How to invest on the Nigeria Stock Exchange (NGX) ?
Introducing the Nigerian stock Exchange
The Nigerian Stock Exchange is the financial market of Nigeria. The exchange, create in 1960 is a subsidiary of the NGX group. It belong to a multi-asset platform for the best of breed in African companies, along with diverse fixed income securities; Exchange Traded Products (ETPs); Mutual and other investment funds.
The market is opened for all investors including Nigerians and African from the diaspora.
NGX : Main facts
Governance
- Ownership: Private
- Compliance: NGX Regulation
- Regulation : SEC Nigeria
Capitalization (Naira)
- Shares: 28 trilions
- Bonds: 22 trilions
- ETFs: 7 billions
Listing boards
- Premium: Capital free-float of N40 bn
- Main: N3 bn of Equity
- Growth: Undisclosed
In top of the qualification requirements above for the boards.
- Companies listed on the premium board should:
- Have at least 300 shareholders
- Have a market capitalization of N200 bn when migrating to the premium board
- Companies listed on Main Board should :
- Have a pre-tax profit from continuing operation of min N300 million cumulatively for the last three (3) fiscal years and a minimum of N100 million in two (2) of these years
- 20% of issued share capital should be public
Investment accounts and products
Standard trading account
Fits to traders with strong expertise and good knowledge
The investor manages the account by sending orders to the broker
The performance depends on how you select the stocks
Discretionary account
Fits for investors looking for professional expertise
The broker manages your account at the investor’s best interest
The performance depends on the broker
Who can invest on the Nigeria Stock Exchange (NGX) ?
The Nigerian secondary market is open to investors (foreign and domestic) who wish to buy securities. Any individual or company who wish to invest on the NSE should first start with a licensed dealing member.
How to invest on the NGX ?
A prospective investor on the Nigeria Stock Exchange must open a securities account with a brokerage house prior to trading in securities. The process of opening an account is very simple and starts by making contact with a broker of your choice.
How to trade on the NGX ?
Three steps to trade on NGX ?
1. Open a brokerage account
The first step is to create an account with a broker and submit your documents.
- Create an account and submit your documents
- The verification procedure takes around 1-2 business day
- You receive an opening confirmation
2. Make a deposit
Once you have completed step 1, you can make your deposit using several payment options.
Available payment options are:
- Debit and credit cards
- Bank transfer and Money transfers
3. Start trading
Trading with us is very easy. You can either construct your own portfolio by picking your winning stocks or open a discretionary account with a broker.
You will be notified of the trade execution from the broker each time your order goes through
Documents needed to open your account
Official ID
Passport or National Card
Driver license
Residency
Proof of address
Utility bills
Passport Photo
Recent picture
Clear and in color