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How To Invest In The Nigerian Stock Exchange by nairametrics: 9:40am On Oct 16, 2017
This article provides a step by step guide on how to invest in the Nigerian Stock Exchange. We will also highlight a number of factors peculiar with the Nigerian stock exchange that we think you should know before investing.

Who is this article for?

If this is your first time of investing in stocks, then this is also for you
If you just read a book about investing in equities and feel this is the best time for you to test the waters, then this is for you.
If you have been inspired by some of the things you read online about stocks and wish to invest in Nigeria’s stock market, then this is for you.
If you are interested in investing in the Nigerian stock exchange and wish to get a fair and balanced insight into what to expect, then this article is also for you.
If you are a complete novice with stocks then read this first

What is the official market for trading stocks in Nigeria?



In Nigeria, you can only buy and sell shares of publicly quoted companies solely from the Nigerian Stock Exchange which is based in Lagos. However, if you want to trade in equities of private companies, then the National Association of Security Dealers Over- The-Counter (NASD OTC) is the market for you.

How do I start?

Before you start trading equities in Nigeria, you will need to open a brokerage account with any of the approved stock broking firms in Nigeria. Upon application, you will be required to provide a means of identification, bank account details including BVN, passport photographs, signatures of account holders, next of kin details (if it is a personal account) etc. It takes less than 48 hours to open an account provided you have a bank account. Some stockbroking firms also have online trading platforms, meaning you do not need to visit the stockbroking firm physically. Just visit their portals and upload all the information that they need.

What else do I need to have?

We recommend that you open a Central Securities Clearing System (CSCS) account. CSCS is a market aggregator that warehouses all the accounts created and maintained by all stockbrokers in Nigeria. By owning a CSCS account, you can also view your portfolio independent of your stockbrokers and see what stocks you own. This is important as it helps you mitigate fraudulent activities. It cost between N2k and N5k per annum.

How do I start trading?

To start trading in equities, you are expected to have opened a stockbroking account. You will be given a Clearing House Number (CHN), which is unique to your portfolio. To trade, simply deposit money with your stockbroker and instruct them to purchase shares for you on your behalf. The means of communications is typically with your registered email. However, it is easier using their online trading platform, which allows you to buy and sell stocks on your own. Through online trading portals, you can place bids or offers which usually terminates within seconds of being received. You should also get emails from your broker once you place bids and offers, and when the transaction goes through.

Transaction fees

Transaction fees are charged any time your bid or offer goes through. There are statutory fees that you pay to regulators and those you pay to your broker. Statutory fees are fixed while broker fees vary between the range of 1.5% and 1.8% per transaction.

Taxes

There are no capital gains taxes on buying and selling of equities in Nigeria.

Clearing of funds

When you buy or sell stocks, it usually takes about 4 days before the entire transaction is concluded. In the NSE, clearing and settlement is T+3.

Withdrawals

After you sell equities, your cash remains in the account of the broker till you request for a withdrawal which takes within 24 hours to be completed. To withdraw using an online brokerage account, just visit the portal and click withdrawal. Some brokers also require emails for your withdrawals to be paid into your accounts. Remember, the account where your cash will be credited is the bank account you provided when you registered.

Trading time

The Nigerian Stock Market usually opens for trading at 9.30am for pre-markets. During pre-markets, you can place bids or offers and catch a glimpse of how the prices of stocks and the market as a whole might open officially. Pre-markets close by 10.05am, paving the way for Pre-open adjustments which last for about 10 minutes. The market then officially closes at 10.15am and closes at 2.30pm. You should read about 14.29



READ MORE: https://nairametrics.com/invest-nigerian-stock-exchange/

20 Likes 8 Shares

Re: How To Invest In The Nigerian Stock Exchange by Nobody: 5:16pm On Oct 16, 2017
.
Re: How To Invest In The Nigerian Stock Exchange by Nobody: 5:16pm On Oct 16, 2017
Who stocks help?

4 Likes

Re: How To Invest In The Nigerian Stock Exchange by sanfranka2(m): 5:17pm On Oct 16, 2017
Finally I made it... The person down has something to say
Re: How To Invest In The Nigerian Stock Exchange by Nobody: 5:17pm On Oct 16, 2017
cool
Re: How To Invest In The Nigerian Stock Exchange by sanfranka2(m): 5:18pm On Oct 16, 2017
How can I make money In instaforex biko

1 Like

Re: How To Invest In The Nigerian Stock Exchange by Nobody: 5:18pm On Oct 16, 2017
TruePass:
.

Not fair!

I wrote a sentence, so I am legitimately first to comment

2 Likes

Re: How To Invest In The Nigerian Stock Exchange by stcool(m): 5:19pm On Oct 16, 2017
sanfranka2:
Finally I made it... The person down has something to say

You made it to where? Negodu grin

6 Likes 1 Share

Re: How To Invest In The Nigerian Stock Exchange by ElRapido: 5:19pm On Oct 16, 2017
K
Re: How To Invest In The Nigerian Stock Exchange by Nobody: 5:20pm On Oct 16, 2017
very informative!

1 Like

Re: How To Invest In The Nigerian Stock Exchange by ednut1(m): 5:20pm On Oct 16, 2017
hmmm
Re: How To Invest In The Nigerian Stock Exchange by OBAGADAFFI: 5:22pm On Oct 16, 2017
Re: How To Invest In The Nigerian Stock Exchange by ritzyvic1(m): 5:23pm On Oct 16, 2017
pls OP, can you also explain how one can make a gain from this too?
Re: How To Invest In The Nigerian Stock Exchange by yinka2011: 5:23pm On Oct 16, 2017
you can make money from the stock market no doubt but you need to be ahead of the market to do that. first thing you need is information you can trust about stocks on the stock market.

for that purpose the best website to use is the easykobo website.


let me tell you why.



1) easykobo is not a stockbroker so they dont push you to buy stocks that they want to sell


2) easykobo is not biased, they get opinions of top analysts/stockbrokers of country and present it to you.


3) easykobo is first website in Nigeria to introduce a Nigerian Stock Game. You can practice investing in Nigerian Stock Market without putting any money. It is a real-time simulation of the stock market. You can also win prizes as the website does run competitions.


4) easykobo gives you real-time stock prices and data direct from the Nigerian stock exchange. You can get charts, ratio analysis, technical analysis and updates from stocks listed on the exchange.


5) easykobo does not charge you any fees for giving you all of above.

3 Likes

Re: How To Invest In The Nigerian Stock Exchange by yinka2011: 5:25pm On Oct 16, 2017
ritzyvic1:
pls OP, can you also explain how one can make a gain from this too?


you can make money from the stock market no doubt but you need to be ahead of the market to do that. first thing you need is information you can trust about stocks on the stock market.

for that purpose the best website to use is the easykobo website.


let me tell you why.



1) easykobo is not a stockbroker so they dont push you to buy stocks that they want to sell


2) easykobo is not biased, they get opinions of top analysts/stockbrokers of country and present it to you.


3) easykobo is first website in Nigeria to introduce a Nigerian Stock Game. You can practice investing in Nigerian Stock Market without putting any money. It is a real-time simulation of the stock market. You can also win prizes as the website does run competitions.


4) easykobo gives you real-time stock prices and data direct from the Nigerian stock exchange. You can get charts, ratio analysis, technical analysis and updates from stocks listed on the exchange.


5) easykobo does not charge you any fees for giving you all of above.

1 Like

Re: How To Invest In The Nigerian Stock Exchange by yinka2011: 5:26pm On Oct 16, 2017

1 Like

Re: How To Invest In The Nigerian Stock Exchange by mondilo01: 5:27pm On Oct 16, 2017
pls can you provide links to any stockbroker website
Re: How To Invest In The Nigerian Stock Exchange by 44smart: 5:30pm On Oct 16, 2017
pls how and where can CSCS account be opened?
Re: How To Invest In The Nigerian Stock Exchange by yinka2011: 5:32pm On Oct 16, 2017
mondilo01:
pls can you provide links to any stockbroker website



www.mytradebook.com
www.armsecurities.com.ng
www.stanbicibtcstockbrokers.com



but to get proper info on the stock market before buying stocks or practicing stocks without putting any money its the easykobo website.

2 Likes

Re: How To Invest In The Nigerian Stock Exchange by Ratello: 5:40pm On Oct 16, 2017
The Nigerian Stock Market is still the best place to invest for long term profits you only need to be duly informed to benefit from this lucrative investment pool. I really love the leadership of Madam Ndi Okereke Onyuike that woman na wonder, she really brought some dynamism to the capital market back then,
Re: How To Invest In The Nigerian Stock Exchange by Nigga44: 5:41pm On Oct 16, 2017
Invest in the Nigerian stock market at your own peril.

Most of the so called 'blue chip' companies have remained penny stocks for years.

A lot of fraud going on there.

3 Likes

Re: How To Invest In The Nigerian Stock Exchange by Viccur(m): 5:43pm On Oct 16, 2017
What's d difference btw this and bet9ja?...mtcheew radarada
Re: How To Invest In The Nigerian Stock Exchange by Oluwamuyeewa(m): 5:45pm On Oct 16, 2017
Need more info on this
Re: How To Invest In The Nigerian Stock Exchange by yinka2011: 5:46pm On Oct 16, 2017
Viccur:
What's d difference btw this and bet9ja?...mtcheew radarada

totally different.


betting vs investing.


rest i think you must be smart enough to know the difference.

4 Likes

Re: How To Invest In The Nigerian Stock Exchange by Mopolchi: 5:48pm On Oct 16, 2017
I don show. I need this knowledge. Nairametrics ride on.
Re: How To Invest In The Nigerian Stock Exchange by Ratello: 5:51pm On Oct 16, 2017
Nigga44:
Invest in the Nigerian stock market at your own peril.

Most of the so called 'blue chip' companies have remained penny stocks for years.

A lot of fraud going on there.
Agreed on your observations however I will say that the stock market being the barometer of economic transactions in a Country!

1 Like

Re: How To Invest In The Nigerian Stock Exchange by Nobody: 5:51pm On Oct 16, 2017
After all this long aeticle. There still aint any step by step example for the laymen.

Is the stock trading a profitable venture? Or is as risky as ponzi and bet9ja and co?.

How much should be the minumum amount for investing?...

7 Likes

Re: How To Invest In The Nigerian Stock Exchange by ibietela2(m): 5:52pm On Oct 16, 2017
How much does it cost
Re: How To Invest In The Nigerian Stock Exchange by kay29000(m): 5:56pm On Oct 16, 2017
Informative.
Re: How To Invest In The Nigerian Stock Exchange by chukzyfcbb: 6:00pm On Oct 16, 2017
Stock exchange for me and my household is a no no, I rather move into crypto than naija stocks.
in 10yrs how many IpO has been launched?

Stocks where insider trading is the norm, abeg I will pass.
in 2005/2006 when I was in ss2/3, that's when I was introduced to stocks. My uncle told me about his shares. lasaco that was trading at 3naira per share.

Ever since then I have been monitoring lasaco shares, both in boarding house I run to the library to read newspapers. Up till today lasaco never even nack 1naira/share, that's 10solid years oh.

Investment no move. Nonsense wayo stock market

#Team Money market

7 Likes

Re: How To Invest In The Nigerian Stock Exchange by zodd(m): 6:02pm On Oct 16, 2017
Cool

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