How To Buy Shares In Nigeria
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How to Buy Shares In Nigeria (Complete 2024 Latest Guide)

Before now, trading securities in Nigeria was often viewed as an uphill task by investors as millions of investors often got frustrated at the thought of the various long procedures which they had to scale to successfully buy shares.Also evident was the issue of lack of adequate knowledge about how the Securities Trading system actually works. 

This, along with the highly volatile nature of the Stock market made a lot of Nigerians shy away from this Industry.

However, in this article, we shall address in simple language, how you can buy shares in Nigeria easily, even from the comfort of your home.

How To Buy Shares In Nigeria

What Are Stocks?

Essentially, stocks (also called ‘equities’ or ‘shares’) are units of ownership in a company.

One who owns shares in a company is referred to as a shareholder and is entitled to ‘dividends’ from the Company’s transactions.

Dividends refer to a sum of money paid by a company at regular intervals, (perhaps annually) to its shareholders (owners of shares in the company) out of its accrued profits.

So, the dividends are the interests that accrue to the investments of the shareholders in the company.

It is very important that every potential investor knows the working methodologies and operational methods of the Nigerian Stock Exchange before deciding to purchase shares from any Company.

Also, owning shares in a company is equivalent to owning a part of the company. The more shares one has, the more power and ‘voting right’ he or she possesses in the Company.

For example, two individuals who own varying amounts of shares in a Company also possess varying voting rights and authority in the Company accordingly.

However, the higher the shares held, the higher the voting power and ownership stakes in the company.

Shares are measured in Units so we can say “30 units of MTN shares, “500 units of DANGOTE shares” etc

Also worthy of note is that the value of a Company’s stocks is dependent on its overall performance in the Stock market. 

The performance of a Company in the Stock Market is owed to various factors such as Supply/demand and other various market forces.

Nonetheless, on a whole, the per unit value of a company’s shares tends to appreciate (rise in value) when Business is going well/booming.

On the other hand, a company’s stocks may be said to depreciate (decrease in value) when Business is not going too well. 

Note that not all Companies are listed on the Nigerian Stock Exchange. These companies that are not listed on the Nigerian Stock Exchange are not open to being traded by Stockbrokers.

On the other hand, the companies that are listed for trading on the Nigeria Stock Exchange are called “Quoted Companies”. 

The implication of this is that quoted companies can raise capital easily by being open to investment by members of the general public

An example of such a scenario was when MTN, (a leading telecommunications giant) put up 14% of its entire equity stake to Nigerian Investors in November 2021.

Unquoted Companies do not offer their shares to the general public and are not listed on the Stock Exchange

Stock Trading – What Is It?

When members of the general public buy and sell stocks (as well as other securities) in the Stock market, Stock Trading is said to be ongoing. 

In Nigeria, to buy or sell stocks, every investor must pass through the Nigerian Stock Exchange as it is the Governing Body of Securities and Stock Trading in Nigeria.

This Is How The Stock Exchange Works:

Individual share prices are fixed by market forces such as demand and supply amongst others. This is further enforced by the trading activities of individual stockbrokers.

It is worthy of note that the Stock Exchange does not directly regulate the prices of shares but only serves as a platform where stock trading takes place. 

However, the process of stocks trading on the Stock Exchange influences the unit prices of the Stocks.

Also, the Nigerian Securities and Exchange Commission (SEC) is in charge of Stock Trading and Brokerage regulation in the Nigerian Capital Market.

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How To Buy Shares In Nigeria In 5 Simple Steps

In recent times, it has become relatively easy to trade (buy and sell) shares on the Nigerian Stock Exchange.

However, it is even easier to trade stocks via one of the many online brokerage companies that partner with the Nigerian Stock Exchange.

We will be outlining the steps to buy shares in Nigeria. 

Selecting A stockbroker With Similar Investment Options And Goals As You.

As a potential investor looking to trade stocks in Nigeria, you ought to first find a broker through which you can buy your stocks. 

Note that brokers act as an intermediary between the Nigerian Stock Exchange and Individual investors who wish to trade stocks.

This is the most basic step towards purchasing your first set of shares and shouldn’t be too difficult as long as you know what your investment goals are.

However, the most important fact to note about this step is that you must ensure that your selected broker is duly licensed by the Securities and Exchange Commission (SEC) before proceeding to create an account with them.

Also, very important is the brokerage fees they charge. You must ensure that you work only with companies whose brokerage fees you can afford.

Registration And Opening Of An Account With Your Preferred Brokerage Company

After choosing your preferred broker, the next step is opening an account with the broker.

Opening an account with your preferred broker is similar to opening an account with a commercial bank and should not take you more than a couple of minutes depending on Broker’s operational method and policies.

Also, you will need to credit your newly opened account with sufficient funds to effect your first trade.

During the registration process, you may be required to provide the following documents:

  • Bank Verification Number (BVN)
  • A Proof of Address (This is usually found on utility bill slips such as electricity or water bills). Also, it is usually stated that these documents must have been issued 3 months before the date of submission to the brokerage company.
  • A valid means of Identification. It is often specified that this document must be issued by the government such as International Passport, National ID Card, or a Drivers License)
  • A Recent passport photograph
  • For Corporate Institutions (a Certificate of Incorporation issued by the Corporate Affairs Commission)

Account Funding

After creating and verifying your account as required, you would be mandated to fund your new trading Account with sufficient funds to effect a premier trade.

Depending on the broker in question, the minimum amount to be funded usually ranges between $10 to $100 or more. 

Some brokers also accept direct bank transfers while others provide additional payment options such as Debit cards, selected cryptocurrencies, etc.

Commence Trading

After funding your Account, you can commence trading on your new Account.

However, this is a very important step because you will be diving into the very volatile Stock Market where profits and losses run side by side.

As a rule of thumb, you must clearly understand the securities you are investing in prior to any cash investments.

This is because of the immense risks present in each investment. 

Hence, before investing in the shares of a particular company, you should talk to experts in the field for proper guidance. Also, you could do your due diligence and research about the company:

  • Trading performance in the past
  • Per unit Stock price history
  • Trading patterns over time
  • Short and Long term investment worth

Also, you should consider Government Regulations in relation to the Industry in which the company’s operation is based and any other associated risks.

Feel free to speak with an expert broker before investing your money in the shares of any company to safeguard against financial losses.

Once done, your broker will purchase the stocks and then send you the investment details alongside a contract note. These will contain every detail you need to know about the investment, as well as any fees and charged commissions.

Managing And Monitoring Your Trading Portfolio

The reason for investing in Stocks is to accrue profit. 

However, since profits and losses run side by side in the Stock Exchange System, proper monitoring of every investment is very critical.

Proper monitoring of your investment portfolio would help you make the best choices with regard to holding unto or even selling existing stocks.

Note that the Stock market is very volatile and fluctuates excessively. As such, the importance of close monitoring of every existent investment cannot be overemphasized


Hopefully, after reading through this article, you must have been duly informed on how to go about effecting your inaugural trade in the Nigerian Stock Exchange System through approved Brokerage Agents.

Listed below are some of the most trusted Brokerage Applications and Companies from which you can buy stocks in Nigeria

Most Trusted Brokerage Apps In Nigeria 

  • Wealth. ng
  • Trove
  • Bamboo vest
  • Chaka
  • Afrinvest
  • I-invest
  • Piggyvest
  • Payvest
  • Risevest

Most Trusted Brokerage Companies In Nigeria

  • CSL stockbrokers ltd.
  • EFG Hermes Nigeria ltd.
  • Morgan capital securities ltd.
  • Cordros securities ltd.
  • Apt securities and funds
  • Cardinalstone securities ltd.
  • Chapel hill Denham securities ltd.
  • Stanbic IBTC stockbrokers ltd.
  • GTI capital ltd
  • Meristem securities ltd.

Note that some stockbrokers like Trove and Chaka offer investments in both domestic and foreign securities.

John is the CREATIVE LEAD at Legit School Info is a team of Resource academicians and Consultants led by John Akpan. However, If you need personal assistance on this topic, kindly contact us.

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