INVESTING & WEALTH BUILDING
This section answers real questions about investing in Nigeria. Learn how to invest in stocks market, treasury bills, bonds, NIDF, Commecial Papers and other opportunities. Whether you are a beginner or experienced, you will find simple guidance to grow your money.
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What is the best time to sell shares on the Nigeria Stock Exchange (NGX) to maximize profit after charges?
There isn’t a single “ideal” time or profit figure that works for everyone, but there is a practical way to determine when selling makes sense so you don’t eat into your capital. 1) First, understand your cost structure Every time you sell shares, you typically incur: Brokerage fee SEC/CSCS chargesRead more
There isn’t a single “ideal” time or profit figure that works for everyone, but there is a practical way to determine when selling makes sense so you don’t eat into your capital.
See less1) First, understand your cost structure
Every time you sell shares, you typically incur:
Brokerage fee
SEC/CSCS charges
VAT and other minor statutory fees (in Nigeria)
These combined usually fall around 1.3% – 2.0% of the transaction value (it varies slightly by broker).
👉 That means if your profit is below this range, you’re either:
Breaking even, or
Losing part of your capital
2) Minimum “safe” profit threshold
To cover fees and still protect your capital, your gain should be:
At least 3% – 5% (bare minimum)
More realistically: 5% – 10%+
Why?
~2% goes to fees
The rest becomes your real profit
3) A simple rule you can apply
Think of it like this:
If gain < 3% → Don’t sell (fees will wipe it out)
If gain ≈ 5% → Only sell if you urgently need cash or risk is rising
If gain ≥ 10% → Reasonable zone to start taking profit
If gain ≥ 15–30% → Strong profit-taking zone (depends on strategy)
4) Timing is not just about profit %
This is where many investors get it wrong.
You don’t sell only because of profit—you sell based on:
a) Market condition
If the market is overheated → take profit earlier
If it’s still trending upward → you can hold longer
b) Company fundamentals
If the company is still strong → hold
If fundamentals weaken → sell even with small profit
c) Your strategy
Short-term trader → 5–15% gains are fine
Long-term investor → may wait for 20–100%+
5) Practical example
Let’s say:
You bought shares at ₦100
Now price = ₦105 (5% gain)
After fees (~2%):
Real profit ≈ 3% → very small
But if price = ₦115 (15% gain):
After fees → ~13% net profit → meaningful
6) A disciplined approach (what professionals do)
Instead of guessing, define:
Target profit: e.g. 15%
Stop-loss: e.g. -5%
Then stick to it.
Bottom line
There is no magic number, but a rational benchmark is:
Don’t sell below 5% gain.
Aim for 10%–20%+ to make selling worthwhile after fees.
How can I analyze Nigerian stocks using MetaTrader 5 (MT5) in Nigeria?
Short answer: You generally cannot properly trade or analyze real Nigerian (NGX) stocks on MT5. Let me explain clearly so you don’t waste time. ❌ 1. Can MT5 track Nigerian (NGX) stocks? 👉 Mostly NO (for real NGX stocks) MetaTrader 5 is mainly designed for: Forex Commodities Indices CFDs on stocks (nRead more
Short answer: You generally cannot properly trade or analyze real Nigerian (NGX) stocks on MT5. Let me explain clearly so you don’t waste time.
See less❌ 1. Can MT5 track Nigerian (NGX) stocks?
👉 Mostly NO (for real NGX stocks)
MetaTrader 5 is mainly designed for:
Forex
Commodities
Indices
CFDs on stocks (not the real shares)
👉 Even though MT5 supports “stocks,” what you get via brokers are usually:
Foreign stocks (like US shares)
Or synthetic/CFD versions, not actual NGX equities
⚠️ The key limitation:
To use MT5 for any asset:
You MUST connect it to a broker that provides that asset
And:
Most MT5 brokers in Nigeria focus on forex & CFDs, not NGX stocks
👉 So:
You won’t see stocks like GTCO, Zenith Bank, Dangote Cement on MT5 (real ones)
⚠️ Important warning (many beginners miss this)
If you see “stocks” on MT5:
You are likely trading CFDs
Not owning actual shares on NGX
👉 That means:
No dividends
No CSCS ownership
Higher risk (leverage)
✅ 2. So how do you do Technical Analysis for NGX properly?
This is where you should focus.
🔥 Best alternatives (realistic options)
✅ Option 1: TradingView (BEST CHOICE)
Has charts for many Nigerian stocks (limited but improving)
Powerful tools:
Indicators (RSI, MACD, Moving averages)
Trendlines
Patterns
👉 This is the closest thing to MT5-style analysis for NGX
✅ Option 2: NGX Data Platforms
Use:
Nigerian Exchange Group official site
Stockbroker platforms (Meristem, ARM, etc.)
They provide:
Price history
Basic charts
👉 But not as powerful as TradingView
✅ Option 3: Local investment apps (simple analysis)
Apps like:
InvestNaija
Cowrywise
Provide:
Performance tracking
Basic insights
👉 Not full technical analysis tools
✅ Option 4: Professional tools (advanced)
Bloomberg (too expensive)
Reuters Eikon
👉 Not practical for most individuals
🧠 If you REALLY want MT5-like experience
You have 2 paths:
Path A (Not recommended for beginners)
Use MT5 with CFD brokers
Trade “stock-like instruments”
👉 But:
You are not investing, you are trading (high risk)
Path B (Recommended)
Use:
TradingView → for analysis
Broker (CSCS/NGX) → for actual buying
👉 This is what serious investors do
🎯 Practical setup for YOU
Since you’re already investing:
Do this:
Analyze stocks on TradingView
Buy through:
Your broker / app (real shares)
Track performance over time
🧠 Final clarity
MT5 = powerful, but not suitable for NGX investing
Best combo:
TradingView (analysis) + NGX broker (execution)
How do I invest in money market mutual funds using ARM One app in Nigeria?
Good question—this is exactly the right place to start as a beginner. I’ll break it into two parts: How to invest using ARM ONE app Which fund is best for you as a beginner ✅ 1. How to invest in Money Market Mutual Fund using ARM ONE The ARM One App is designed to make this simple. Step-by-step procRead more
Good question—this is exactly the right place to start as a beginner. I’ll break it into two parts:
See lessHow to invest using ARM ONE app
Which fund is best for you as a beginner
✅ 1. How to invest in Money Market Mutual Fund using ARM ONE
The ARM One App is designed to make this simple.
Step-by-step process:
Step 1: Download & Register
Install the app (Play Store/App Store)
Create account (BVN, email, phone number)
Complete KYC verification
👉 The app allows you to manage investments, track returns, and invest in mutual funds directly
Step 2: Fund your wallet
Transfer money from your bank into your ARM wallet (cash balance) inside the app
Step 3: Choose “Mutual Funds”
Inside the app dashboard:
Click Invest
Select Mutual Funds
Step 4: Select Money Market Fund
Look for:
ARM Money Market Fund (MMF)
Step 5: Invest
Enter amount (you can start from as low as about ₦1,000)
Confirm transaction
Units will be allocated to you
Step 6: Monitor & withdraw anytime
You can:
Track daily growth
Add more money
Withdraw when needed
💡 2. Which mutual fund is best for a beginner?
Let’s be very direct:
👉 As a beginner, Money Market Fund is your best starting point
Why?
The ARM Money Market Fund:
Is low risk
Preserves your capital
Pays steady returns
Is better than leaving money in savings account
It invests in:
Treasury bills
Bank placements
Short-term government securities
🔍 Simple comparison (so you understand clearly):
Fund Type
Risk
Best For
Money Market Fund ✅
Low
Beginners, short-term savings
Fixed Income Fund
Medium
Slightly higher returns
Equity Fund
High
Long-term, higher risk
🎯 What I recommend for YOU (based on beginner level)
Start like this:
Phase 1 (First 3–6 months)
Put money in Money Market Fund
Learn how the app works
Understand how returns come
Phase 2 (Later)
You can gradually add:
Fixed income fund
Or small equity exposure
⚠️ Important beginner advice
Don’t rush into equity funds first
MMMF is not for “quick profit” — it’s for steady growth + safety
You can withdraw anytime (very liquid)
🧠 Bottom line
Use ARM ONE app → Mutual Funds → Money Market Fund
It is:
Safe
Beginner-friendly
Flexible
Start small, then grow
Can I Use Both an Investment App and a Stockbroker for the Same Shares in Nigeria?
You’re asking two different—but very important—things: Will using an app + a stockbroker cause conflict? How to choose good real estate investments in Nigeria? Let’s handle them clearly. 🔹 PART 1: Using App + Stockbroker — Any Conflict? Short answer: No conflict—if properly structured. But here’s thRead more
You’re asking two different—but very important—things:
See lessWill using an app + a stockbroker cause conflict?
How to choose good real estate investments in Nigeria?
Let’s handle them clearly.
🔹 PART 1: Using App + Stockbroker — Any Conflict?
Short answer: No conflict—if properly structured.
But here’s the real explanation.
📌 What matters is your CSCS account
Everything revolves around:
👉 Central Securities Clearing System (CSCS)
This is where your shares are stored officially.
✅ Scenario A: Both app and broker use SAME CHN
If:
Your app (e.g. InvestNaija or Afrinvest Plutus)
And your stockbroker
are linked to the same CHN
👉 Then:
All your holdings are one portfolio
CSCS will see everything together
No issue at all
⚠️ Scenario B: Different CHNs (this is where confusion comes)
If:
Your app created a separate CSCS account
Your broker also has another one
👉 Then:
Your investments are split
You’ll see:
Different prices
Different units
Separate records
📌 CSCS will NOT automatically merge them
🧠 Why you’re seeing different prices (NIDF case)
You mentioned:
NIDF via broker
NIDF via app
This is normal because:
👉 Nigeria Infrastructure Debt Fund (NIDF)
is a mutual fund / infrastructure fund, not a normal stock.
So:
Price on app = NAV (Net Asset Value)
Price via broker = market or offer price
👉 That’s why they differ
📊 Important truth
Even if it’s the same fund:
Units bought at different times
Or through different platforms
👉 will show different prices
But value = still yours.
✅ What you should do (very important)
1. Confirm your CHN(s)
Ask both:
Your broker
Your app provider
“Are these investments under the same CSCS CHN?”
2. If different → request consolidation
You can:
Merge into one CSCS account
Or choose one platform as your main
3. Track everything properly
Don’t rely only on apps:
👉 Always request:
CSCS statement
That is your final truth record
🔹 PART 2: Real Estate Investments (Safe for Beginners)
You asked a very smart question here.
You don’t need to buy land directly to invest in real estate.
✅ Option 1: REITs (Best for beginners)
These are companies that:
Own properties
Pay rental income as dividends
Examples in Nigeria:
1. UPDC Real Estate Investment Trust
One of the most known REITs
Pays dividend (not always high, but stable)
2. SFS Real Estate Investment Trust
Focused on property income
Smaller but structured
👉 These are:
Easy to buy like shares
Good for passive income
⚠️ Reality check (important)
Nigeria REITs:
Are still developing
Dividends are not very high yet
Growth is moderate, not explosive
✅ Option 2: Real estate-backed funds
Like:
Nigeria Infrastructure Debt Fund
They invest in:
Roads
Infrastructure
Real assets
👉 Good for:
Stability
Regular income
🧠 What makes a “good” investment (simple rule)
Look for:
Consistent dividend history
Strong management
Real assets backing it
Low debt problems
🔚 Final clarity
👉 About your main concern:
No conflict if using app + broker
Problem only if different CHNs
CSCS does NOT merge automatically
👉 About real estate investing:
Start with REITs or funds
Don’t rush into land/property yet
Focus on income + stability first
👍 Practical advice (based on your level)
Since you’re building gradually:
Use one main broker
Use app only if it’s linked to same CHN
Focus on:
Dividend stocks
REITs
Funds like NIDF
Why Have I Not Received My Fidson Right Issue Shares After Payment in Nigeria?
I understand your concern—this situation is actually common with rights issues in Nigeria, so don’t panic yet. Let’s go straight to what is happening and what you should do. 📌 First, what should normally happen? From the official Fidson rights issue document: Offer closed: 30 January 2026 After alloRead more
I understand your concern—this situation is actually common with rights issues in Nigeria, so don’t panic yet. Let’s go straight to what is happening and what you should do.
See less📌 First, what should normally happen?
From the official Fidson rights issue document:
Offer closed: 30 January 2026
After allotment:
Your CSCS account should be credited within about 15 working days
👉 That means, in a smooth process, investors should start seeing shares a few weeks after allotment is finalized.
⚠️ So why haven’t you received yours?
There are a few real reasons this delay can happen:
1. Allotment has not been finalized
Rights issue shares are not automatic like buying shares on NGX.
Company + SEC + NGX must approve final allotment
If many people applied for extra shares → it takes longer
👉 Sometimes delays happen because approval is still ongoing
2. You applied for “additional shares”
If you requested more than your normal entitlement:
You may not get everything
Excess money may be refunded later
👉 This process delays allocation
3. Issue with your CSCS / stockbroker details
From the circular:
Shares are credited using your:
CHN (CSCS number)
Stockbroker details
If anything is wrong:
Shares may be pending or stuck
4. Your stockbroker has not updated you
Sometimes:
Shares are already allocated
But your broker has not reflected it in your app yet
✅ What you should do immediately (very important)
Don’t just wait—take these steps:
1. Contact your stockbroker FIRST
This is the most important step.
Tell them:
“I subscribed to Fidson rights issue since December 2025, I have not received my shares. Please confirm allotment status and CSCS credit.”
Ask them specifically:
Has allotment been done?
Was I allotted shares?
Has my CSCS been credited?
2. Check your CSCS statement
Not just your app—ask for:
Official CSCS statement
Sometimes:
Shares are there but not showing on app
3. Ask about refund (if you applied extra)
If you applied for more shares:
Ask:
“Was my application fully successful or should I expect refund?”
4. Escalate if needed
If your broker is not helping:
Contact:
The registrar handling Fidson issue
Or the issuing house (CardinalStone)
🚨 When should you be worried?
You should start taking it seriously if:
It’s been 2–3 months after closing (Jan 30, 2026)
AND your broker cannot give a clear answer
👉 At that point, escalate immediately.
🧠 Simple truth (so you don’t stress)
This is NOT like buying shares instantly.
Rights issue process involves:
Verification
Allotment
Regulatory approval
CSCS credit
👉 Delays are common in Nigeria market.
👍 Bottom line
You likely didn’t lose your money
Most times it’s delay, not loss
Your stockbroker is your first line of solution
Why Does a Company’s Share Price Drop After Paying Dividend and What is Dividend Adjustments in the Stock Market?
Good question—this is where many beginners get misled. Let’s break it down in very simple, practical terms. 1. Why does share price drop after dividend? A dividend is not free money. It is your own money coming back to you from the company. Think of it like this: Before dividend: Company has cash inRead more
Good question—this is where many beginners get misled. Let’s break it down in very simple, practical terms.
See less1. Why does share price drop after dividend?
A dividend is not free money. It is your own money coming back to you from the company.
Think of it like this:
Before dividend:
Company has cash inside it → this cash is part of what gives the share value
After dividend is paid:
Company pays out part of that cash → company is now worth slightly less
So the market adjusts the share price downward.
Example:
Share price = ₦15
Dividend declared = ₦1
After the qualification date, price may adjust to around:
₦15 – ₦1 = ₦14
That drop is called a dividend adjustment.
2. What is dividend adjustment?
Dividend adjustment is simply:
The stock exchange reducing the share price by the dividend amount after the qualification date.
It is done so that:
Old investors (who will receive dividend)
New investors (who will NOT receive dividend)
are treated fairly.
If this adjustment didn’t happen:
Someone could buy the stock after qualification and still enjoy the dividend unfairly.
3. Qualification date vs Payment date
These two confuse many people:
Qualification Date (also called Record Date)
This is the cut-off date
You must own the shares on or before this date to receive dividend
👉 If you buy after this date → you won’t get dividend
Payment Date
This is when the company actually sends the money to your bank
👉 You may qualify today, but receive cash weeks later
4. Is dividend “free money”?
No. Not at all.
Let’s be real:
Scenario:
You have a share worth ₦15
Company pays ₦1 dividend
After adjustment:
Share becomes ₦14
You receive ₦1 cash
👉 Total still = ₦15
Nothing extra was created.
5. Why do professional investors still care about dividends?
Even though it’s not free money, dividends are still important:
a. Regular income
Some investors (especially retirees) want steady cash flow.
b. Strong companies
Companies that pay consistent dividends are often:
Profitable
Stable
Well-managed
c. Reinvestment (compounding)
Smart investors:
Collect dividend
Buy more shares
Over time, this builds wealth faster.
6. Why beginners get confused
Because it looks like this:
“I got ₦1 dividend, I made profit!”
But they ignore:
The share price dropped by ₦1
So in reality:
No immediate gain
7. Simple analogy
Imagine you own a bucket of water:
Full bucket = ₦15
You remove 1 cup (dividend)
Now:
Bucket = ₦14
Cup in your hand = ₦1
Total still the same.
Bottom line
Dividend is not free money
Share price drops because company cash reduces
Dividend adjustment ensures fairness
Qualification date = who is eligible
Payment date = when cash is received
Professionals use dividends for income + long-term growth
What Are Technical Adjustments in the Stock Market and How Do Stock Splits, Bonus Issues, and Rights Issues Work?
Alright… calm down first Because this is one of those “big grammar” in Finance that Experts use in the stock market that scares beginners. But the truth? It is actually very simple. What Are “Technical Adjustments” in the Stock Market? Technical adjustments simply mean: Changes made to a stock’s priRead more
Alright… calm down first
Because this is one of those “big grammar” in Finance that Experts use in the stock market that scares beginners.
But the truth?
It is actually very simple.
What Are “Technical Adjustments” in the Stock Market?
Technical adjustments simply mean:
Changes made to a stock’s price or structure WITHOUT changing the real value of the company.
As a Financial Literacy Advocate…
Let me explain this in a way that even Mama Ngozi that sells tomatoes in the village will understand.
Imagine:
Mama Ngozi has:
10 baskets of tomatoes
And the entire tomatoes are worth: ₦100,000
Meaning:
Each basket = ₦10,000
Good.
But Now…
Mama Ngozi notices that many customers cannot afford ₦10,000 per basket.
So what does she do?
She divides each basket into smaller bowls.
Now instead of:
10 baskets at ₦10,000
She now has:
100 bowls at ₦1,000
Now answer me carefully…
Did the tomatoes increase?
No.
Did the value increase?
No.
She only adjusted the structure.
That…
Is the same thing technical adjustments do in the stock market.
Oya… Cam down…
Let me Go deeper….
There are many types of Technical Adjustments, but as your Financial Literacy Advocate, let me explain the major ones.
1: STOCK SPLIT (FORWARD SPLIT)
This is when a company reduces the price of shares and increases the number of shares.
For Example:
Before:
1 share = ₦1,000
After 1-for-10 split:
That’s now….
10 shares = ₦100 each
Did investors lose money?
No.
The total value remains the same.
2: REVERSE STOCK SPLIT
This is the opposite of Forward share Split.
The company increases share price and reduces number of shares.
For Example:
Before:
10 shares at ₦100
After reverse split:
1 share at ₦1,000
Again…
The value remains the same.
3: BONUS ISSUE
This is when a company gives shareholders extra shares for free.
For Example:
You have:100 shares
The Company says:
“For every 1 share you have, take extra 1.”
Now you have: 200 shares
But… Here’s the Fun fact…
Many beginners in the Market Think:
“Ah! I have become richer!”
Relax….
Your ownership percentage is still the same.
So… You are not Richer.
4: RIGHTS ISSUE
This is when a company asks existing shareholders to buy additional shares, usually at a discounted price.
Why?
To raise more money for expansion.
5: DIVIDEND ADJUSTMENTS
This one is very important oooh…
Let me explain.
This is When a company pays dividends, the stock price may adjust slightly.
Why?
Because cash has left the company.
BUT… IKING…
WHY DO COMPANIES DO TECHNICAL ADJUSTMENTS?
Good question.
Let me tell you the hidden reasons.
– To Improve Liquidity
– Cheaper shares attract more buyers.
– More buyers = more trading activity.
– To Attract Retail Investors Because… Many retail investors fear high prices.
So companies reduce prices psychologically.
– To Maintain Market Image because…Some companies don’t want shares looking “too cheap.”
So they do reverse splits to increase price appearance.
As your Financial Literacy Advocate…
Let me tell you something very important.
Technical adjustments do NOT automatically mean:
Company is growing
Company is failing
Investors became richer overnight
They are mostly what we called “Structural adjustments” in finance.
Now… Let me tell you the truth…
Most beginners focus only on:
“How much is the share?”
While…
Smart investors focus on:
“What is the value of the company?”
Because…
In the Nigeria STOCK Market…
A ₦50 share can be overvalued.
And a ₦5,000 share can still be undervalued.
That’s why…
I have maintained that…
The stock market is full of psychology.
And many people lose money because they react emotionally to technical adjustments without understanding what is really happening.
That is why financial literacy is important.
Because once you understand the game…
You stop panicking.
And you start thinking like an investor that learn everyday on Fokona.
My name is Iking Ferry
See lessA Financial Literacy Advocate and Investment Strategist On a mission to build
10 million financially free Nigerians and Africans
Through the right knowledge.
How can a beginner start investing in the Nigeria Stock Exchange (NGX)?
Starting stock investment as a beginner doesn’t require complexity—but it does require structure and discipline. I’ll walk you through a practical path that works in Nigeria. 🔰 1. Understand what you’re actually doing When you buy a stock, you’re buying ownership in a business, not just numbers on aRead more
Starting stock investment as a beginner doesn’t require complexity—but it does require structure and discipline. I’ll walk you through a practical path that works in Nigeria.
See less🔰 1. Understand what you’re actually doing
When you buy a stock, you’re buying ownership in a business, not just numbers on an app.
For example:
Buying shares in GTCO means you own part of that bank.
If the bank grows and makes profit, you benefit.
🧭 2. Set your objective first (this is critical)
Decide your goal before investing:
Wealth building (long-term) → best for beginners
Dividend income → steady cash flow
Trading (short-term) → risky, not for beginners
👉 Based on your previous questions, you should focus on: Long-term + dividend investing
🏦 3. Open the right accounts
To invest in Nigerian stocks, you need:
✔ Stockbroker account
Choose SEC-licensed brokers like:
Meristem Securities
CardinalStone Securities
Stanbic IBTC Stockbrokers
✔ CSCS account
Handled by Central Securities Clearing System
This is where your shares are stored securely.
💰 4. Start small but consistent
You don’t need millions.
Start with ₦10k – ₦50k
Invest regularly (monthly if possible)
👉 Consistency beats “big money once”
📊 5. What stocks should a beginner buy?
Focus on strong, stable Nigerian companies:
Examples:
Zenith Bank
GTCO
Dangote Cement
MTN Nigeria
These have:
Strong profits
Regular dividends
Market leadership
⚖️ 6. Learn simple analysis (don’t overcomplicate)
As a beginner, just check:
✔ Dividend yield
Are they paying you regularly?
✔ Profit growth
Is the company improving yearly?
✔ Stability
Avoid companies with constant losses
🚫 7. Avoid these beginner mistakes
Chasing “cheap” stocks (₦1–₦5 traps)
Following hype or WhatsApp tips
Buying and selling too often
Investing money you may need soon
🔁 8. Reinvest your dividends
This is where wealth builds.
Example:
You earn ₦5,000 dividend
Reinvest it → buy more shares
Over time, it compounds
⏳ 9. Think long-term (very important)
Wealth in stocks comes from:
Time
Compounding
Patience
Not quick profit.
🧠 Simple beginner strategy
If you want something practical:
👉 Pick 3–5 strong companies
👉 Invest in them regularly
👉 Hold for 5–10 years
👉 Reinvest dividends
⚠️ Reality check
Stock investment is:
Not a get-rich-quick plan
Not gambling (if done properly)
A slow wealth-building system
How do I choose between low-priced and high-priced stocks on the Nigeria Stock Exchange (NGX)?
Good questions—this is exactly where many new investors get confused. Let’s break it down cleanly. 1. ₦4.56 vs ₦145 — which one is “better”? Short answer: share price alone tells you almost nothing about value. What actually matters is market capitalization: Market Cap = Share Price × Total Number oRead more
Good questions—this is exactly where many new investors get confused. Let’s break it down cleanly.
See less1. ₦4.56 vs ₦145 — which one is “better”?
Short answer: share price alone tells you almost nothing about value.
What actually matters is market capitalization:
Market Cap = Share Price × Total Number of Shares
Example:
Company A: ₦4.56 per share × 10 billion shares = ₦45.6 billion
Company B: ₦145 per share × 200 million shares = ₦29 billion
👉 Even though ₦145 looks “bigger”, Company A is actually more valuable.
So how should a layman decide?
Instead of price, focus on these 4 key fundamentals:
1. Earnings (Profitability)
Is the company making consistent profit?
Check EPS (Earnings Per Share)
2. Dividend History
Does it pay regularly?
Example in Nigeria: banks like GTCO or Zenith Bank are known for consistency.
3. Growth Potential
Is the business expanding?
Future matters more than current price
4. Valuation Ratios
P/E Ratio (Price ÷ Earnings)
Low P/E ≠ always cheap
High P/E ≠ always expensive
Important Truth:
₦4 stock can be overpriced
₦145 stock can be undervalued
So: 👉 Cheap price ≠ cheap company
👉 Expensive price ≠ expensive company
When two companies are in the same sector
Compare:
Profit margins
Debt levels
Dividend yield
Management quality
Example: Two banks may look similar, but one could be:
More efficient
Less risky
Paying better dividends
Should you buy cheaper or higher priced?
Neither. Buy based on:
✔ Strong fundamentals
✔ Consistent earnings
✔ Long-term growth
If your goal is wealth building, focus on:
Quality companies
Long-term holding
Reinvesting dividends
2. If your shares cannot be found in CSCS
Central Securities Clearing System (CSCS) is the official record keeper in Nigeria.
If they cannot find your shares, it usually means one of these:
Possible Reasons
1. Shares were never dematerialized
Old physical share certificates not converted to electronic form
2. Wrong or multiple CSCS accounts
You may have:
Different stockbrokers
Different CSCS numbers
3. Registrar still holds the shares
Some shares are with company registrars, not yet in CSCS
4. Name mismatch / spelling errors
Very common in Nigeria
E.g. “Jeremiah Ochoyoda” vs “J. Ochoyoda”
5. Shares sold or transferred unknowingly
Through a broker or mandate
What you should do immediately
Contact your stockbroker
Request your CSCS statement
Contact the company registrar
Check for:
Old certificates
Previous brokers
Do a share reconciliation
Red flag situation
If:
No broker has record
CSCS has no record
Registrar has no record
👉 Then something is seriously wrong (possible loss, wrong identity, or unclaimed estate issue)
Final clarity
Don’t judge stocks by price — judge by business strength
A ₦4 stock can destroy wealth
A ₦145 stock can build wealth
Why Do Some Shares Cost ₦10,000 While Others Are ₦50 – Does Share Price Mean a Company Is More Valuable?
Alright… relax first. Because this is where many people get confused and miss opportunity. You see: ₦10,000 per share ₦1,000 per share And the first thing that comes to your mind is: “This one of ₦10,000 must be bigger.” No. That is where the mistake starts. FIRST - LET ME CORRECT ONE THING Share prRead more
Alright… relax first.
Because this is where many people get confused and miss opportunity.
You see: ₦10,000 per share
₦1,000 per share
And the first thing that comes to your mind is:
“This one of ₦10,000 must be bigger.”
No.
That is where the mistake starts.
FIRST – LET ME CORRECT ONE THING
Share price is NOT value.
Let me say it again…
Price is what you see
Value is what actually exists
Let me explain this better with a Simple Story…
Imagine:
Mama Ngozi has a tomato business worth ₦1,000,000
Now she wants people to invest in her business.
She has two options:
OPTION 1
She divides the business into:
100 parts
Each part = ₦10,000
OPTION 2
She divides the business into:
1,000 parts
Each part = ₦1,000
Now answer me…
Is one business bigger than the other?
No.
Same business
Same value
Different structure
THIS IS THE SECRET
Share Price = Total Company Value ÷ Number of Shares
That’s all.
Nothing more. Nothing less.
NOW LET ME ANSWER YOUR QUESTION…
You asked:
“If one company adjusts price… will the other adjust?”
No.
Because each company controls its own structure.
And they don’t randomly “add ₦100” like you think.
There is a proper system.
And This Is Where “SHARE SPLIT” comes in
Oya… calm down.
Let me break it down simply.
In Financial Accounting…. There’s What we called “FORWARD SHARE SPLIT” and “REVERSE SHARE SPLIT”
Chieeee…..
Iking ooooooh?
Wetin Bring Accounting Again for this Small Question Na?
Oya… Relax…
Let me Explain this in a way that even Grandma in the Village will nod her head and say: “Yes my Pikin, I understand this one”
1. FORWARD SHARE SPLIT
(Simply means Making the price of a STOCK cheaper)
This is when a company says:
“Let’s make our shares more affordable”
For Example:
₦1,000 per share = becomes ₦500
What happens?
Numbers of Outstanding Shares DOUBLE
And the Price reduces
But the…..
Value remains the same
While….
2. REVERSE SHARE SPLIT
(Simply means Making the Share price higher)
This is when a company says:
“Let’s increase the price per share”
For Example:
₦1,000 per share before = becomes ₦2,000 now.
What happens?
The Numbers of outstanding Shares reduce
While the Price per Share increases
But… The…
Value remains the same
Now….
Listen carefully…
Share split does NOT make you richer.
YES…
If you had ₦100,000 before…
You still have ₦100,000 after.
Just arranged differently.
But….IKING OOH!
WHY DO COMPANIES DO THIS?
Now this is the part most people don’t understand…
Let me tell you the hidden game in finance
First….
IS TO ATTRACT MORE INVESTORS
Because….
Many people think:
₦50 = cheap
₦5,000 = expensive
Even when they don’t understand the company.
So companies reduce price to attract more buyers.
Second….
IS TO INCREASE LIQUIDITY
Because….
More shares = more people can trade
And when trading increases…
Market becomes active
And Price movement improves
Third…..
IS TO CONTROL PERCEPTION
Yes… This one self Na hidden Secret oooh.
Because…
Some companies want to look:
Affordable to (retail investors)
And Premium to (big investors)
So they adjust structure accordingly.
As your Financial Literacy Advocate….
Let me tell you The Biggest Mistake People Make…
You go to NGX…
You see:
₦10,000 share = “Too expensive”
₦50 share = “Cheap, let me buy”
That is how people lose money.
Because…
Cheap price does not mean cheap value.
So…
Before you ask:
“How much is this share?”
Ask:
“What is this company worth?”
Because…
Smart investors buy VALUE.
While….
Average investors chase PRICE.
If you truly understand what I just explained…
You will never look at stocks the same way again.
Because…..
Most people miss opportunity not because they don’t have money…
But because they don’t understand what they are looking at.
My name is Iking Ferry, a Financial Literacy Advocate and Investment Strategist On a mission to build 10 million financially free Nigerians and Africans Through the right knowledge.
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