFs & Index Funds → Instead of buying individual stocks, you can buy Exchange-Traded Funds that track the NGX index.
This mix ensures your portfolio has both stability and growth potential.
3. Consider Risk Level & Time Horizon
If you’re young and just starting out, you can take more risks with growth stocks since you have more time to recover.
If you’re close to retirement, focus more on stable dividend-paying stocks that provide income.
4. Don’t Forget Cash & Alternatives
While stocks are great, don’t put 100% of your money in them. Keep some funds in fixed income assets (like Treasury Bills, Bonds, or Mutual Funds). These act as safety nets when the stock market is volatile.
5. Rebalance Regularly
Markets change, and so do company performances. Check your portfolio at least every 6 months.
If one stock is underperforming, consider replacing it.
If one stock grows too large in your portfolio, rebalance by investing in others.
Example of a Diversified Nigerian Stock Portfolio
With ₦1,000,000, here’s a sample breakdown:
₦300,000 in Banking Stocks (GTCO, Zenith Bank)
₦200,000 in Telecom Stocks (MTN Nigeria, Airtel)
₦200,000 in Consumer Goods (Nestlé, Nigerian Breweries)
₦200,000 in Dividend-Paying Blue Chips (Dangote Cement, BUA Cement)
₦100,000 in ETFs or Bonds for stability
This way, even if one sector struggles, your entire portfolio won’t crash.
By diversifying properly, you reduce risk, build long-term wealth, and give yourself the best chance of success in the Nigerian stock market.
Recommended Tools & Apps for Nigerian Stock Investors
Thanks to technology, investing in the Nigerian Stock Market has never been easier. Today, you can buy, sell, and track shares directly from your phone or laptop using stock trading apps and investment platforms. These tools make the process seamless, especially for beginners who want to get started without stress.
Here are some of the best stock market apps in Nigeria that you can use:
1. InvestNaija by Chapel Hill Denham
InvestNaija is a simple, beginner-friendly platform created by Chapel Hill Denham, one of Nigeria’s leading investment firms. It allows you to:
Buy Nigerian stocks and mutual funds easily.
Access expert-backed investment products.
Invest with as little as ₦1,000.
This is perfect for first-time investors who want to test the waters.
2. InvestNow by United Capital
United Capital is a well-known financial services company in Nigeria, and its InvestNow platform is one of the most reliable in the market. With InvestNow, you can:
Buy and sell shares listed on the NGX.
Access research reports to guide your investment decisions.
Manage your portfolio conveniently online.
If you’re looking for a trusted and regulated platform, this is a great option.
3. Chaka
Chaka is one of Nigeria’s most innovative digital investment platforms. It not only gives you access to the Nigerian Stock Exchange (NGX) but also allows you to invest in global stocks like Apple, Amazon, and Tesla.
Buy Nigerian and international stocks on one platform.
Start investing with small amounts.
Fully regulated by the SEC.
If you want to diversify into U.S. stocks or global markets, Chaka is your go-to.
4. Meristem Trade
Meristem is one of the top licensed stockbroking firms in Nigeria, and its Meristem Trade app is designed for both beginners and experienced investors.
Real-time trading on the NGX.
Access to market research and expert insights.
Reliable customer support and portfolio management.
This is ideal for those who want to trade actively with professional support.
5. ARM StockTrade
ARM Securities is a big player in Nigeria’s financial sector, and its StockTrade app provides a smooth way to buy and sell shares.
Direct access to NGX-listed companies.
Easy-to-use interface for first-time investors.
Transparent pricing and strong customer service.
Great for investors who want a trusted, established financial brand.
Using these investment apps and stock trading platforms in Nigeria will save you time, keep your portfolio organized, and help you stay updated with market trends. Whether you’re a beginner with ₦10,000 or an experienced investor with millions, these tools make investing in Nigerian stocks more accessible than ever.
Conclusion: Building Wealth through Stocks in Nigeria
Investing in the Nigerian Stock Market is not a get-rich-quick scheme, it’s a proven long-term wealth-building strategy. By carefully selecting the right companies, diversifying your portfolio, and avoiding common beginner mistakes, you can grow your money faster than inflation, earn steady dividends, and secure your financial future.
The truth is, wealth creation through stocks requires patience, discipline, and knowledge. If you stay consistent, reinvest your earnings, and focus on long-term growth instead of chasing short-term hype, your portfolio will become a powerful financial asset that works for you, even while you sleep.
And if you want to go beyond theory, Pulseford Business School offers a Financial Literacy & Wealth Building Course where we break down stock market investing step-by-step, with live demonstrations, real case studies, and practical strategies you can start using immediately. Whether you’re a beginner with ₦10,000 or an experienced investor, we’ll guide you to invest smarter and build wealth with confidence.
Pro Tip from Iking Ferry (Nigeria’s #1 Digital Marketer & Financial Literacy Advocate):
Don’t wait for the “perfect time” to invest, it doesn’t exist. The best time to start was yesterday. The next best time is today.
Frequently Asked Questions About Investing in the Nigerian Stock Market
1. Can I invest in the Nigerian stock market with ₦10,000?
Yes! Many Nigerian brokers allow you to start investing with as little as ₦10,000. While the amount may seem small, it’s enough to buy shares in affordable companies and gradually build your portfolio.
2. How do I buy stocks in Nigeria online?
You can buy Nigerian stocks online through SEC-licensed stockbrokers that offer trading apps and platforms such as InvestNaija, Chaka, Meristem Trade, and ARM StockTrade. All you need is a CSCS account, a bank account, and your trading account funded.
3. What are the best dividend-paying stocks in Nigeria?
Some of the most consistent dividend-paying companies on the Nigerian Exchange (NGX) include Zenith Bank, GTCO (Guaranty Trust Holding Company), Dangote Cement, and MTN Nigeria. Dividend stocks are great for investors looking for passive income.
4. Is the Nigerian stock market profitable?
Yes, the Nigerian stock market can be very profitable if you invest in strong companies and hold for the long term. However, short-term trading carries higher risks. The key is diversification, patience, and sticking to a proven investment strategy.
5. How do I choose the right stockbroker in Nigeria?
When choosing a stockbroker, check if they are licensed by the SEC, review their trading fees, customer service quality, and the features of their mobile/desktop trading platforms. Popular choices include Meristem Securities, ARM Securities, and United Capital.
6. What is the NGX All-Share Index (ASI)?
The NGX All-Share Index measures the performance of all companies listed on the Nigerian Exchange. If the index is rising, the market is bullish (positive). If it’s falling, the market is bearish (negative). This helps investors gauge overall market health.
7. Do I have to pay tax on stock investments in Nigeria?
Yes. Nigerian stock investments are subject to taxes:
Capital Gains Tax (CGT): 10% on gains above ₦100 million annually.
Dividend Withholding Tax: 10% deducted at source when dividends are paid.
8. Is stock investing better than saving in a Nigerian bank?
Absolutely. While bank savings accounts earn minimal interest (often below inflation), the stock market offers higher potential returns, dividend income, and wealth-building opportunities in the long term.