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How to Buy Shares in Nigeria (Complete Guide)

If you’re thinking of investing in shares in Nigeria, then you must know how to successful buy shares.  Buying shares is one of the good ways to invest money in Nigeria and save for your children’s future.

How can you buy shares in Nigeria? In this article, we’ll explain to you how to buy shares in Nigeria.  And we’ll also provide some helpful tips for investing in shares.

How to Buy Shares in Nigeria

The process of buying shares is relatively simple.  For better understanding of how shares work and how you can buy them in Nigeria, we’ll start by explaining some terms.

Definition of terms

What are Shares?

Shares are a form of investment that allows you to share in the profits (or losses) of a company. They are also known as equity shares. And they are issue to investors.

When you buy shares in a company, you’re a shareholder in that company. And you’re essentially lending your money to the company so that it can use it to finance its operation. In return, you’ll be entitled to a set percentage of the company’s profit, plus any dividends that are paid out.

What are Stocks?

A stock is a general term that refers to ownership certificates of shares in one or more companies. The stock exchange market is where stocks are bought and sold.

Shares versus Stock

Although stock and shares are used interchangeably, stock refers to the general ownership of part of any company while the units of stock are called “shares” which entitles the owner to a proportion of a particular company.

A shareholder holding shares in a company has authority equal to the quantity of stock he owns in the firm. For example, an investor who purchases 1000 shares has a greater ownership stake than another investor who purchases 500 units. The former would be entitled to greater dividends.

Stock broker

A stock broker is a person who is responsible for facilitating the purchase and sale of stocks, bonds, etc.  And they also help you to find the best deals that fit your needs.

Quoted Companies

These are companies whose shares are listed on the Stock Market. In other words, these company’s shares are publicly traded in stock exchange market. And people can buy their shares to own that company and collect regular interests. Some examples of quoted companies in Nigeria are listed below:

  • 7Up Bottling Company plc,
  • First Bank of Nigeria plc,
  • GTCO
  • MTN Nigeria Communications Plc,
  • Total Nigeria Plc,
  • Dangote Cement Plc,

Unquoted Companies

These are companies whose shares are not listed on the Stock Market. Hence, their shares are not open or available for the public to purchase.

How the Stock Market works

The stock market is a platform for buying and selling of stocks and other securities.  To purchase shares in Nigeria, all investors or buyers must use the Nigerian stock exchange.

The Nigerian Securities and Exchange Commission (SEC) controls the activity of Nigeria stock exchange.

Share prices are determined by the forces of demand and supply, which are fueled by the trading actions of individual stockbrokers. The Exchange Group, rather than determining the price of shares, serves as a venue for buyers and sellers to influence the unit price of share when they place their orders.

Read: How to Make Money Online in Nigeria

What is the Nigerian Exchange Group (NGX)?

The Nigerian exchange group is a centralized market framework that allows buyers and sellers of equities to get access to shares, ETFs, bonds, and other securities from publicly traded companies, as well as government and foreign investments.

An investor would have to go via a licensed stockbroker or trade remotely via direct market access in order to buy and sell stocks.

How to buy shares in Nigeria

The process of buying shares in Nigeria is very easy. The internet has made things a lot easier! Here are the steps to buy shares in Nigeria:

  1. Find a stockbroker

A stockbroker connects an investor to the stock exchange market. The first step is to find a reputable broker that matches your investment goals.

When choosing a stockbroker, ensure that they have experience in the industry you’re investing in, as well as in the specific country you’re buying into. They should also be licensed and registered with the Nigerian Stock Exchange (NSE), so that you can trust their advice.

  1. Create an Account and get verified

Once you have found a broker that works for you, the next step is to create an account and get verified. This process can take a few days

However, for online stock brokers, it takes just a few minutes. You will be asked to provide details such as utility bill, passport photographs, government-approved ID, etc. So, you have to get these documents ready.

  1. Deposit fund to your account

The next step after your account has been created is to deposit fund into your account. This fund will be used to trade shares.

For online brokers, you need to download their mobile app.  Sign up and log in, fund your wallet, and trade directly from the app.

  1. Determine which Shares to buy

Once you have register and funded an account with a broker, you are now ready to pick a stock to buy. This can be quite difficult as there is so much information out there on which stock to trade.

Before trading a particular stock, research the company you want to buy shares in. Check its financial statements, shareholder information, and other relevant information to make sure you’re making a wise decision.

  1. Calculate the Quantity of Shares to buy

You can only buy the quantity of shares you can afford.  Don’t be forced to put in all your money on a stock. At the start, you can buy small quantity and then increase later when you’re sure of the market.

You can calculate the quantity of stock to buy by converting the amount you want to spend into stocks. For instance, if you intend to spend N40,000, you can convert it by dividing it by the price of the stock. This will give the quantity of stock to buy. Several brokers provide their customers with tools that can help them calculate the quantity.

  1. Start Trading

After you have determine the quantity of the stock you want to buy, inform your broker and they will purchase that stock on your behalf. Your broker will in turn send you a contract note that will contain details of the shares investment.

For online stockbrokers, you will be in charge of buying the stocks directly on their app, and with the app, it is easier for you to monitor price fluctuations.

Read: How to Trade Forex in Nigeria: step by step guide

  1. Watch your Investment

After buying shares on the Nigerian stock exchange, you need to constantly watch price fluctuations to know when to sell off or hold onto your position.

You can follow the same procedure to buy more shares from another company to add your portfolio. That’s if you still have some money on your wallet.

List of Stockbrokers in Nigeria

Listed below are some stockbroker firms in Nigeria that you can register with to trade in the Nigeria Stock Exchange market:

  • EFG Hermes Limited
  • Meristem Stockbrokers Limited
  • Stanbic IBTC Stockbrokers Limited
  • Cardinalstone Securities Limited
  • Rencap Securities Limited
  • Apt Securities Limited
  • FBN Quest Securities Limited
  • Chapel Hill Denham Securities

 Apps you can use to buy shares in Nigeria

There are some apps you can download and sign u to trade stocks on the Nigerian Exchange Group. Below are some of the apps you can use to buy shares in Nigeria:

  1. Primary Offer App by NGX

This app is created by NGX to enable investors trade the Nigerian stock exchange market.

  1. Trove

Trove allows you to trade stocks in the Nigeria stock market, USA stocks, and China Stocks. With Trove, you can start trading stock with as little as N1,000.

  1. Bamboo Invest

Bamboo allows you access to over 3,500 stocks on the Nigeria Stock Exchange and the US stock market.

  1. Chaka

Chaka allows you to trade stocks, bonds, ETFs, and over 4000+ assets from the U.S, U.K, Nigeria, China, and over 40 countries.

  1. Rise app

Rise app allows you to make investments in dollars that include portfolio of stocks, real estate and Fixed Income.

Helpful tips for investing in shares

There are some helpful tips for investing in shares if you want to get the best of your investment. These tips include:

  • Make sure your stock broker have a good understanding of the Nigerian market
  • Always start small to gain experience and then grow investment.
  • Never put all your money in one stock. Diversify your investment portfolio
  • Always monitor your investment to know when to sell
  • Know that investing in stock is risky and you can lose your money.


In conclusion, buying stocks in Nigeria is easy.  And buying stocks through online brokers is a lot easier. To trade stocks in Nigeria, you need to create an account with a broker, deposit funds on your account, and based on your analysis, pick the stock you want to trade on, determine the quantity and monitor your portfolio.

Everyone trades the stock market to make money. But, another reason others trade the stock market is to accumulate voting rights in a firm over time. What will determine your portfolio is your investment goal.


Let’s hear you if you intend buying shares or you already invested in shares. Use the comment box below..

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