A foodstuff business can be profitable, but poor stock management, wastage and price changes can quickly eat into the profit. 1. Food spoilage Items like tomatoes, pepper, vegetables and some fruits can spoil quickly. Remedy: Don't overstock perishable goods. Buy according to demand, store them propRead more
A foodstuff business can be profitable, but poor stock management, wastage and price changes can quickly eat into the profit.
1. Food spoilage
Items like tomatoes, pepper, vegetables and some fruits can spoil quickly.
Remedy: Don’t overstock perishable goods. Buy according to demand, store them properly and sell older stock first.
2. Price fluctuations
The price of rice, beans, onions, garri and other food items can change frequently.
Remedy: Monitor market prices regularly and avoid putting all your money into one product at once.
3. Food wastage
Poor handling, damaged packaging and expired products can reduce profit.
Remedy: Inspect goods when buying, handle them carefully and use the FIFO method—First In, First Out, meaning older stock is sold before newer stock.
4. Theft and inaccurate records
You may think the business is making money while stock is disappearing.
Remedy: Keep daily records of purchases, sales, expenses and remaining stock. Don’t rely on memory.
5. Selling on credit
Giving too many customers goods on credit can affect your cash flow.
Remedy: Set clear credit limits and payment dates, or focus mainly on cash sales.
6. Poor pricing
Selling without calculating transportation, storage, packaging and other costs can make a business appear profitable when it isn’t.
Remedy: Calculate the actual cost of each product before setting your selling price.
Example:
If you buy goods for ₦500,000 and spend another ₦50,000 on transportation and other expenses, your real cost is ₦550,000. If you sell everything for ₦580,000, your profit is only ₦30,000, not ₦80,000.
The main lesson: In a foodstuff business, making sales is not enough. You have to control wastage, stock, expenses, pricing and cash flow. Small losses every day can become a big loss at the end of the year.
ROI simply means Return on Investment—how much profit you expect to make compared with the amount you put into a business. For example, if I invest ₦1 million into a business and the business is expected to make ₦200,000 profit, the expected ROI is: ₦200,000 ÷ ₦1,000,000 × 100 = 20%. But I won't invRead more
ROI simply means Return on Investment—how much profit you expect to make compared with the amount you put into a business.
For example, if I invest ₦1 million into a business and the business is expected to make ₦200,000 profit, the expected ROI is:
₦200,000 ÷ ₦1,000,000 × 100 = 20%.
But I won’t invest just because someone says, “This business gives 20% ROI.” I would first ask where the profit is coming from, how long it will take, what expenses are involved, and what happens if the business doesn’t perform as expected.
For example, if another person promises 50% ROI in 3 months, it may sound attractive, but it could also come with much higher risk.
So yes, ROI is important when evaluating a business, but a high expected ROI doesn’t automatically mean it’s a good investment. You need to understand both the potential return and the risk of losing your money.
The goal is not simply to find the highest ROI; it’s to understand whether the expected return is realistic for the level of risk you’re taking.
A teenager can become financially literate without having any financial knowledge today. The key is to start small and learn consistently. The first skills to develop are budgeting, saving, investing, understanding debt, compound interest, distinguishing needs from wants, basic accounting, researchRead more
A teenager can become financially literate without having any financial knowledge today. The key is to start small and learn consistently.
The first skills to develop are budgeting, saving, investing, understanding debt, compound interest, distinguishing needs from wants, basic accounting, research and financial discipline.
For example, imagine a 16-year-old who receives ₦20,000 every month as an allowance. Instead of spending everything, they could decide to:
– ₦10,000 — personal needs and transport
– ₦5,000 — savings
– ₦3,000 — learning or buying books/courses
– ₦2,000 — investment or a small business experiment
If they save ₦5,000 every month, that’s ₦60,000 in one year, before considering any investment return.
The teenager can then start learning how bank interest works, how Treasury Bills and mutual funds work, what shares are, how businesses make profit, how debt works, and why inflation reduces purchasing power.
After learning, they can teach their friends or younger siblings what they understand. Teaching others forces you to understand the subject better.
Financial literacy is not about becoming rich quickly. It is about understanding money well enough to make better decisions with it. Start with your own ₦20,000, learn how to manage it, and gradually progress to understanding larger financial decisions.
I believe financial security should come before buying a car, especially if the car will consume most of your savings. A car is useful for comfort, convenience and even business, but the cost doesn’t end with the purchase price. You still have fuel, servicing, repairs, insurance, registration and otRead more
I believe financial security should come before buying a car, especially if the car will consume most of your savings.
A car is useful for comfort, convenience and even business, but the cost doesn’t end with the purchase price. You still have fuel, servicing, repairs, insurance, registration and other running expenses.
For example, if someone has ₦5 million saved and spends ₦4.5 million on a car, they may have the car but only ₦500k left for emergencies or other opportunities. But if they buy a ₦2.5 million car and keep ₦2.5 million as savings/investment, they have both mobility and some financial security.
The goal shouldn’t be “I must own a car.” The better question is, “Can I afford this car without weakening my financial position?”
Sometimes, delaying the car for a while and building your savings, investments and emergency fund first can put you in a much stronger position to buy one later without financial pressure.
Yes, you can potentially use your Dangote Refinery dividend to buy more shares, but it depends on how the company handles its dividend payment. Dividends are normally paid as cash into the shareholder's registered bank account; unless the company introduces a formal Dividend Reinvestment Plan (DRIP)Read more
Yes, you can potentially use your Dangote Refinery dividend to buy more shares, but it depends on how the company handles its dividend payment. Dividends are normally paid as cash into the shareholder’s registered bank account; unless the company introduces a formal Dividend Reinvestment Plan (DRIP), you would need to use the cash yourself to purchase additional shares through your stockbroker.
For example, suppose you own 1,000 shares and the company declares a dividend of ₦10 per share.
Your dividend would be:
1,000 × ₦10 = ₦10,000
If the share is trading at ₦500 when you receive the dividend, ₦10,000 could buy 20 additional shares, before transaction costs.
You would then have:
1,000 original shares + 20 new shares = 1,020 shares.
If the company later pays another dividend, you would receive dividends based on your new shareholding as well, assuming the dividend is declared at the same rate.
The important thing is that dividends are not guaranteed, and the share price can also rise or fall. So reinvesting dividends can help compound your investment over time, but you should still consider the company’s valuation and your investment goals before buying more shares.
MPR means Monetary Policy Rate. It is the benchmark interest rate set by the CBN, and it influences how expensive it is for banks and other financial institutions to borrow and lend money. When the CBN reduces the MPR, it can gradually put downward pressure on interest rates across the economy, althRead more
MPR means Monetary Policy Rate. It is the benchmark interest rate set by the CBN, and it influences how expensive it is for banks and other financial institutions to borrow and lend money.
When the CBN reduces the MPR, it can gradually put downward pressure on interest rates across the economy, although not every investment rate will change immediately or by the same amount.
For example, suppose you have ₦1m in a fixed deposit earning 20% per year. That’s roughly ₦200k in interest over a year if the rate remains unchanged.
If market rates fall and the bank later reduces its new fixed-deposit rate to 16%, a new ₦1m deposit at that rate would earn roughly ₦160k per year.
The same principle can affect Treasury Bills and money-market funds, because their returns are closely connected to prevailing short-term interest rates.
For equity investments, the effect is different. Lower interest rates can make fixed-income investments less attractive and may encourage some investors to move money into equities. That can support stock prices, but equity returns are not guaranteed because they depend on company performance and market conditions.
So generally:
MPR ↓ → borrowing costs may fall → deposit/fixed-income yields may gradually fall → equity markets may receive more interest, but returns remain uncertain.
The important thing is to look at your investment’s duration, current yield, risk and liquidity rather than assuming every investment will immediately give a lower return after an MPR cut.
Yes, you can manage your shares through a stockbroker, but the first thing is to understand that the NGX itself is the market/exchange; you normally don't trade directly on the NGX. Your shares are held electronically through the CSCS and your stockbroker provides the platform for buying and sellingRead more
Yes, you can manage your shares through a stockbroker, but the first thing is to understand that the NGX itself is the market/exchange; you normally don’t trade directly on the NGX. Your shares are held electronically through the CSCS and your stockbroker provides the platform for buying and selling.
For your first question, if you already purchased the shares but don’t have access to them through a broker app, I would:
1. Find your CSCS Clearing House Number (CHN) or CSCS account details.
2. Choose a SEC-licensed stockbroker that offers online trading.
3. Ask the broker to help you link/open the appropriate trading relationship with your existing CSCS account.
4. If the shares are currently with another broker, you can request a transfer of your holdings to the new broker. Don’t sell the shares simply because you want to change brokers.
For example, if you have ₦500,000 worth of shares sitting in your CSCS account but you want to use Broker B’s app, you don’t need to sell the shares and buy them again. You can ask Broker B about the process for transferring/linking your existing holdings.
For the Fidelity Bank shares you bought in 2024, I would first trace the original transaction rather than assuming the shares are lost.
Keep any evidence you have from the bank—receipt, payment evidence, application form, account statement or transaction reference. Then contact Fidelity Bank and the registrar/broker that handled the share purchase and ask them to confirm:
– Whether your application was successfully allotted.
– The number of shares allotted to you.
– The CSCS account/CHN where the shares were credited.
– Whether your name/details have any KYC issue.
– Whether there are any outstanding dividends.
If the shares were properly allotted and credited to your CSCS account, a stockbroker should be able to help you access/manage the holdings once your CSCS details are correctly linked.
So, I would not buy the Fidelity shares again until you have traced the original 2024 purchase. You may already own the shares but simply don’t have access to the account where they were credited.
Similar companies can have different market values on the NGX because investors don't look at the share price alone. They look at the size of the company, profitability, growth prospects, debt, assets, cash flow and the future potential of the business. For example, imagine two banks: Bank A: 10 bilRead more
Similar companies can have different market values on the NGX because investors don’t look at the share price alone. They look at the size of the company, profitability, growth prospects, debt, assets, cash flow and the future potential of the business.
Bank B has the higher share price, but Bank A is actually worth more in total because it has more shares outstanding.
Also, if Bank A makes ₦60bn profit while Bank B makes ₦30bn, investors may value them differently because their earnings are different.
So when comparing similar companies, I wouldn’t say a ₦50 stock is cheaper than an ₦80 stock simply because the price is lower. I would compare their market capitalisation, EPS, P/E ratio, profitability, growth, debt, cash flow and future prospects.
The main lesson is: share price tells you the price of one share; market capitalisation gives you a better picture of what the whole company is worth in the market.
If you already have a CSCS account but stopped receiving dividends after the move to e-dividend, the first thing is to confirm whether the issue is with your CSCS account details, bank details, or your e-dividend registration. I would suggest the following: 1. Confirm your CSCS account/CHN and makeRead more
If you already have a CSCS account but stopped receiving dividends after the move to e-dividend, the first thing is to confirm whether the issue is with your CSCS account details, bank details, or your e-dividend registration.
I would suggest the following:
1. Confirm your CSCS account/CHN and make sure the name on the account matches your bank account details.
2. Contact your CSCS broker/stockbroker and ask them to confirm that your account is still active and your details are correct.
3. Check your e-Dividend registration through the appropriate registrar(s) for the companies whose dividends you are expecting.
4. Make sure your bank account number, BVN and other required details are correctly linked to your investor record.
5. If you have unpaid or unclaimed dividends from previous years, ask the relevant registrar to check your unclaimed dividend balance and explain the process for updating your records and claiming it.
6. Keep documents such as your valid ID, bank statement, CSCS account details and any old dividend warrants/statements available, as they may be requested for verification.
For example, if you owned shares in three companies and received dividends before e-dividend but stopped receiving them afterwards, it doesn’t necessarily mean the shares are lost. The shares may still be in your CSCS account while the problem is with the dividend mandate or outdated bank details.
The best starting point is to recover/verify your CSCS account details and then trace the dividend issue with the relevant registrars. Don’t create another CSCS account until you confirm what happened to the existing one, because you may simply need to update or reactivate the old records.
Yes, a penny stock can appreciate in the future, sometimes significantly, but being cheap doesn't automatically mean it will rise. For example, if a stock is trading at ₦2 and I invest ₦100,000, I would have about 50,000 shares before fees. If the company performs well and the price eventually risesRead more
Yes, a penny stock can appreciate in the future, sometimes significantly, but being cheap doesn’t automatically mean it will rise.
For example, if a stock is trading at ₦2 and I invest ₦100,000, I would have about 50,000 shares before fees.
If the company performs well and the price eventually rises to ₦5:
50,000 × ₦5 = ₦250,000.
That’s a ₦150,000 gain.
But if the business performs badly and the price falls to ₦0.80, those same 50,000 shares would be worth only ₦40,000.
So I wouldn’t buy a penny stock simply because the price is ₦2 or ₦3. I would first look at the company’s revenue, profit, debt, cash flow, number of shares, liquidity and future growth prospects.
A low share price can give room for a large percentage gain, but it can also come with much higher risk. The real question is not “How cheap is the share?” but “What is the underlying business worth and can it grow?”
How Can I Reduce Losses and Food Wastage in a Foodstuff Business?
A foodstuff business can be profitable, but poor stock management, wastage and price changes can quickly eat into the profit. 1. Food spoilage Items like tomatoes, pepper, vegetables and some fruits can spoil quickly. Remedy: Don't overstock perishable goods. Buy according to demand, store them propRead more
A foodstuff business can be profitable, but poor stock management, wastage and price changes can quickly eat into the profit.
1. Food spoilage
Items like tomatoes, pepper, vegetables and some fruits can spoil quickly.
Remedy: Don’t overstock perishable goods. Buy according to demand, store them properly and sell older stock first.
2. Price fluctuations
The price of rice, beans, onions, garri and other food items can change frequently.
Remedy: Monitor market prices regularly and avoid putting all your money into one product at once.
3. Food wastage
Poor handling, damaged packaging and expired products can reduce profit.
Remedy: Inspect goods when buying, handle them carefully and use the FIFO method—First In, First Out, meaning older stock is sold before newer stock.
4. Theft and inaccurate records
You may think the business is making money while stock is disappearing.
Remedy: Keep daily records of purchases, sales, expenses and remaining stock. Don’t rely on memory.
5. Selling on credit
Giving too many customers goods on credit can affect your cash flow.
Remedy: Set clear credit limits and payment dates, or focus mainly on cash sales.
6. Poor pricing
Selling without calculating transportation, storage, packaging and other costs can make a business appear profitable when it isn’t.
Remedy: Calculate the actual cost of each product before setting your selling price.
Example:
If you buy goods for ₦500,000 and spend another ₦50,000 on transportation and other expenses, your real cost is ₦550,000. If you sell everything for ₦580,000, your profit is only ₦30,000, not ₦80,000.
The main lesson: In a foodstuff business, making sales is not enough. You have to control wastage, stock, expenses, pricing and cash flow. Small losses every day can become a big loss at the end of the year.
See lessWhat does expected ROI mean when investing in a business?
ROI simply means Return on Investment—how much profit you expect to make compared with the amount you put into a business. For example, if I invest ₦1 million into a business and the business is expected to make ₦200,000 profit, the expected ROI is: ₦200,000 ÷ ₦1,000,000 × 100 = 20%. But I won't invRead more
ROI simply means Return on Investment—how much profit you expect to make compared with the amount you put into a business.
For example, if I invest ₦1 million into a business and the business is expected to make ₦200,000 profit, the expected ROI is:
₦200,000 ÷ ₦1,000,000 × 100 = 20%.
But I won’t invest just because someone says, “This business gives 20% ROI.” I would first ask where the profit is coming from, how long it will take, what expenses are involved, and what happens if the business doesn’t perform as expected.
For example, if another person promises 50% ROI in 3 months, it may sound attractive, but it could also come with much higher risk.
So yes, ROI is important when evaluating a business, but a high expected ROI doesn’t automatically mean it’s a good investment. You need to understand both the potential return and the risk of losing your money.
The goal is not simply to find the highest ROI; it’s to understand whether the expected return is realistic for the level of risk you’re taking.
See lessWhat Skills Does a Teenager Need to Become a Financial Literacy Expert?
A teenager can become financially literate without having any financial knowledge today. The key is to start small and learn consistently. The first skills to develop are budgeting, saving, investing, understanding debt, compound interest, distinguishing needs from wants, basic accounting, researchRead more
A teenager can become financially literate without having any financial knowledge today. The key is to start small and learn consistently.
The first skills to develop are budgeting, saving, investing, understanding debt, compound interest, distinguishing needs from wants, basic accounting, research and financial discipline.
For example, imagine a 16-year-old who receives ₦20,000 every month as an allowance. Instead of spending everything, they could decide to:
– ₦10,000 — personal needs and transport
– ₦5,000 — savings
– ₦3,000 — learning or buying books/courses
– ₦2,000 — investment or a small business experiment
If they save ₦5,000 every month, that’s ₦60,000 in one year, before considering any investment return.
The teenager can then start learning how bank interest works, how Treasury Bills and mutual funds work, what shares are, how businesses make profit, how debt works, and why inflation reduces purchasing power.
After learning, they can teach their friends or younger siblings what they understand. Teaching others forces you to understand the subject better.
Financial literacy is not about becoming rich quickly. It is about understanding money well enough to make better decisions with it. Start with your own ₦20,000, learn how to manage it, and gradually progress to understanding larger financial decisions.
See lessShould Financial Security Come Before Buying a Car in Nigeria?
I believe financial security should come before buying a car, especially if the car will consume most of your savings. A car is useful for comfort, convenience and even business, but the cost doesn’t end with the purchase price. You still have fuel, servicing, repairs, insurance, registration and otRead more
I believe financial security should come before buying a car, especially if the car will consume most of your savings.
A car is useful for comfort, convenience and even business, but the cost doesn’t end with the purchase price. You still have fuel, servicing, repairs, insurance, registration and other running expenses.
For example, if someone has ₦5 million saved and spends ₦4.5 million on a car, they may have the car but only ₦500k left for emergencies or other opportunities. But if they buy a ₦2.5 million car and keep ₦2.5 million as savings/investment, they have both mobility and some financial security.
The goal shouldn’t be “I must own a car.” The better question is, “Can I afford this car without weakening my financial position?”
Sometimes, delaying the car for a while and building your savings, investments and emergency fund first can put you in a much stronger position to buy one later without financial pressure.
See lessCan I use my Dangote Refinery dividends to buy more shares?
Yes, you can potentially use your Dangote Refinery dividend to buy more shares, but it depends on how the company handles its dividend payment. Dividends are normally paid as cash into the shareholder's registered bank account; unless the company introduces a formal Dividend Reinvestment Plan (DRIP)Read more
Yes, you can potentially use your Dangote Refinery dividend to buy more shares, but it depends on how the company handles its dividend payment. Dividends are normally paid as cash into the shareholder’s registered bank account; unless the company introduces a formal Dividend Reinvestment Plan (DRIP), you would need to use the cash yourself to purchase additional shares through your stockbroker.
For example, suppose you own 1,000 shares and the company declares a dividend of ₦10 per share.
Your dividend would be:
1,000 × ₦10 = ₦10,000
If the share is trading at ₦500 when you receive the dividend, ₦10,000 could buy 20 additional shares, before transaction costs.
You would then have:
1,000 original shares + 20 new shares = 1,020 shares.
If the company later pays another dividend, you would receive dividends based on your new shareholding as well, assuming the dividend is declared at the same rate.
The important thing is that dividends are not guaranteed, and the share price can also rise or fall. So reinvesting dividends can help compound your investment over time, but you should still consider the company’s valuation and your investment goals before buying more shares.
See lessWhat is MPR and how does it affect returns on savings or investment generally?
MPR means Monetary Policy Rate. It is the benchmark interest rate set by the CBN, and it influences how expensive it is for banks and other financial institutions to borrow and lend money. When the CBN reduces the MPR, it can gradually put downward pressure on interest rates across the economy, althRead more
MPR means Monetary Policy Rate. It is the benchmark interest rate set by the CBN, and it influences how expensive it is for banks and other financial institutions to borrow and lend money.
When the CBN reduces the MPR, it can gradually put downward pressure on interest rates across the economy, although not every investment rate will change immediately or by the same amount.
For example, suppose you have ₦1m in a fixed deposit earning 20% per year. That’s roughly ₦200k in interest over a year if the rate remains unchanged.
If market rates fall and the bank later reduces its new fixed-deposit rate to 16%, a new ₦1m deposit at that rate would earn roughly ₦160k per year.
The same principle can affect Treasury Bills and money-market funds, because their returns are closely connected to prevailing short-term interest rates.
For equity investments, the effect is different. Lower interest rates can make fixed-income investments less attractive and may encourage some investors to move money into equities. That can support stock prices, but equity returns are not guaranteed because they depend on company performance and market conditions.
So generally:
MPR ↓ → borrowing costs may fall → deposit/fixed-income yields may gradually fall → equity markets may receive more interest, but returns remain uncertain.
The important thing is to look at your investment’s duration, current yield, risk and liquidity rather than assuming every investment will immediately give a lower return after an MPR cut.
See lessHow Can I Transfer My NGX Shares to a Broker and Trace My Fidelity Bank Shares?
Yes, you can manage your shares through a stockbroker, but the first thing is to understand that the NGX itself is the market/exchange; you normally don't trade directly on the NGX. Your shares are held electronically through the CSCS and your stockbroker provides the platform for buying and sellingRead more
Yes, you can manage your shares through a stockbroker, but the first thing is to understand that the NGX itself is the market/exchange; you normally don’t trade directly on the NGX. Your shares are held electronically through the CSCS and your stockbroker provides the platform for buying and selling.
For your first question, if you already purchased the shares but don’t have access to them through a broker app, I would:
1. Find your CSCS Clearing House Number (CHN) or CSCS account details.
2. Choose a SEC-licensed stockbroker that offers online trading.
3. Ask the broker to help you link/open the appropriate trading relationship with your existing CSCS account.
4. If the shares are currently with another broker, you can request a transfer of your holdings to the new broker. Don’t sell the shares simply because you want to change brokers.
For example, if you have ₦500,000 worth of shares sitting in your CSCS account but you want to use Broker B’s app, you don’t need to sell the shares and buy them again. You can ask Broker B about the process for transferring/linking your existing holdings.
For the Fidelity Bank shares you bought in 2024, I would first trace the original transaction rather than assuming the shares are lost.
Keep any evidence you have from the bank—receipt, payment evidence, application form, account statement or transaction reference. Then contact Fidelity Bank and the registrar/broker that handled the share purchase and ask them to confirm:
– Whether your application was successfully allotted.
– The number of shares allotted to you.
– The CSCS account/CHN where the shares were credited.
– Whether your name/details have any KYC issue.
– Whether there are any outstanding dividends.
If the shares were properly allotted and credited to your CSCS account, a stockbroker should be able to help you access/manage the holdings once your CSCS details are correctly linked.
So, I would not buy the Fidelity shares again until you have traced the original 2024 purchase. You may already own the shares but simply don’t have access to the account where they were credited.
See lessWhy Do Similar Companies Have Different Share Prices and Market Values on the NGX?
Similar companies can have different market values on the NGX because investors don't look at the share price alone. They look at the size of the company, profitability, growth prospects, debt, assets, cash flow and the future potential of the business. For example, imagine two banks: Bank A: 10 bilRead more
Similar companies can have different market values on the NGX because investors don’t look at the share price alone. They look at the size of the company, profitability, growth prospects, debt, assets, cash flow and the future potential of the business.
For example, imagine two banks:
Bank A: 10 billion shares × ₦50 = ₦500bn market value.
Bank B: 5 billion shares × ₦80 = ₦400bn market value.
Bank B has the higher share price, but Bank A is actually worth more in total because it has more shares outstanding.
Also, if Bank A makes ₦60bn profit while Bank B makes ₦30bn, investors may value them differently because their earnings are different.
So when comparing similar companies, I wouldn’t say a ₦50 stock is cheaper than an ₦80 stock simply because the price is lower. I would compare their market capitalisation, EPS, P/E ratio, profitability, growth, debt, cash flow and future prospects.
The main lesson is: share price tells you the price of one share; market capitalisation gives you a better picture of what the whole company is worth in the market.
See lessHow Can I Recover My CSCS Account and Receive Unpaid Dividends in Nigeria?
If you already have a CSCS account but stopped receiving dividends after the move to e-dividend, the first thing is to confirm whether the issue is with your CSCS account details, bank details, or your e-dividend registration. I would suggest the following: 1. Confirm your CSCS account/CHN and makeRead more
If you already have a CSCS account but stopped receiving dividends after the move to e-dividend, the first thing is to confirm whether the issue is with your CSCS account details, bank details, or your e-dividend registration.
I would suggest the following:
1. Confirm your CSCS account/CHN and make sure the name on the account matches your bank account details.
2. Contact your CSCS broker/stockbroker and ask them to confirm that your account is still active and your details are correct.
3. Check your e-Dividend registration through the appropriate registrar(s) for the companies whose dividends you are expecting.
4. Make sure your bank account number, BVN and other required details are correctly linked to your investor record.
5. If you have unpaid or unclaimed dividends from previous years, ask the relevant registrar to check your unclaimed dividend balance and explain the process for updating your records and claiming it.
6. Keep documents such as your valid ID, bank statement, CSCS account details and any old dividend warrants/statements available, as they may be requested for verification.
For example, if you owned shares in three companies and received dividends before e-dividend but stopped receiving them afterwards, it doesn’t necessarily mean the shares are lost. The shares may still be in your CSCS account while the problem is with the dividend mandate or outdated bank details.
The best starting point is to recover/verify your CSCS account details and then trace the dividend issue with the relevant registrars. Don’t create another CSCS account until you confirm what happened to the existing one, because you may simply need to update or reactivate the old records.
See lessCan Penny Stocks Increase in Value Over Time in Nigeria?
Yes, a penny stock can appreciate in the future, sometimes significantly, but being cheap doesn't automatically mean it will rise. For example, if a stock is trading at ₦2 and I invest ₦100,000, I would have about 50,000 shares before fees. If the company performs well and the price eventually risesRead more
Yes, a penny stock can appreciate in the future, sometimes significantly, but being cheap doesn’t automatically mean it will rise.
For example, if a stock is trading at ₦2 and I invest ₦100,000, I would have about 50,000 shares before fees.
If the company performs well and the price eventually rises to ₦5:
50,000 × ₦5 = ₦250,000.
That’s a ₦150,000 gain.
But if the business performs badly and the price falls to ₦0.80, those same 50,000 shares would be worth only ₦40,000.
So I wouldn’t buy a penny stock simply because the price is ₦2 or ₦3. I would first look at the company’s revenue, profit, debt, cash flow, number of shares, liquidity and future growth prospects.
A low share price can give room for a large percentage gain, but it can also come with much higher risk. The real question is not “How cheap is the share?” but “What is the underlying business worth and can it grow?”
See less