Good, so here are the common cases for ₦2,500,000 at 16.77% per annum over 12 months. Annual compounding (once a year) Interest = 2,500,000 × 0.1677 = ₦419,250 Total after 12 months: ₦2,919,250 Monthly compounding Monthly rate = 16.77% ÷ 12 = 1.3975% Growth factor = (1.013975)¹² ≈ 1.18115 Total afteRead more
Good, so here are the common cases for ₦2,500,000 at 16.77% per annum over 12 months.
Annual compounding (once a year)
Interest = 2,500,000 × 0.1677 = ₦419,250
Total after 12 months: ₦2,919,250
First, what is an MMF? A Money Market Fund is an investment fund that pools money from many investors and invests it mainly in relatively short-term instruments such as: Treasury Bills (T-bills) Government securities Bank deposits Commercial papers and other money-market instruments So when you putRead more
First, what is an MMF?
A Money Market Fund is an investment fund that pools money from many investors and invests it mainly in relatively short-term instruments such as:
Treasury Bills (T-bills)
Government securities
Bank deposits
Commercial papers and other money-market instruments
So when you put ₦5 million into an MMF, you aren’t simply leaving ₦5 million in a normal savings account. The fund manager invests the pooled money and your investment earns returns.
2. If the 14% is compounded every year
The calculation is:
Future Value = ₦5,000,000 × (1 + 0.14)¹⁷
That gives approximately:
₦46,593,000
So:
Year Approx. value at 14%
Starting ₦5.00m
1 ₦5.70m
5 ₦9.63m
10 ₦18.53m
15 ₦35.63m
17 ₦46.59m
Your original ₦5 million would therefore grow to about ₦46.6 million after 17 years if the fund actually averaged 14% every year and all returns were reinvested.
Your approximate investment gain would be:
₦46.59m − ₦5m = ₦41.59m
But there’s an important MMF point 👇
14% is not guaranteed for 17 years.
This is where an MMF differs from a fixed 14% investment. MMF returns can change over time because the fund’s underlying investments and market interest rates change.
MMf can do 17% per year and even more depending on MPR regulated interest based
here are Shariah-compliant funds beyond buying an individual Sukuk. For example, Stanbic IBTC Shari'ah Fixed Income Fund says it invests at least 70% in Sukuk and up to 30% in Shariah-compliant fixed-term investments. It is open-ended, meaning it isn't structured like a single Sukuk issue with one fRead more
here are Shariah-compliant funds beyond buying an individual Sukuk.
For example, Stanbic IBTC Shari’ah Fixed Income Fund says it invests at least 70% in Sukuk and up to 30% in Shariah-compliant fixed-term investments. It is open-ended, meaning it isn’t structured like a single Sukuk issue with one fixed maturity date. However, the fund itself currently describes its risk profile as “Aggressive,” so I would not call it a low-risk substitute without qualification.
Another example is the Stanbic IBTC Imaan Fund, which invests at least 70% in Shariah-compliant equities and up to 30% in other Shariah-compliant assets such as Sukuk. But it is also classified by the fund manager as Aggressive, so its value can fluctuate substantially.
There is also the LOTUS Halal Investment Fund, which is a diversified Shariah-compliant balanced fund investing in equities and asset-backed investments such as leases and trade-finance contracts. LOTUS describes it as a medium-risk product rather than a low-risk cash equivalent.
Now the interesting question: "My brother bought shares in 2010 but has never received dividends." This is a different problem from the Dangote IPO. Don't immediately assume that the shares have disappeared. There are actually two things to investigate separately: A. Does he still have the shares? BRead more
Now the interesting question: “My brother bought shares in 2010 but has never received dividends.”
This is a different problem from the Dangote IPO.
Don’t immediately assume that the shares have disappeared.
There are actually two things to investigate separately:
A. Does he still have the shares?
B. Are there unpaid/unclaimed dividends?
These are not the same thing.
For example, your brother could still own the shares but have dividends sitting as unclaimed dividends because his bank account wasn’t properly mandated for e-dividend payments.
The SEC has a specific process for recovering unclaimed dividends.
What should your brother do?
Step 1 — Find the evidence of the original purchase
Look for anything from 2010:
Share certificate
Allotment letter
Offer documents
Old dividend warrant
Stockbroker documents
Company’s name
Registrar’s name
CSCS information
Previous statements
Even an old document can be extremely useful.
Step 2 — Find out which company he bought
This is VERY important.
Suppose he remembers:
“I bought shares around 2010.”
That’s not enough.
We need to know:
Which company?
For example:
GTCO
FirstBank/related listed entity
Dangote Cement
Zenith Bank
etc.
Then we can identify the company’s registrar.
Step 3 — Check the SEC unclaimed-dividend system
The SEC provides an official process where investors can search for their names and identify the registrar holding their unclaimed dividends.
The process is basically:
Search your name
↓
Find the company/registrar
↓
Obtain the appropriate e-dividend form
↓
Submit through the bank or registrar
↓
Dividends can then be paid electronically
First: What is an IPO? IPO = Initial Public Offering. It is when a company offers shares to the public for the first time so that ordinary investors can become shareholders. Think of it like this: Company → offers shares → public investors buy → investors become shareholders For the Dangote RefineryRead more
First: What is an IPO?
IPO = Initial Public Offering.
It is when a company offers shares to the public for the first time so that ordinary investors can become shareholders.
Think of it like this:
Company → offers shares → public investors buy → investors become shareholders
For the Dangote Refinery IPO, the company is Dangote Petroleum Refinery and Petrochemicals FZE.
As of September 29, 2026, the official IPO information says:
Offer price: ₦525 per share
Minimum: 10 shares
Minimum amount: ₦5,250
Offer: 4.1 billion ordinary shares
Opening date: September 14, 2026
Closing date: October 13, 2026
An IPO is not the same thing as buying a stock that is already trading normally on the NGX.
With a normal NGX purchase:
You → stockbroker → buy shares from an existing shareholder in the market.
With an IPO:
You → approved IPO subscription channel → apply for newly offered shares.
If your application is successfully allotted, you become a shareholder.
Now, back to your question, How do you buy the Dangote Refinery IPO?
The safest way is to start from the official Dangote IPO website and SEC information, rather than clicking random WhatsApp/Telegram links.
The official site says applications should be made through approved Receiving Agents or Electronic Application Channels such as some banks, and other stock brokers like investnaija, bamboo etc.
The basic process is:
Step 1 — Make sure your details are ready
You need things such as your:
BVN
Bank account
Correct personal information
The details should match your records.
Step 2 — Choose an approved subscription channel
Don’t send money to somebody who says:
“Give me ₦100,000 and I’ll secure Dangote shares for you.”
The SEC specifically warns investors to use only approved channels and not respond to unsolicited offers promising guaranteed or preferential allotments.
Step 3 — Choose how many shares
The minimum is:
10 shares × ₦525 = ₦5,250
If you wanted 100 shares:
100 × ₦525 = ₦52,500
If you wanted 1,000:
1,000 × ₦525 = ₦525,000
The official offer allows subscriptions in multiples of 10.
Step 4 — Apply
You submit your application through the approved channel.
When the allocation begins, you will have yours in accordance to the allocation procedures
Kindly note that the NIDF Series 12 Offer is currently not available for subscription directly on the InvestNaija app. Subscriptions are being processed through their designated subscription channel. And Kindly note the following details of the offer: • Price per unit: ₦113.54 • Minimum subscriptionRead more
Kindly note that the NIDF Series 12 Offer is currently not available for subscription directly on the InvestNaija app. Subscriptions are being processed through their designated subscription channel.
And Kindly note the following details of the offer:
• Price per unit: ₦113.54
• Minimum subscription: 1,000 units
• Additional subscriptions must be in multiples of 100 units
• The fund pays quarterly distributions
• Offer closes on 30 October 2026
To participate in that offer,
you need to mail investnaija regarding the NIDF and they will send you an attached NIDF Subscription Form for you to fill and send back to them.
Upon receipt of the completed form, they will calculate the applicable subscription amount based on the number of units you wish to subscribe for and provide the account details for payment.
The key idea is Fundamental analysis: Fundamental analysis = checking whether the company is financially healthy, growing, and reasonably valued before buying its shares. NGX provides company financial statements and disclosure information, including annual reports and quarterly/interim results. ItsRead more
The key idea is Fundamental analysis:
Fundamental analysis = checking whether the company is financially healthy, growing, and reasonably valued before buying its shares.
NGX provides company financial statements and disclosure information, including annual reports and quarterly/interim results. Its X-Compliance system also tracks released financials and compliance matters.
NGX’s company profiles can show the financial statements filed by a company. For example, the NGX profile for Aradel lists its 2025 audited accounts and 2026 quarterly statements.
For fundamental analysis, I should start with:
Latest annual report + latest quarterly result.
Step 2 — Check Revenue
Revenue simply means:
How much money did the company generate from its business?
1. NGX X-Factbook is probably the best starting point NGX X-Factbook The NGX X-Factbook is an annual capital-market reference covering historical information. It includes: Listed-company profiles Five-year financial performance Corporate-action history Market statistics Index performance InformationRead more
1. NGX X-Factbook is probably the best starting point
NGX X-Factbook
The NGX X-Factbook is an annual capital-market reference covering historical information. It includes:
Listed-company profiles
Five-year financial performance
Corporate-action history
Market statistics
Index performance
Information about listed companies and market participants
NGX says the publication has existed since 1980, so it is particularly useful for understanding how the Nigerian market developed over time.
2. NGX historical price data
NGX Historical Data
This is what you want for questions like:
“What was this company’s share price years ago?”
NGX says historical end-of-day quotations are available as far back as 1996, although historical data is provided on request and may involve a fee. NGX also says undergraduate and master’s students can receive an 80% discount on historical-data requests.
The NGX Data Portal also provides downloadable historical equity information such as open, high, low, close, volume and number of trades.
3. Companies that disappeared from the market
This is particularly interesting for what you’re trying to learn.
NGX Delisted Companies
NGX has a list of 144 delisted companies and gives the date and reason for delisting. Reasons include voluntary delisting, mergers, regulatory delisting and nationalisation.
For example, the list includes historical companies such as Afribank, Ashaka Cement, A.G. Leventis, African Paints and Ardova.
That can teach you an important investing lesson:
A company being listed today doesn’t mean it will necessarily remain listed forever.
4. SEC Nigeria — fraud, violations and enforcement
For the “what went wrong?” part of your research, use the Securities and Exchange Commission (SEC) Nigeria.
SEC Nigeria Enforcement Portal
The SEC publishes information on enforcement actions, litigation, referred cases and other regulatory matters.
For example, SEC records contain historical cases involving things such as unauthorised sale of clients’ shares, failure to remit funds and breaches of capital-market rules.
5. NGX X-Compliance Report
NGX X-Compliance Report
This is useful when you’re studying company problems before they become obvious.
Yes, you can lose money in the Paramount Equity Fund, because it invests in equities (shares), and share prices can fall. But there are two different meanings of “lose my investment”: Temporary loss: You invest ₦100,000, and the fund's value later becomes ₦85,000. You have an ₦15,000 unrealised lossRead more
Yes, you can lose money in the Paramount Equity Fund, because it invests in equities (shares), and share prices can fall.
But there are two different meanings of “lose my investment”:
Temporary loss: You invest ₦100,000, and the fund’s value later becomes ₦85,000. You have an ₦15,000 unrealised loss. If the fund recovers before you sell, that loss may disappear.
Permanent loss: You withdraw when the investment is worth ₦85,000, so you actually receive less than your original ₦100,000.
Simple example
Imagine you put ₦100,000 into Paramount Equity Fund:
Situation Value
You invest ₦100,000
Market performs well ₦120,000
Market falls ₦85,000
You sell at ₦85,000 ₦15,000 loss
So it is not like a savings account where your principal is guaranteed.
The important thing is that an equity fund can hold many different shares, so your money is spread across investments rather than depending on one company’s stock. That diversification can reduce the impact of one company performing badly, but it cannot eliminate market risk.
What Happens to a Bond When Interest Rates Rise After I Invest?
Great
Great
See lessHow Do I Calculate Compound Interest on ₦2.5 Million at 16.77% Per Year?
Good, so here are the common cases for ₦2,500,000 at 16.77% per annum over 12 months. Annual compounding (once a year) Interest = 2,500,000 × 0.1677 = ₦419,250 Total after 12 months: ₦2,919,250 Monthly compounding Monthly rate = 16.77% ÷ 12 = 1.3975% Growth factor = (1.013975)¹² ≈ 1.18115 Total afteRead more
Good, so here are the common cases for ₦2,500,000 at 16.77% per annum over 12 months.
Annual compounding (once a year)
Interest = 2,500,000 × 0.1677 = ₦419,250
Total after 12 months: ₦2,919,250
Monthly compounding
Monthly rate = 16.77% ÷ 12 = 1.3975%
Growth factor = (1.013975)¹² ≈ 1.18115
Total after 12 months ≈ ₦2,952,880
Interest ≈ ₦452,880
Quarterly compounding
Quarterly rate = 4.1925%
Growth factor = (1.041925)⁴ ≈ 1.17862
Total after 12 months ≈ ₦2,946,550
Interest ≈ ₦446,550
Daily compounding (365 days)
Growth factor = (1 + 0.1677/365)³⁶⁵ ≈ 1.18255
Total after 12 months ≈ ₦2,956,370
Interest ≈ ₦456,370
and use can use fokona calculator to calculate the investment
See lessHow Much Will ₦5 Million Grow to in a Money Market Mutual Fund Over 17 Years?
First, what is an MMF? A Money Market Fund is an investment fund that pools money from many investors and invests it mainly in relatively short-term instruments such as: Treasury Bills (T-bills) Government securities Bank deposits Commercial papers and other money-market instruments So when you putRead more
First, what is an MMF?
A Money Market Fund is an investment fund that pools money from many investors and invests it mainly in relatively short-term instruments such as:
Treasury Bills (T-bills)
Government securities
Bank deposits
Commercial papers and other money-market instruments
So when you put ₦5 million into an MMF, you aren’t simply leaving ₦5 million in a normal savings account. The fund manager invests the pooled money and your investment earns returns.
2. If the 14% is compounded every year
The calculation is:
Future Value = ₦5,000,000 × (1 + 0.14)¹⁷
That gives approximately:
₦46,593,000
So:
Year Approx. value at 14%
Starting ₦5.00m
1 ₦5.70m
5 ₦9.63m
10 ₦18.53m
15 ₦35.63m
17 ₦46.59m
Your original ₦5 million would therefore grow to about ₦46.6 million after 17 years if the fund actually averaged 14% every year and all returns were reinvested.
Your approximate investment gain would be:
₦46.59m − ₦5m = ₦41.59m
But there’s an important MMF point 👇
14% is not guaranteed for 17 years.
This is where an MMF differs from a fixed 14% investment. MMF returns can change over time because the fund’s underlying investments and market interest rates change.
See lessMMf can do 17% per year and even more depending on MPR regulated interest based
Is There a Shariah-Compliant Alternative to a Money Market Fund in Nigeria?
here are Shariah-compliant funds beyond buying an individual Sukuk. For example, Stanbic IBTC Shari'ah Fixed Income Fund says it invests at least 70% in Sukuk and up to 30% in Shariah-compliant fixed-term investments. It is open-ended, meaning it isn't structured like a single Sukuk issue with one fRead more
here are Shariah-compliant funds beyond buying an individual Sukuk.
For example, Stanbic IBTC Shari’ah Fixed Income Fund says it invests at least 70% in Sukuk and up to 30% in Shariah-compliant fixed-term investments. It is open-ended, meaning it isn’t structured like a single Sukuk issue with one fixed maturity date. However, the fund itself currently describes its risk profile as “Aggressive,” so I would not call it a low-risk substitute without qualification.
Another example is the Stanbic IBTC Imaan Fund, which invests at least 70% in Shariah-compliant equities and up to 30% in other Shariah-compliant assets such as Sukuk. But it is also classified by the fund manager as Aggressive, so its value can fluctuate substantially.
There is also the LOTUS Halal Investment Fund, which is a diversified Shariah-compliant balanced fund investing in equities and asset-backed investments such as leases and trade-finance contracts. LOTUS describes it as a medium-risk product rather than a low-risk cash equivalent.
See lessHow Can I Buy the Dangote Refinery IPO in Nigeria?
Now the interesting question: "My brother bought shares in 2010 but has never received dividends." This is a different problem from the Dangote IPO. Don't immediately assume that the shares have disappeared. There are actually two things to investigate separately: A. Does he still have the shares? BRead more
Now the interesting question: “My brother bought shares in 2010 but has never received dividends.”
This is a different problem from the Dangote IPO.
Don’t immediately assume that the shares have disappeared.
There are actually two things to investigate separately:
A. Does he still have the shares?
B. Are there unpaid/unclaimed dividends?
These are not the same thing.
For example, your brother could still own the shares but have dividends sitting as unclaimed dividends because his bank account wasn’t properly mandated for e-dividend payments.
The SEC has a specific process for recovering unclaimed dividends.
What should your brother do?
Step 1 — Find the evidence of the original purchase
Look for anything from 2010:
Share certificate
Allotment letter
Offer documents
Old dividend warrant
Stockbroker documents
Company’s name
Registrar’s name
CSCS information
Previous statements
Even an old document can be extremely useful.
Step 2 — Find out which company he bought
This is VERY important.
Suppose he remembers:
“I bought shares around 2010.”
That’s not enough.
We need to know:
Which company?
For example:
GTCO
FirstBank/related listed entity
Dangote Cement
Zenith Bank
etc.
Then we can identify the company’s registrar.
Step 3 — Check the SEC unclaimed-dividend system
The SEC provides an official process where investors can search for their names and identify the registrar holding their unclaimed dividends.
The process is basically:
Search your name
See less↓
Find the company/registrar
↓
Obtain the appropriate e-dividend form
↓
Submit through the bank or registrar
↓
Dividends can then be paid electronically
How Can I Buy the Dangote Refinery IPO in Nigeria?
First: What is an IPO? IPO = Initial Public Offering. It is when a company offers shares to the public for the first time so that ordinary investors can become shareholders. Think of it like this: Company → offers shares → public investors buy → investors become shareholders For the Dangote RefineryRead more
First: What is an IPO?
IPO = Initial Public Offering.
It is when a company offers shares to the public for the first time so that ordinary investors can become shareholders.
Think of it like this:
Company → offers shares → public investors buy → investors become shareholders
For the Dangote Refinery IPO, the company is Dangote Petroleum Refinery and Petrochemicals FZE.
As of September 29, 2026, the official IPO information says:
Offer price: ₦525 per share
Minimum: 10 shares
Minimum amount: ₦5,250
Offer: 4.1 billion ordinary shares
Opening date: September 14, 2026
Closing date: October 13, 2026
An IPO is not the same thing as buying a stock that is already trading normally on the NGX.
With a normal NGX purchase:
You → stockbroker → buy shares from an existing shareholder in the market.
With an IPO:
You → approved IPO subscription channel → apply for newly offered shares.
If your application is successfully allotted, you become a shareholder.
Now, back to your question, How do you buy the Dangote Refinery IPO?
The safest way is to start from the official Dangote IPO website and SEC information, rather than clicking random WhatsApp/Telegram links.
The official site says applications should be made through approved Receiving Agents or Electronic Application Channels such as some banks, and other stock brokers like investnaija, bamboo etc.
The basic process is:
Step 1 — Make sure your details are ready
You need things such as your:
BVN
Bank account
Correct personal information
The details should match your records.
Step 2 — Choose an approved subscription channel
Don’t send money to somebody who says:
“Give me ₦100,000 and I’ll secure Dangote shares for you.”
The SEC specifically warns investors to use only approved channels and not respond to unsolicited offers promising guaranteed or preferential allotments.
Step 3 — Choose how many shares
The minimum is:
10 shares × ₦525 = ₦5,250
If you wanted 100 shares:
100 × ₦525 = ₦52,500
If you wanted 1,000:
1,000 × ₦525 = ₦525,000
The official offer allows subscriptions in multiples of 10.
Step 4 — Apply
You submit your application through the approved channel.
When the allocation begins, you will have yours in accordance to the allocation procedures
See lessHow Do I Subscribe to the NIDF ₦113.54 Offer Through InvestNaija?
Kindly note that the NIDF Series 12 Offer is currently not available for subscription directly on the InvestNaija app. Subscriptions are being processed through their designated subscription channel. And Kindly note the following details of the offer: • Price per unit: ₦113.54 • Minimum subscriptionRead more
Kindly note that the NIDF Series 12 Offer is currently not available for subscription directly on the InvestNaija app. Subscriptions are being processed through their designated subscription channel.
And Kindly note the following details of the offer:
• Price per unit: ₦113.54
• Minimum subscription: 1,000 units
• Additional subscriptions must be in multiples of 100 units
• The fund pays quarterly distributions
• Offer closes on 30 October 2026
To participate in that offer,
you need to mail investnaija regarding the NIDF and they will send you an attached NIDF Subscription Form for you to fill and send back to them.
Upon receipt of the completed form, they will calculate the applicable subscription amount based on the number of units you wish to subscribe for and provide the account details for payment.
See lessHow can beginners assess a company’s financial records before investing?
The key idea is Fundamental analysis: Fundamental analysis = checking whether the company is financially healthy, growing, and reasonably valued before buying its shares. NGX provides company financial statements and disclosure information, including annual reports and quarterly/interim results. ItsRead more
The key idea is Fundamental analysis:
Fundamental analysis = checking whether the company is financially healthy, growing, and reasonably valued before buying its shares.
NGX provides company financial statements and disclosure information, including annual reports and quarterly/interim results. Its X-Compliance system also tracks released financials and compliance matters.
Step 1 — Find the company’s financial statements
Suppose you want to analyse MTN Nigeria.
On the NGX website, you look for the company’s:
Annual Report
Audited Financial Statements
Q1 results
Half-year/Q2 results
Q3 results
Corporate announcements
NGX’s company profiles can show the financial statements filed by a company. For example, the NGX profile for Aradel lists its 2025 audited accounts and 2026 quarterly statements.
For fundamental analysis, I should start with:
Latest annual report + latest quarterly result.
Step 2 — Check Revenue
Revenue simply means:
How much money did the company generate from its business?
Imagine:
Year Revenue
2023 ₦1.5 trillion
2024 ₦2.0 trillion
2025 ₦2.5 trillion
The company is generating more revenue each year.
That’s something we want to investigate positively.
But don’t stop there.
Ask:
“Revenue is growing, but is the company actually making more profit?”
Because a company can sell more while its costs grow even faster.
Step 3 — Check Profit
Look at:
Profit Before Tax (PBT)
and
Profit After Tax (PAT)
For example:
Year Revenue PAT
2023 ₦1.5tn ₦150bn
2024 ₦2.0tn ₦220bn
2025 ₦2.5tn ₦300bn
Now we are seeing:
Revenue ↑
Profit ↑
That gives us more information about the company’s growth.
But again, we don’t just look at one year.
Look at the trend.
A single good year doesn’t tell you much.
3–5 years of financial history is much more useful.
NGX’s X-Factbook specifically provides five-year financial performance and corporate-action history for listed companies.
Step 4 — Calculate Profit Margin
This one is very important.
Suppose:
Revenue = ₦100 billion
Profit = ₦10 billion
Then:
Profit Margin = Profit ÷ Revenue × 100
= ₦10bn ÷ ₦100bn × 100
= 10%
Meaning:
For every ₦100 the company generates, about ₦10 becomes profit.
Now imagine:
Year Profit Margin
2023 8%
2024 9%
2025 10%
That’s interesting because the company isn’t just growing sales; it’s becoming more profitable relative to revenue.
Step 5 — Check the Balance Sheet
This is where we ask:
“What does the company own and what does it owe?”
Look for:
Assets
What the company owns.
Examples:
Cash
Buildings
Equipment
Receivables
Investments
Liabilities
What the company owes.
Examples:
Loans
Bonds
Trade payables
Other obligations
Shareholders’ Equity
Basically:
What belongs to the shareholders after liabilities are deducted from assets.
The simple relationship is:
Assets − Liabilities = Equity
💳 Step 6 — Check Debt
This is VERY important.
Suppose:
Company A:
Debt = ₦50bn
Cash = ₦40bn
Company B:
Debt = ₦500bn
Cash = ₦20bn
You wouldn’t want to look at their profits alone.
You’d ask:
“How much debt is this company carrying?”
Debt isn’t automatically bad.
A company can borrow money and use it to expand.
The question is:
Is the company generating enough cash/profit to comfortably handle its debt?
Step 7 — Check Cash Flow
This is one of the places beginners often make mistakes.
A company can report:
₦100 billion profit
but have much less actual cash coming into the business.
So look at the:
Statement of Cash Flows
Pay particular attention to:
Cash Flow from Operating Activities
This basically tells us how much cash the company’s normal business operations are generating.
For example:
Year Operating Cash Flow
2023 ₦80bn
2024 ₦110bn
2025 ₦150bn
That gives you another perspective on the company’s financial health.
Step 8 — Understand the BUSINESS itself
This is where fundamental analysis goes beyond numbers.
Ask:
What does the company actually do?
For example:
MTN Nigeria
→ telecommunications
Dangote Cement
→ cement
Access Holdings
→ financial services/banking
Seplat Energy
→ energy
Then ask:
What makes this company capable of continuing to make money?
Look at:
Competition
Customers
Market size
Products
Expansion
Regulation
Economic conditions
Management
Competitive advantage
Because numbers tell you what happened.
The business analysis helps you understand why it happened and what could affect it going forward.
Step 9 — Check EPS
EPS = Earnings Per Share
Very simple:
How much profit is attributable to each share?
Suppose a company makes:
₦100 billion profit
and has:
10 billion shares.
EPS:
₦100bn ÷ 10bn = ₦10 per share
You can then compare EPS over several years.
For example:
Year EPS
2023 ₦5
2024 ₦7
2025 ₦10
Again, we’re looking at the trend, not just one number.
Step 10 — Check Dividends
If you’re interested in dividend-paying NGX companies, check:
Dividend per share
Dividend history
Payout ratio
Whether earnings support the dividend
Whether dividends have been consistent
For example:
Year EPS Dividend
2023 ₦10 ₦3
2024 ₦12 ₦4
2025 ₦15 ₦5
This tells you more than simply saying:
“This company pays dividends.”
You want to know whether the dividend is supported by the company’s earnings and cash generation.
Step 11 — Now check the SHARE PRICE
This is where fundamental analysis becomes really interesting.
A good company doesn’t automatically mean its stock is attractively priced.
Suppose:
Company A is making excellent profits.
But its share price has already risen enormously.
You need to ask:
“Am I paying too much for these earnings?”
That’s where valuation ratios come in.
P/E Ratio
P/E = Share Price ÷ EPS
Example:
Share price = ₦100
EPS = ₦10
Therefore:
P/E = 100 ÷ 10 = 10
Meaning you’re paying roughly 10 times the company’s earnings per share.
But don’t say:
“10 P/E means cheap.”
You need to compare it with:
The company’s historical P/E
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Expected earnings growth
Interest rates
The company’s risk
Where Can I Find Historical Data on the Nigerian Stock Market and NGX?
1. NGX X-Factbook is probably the best starting point NGX X-Factbook The NGX X-Factbook is an annual capital-market reference covering historical information. It includes: Listed-company profiles Five-year financial performance Corporate-action history Market statistics Index performance InformationRead more
1. NGX X-Factbook is probably the best starting point
NGX X-Factbook
The NGX X-Factbook is an annual capital-market reference covering historical information. It includes:
Listed-company profiles
Five-year financial performance
Corporate-action history
Market statistics
Index performance
Information about listed companies and market participants
NGX says the publication has existed since 1980, so it is particularly useful for understanding how the Nigerian market developed over time.
2. NGX historical price data
NGX Historical Data
This is what you want for questions like:
“What was this company’s share price years ago?”
NGX says historical end-of-day quotations are available as far back as 1996, although historical data is provided on request and may involve a fee. NGX also says undergraduate and master’s students can receive an 80% discount on historical-data requests.
The NGX Data Portal also provides downloadable historical equity information such as open, high, low, close, volume and number of trades.
3. Companies that disappeared from the market
This is particularly interesting for what you’re trying to learn.
NGX Delisted Companies
NGX has a list of 144 delisted companies and gives the date and reason for delisting. Reasons include voluntary delisting, mergers, regulatory delisting and nationalisation.
For example, the list includes historical companies such as Afribank, Ashaka Cement, A.G. Leventis, African Paints and Ardova.
That can teach you an important investing lesson:
A company being listed today doesn’t mean it will necessarily remain listed forever.
4. SEC Nigeria — fraud, violations and enforcement
For the “what went wrong?” part of your research, use the Securities and Exchange Commission (SEC) Nigeria.
SEC Nigeria Enforcement Portal
The SEC publishes information on enforcement actions, litigation, referred cases and other regulatory matters.
For example, SEC records contain historical cases involving things such as unauthorised sale of clients’ shares, failure to remit funds and breaches of capital-market rules.
5. NGX X-Compliance Report
NGX X-Compliance Report
This is useful when you’re studying company problems before they become obvious.
NGX’s report tracks things such as:
Companies breaching listing rules
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Delinquent financial-reporting companies
Companies facing enforcement actions
Companies scheduled for delisting
New listing applications
Is Paramount Equity Fund a Risky Investment in Nigeria?
Yes, you can lose money in the Paramount Equity Fund, because it invests in equities (shares), and share prices can fall. But there are two different meanings of “lose my investment”: Temporary loss: You invest ₦100,000, and the fund's value later becomes ₦85,000. You have an ₦15,000 unrealised lossRead more
Yes, you can lose money in the Paramount Equity Fund, because it invests in equities (shares), and share prices can fall.
But there are two different meanings of “lose my investment”:
Temporary loss: You invest ₦100,000, and the fund’s value later becomes ₦85,000. You have an ₦15,000 unrealised loss. If the fund recovers before you sell, that loss may disappear.
Permanent loss: You withdraw when the investment is worth ₦85,000, so you actually receive less than your original ₦100,000.
Simple example
Imagine you put ₦100,000 into Paramount Equity Fund:
Situation Value
You invest ₦100,000
Market performs well ₦120,000
Market falls ₦85,000
You sell at ₦85,000 ₦15,000 loss
So it is not like a savings account where your principal is guaranteed.
The important thing is that an equity fund can hold many different shares, so your money is spread across investments rather than depending on one company’s stock. That diversification can reduce the impact of one company performing badly, but it cannot eliminate market risk.
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