How to buy stocks in Nigeria

While cryptocurrency might be the current wave for investors in Nigeria, diversifying your investment portfolio through stocks is highly recommended. Buying Stocks in Nigeria involves a lot of mental work, but if done right, it yields profitable results. Through stocks, you can build wealth and save for long-term goals like retirement. However, it is important that you take into consideration your current financial situation, personal preferences, and risk threshold. If, after considering these factors, you still feel like you’re up to it, then you should invest in stocks. We have put together the best strategies in this article on how you can buy stocks in Nigeria.

What are Stocks?

A stock is a representation of a fraction of a company’s value. When you purchase stocks, it indicates that you own a proportion of the issuing company. Companies issue out stocks to the public or a selected few to raise funds to manage their affairs without taking loans from the bank or other financial bodies. Immediately you purchase stocks, you become a shareholder in the company. Most companies send out detailed financial records to their shareholders to keep them up-to-date with everything that is happening. 

Stocks as an investment vehicle have often been mistaken for Bonds and shares. Some people use them interchangeably even though they are completely different things in finance. Shares are the stock certificate of a particular company, while bonds are debts owned by an individual or government. 

Stocks are bought and exchanged on stock exchanges, and it has been found to be the backbone of every individual investment portfolio. One thing you must note about stocks is that the government heavily regulates them. Still, this shouldn’t deter you from wanting to invest. 

Buying Stocks in Nigeria: A complete guide

In Nigeria, the stock buying process is easier than everyone makes it seem. If you pay attention to the finance sessions on the news, you’ll get an idea of what goes on in the Stock market in Nigeria. That information is not enough to trade stocks successfully, but it is a step in the right direction. To buy stocks in Nigeria, follow the steps below.

Identify the best online stock brokerage

Firstly, to buy stocks, you’ll need to find an online stock brokerage and get acquainted by creating an account. Gone are the days when buying a company’s stock entailed traveling to the company and meeting with the manager before you could purchase stocks. We now live in simpler times through technological advancements and the internet, making everything easy with just a few clicks. 

Find the best stock brokerage online. This brokerage serves as a middleman between you and the company. Ensure that the stock brokerage you choose is a member of the Nigerian Stock Exchange (NSE) and duly registered with the SEC. You can use review sites like Trust Pilot to check the reliability and legibility of the platforms. You can conduct research using the following parameters easy access, cost, reputation, profit ratings, customer service, security, and SEC status.

Create an account with the Stock Brokerage

Now that you’ve found the best platform to buy stocks, create an account with them. The account creation processes of most platforms are very tedious for security reasons. Hence, you might have to provide your NIN, National Identification card, or driver’s license before you can open an account. Immediately you create an account, you become eligible for an account that you can fund through electronic transfer. This account will be debited whenever you purchase stocks. 

Do your research on the best stocks

Everyone investing in the Nigerian stock market is doing so to make a profit. If you want to be a part of them, you must do your own research (DYOR) to avoid unnecessary losses. There are stock investments that are bound to yield bountiful profits, and there are some that aren’t; you must find the latter. Once you find the best stocks to invest in on your platform, you can proceed to purchase stocks. By completing this step, you’ve officially become a shareholder in that company.

Secure your investment

Once you’ve invested with a stock brokerage, you must ensure that you protect your capital while your investment grows. Research risk management options that will keep your risk-reward ratio at 1:2 or 1:3. This way, your profits are always more than your risks. Always update yourself on the latest trends in the stock market so that you always have a working knowledge of the system. 

Eight best stock trading platforms in Nigeria 

According to our research, Nigeria’s best stock trading platforms are listed below.





TD Ameritrade 



Stanbic IBTC

Investing in stocks is a challenging feat, but it is one that is always worth it when done right. The greatest trick of being a successful stock trader is to study the stock market like you were preparing for an exam. This way, you can sharpen and improve your analytical abilities and trade successfully.