How to Invest in Nigerian Stocks: A Step-by-Step Guide

Investing in stocks is one of the most effective ways to grow your wealth over time. If you’re looking to learn how to invest in the Nigerian stock market, you’ve come to the right place. This guide will walk you through everything you need to know—from setting up your brokerage account to making your first trade.

But first, let’s talk about where all the action happens.

The Nigerian Exchange Group (NGX): Your Investment Marketplace

In Nigeria, stocks are bought and sold on the Nigerian Exchange Group (NGX), formerly known as the Nigerian Stock Exchange. Think of it as a bustling marketplace where companies list their shares, and investors like you can buy and sell them. The NGX ensures that everything runs smoothly, prices are fair, and transactions are secure.

Now that you know where trades happen, let’s discuss how to start trading.

Step 1: Open a Brokerage Account

Before you can start trading, you need a brokerage account with a stock brokerage firm licensed by the NGX. This is similar to a bank account, except that it allows you to buy and sell stocks instead of holding money.

An easy way to open an account is to download the Coronation Wealth Plus App. The app gives you access to over 100 stocks. Consider reading “What to do before you start investing.” It will help prepare you for the Nigerian stock market.

What You Need to Open a Brokerage Account

Getting started is simple. Just have the following documents ready:

Valid identification (National ID, NIN, International Passport, or Driver’s License)

Proof of address (utility bill or bank statement)

Bank account details

Bank Verification Number (BVN)

Once your account is set up, you’ll need to fund it before you can start trading. You can begin with as little as ₦5,000.

Now that you have your account ready, let’s explore how you can buy and sell stocks.

Step 2: Placing Your First Trade

Buying stocks is easy with the Coronation Wealth App. However, before you place an order, it’s important to understand the different types of trades you can make:

📌 Market Orders – These execute immediately at the current market price.
📌 Limit Orders – These execute only when the stock reaches a price you’ve set.

For instance, if you want to buy a stock at ₦50 but it’s currently trading at ₦55, you can place a limit order at ₦50. The trade will only go through if the price drops to your target.

You can also learn how to How to maximize your Investments are a stock investor.

Stock Market Hours

The Nigerian stock market operates Monday through Friday, from 10:00 AM to 2:30 PM, excluding public holidays. Orders placed outside these hours will be processed on the next trading day.

Who Regulates the Nigerian Stock Market?

Now, let’s take a step back and discuss the organisations ensuring the market runs smoothly. As mentioned earlier, NGX is where stock buying and selling occur. But beyond that, it plays a crucial role in ensuring fair pricing, transparency, and efficient market operations.

Key functions of NGX include:

Stock Listings – Allows companies to raise capital by selling shares to investors.
Market Trading – Facilitates the buying and selling of stocks, bonds, and ETFs.
Transparency – Ensures real-time pricing and accurate market data.
Regulation – Oversees brokers to ensure ethical trading practices.

However, NGX is not the only player in the game. Another key institution that safeguards investor interests is the Securities and Exchange Commission (SEC).

The Role of the Securities and Exchange Commission (SEC)

The SEC is the primary regulator of Nigeria’s capital market. Its job is to ensure fairness, transparency, and investor protection.

Simply put, the SEC ensures that the market operates ethically, preventing fraud and unfair practices.

What Does the SEC Do?
🔹 Regulates Market Activities – Ensures fair trading practices.
🔹 Protects Investors – Guards against fraud, insider trading, and manipulation.
🔹 Licenses Brokers & Advisers – Ensures compliance with financial regulations.
🔹 Encourages Market Growth – Introduces new investment opportunities.

Without the SEC’s oversight, the stock market could become chaotic, leading to unfair advantages and losses for regular investors.

The Role of the Central Securities Clearing System (CSCS)

The Central Securities Clearing System (CSCS) Plc is Nigeria’s central securities depository (CSD). In simple terms, CSCS ensures that every trade is properly settled and recorded.

Investing in Nigerian stocks is a great way to grow your wealth, but success requires knowledge and patience. You can take advantage of market opportunities by opening a brokerage account, funding it, and placing strategic trades.

Remember, understanding how the stock market works is just as important as the stocks you invest in. With the right approach, you can navigate the market with confidence and make informed investment decisions.

So, are you ready to take your first step into the world of stock investing?

To start investing today, download the Coronation Wealth Plus App on Apple IOS or Android Play Store.

You can contact us directly on this number: Funke Sadiku– Tel: 020 1227 2571 (73)