Investing in shares is not a concept familiar to many Nigerian households. Most households in Nigeria prefer investing in land and buildings.
While it is good to invest in land, one of the major disadvantages of investing in land is that it will not generate any income unless utilized and may not generate enough capital when eventually sold. Land, however, does appreciate.
Owing a share or stock in a company automatically makes you a shareholder of that company. You become a part of the company, even without being a part of the day-to-day stress of the company.
How to Check Your Shares in Nigeria?
If you are certain you are one of those people whose grandparents or parents left shares for you or you have some shares of your own, you can check for the shares on Nigeria Securities and Exchange Commission (SEC) portals. Shares are a financial instrument that represents the part ownership of a company. It’s a percentage of the company’s assets. Shares can be inherited and passed down from one generation to another.
How to Check Your Shares on the Nigerian Securities and Exchange?
There are a lot of unclaimed shares in the Nigeria Securities and Exchange Commission (SEC). Some of how you can check your shares on the Nigeria Securities and Exchange Commission (SEC) include:
- Input your first and last names into the link on top of the SEC portals. If your name has been changed for any reason, enter the previous names used.
- Take note of your registered number. There are different registrars; it is important to remember your registrar (a registrar is a person or company that keeps the shareholder’s details of other companies.)
- Note the name of the company you have your shares in.
- Take note of your investment account or stockholder’s account number.
- Click on the top of the SEC portal link and download your registrar e-mandate form.
- Complete the form and send it to your local bank with a copy of your passport.
How to Buy Shares in Nigeria?
If you are looking to invest in shares in Nigeria, the first thing to do is to get a stockbroker that you trust. Most companies don’t deal directly with individuals; they prefer to deal with a stockbroker instead. So getting a good stockbroker is very necessary. A stockbroker is an agent, a person, or a firm that deals with buying and selling stocks and shares for a commission. They link the market (the investing market) and the public (the investors).
To buy shares from the Nigerian Exchange Group, you will need a stockbroker to help buy them. As you cannot just work into the Nigerian Exchange Group and buy shares as you do in the supermarket. The stockbroker facilitates the sales of the shares.
After registering your account with your chosen stockbroker, you will be given a Clearing House Number, which is your unique investor number similar to your bank BVN number. This number lets you operate your trading account, and once the funds are in your trading account, you can start buying shares through the account, with your stockbroker operating in the background.
Another pertinent thing needed when you want to buy shares in Nigeria is a Central Securities Clearing System (CSCS) account. This account, once opened, lets you manage your portfolio and keeps track of your shares.
Once you have registered an account with your stockbroker, you can place your order with the broker. The broker will complete the transaction, adding their commission or fees, which must have already been negotiated.
Every company has its own regulations guiding the selling and buying of its shares, but the one thing which is statutory is that you must have a trustworthy stockbroker.
Is It Worth It to Invest in Shares in Nigeria?
Investing in Nigerian shares can be a good way of making money. Investing in shares of good stable companies will eventually see profits. Over time if the stock market rises in value the stocks, the prices of the stock rise also. Sticking with stocks for a longer term will yield higher profits when eventually sold.