📈 How to Invest in Stocks in Nigeria: Brokers, Apps, Best Dividend Stocks, and Types of Shares
Dreaming of building wealth from the comfort of your Lagos living room or Abuja office? Nigeria’s stock market is booming, and you don’t need a fortune to dive in! Unlock the secrets to smart investing with top brokers, user-friendly apps, high-yield dividend stocks, and essential share types—your roadmap to financial growth starts here.
📘 Table of Contents
1. Introduction
2. Understanding the Nigerian Stock Market
3. Traditional Licensed Stockbrokers
4. Digital Stock Trading Platforms
5. Types of Stocks in Nigeria
6. Best and Recommended Dividend Stocks
7. Sample Low Capital Investment Portfolio
8. Fixed Savings Alternatives for Conservative Investors
9. Step by Step Guide to Investing in Nigerian Stocks
10. Tips for Success in Stock Investing
11. Vital Resources and References
12. Disclaimer
Introduction
The Nigerian Stock Exchange (NGX) is one of Africa’s largest and most active capital markets, hosting some of the continent’s biggest companies. Investing in stocks allows you to own a piece of a company, benefit from its growth, and earn dividends.
Whether you’re a beginner or an experienced investor, understanding how to invest, which brokers to use, and which stocks to buy is crucial for building wealth in Nigeria’s dynamic economy.
Understanding the Nigerian Stock Market
• Primary Market – Where companies sell new shares to investors (e.g., during IPOs).
• Secondary Market – Where existing shares are traded between investors via the NGX.
• Trading Hours – 10:00 am to 2:30 pm on weekdays.
• Settlement – Managed by the Central Securities Clearing System (CSCS), which holds your shares electronically.
Traditional Licensed Stockbrokers
These are SEC licensed firms that facilitate buying and selling of shares on the NGX. They often provide research reports, portfolio management, and advisory services.
Examples:
• Meristem Stockbrokers
• Stanbic IBTC Stockbrokers
• ARM Stocktrade
• LeadTrader
• Investment One Stockbrokers
Note 📝
• All are licensed and legitimate.
• You can download their apps from the Play Store or App Store and follow the account opening process.
Digital Stock Trading Platforms
These fintech platforms make it easy to invest in Nigerian and foreign stocks via your smartphone.
Examples:
• Bamboo – Invest in Nigerian and US stocks.
• Trove – Access Nigerian, US, and Chinese markets.
• Chaka – Trade local and global equities.
• Afrinvest – Offers research and investment tools.
• i invest – Buy stocks, treasury bills, and bonds.
Note 📝
• All are licensed and legitimate.
• Download from the Play Store or App Store and complete the KYC process.
Types of Stocks in Nigeria
1. Blue Chip Stocks
• Large, financially stable companies with consistent performance.
• Examples: GTCO, MTN Nigeria, Dangote Cement.
• Ideal for long term stability and steady returns.
2. Growth Stocks
• Companies expanding rapidly, often reinvesting profits instead of paying dividends.
• Examples: Emerging fintech, tech, and manufacturing firms.
• Higher risk but potential for significant capital gains.
3. Dividend Stocks
• Companies that regularly pay part of their profits to shareholders.
• Examples: Zenith Bank, Seplat Energy, Nestlé Nigeria.
• Great for passive income seekers.
4. Penny Stocks
• Low priced, small cap shares (often below ₦5).
• High growth potential but risky due to volatility and low liquidity.
• Best for experienced investors.
Best and Recommended Dividend Stocks
These companies have a history of paying high dividend yields and maintaining strong fundamentals:
• Nestlé Nigeria Plc (NESTLE)
• Stanbic IBTC Holdings Plc (STANBIC)
• Seplat Energy Plc (SEPLAT)
• TotalEnergies Marketing Nigeria Plc (TOTAL)
• Oando Plc (OANDO)
• Flour Mills of Nigeria Plc (FLOURMILL)
• Dangote Sugar Refinery Plc (DANGSUGAR)
• Lafarge Africa Plc (WAPCO)
• Presco Plc (PRESCO)
• Airtel Africa Plc (AIRTELAFRI)
Sample Low Capital Investment Portfolio
Even with small amounts, you can start building a diversified portfolio:
1️⃣ Oil & Gas (₦3,500 in one company)
• Oando (OANDO)
• Seplat Energy (SEPLAT)
• TotalEnergies (TOTAL)
• Eterna (ETERNA)
• Conoil (CONOIL)
• Capital Oil (CAPOIL)
2️⃣ Banking (₦3,000 in one company)
• GTCO (GTCO)
• Zenith Bank (ZENITHBANK)
• Wema Bank (WEMABANK)
• FCMB (FCMB)
• Stanbic IBTC (STANBIC)
• Access Holdings (ACCESSCORP)
• FBN Holdings (FBNH)
3️⃣ Consumer Goods (₦3,500 in one company)
• BUA Foods (BUAFOODS)
• Dangote Cement (DANGCEM)
• Honeywell Flour (HONYFLOUR)
• Vitafoam (VITAFOAM)
• Champion Breweries (CHAMPION)
• NASCON Allied (NASCON)
Fixed Savings Alternatives for Conservative Investors
If you prefer guaranteed returns, consider CBN licensed and NDIC insured fintech savings products:
• FairMoney – FairLock: up to 28% p.a.
• PiggyVest – SafeLock: up to 20% p.a.
• PalmPay – Fixed Savings: up to 20% p.a.
• OPay – Fixed Money: up to 17% p.a.
• Moniepoint – Locked Savings: up to 16% p.a.
• Kuda – Fixed Savings: up to 15% p.a.
Note: Avoid unlicensed institutions. Many big commercial banks offer only 3–7% on fixed deposits.
Step by Step Guide to Investing in Nigerian Stocks
1. Choose a Broker or App – Decide between traditional brokers or digital platforms.
2. Open a Trading Account – Complete KYC with valid ID, proof of address, and BVN.
3. Fund Your Account – Transfer funds via bank or fintech payment.
4. Research Stocks – Study company financials, dividend history, and market trends.
5. Place Your Order – Use market, limit, or stop orders depending on your strategy.
6. Monitor Performance – Track prices, dividends, and news updates.
7. Reinvest Profits – Compound your returns over time.
WHAT YOU MUST DO IMMEDIATELY YOU BUY ANY STOCK
Point 1️⃣: What is a Dividend? A dividend is a portion of a company’s profits that is distributed to its shareholders as a reward for investing in the company. It is different from the increase in the value of your stocks (capital gains). Dividends are usually paid either quarterly or annually, depending on the company’s policy.
Point 2️⃣: In Nigeria, dividends are paid by the Registrar of each company you own shares in, not by your stockbroker (not Bamboo, Meristem, etc.).
Point 3️⃣: To receive dividends directly into your bank account you must fill and submit the E-Dividend Mandate Form.
Below are the steps you should follow (please read carefully):
Step 1️⃣: Get the E-Dividend Mandate Form
– You can obtain the form from your bank or download it from the SEC website (they both have a universal form).
– You can also download it directly from the website of each company’s Registrar. Each company yo bought its stock has its registrar. For example:
– Africa Prudential Registrars Plc is the Registrar of BUA Cement & UBA
– Datamax Registrars Limited for GTCO.
– Coronation Registrars Limited for Dangote Cement.
Etc.
– You need to find out the Registrar of the company you bought shares from. Google can help you out here.
Step 2️⃣: Fill in the Form
You will need to provide:
– Your full name (as it appears on your CSCS and BVN records)
– CSCS/CHN number
– Bank name, account number, and BVN
– Your signature
Note: You must know your CSCS Number.
– Every Nigerian stockholder has a Central Securities Clearing System (CSCS) account (think of it like a BVN for stocks).
– This account is usually created automatically when you first buy stocks through a licensed stockbroker.
– Your CSCS number links all your shares across different brokers and registrars.
– Example: If you bought BUA Cement and UBA via Meristem, and GTCO or Dangote Cement via Bamboo, all of them are tied to your CSCS account.
Step 3️⃣: Submit the Form
– Submit the completed form at your bank branch (they process it for free), OR
– Submit it directly to the Registrar of the company whose shares you hold.
– Once processed, all future dividends will be credited electronically into your bank account.
NOTE:
✅ The E-Dividend Mandate Form solves the problem of unclaimed dividends from old paper warrants. Meaning, even if you bought your shares many years ago and you’ve never received dividends, follow the same process I’ve highlighted above.
Frequently Asked Questions
Someone asked: But I received dividends without filling the E-Dividend form?
This is my response ⬇️
Yes. It’s possible for three reasons:
1. E-Dividends was introduced in 2015/16. Before then, we had dividend warrants. Some people still get paid through that, but it has led to unclaimed dividends worth billions of Naira due to the issues around it, like cheques expire, addresses change, or details don’t match. But then, it still functions.
2. Some registrars automatically linked bank accounts once you provided your bank details at the time of buying shares.
3. These days, some stock purchase apps like Chaka, Bamboo, etc., collect shareholders’ bank details upfront, and once companies pay dividends, they drop it into the accounts automatically.
So yes, some people still get dividends without the form. But the safest and most recommended way is to fill the E-Dividends form so you don’t miss out or get into unnecessary stress later. It’s better to do it than to start complaining of not being paid dividends in years ahead.
📌 Tips for Success in Stock Investing
• Diversify – Spread investments across sectors.
• Think Long Term – Avoid panic selling during market dips.
• Stay Informed – Follow NGX news and company reports.
• Reinvest Dividends – Boosts compounding effect.
• Avoid Herd Mentality – Make decisions based on research, not hype.
Frequently Asked Questions and Answ wers
If you have got shares and stocks you haven’t claimed yet and don’t know how to, Here’s how to do it
1. Log on to the SEC U-eDIV Portal:
https://sec.gov.ng/non-mandated/
2. Search for Your Name:
– Enter your name to check the details of your shares.
– If your name appears, you’ll see the company you hold shares in, the registrar, and your account number. Take note of these details.
3. Fill and Submit the E-Dividend Mandate Form:
Download the e-dividend mandate form from the registrar’s website.
– Or click the link at the top of the SEC Portal to download it.
– You can also pick up a copy from your bank.
4. Processing & Payment:
Once your form is processed, your account will be updated, and all your unclaimed dividends will be credited to your bank account.
📌 Note: You can also use the services of a stockbroker or fund manager to handle the process for you.
✅ Bonus Tip: I think you should link all your old shares to your BVN and bank account to avoid unclaimed dividends in the future.
I want to buy stocks but don’t know which ones.
Here’s the answer
Nestlé Nigeria Plc
Stock Name: NESTLE
Stanbic IBTC Holdings Plc
Stock Name: STANBIC
Seplat Energy Plc
Stock Name: SEPLAT
TotalEnergies Marketing Nigeria Plc
Stock Name: TOTAL
Oando Plc
Stock Name: OANDO
Flour Mills of Nigeria Plc
Stock Name: FLOURMILL
Dangote Sugar Refinery Plc
Stock Name: DANGSUGAR
Lafarge Africa Plc
Stock Name: WAPCO
Presco Plc
Stock Name: PRESCO
Airtel Africa Plc
Stock Name: AIRTELAFRI
Dangote Cement Plc
Stock Name: DANGCEM
BUA Cement Plc
Stock Name: BUACEMENT
Guaranty Trust Holding Company Plc
Stock Name: GTCO
Access Holdings Plc
Stock Name: ACCESSCORP
MTN Nigeria Communications Plc
Stock Name: MTNN
FBN Holdings Plc
Stock Name: FBNH
United Bank for Africa Plc
Stock Name: UBA
Guinness Nigeria Plc
Stock Name: GUINNESS
Zenith Bank Plc
Stock Name: ZENITHBANK
Nigerian Breweries Plc
Stock Name: NB
How to download and use the Bamboo app
1. Download & Sign Up
Available on Android and iOS devices.
Create an account with your name, phone number, email, and verify your identity.
2. Fund Your Wallet
You can deposit funds via:
Naira or USD Card (Mastercard, Visa, Verve, AmEx)
Naira Bank Transfer or USD Domiciliary Transfer
Pay with Barter (Flutterwave) option
Processed within 1–2 business days depending on method
3. Using the App to Buy Stocks
Open the app and search for a U.S. stock.
Tap Buy, then choose:
Buy Now
Buy when price increases
Buy when price decreases
Enter number of shares or amount, review, and confirm.
Orders placed when markets are closed are executed when markets reopen.
4. Selling Stocks
Go to My Stocks, select the stock, tap Sell, choose sell options, enter details, then confirm.
Sell orders placed after hours execute when markets open.
Some specific Nigerian stocks mentioned as being available on the Bamboo app include:
Access Holdings
MTN Nigeria Communications
Dangote Cement
Nestle Nigeria
GTCO
Zenith Bank
FirstHoldco
Wapco
UBA
Fidelity Bank
Aradel
Presco
Okomu Oil
Unilever
Nigerian Breweries
Note, it’s an investment not a ponzi scheme
Bamboo is officially available in Nigeria, Ghana, and South Africa. Ghanaians can register using their Ghana Card or national ID .
TRADITIONAL STOCKBROKERS
• Meristem Stockbrokers
• Stanbic IBTC Stockbrokers
• ARM Stocktrade
• LeadTrader
• Investment One Stockbrokers, etc.
Note 📝
♧ They are all licensed and legitimate.
♧ Make your choice, download their app from the Play Store or App Store, and follow the process.
Vital Resources and References
• How to Invest in Stock in Nigeria – nairaCompare
• How to Start Investing in Nigerian Stocks – Nairametrics
• Best Stock Trading Platforms in Nigeria – ForexBroker.ng
• Nigerian Exchange Group – Market Data
• Central Securities Clearing System (CSCS) – Investor Services
Disclaimer
financialliteracy.com.ng blog is only an educational enlightenment entity with aim to educate and equip Nigerians on prudent management of their resources and money.
We do not promote affiliate links or run investment portfolio.
Do your own research before investing as our contents are meant for educational purposes only.
What is financial literacy? Financial literacy is the possession of skills, knowledge, and behaviours that allow an individual to make informed decisions regarding money.
Financial literacy, financial education, and financial knowledge.
