How To Buy Stocks In Nigeria (14 Best Stocks To Buy)
How To Buy Stocks In Nigeria ( Best Stocks To Buy) – If you are thinking about investing in stocks, it is a very good idea as investment is a perfect way to grow your income and add value to your money. In as much as investing in stocks is a very good way to go, how do you g about it?
Which company stocks are the best to buy and how can you buy this stock?
Well, you are lucky to be reading this article as we are not just going to show you how to buy stocks in Nigeria, we are going to show you the best stocks in Nigeria to buy.
We are going to give you details of the best sector of stocks that you should invest in and how your money or income can grow.
The stock market remains the most reliable way to invest your money but you really need to understand the nitty-gritty of how to invest in stocks so that you don’t end up making loss.
Well, there is no need to panic as we got you covered. We will be revealing some of the best apps that you can use to buy stocks in Nigeria as they are legit and reliable. You can actually buy stock from the comfort of your home through any of the apps we will be talking about in this article.
What Is Stock?
When we are talking about finance, stock is said to be the total shares held by a shareholder in a company. Buying stocks means you are buying part of a company’s shares and so you are a part owner of the company.
You can choose to sell your shares or stocks in a company anytime they appreciate and you can also earn money from dividend.
The Nigerian Exchange Limited (Nigerian Stock Exchange) is the only one in charge of stock exchange in Nigeria and it is regulated by the Securities and Exchange Commission of Nigeria.
What Are The Best Stocks To Buy In Nigeria?
We are going to be looking at the best companies in Nigeria where you can buy stocks. These companies in previous years wrapped up the trading year on a positive note with high returns and so they have the potential to grow your money if you invest in them by buying their stocks.
So let’s look at the best stocks to buy in Nigeria:
Julius Berger (NGX: JBERGER)
This is the leading construction company in Nigeria and it provides variety of services in planning, engineering and construction of infrastructure and industrial projects in the country.
This company has recorded revenue of N74.04 billion in the full year of 2020, a 2.43% increase over the prior year although there was a significant decline in one of its main income-generating units that fell by 56.73% as a result of the effect of the pandemic on construction services.
Even in that year, the company still declared N634 million profits to shareholders which showed that it put investors at the centre of its activities and always want to make them happy.
If you had invested in Julius Berger stocks on the January 1, 2021, you would have made a 25.56% return on price appreciation as of December 31, 2021. This provides opportunities for investors that are looking for short term investments to make profits.
Reports has it that Julius Berger was awarded about eight major construction projects for 2022 from federal to state level projects and this is a major source of revenue for the company.
The company will certainly benefit from more investment in infrastructure that is to be carried out according to the National Development Plan and also if the fuel subsidy is eliminated as proposed in the middle of the year, more revenue may go into construction activities.
For more information, visit www.julius-berger.com/
Zenith Bank Plc. (NGX: ZENITHBANK)
If you are talking about the banking sector, then Zenith Bank is one of the banks you will have to mention. It is the largest Nigerian bank by market capitalization with its strong fundamentals, high dividend yield, prompt and consistent dividend payment and also capital appreciation that attracts short and long-term investors to buy its stocks.
In 2020, Zenith Bank’s gross earnings increased by 5% to N696.5 billion with its non-interest and interest revenue rising to N251.7 billion and N420.8 billion respectively.
According to data from Zenith Bank’s official website, the company made a total of N262.16 billion to its shareholders within the last three years even with a difficult macroeconomic environment. The entire banking sector has really done well in terms of growth.
There will be definitely be an increase in its revenue and performance as it will be increasing its activities in terms of corporate deposits, loans, heavy investments in technology and retail customer deposits.
You can visit www.zenithbank.com/
Lafarge Africa Plc. (NGX: WAPCO)
This is one of the top 3 cement manufacturers in Nigeria along with Dangote and BUA. The company is always on top of BUA when it comes to revenue earnings as it made full-year sales of N230.6 billion in 2020.
Lafarge Africa does well in compensating its investors with ROI as the company declared a total of N16.11 billion in dividend payments last year as a result of its strong and cash flow and debt ratio.
Although the company is going through some situation, a lot of analysts recommend that investors should buy Lafarge stocks due to its strong fundamentals and current low valuation.
The National Development Plan (NDP) 2021-2025 recently published by the federal government proposed that the government will invest heavily in physical infrastructure across the country and this means a lot for cement companies as it will be an opportunity to sell.
For more information, you can visit www.lafargeafrica.com.ng/
Seplat Energy Plc. (NGX: SEPLAT)
This is an independent oil and natural gas producer with has its shares listed on the Nigerian Exchange Limited and also the London Stock Exchange. The stock is currently around N650 – N655.
Even with the pandemic in 2020 that led to the fall in the price of crude oil, Seplat Energy Plc experienced further cost reduction, improvement of operational efficiencies and also revenue of USD530.47 million.
The company showed durability throughout these difficult times by paying down debt worth USD100 million and also making USD58 million in dividend payments to shareholders.
It also completed the funding for the ANOH Gas Project.
The rise in the price of crude oil is a ray of hope that investment in Seplat stocks would yield good as the price is expected to remain strong in this year as a result of an improvement in economic activities.
With the ANOH Gas Project investment, there will be an increase in the company’s natural gas production which will create an opportunity for Seplat to rebalance its revenue and reduce its exposure to crude oil.
Once the ANOH Gas Processing Plant starts operating, it will be a major gas supplier to Nigeria’s power sector as the country. The ANOH Gas Processing Plant is a 50-50 joint venture owned by Seplat and Nigerian National Petroleum Corporation.
For more information, visit www.seplatenergy.com/
MTN Nigeria Communications Plc. (NGX: MTNN)
This company has consistently outshined other companies in the telecommunication industry when it comes to customer base and also revenue. Also, its revenue growth, profits and dividend payments is further strengthened by the payment-service bank (PSB) license from the CBN which will accelerate the company’s mobile money payment services and agent network across the country.
Even the recently awarded 5G license will see the company roll out its 5G network to major urban areas in Nigeria later this year. According to the data from the Nigeria Communication Commission, MTN Nigeria made about 41.7% of the internet market share by the end of the third quarter in 2021.
MTN Nigeria is known to consistently provide returns to investors on both dividend payments and capital appreciation fronts. Data from the official MTN website saw MTN Nigeria make breathtaking revenue of N1.35 trillion at the end of 2020 and has always paid out huge dividends to investors.
People that have stocks with MTN Nigeria received a total dividend payout ratio of over 90% of profit in 2020.
If you invested in MTN stocks in January 1, 2021, you would have made a 15.95% return on price appreciation as of December 31, 2021. So it would be a wise decision investing in MTN stocks.
For more information, visit www.mtnonline.com/
Vitafoam Nig Ltd (NGX: VITAFOAM)
Vitafoam Nig Ltd was formerly known as Vitafoam Nigeria Plc and it is a Nigerian-based company that manufactures and sells flexible and reconstituted foam products. This company falls under the processing industry and it is a household brand that caters for bedding and furniture needs.
Vitafoam Nig Ltd reported about 59.2% increase in profit to N3.41 billion in nine months in the year ended September 30, 2021. On the Nigerian Exchange Limited (NGX), it also reported 55.12% increase in profit after tax to N4.7 billion in period under review from N3.05 billion reported in previous period results.
Also, there was a 63% growth in revenue to N26.8 billion in nine months of 2021 from N16.47 billion reported in nine months of 2020 drive profits and the total assets of the company rose by 26% to N31.79 billion as at 2021 from N21.64 billion reported in full year ended September 30, 2020.
Its market capital is 28.14 billion with its volume at 159.72K and stock price presently at N22.20. Analyst say that it is better to buy Vitafoam stocks presently than to sell as it is among the highest net income stocks.
The firm has taken strategic decision to re-engineer its entire business with special focus on products quality and innovation, market differentiation, customer service and consumer education as all these will look to improve the performance of the company.
For more information, visit www.vitafoamng.com/
Morison Industries Plc (NGX: Morison.ng)
This is one of the best performing stocks in Nigeria presently and the company produces and markets pharmaceuticals and various disinfectants hygiene products (healthcare products and cleaning products). It falls under the consumer non-durable sector.
The company was founded on June 29, 1955 with its headquarter in Lagos, Nigeria and operates through the following business units: Healthcare, Agro-allied and Consumer.
The healthcare business offers wound-care solutions, trauma and athroplasty, bone graft, merchandising of medical equipment and surgical tools. The Agro-allied business focuses on agricultural and farm management techniques while the consumer business provides antiseptics, disinfectants and other hygiene products.
Its market capital is at N1.97 billion with volume at 2.129k and stock price at N1.99.
If you want to invest in consumer non-durable goods, then you should consider buying stocks from this company as its stock price is affordable and there is a high possibility of appreciation.
For more information, visit www.morisonplc.ng/
Guinness Nigeria Plc (NGX: GUINNESS)
This is one of the most popular brands of alcoholic beverages. Its products include Smirnoff, Snapp, Malta Guinness, Orijin etc. these goods are consumer goods and so the company falls under the consumer non-durable sector.
As at December 2021, the breweries company revealed a 50.83% growth in revenue from N72.35 billion to N109.12 billion. It reported a profit after tax of N8.82 billion from a loss position of N317.42 million as at 2020.
This growth was as a result of the inflationary pressure which most consumer goods benefitted from especially during the festive season.
Its market capital is N93.09 billion with its volume at 222.08k. The stock price is at N42.50 naira. It is one of the best stocks to buy presently and so you should consider it as an investor whether for short or long term.
For more information, visit www.guinness-nigeria.com/
University Press Plc (NGX: UPL)
This is one of the major publishing houses in Nigeria and it is doesn’t only offer services in publishing but also prints, distributes and market books. The company falls under the Printing and Publishing sector. It was founded in 1949 and it was formerly known as the Oxford University Press Nigeria with its head office in Ibadan, Nigeria.
The company produces educational books that cover curriculum titles for the pre-primary, primary, junior, senior secondary and tertiary sectors. The company also produces material for teacher training, research categories and also general reading.
It also produces dictionaries, encyclopedias and language publications.
Its stock price is at N2.45, average volume of 158.84k and market capital of N1.068 billion. Its total asset as at the third quarter of 2021 was valued at N2.46 billion.
It is one of the most valuable stocks to invest in Nigeria and so you should consider it.
For more information, visit www.universitypressplc.com/
United Capital Plc (NGX: UCAP)
This is a financial and investment company as it offers services in Investment banking, Asset management, wealth management, Trusteeship and Securities. It is under the investment sector. It was founded in 1961 and it was a subsidiary of United Bank of Africa (UBA) but became a separate company following the directive of CBN that all banks should divest from non-commercial banking activities.
The company provides services to corporations, high net-worth individuals, governments, institutional and retail investors across Africa.
The company is announced in 2021 that its revenue was N11.33 billion and Profit before tax grew by 72% to N7.09 billion according to the unaudited financial statements for period ended September 30, 2021.
Its total shareholders’ fund for the period stood at N26.9 billion and total asset stood at N400.75 billion.
Its market capital is at N75.3 billion with its volume at N1.755M which makes about 0.295% of the Nigerian Stock Exchange equity market and stock price at N12.55.
It is currently the 28th most valuable stock to invest in and so you should see that it has potential, so what are you waiting for!!
For more information, visit www.unitedcapitalplcgroup.com/
Honeywell Flour Mills Plc (NGX:HONYFLOUR)
This is a leading foods company that engages in producing, marketing and selling of high-quality food products and it falls under the processing sector. They produce products like Honeywell Semolina, Honeywell Noodles, Honeywell Whole Wheat Meal, Honeywell Macaroni, Honeywell Spaghetti, Honey Superfine Flour, Honeywell Pastry Flour, Honeywell Bakers Delight Flour etc.
Honeywell Flour Mills Plc was founded in 1972 and it was listed on the Nigerian Stock Exchange in 2009.
Honeywell Flour says it crossed N100 billion mark in 2021 as it recorded an all-time high revenue of N109.5 billion which is a 36% increase over N80.4 billion posted in 2020.
The operating profit grew from N5.4 billion in the Full Year 2020 to N7.6 billion in Full Year 2021 which is a 39% increase with a Profit After Tax (PAT) of N1.1 billion in Full Year 2021 an increase of 73% from N650 million in the previous year.
Its market capital is at N29.6 billion and average volume at 199.773k. it stock price is N3.73.
It is focusing and embarking on a 10-year journey towards creating more value for its shareholders and so this is the right time to invest in the Honeywell company stocks.
For more information, visit www.honeywellflour.com/
Royal Exchange Plc (NGX: ROYALEX)
This company offers financial services most especially in insurance and so it is under the insurance sector. It operates through the following business areas: life insurance, non-life insurance, financial services, healthcare and asset management.
The company was established in 1918 with its headquarter in Lagos, Nigeria.
The life insurance segment focuses on Royal Exchange Prudential Life Plc. The Non-life insurance segment is under the Royal Exchange General Insurance Company Limited.
The Financial Services segment comprises of Royal Exchange Plc and Royal Exchange Microfinance Bank Limited. The Healthcare consists of Royal Exchange Healthcare Limited and the Asset and Management segment consists of the Royal Exchange Finance Company Limited.
It recorded a Profit After Tax (PAT) of N500.83 million in the first quarter of 2021.
Its market capital is N6.17 billion with average volume of 1.68M and stock price at N1.20.
For more information, visit www.royalexchangeplc.com/
Skyway Aviation Handling Company Plc (NGX: SKYAVN)
This company is owned by the Sifax Group and incorporated as an Aviation Ground Handling Service Provider under the Nigerian Company & Allied Matters Act of 1990. This company is into transportation as it offer airport and aviation services. It is under the industrials sector.
It was formerly known as Skypower Aviation Handling Company (SAHCO) but was later privatized and handed over to the Sifax Group on December 23, 2009.
In the company’s report for its Q4 2021 for the period ended December 31st, 2021, it revenue grew by 24.7% which was N8.71 billion from N6.98 billion; Profit Before Tax (PBT) was at N854.61 million and Profit After Tax (PAT) was N584.25 million.
Its market capital is at N7.851 billion with its volume at 2.6k and stock price at N5.80.
For more information, visit www.sahcoplc.com/
Cutix Plc (NGX: CUTIX)
This company engages in manufacturing and selling of range of electrical wires, cables and switchgear assemblies. The company produces bare copper conductors, bare stranded copper conductors, PVC insulated single/double sheathed-core aluminum cables and PVC insulated copper cables.
It also produces household electrical appliances and fixtures. It produces automotive cables for motor vehicles.
The company was established in 1981 with its head office in Nnewi, Anambra, Nigeria.
Its market capital is N4 billion with its stock price N2.28.
For more information, visit www.cutixplc.com.ng/
How To Buy Stocks In Nigeria
We have revealed the best company stocks to buy and now, we will be showing you the best apps you can use to buy stocks in Nigeria. Through these apps, you will be able to buy stocks from Nigerian companies from anywhere and also anytime.
Without further ado, let’s look at these apps:
Trove
This is one of the best and most reliable apps to buy stocks in Nigeria as it allows you to invest in both local and foreign stocks and shares. You can buy stocks from the Nigerian Stock Exchange on Trove and you can also buy stocks from foreign stock exchanges.
It was founded by Oluwatomi Solanke and former classmate Austin Akagu in 2018.
With this app, you will be able to invest in bonds, ETFs and REITs and it will also help you become a better investor.
You can start will as low as N1,000 and trade as much as you can with your computer or smartphone.
It comes with a 256-bit encryption system and also other security technologies that will help protect your personal information.
Pros of Trove
- Trove has a low commission of 1% when you buy or sell stocks above $200 and you will be charge $2 for anything below $200.
- It offers both naira and dollar wallets for domestic and foreign trades
- It has a quick withdrawal window
- It has intuitive user interface
The disadvantage of this app is that there is relatively long verification period.
Chaka
This is another wonderful stock trading application that offers users unlimited access to local and foreign stocks. It was founded by Tosin Osibodu in 2019.
This app makes buying of stocks easier for Nigerians as it ensures that Nigerians and Nigerian companies get access to both local and global stock markets.
It is the first fintech company in Nigeria to receive the Securities Exchange Commission (SEC) first fintech license.
The minimum amount you can start with is N1,000 and it is available on Android and iOS.
Pros of Chaka
- It allows you to invest in local and foreign stocks
- They charge low commission of 1% when you buy or sell stocks above $200 and $2 for anything below $200.
- They conduct free webinars and a functional community to help customers understand the market better.
- There is quick withdrawal duration
The disadvantages of this app is the it is prone to crashing and has a sluggish customer service which can be discouraging at times but it is really a good app to buy stocks.
Investnow.ng
This app offers you a wide range or trading platform to trade as a Nigerian. You also get frequent stock recommendation options to help you make decisions as a new investor. It offers several services including dividend management, share transfer and certificate management.
You can start and finish your registration process entirely online.
Pros of Investnow
- It has a good customer support with WhatsApp chat option
- It has a relatively low brokerage fee of 1.35%
The disadvantage of using Investnow is that the minimum opening balance is N50,000.
Bamboo
This is an international giant that allows you buy unlimited amount of stocks from your mobile phone. It offers access to over 3,000 stocks from local and foreign companies.
It was founded by Yanmo Omorogbe and Richmond Bassey in 2019.
It is available on Android and iOS and you can pay through MasterCard, Visa and Verve cards from a Nigerian bank.
Pros of Bamboo
- All your stocks are insured by the Securities Investor Protection Corporation (SIPC) and also the Financial Industry Regulatory Authority (FINRA) for up to $500,000.
- It has a sound user intuitive interface
- It has a low commission of 1.5% if you buy and sell stocks
- It has a good and sound customer service
- You can invest as low as $20
- It allows you to gift stocks to another person
Some of the disadvantages of the Bamboo are that it is not available on web, longer withdrawal processing time and offers only dollar wallets.
Risevest
This does not only allow you trade stocks as it is a global asset manager. It provides you with investments in dollar where you can invest in and watch you money grow.
The expert fund manager of this app helps you to trade and you get the opportunity to choose from fixed assets, stock assets and real estate investments.
With Risevest, you just have to choose a plan and fund it and then Risevest team will take care of the rest.
You can invest with as low as $10 which is about N6,000 and it is reliable for new investors.
Pros of Risevest
- Expert fund managers that would help you make the right decisions on your investment.
- It has an excellent community
- They offer diversified portfolio options
- It has relatively low management fee of a maximum of 2% of the total asset under management
The disadvantage of Risevest is that it has a relatively long withdrawal time.
Leadtrader
This app is known for having the lowest brokerage fee with as low as 0.75% and as high as 1.35% when you allow them to trade on your behalf.
It was launched by Lead Securities $ Investment which is a securities trading company that was registered with the Security Exchange Commission (SEC) in 2014 and the Nigerian Stock Exchange (NSE) in 1987.
The app allows you to buy and sell securities and you can also fund your broking accounts with your debit card.
Pros of Leadtrader
- It has an auto asset management
- It has a wide variety of trading options
- It is quick and easy to register
The disadvantage of Leadtrader is that the minimum investment amount is N50,000.
Meritrade
This app is owned by Meristem Securities and was founded in 2014. It provides a secure platform for you to trade from your mobile phone. You can buy and sell stocks from the comfort of your home.
The brokerage fee for both buying and selling of stocks is 1.35%. it gives stock recommendations to customers and also has a good customer support.
Pros of Meritrade
- It has a sound customer support
- It offer stock recommendation to help traders make the right decision
The disadvantage of Meritrade is that it has a minimum investment requirement of N10,000.
Chipper Cash
This is a cross-border money transfer app in Nigeria that lets anyone send and receive money across Africa and the UK. With Chipper Cash, you can invest in stocks and crypto currencies.
You can build your investment portfolio using this trading platform as it allows you to buy fractional shares of local and foreign companies.
It has a low commission and you can easily execute trades as the app is available on Android and iOS.
Afrinvestor
It was created by the Afrinvest Securities Limited (ASL) to empower brokerage clients to take control of their investments.
This is a good trading platform that has no minimum initial deposit and you get to receive daily reports, extensive market analysis and stock recommendations.
It allows users to initiate and execute trades, view and edit account information and also portfolio performance views.
It has different brokerage accounts like the Afrinvest Groove Account, Afrinvest Pop Account and Afrinvest Classic Account.
It is available on Android and iOS with a brokerage fee of 1.35% for buying and selling of stocks.
Pros of Afrinvestor
- It has no minimum amount for initial investment
- It offers stock recommendation and market analysis
- It has a sound customer support
Stanbic IBTC e-Trade
This trading platform was founded by the Standard Bank Group in 2016 and you get to trade in real time using this platform.
They have a brokerage fee of 1% which is lower the regular market price of 1.35% and it also offers a wide variety of stock option for traders to choose from.
Pros of Stanbic IBTC e-Trade
- They are a registered and secured broker which means they are trusted and reliable
- They have a relatively low brokerage fee of 1% for buying or selling stocks
The disadvantage of this trading platform is that it has a very high minimum opening balance of N5,000,000.
ARMstocktrade
This trading platform is very user-friendly as it includes real time data and pricing charts. It was founded by ARM Group in 2004 and it provides full-brokerage services between an investor and securities exchange.
It is a member of the Nigerian Stock Exchange (NSE) and it provides its services to local, foreign and institutional investors.
Pros of ARMstocktrade
- It is available on Android and iOS and also on web
- Its brokerage fee is 1% for buying and selling stocks.
The disadvantage of using ARMstocktrade is that it has a high minimum amount of investment of N50,000.
MorganCapital i-trade
The inexpensive brokerage fee of this trading app makes it a very unique way to buy stocks in Nigeria. It has a 0.50% brokerage fee for buying and selling stocks.
It does not provide a live customer service but you can send a message if you want to get any information.
Frequently Asked Questions
- Are stock trading apps in Nigeria Safe?
The apps we have discussed in this article are some of the best and most reliable apps you can use to buy stocks in Nigeria as they have gained popularity and good review from investors.
All the stock trading apps we have mentioned in this article are safe and secure to invest with.
But regardless of this, you should be very careful when carrying out online transactions so that you don’t share your bank details to fraudsters. - Can I buy foreign stocks and Nigerian stocks?
Some of these apps we have talked about in this article will allow you to buy foreign stocks as well as Nigerian stocks.
- Can I buy stocks online myself or it can be done for me?
It depends on the app you are using although all the apps allow you to trade (buy) stocks yourself but some might help you in trading as they have automated managers to help you do so.
With the fund managers, you just choose a plan, fund it and they will do the rest. - How much do I need to buy stocks in Nigeria?
Some of the apps we mentioned in this article allow you to invest as low as N1,000 while some others $10 (N6,000). Some others do not even have minimum amount to invest.
You should have at least N8,000 to N10,000 to start buying stocks in Nigeria. - What is the easiest way to buy stocks in Nigeria?
The easiest way to buy stock in Nigeria is online. Once you have opened and funded your account, you can buy stocks online through the website of the broker
Final Note
From all we have said so far, you will see that buying stocks is a great way to invest and grow you money and we have shown you some of the best company stock in Nigeria to buy. There is a great possibility that buying these companies’ stock will be a good investment for you.
We didn’t just stop there as we also talked about the best ways you can buy stocks in Nigeria. We looked at 10 best apps to buy stocks in Nigeria. These apps have made it easy for you to buy stocks even at the comfort of your home with just your smartphone and computer.
You just have to look through the companies we discussed and also the apps so that you can start buying stocks in Nigeria.
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