How to Start Investing in the Nigerian Stock Market

Want to start investing in the Nigerian Stock Market and trading shares of public companies for profit?

You are not alone in this venture.

Thousands of Nigerians and foreigners trade stocks daily on the Nigerian Stock Market and many of them are smiling to the bank.

Contrary to what you may have heard, the Nigerian Stock Market is not all dark and gloomy. There are several opportunities to make money as quickly as possible and exit trades profitably.

People are already doing so, and so can you.

In this article, we’ll be looking at how anyone can start investing in the Nigerian Stock Market from scratch.

It doesn’t matter if you’re a seasoned investor willing to try your hands on the Nigerian Stock Market, or a complete newbie looking to get your money working for you.

There are opportunities right there, and they are for the taking.

So, let’s get you started on how to begin your journey to investing in the Nigerian Stock Market.

Have a Profit Goal

The most important part of being an investor is having a profit goal.

You want to be definite about this so you know when to exit the market once you hit your profit mark.

If you have a capital of 1 million Naira, how much do you want to grow that capital and for how long?

Your plan could be to grow your funds by 25% within six months.

So, in six months of trading on the Nigerian Stock Market with a capital of 1 million Naira, you want to get back 1.25 million Naira.

Not a bad profit goal to start with.

Have a Market Goal

Now, you don’t want to throw your money into every opportunity the stock market presents to you.

So, you need a market goal. That is, what market would you be targeting and what kind of stocks are you looking to invest in?

You might be a fan of Index funds due to their overall good performance, or you just might have done your own research to come up with a group of stocks and ETFs that you believe would perform well in the next six months.

The most important thing is for you to focus your trades, buy only the shares you really want to buy and don’t let the market toss you about.

If you are looking for some inspiration on what stocks to buy, here’s my top 10 Nigerian Stocks Analysis to guide you.

Find the Right Broker

You cannot trade on the Nigerian Stock Exchange without going through a stockbroker.

Stockbrokers are like the licensed gatekeepers of the stock market. They handle all documentation concerning KYC and validation of investment made in the stock market.

A stockbroker works hand-in-hand with the Stock market management company to verify all users data and trade activities, and they charge small fees for this service.

Most stockbrokers would ideally have other sub-brokers operating under them to ease their operations and also create more accessibility for investors.

You can start trading on the Nigerian Stock Exchange using the services of a licensed stockbroker or sub-broker. 

Here’s a list of some verified Stockbrokers in Nigeria:

  • Absa Securities Nigeria Limited
  • Afrinvest Securities Limited
  • Anchoria Investment and Securities Limited   
  • Apel Asset Limited
  • APT Securities & Funds Limited
  • ARM Securities Limited
  • Arthur Stevens Asset Management Limited
  • Associated Asset Managers Limited
  • Atlass Portfolio Limited
  • Ava Securities Limited
  • Bauchi Investment Corporation Securities Limited   
  • Belfry Investment & Securities Limited
  • Bestworth Assets & Trust Limited
  • Calyx Securities Limited
  • Camry Securities Limited
  • Capital Assets Limited
  • Citi Investment Capital Limited

Trading Stocks Online

This is the 21st century, and technology and the internet of things (IoT) is equipping us to do anything from anywhere using mobile and web technologies.

Same also applied to trading in the Nigerian Stock market.

You can buy and sell shares from several Nigerian public companies right from your couch, using the Chaka app.

Chaka facilitates stock market investing via Citi Investment Capital Limited, a verified licensed stockbroker with the Nigerian Stock Exchange.

What this means is that all your trades on the Chaka app are registered immediately and applicable to the market.

So, you no longer have any barriers to investing and making money with the Nigerian Stock market.

You could start investing right now in as much as 5 minutes.

Get a CSCS Account

Once you have registered with a stockbroker or with Chaka, you would be assigned a CSCS account, which is a unique account number that verifies you as a legitimate trader on the Nigerian Stock Market.

Your CSCS number validates all your trades via the Central Securities Clearing System of the Nigerian Stock Exchange.

This means that irrespective of the stock broker you’re dealing with, you can always verify, monitor, or reconcile your trading activities from anywhere via the online management portal of your CSCS account.

Be Verifiable

Due to the sensitive nature of trading stocks and investing on the Nigerian Capital Market, all investors are required to be Verifiable.

You would have to provide your Personal Identity documents as well as your BVN to complete the KYC process of opening a CSCS account with a stockbroker.

Note that your personal details such as your phone number, BVN or NIN would be linked with your CSCS account, and you’ll only be able to claim ownership of your CSCS account when you provide such personal details.

So, you have to provide legitimate personal Identity documents to start trading legitimately in the Nigerian Capital Market.

Start Trading

Now that you have a profit goal, a group of stocks you plan to trade, and a legitimate stock trading account with a licensed stockbroker in Nigeria, the final hurdle is set.

You can start trading and investing on the Nigerian Capital Market. Buy shares of companies you love and trade for profit daily, Mondays to Fridays.

Buying Shares of companies and trading stocks is now easier than ever. You could start trading in a matter of minutes and let your money start working for you.

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