A blue chip company is like that very ripe, big, and round tomato in Mama Ngozi's basket that everyone wants to buy because they know it's good quality and will last long. In the stock market, blue chip companies are the big, well-known companies that have a good track record of making profits and pRead more
A blue chip company is like that very ripe, big, and round tomato in Mama Ngozi’s basket that everyone wants to buy because they know it’s good quality and will last long. In the stock market, blue chip companies are the big, well-known companies that have a good track record of making profits and paying dividends to their shareholders.
Here’s how it works:
– Blue chip companies are usually the leaders in their industry, like Dangote Cement or MTN in Nigeria.
– Investors like to buy shares of blue chip companies because they are seen as less risky compared to smaller companies.
– These companies have strong balance sheets and cash flow, which means they are financially stable.
Benefits:
– Investing in blue chip companies can provide a steady income through dividends.
– Their share prices are usually less volatile, which can be less stressful for investors.
– Over the long term, blue chip companies tend to provide a good return on investment.
Risks:
– Even though blue chip companies are considered safer, their share prices can still go down during tough economic times.
– Investing in just one blue chip company may not provide enough diversification to reduce risk.
Real-life Nigerian example:
– Nestle Nigeria is a blue chip company known for its consistent performance and strong presence in the Nigerian market.
Common Mistakes:
– Some people think all big companies are automatically blue chip companies, but that’s not always the case.
– It’s important to research and make sure the company’s financial health aligns with the criteria of a blue chip company before investing.
Practical steps to get started:
– Research and identify blue chip companies in Nigeria or globally.
– Consider investing in blue chip mutual funds or exchange-traded funds (ETFs) for diversification.
– Start with a small amount to test the waters before investing larger sums.
Short summary:
Blue chip companies are like the top-quality tomatoes in the market that are known for their reliability and stability. Investing in these companies can provide steady dividends and long-term growth potential, but it’s important to do your research and not put all your eggs in one basket.
Ah, my dear, investing in Nigerian ETFs can be a good idea for the long term, especially considering the situation of the economy. Let me explain in simple terms what they are before diving into the details.ETF stands for Exchange-Traded Fund. It's like a basket that holds different investments likeRead more
Ah, my dear, investing in Nigerian ETFs can be a good idea for the long term, especially considering the situation of the economy. Let me explain in simple terms what they are before diving into the details.
ETF stands for Exchange-Traded Fund. It’s like a basket that holds different investments like stocks, commodities, or bonds. When you buy shares of an ETF, you’re buying a small piece of the whole basket.
How it works:
– Nigerian ETFs are listed on the stock exchange and can be bought and sold like shares of a company.
– They can give you diversification by spreading your money across different assets without buying each one individually.
Benefits:
– Lower cost: ETFs typically have lower fees compared to mutual funds.
– Diversification: Investing in an ETF gives you exposure to a variety of assets, reducing risk.
– Liquidity: ETFs can be easily bought or sold on the stock exchange.
Risks:
– Market risk: The value of the ETF can go up or down based on market conditions.
– Sector risk: If the sectors within the ETF perform poorly, it can affect your investment.
Real-Life Nigerian Example:
Imagine you have a basket with different types of tomatoes. If one type spoils, you still have others to sell. That’s like diversifying your investments through Nigerian ETFs.
Common Mistakes:
– Not understanding what’s in the ETF before investing.
– Buying based on hype or short-term trends instead of a long-term strategy.
Practical Steps to Get Started:
1. Research different Nigerian ETFs available.
2. Consider your investment goals and risk tolerance.
3. Open a brokerage account to buy ETF shares. 4. Invest regularly to benefit from compound interest over time.
In summary, Nigerian ETFs can be a good long-term investment choice due to their diversification benefits, lower costs, and ease of trading.
Now, my dear, have you ever considered what your long-term financial goals are when it comes to investing?
Wow, that was quite a detailed explanation of how the Nigerian Stock Market works! It's amazing how emotions can affect the stock market just like how they influence the price of tomatoes in the market.To sum it up in simpler terms, here's what happened: 1. What happened: Just like how Mama Ngozi'sRead more
Wow, that was quite a detailed explanation of how the Nigerian Stock Market works! It’s amazing how emotions can affect the stock market just like how they influence the price of tomatoes in the market.
To sum it up in simpler terms, here’s what happened:
1. What happened: Just like how Mama Ngozi’s tomato prices went down due to fear on a rainy day and then went back up when the sun came out and customers returned, the stock market saw a ₦719 billion increase in value after investors gained confidence and started buying quality companies again.
2. How it works: The stock market moves based on human emotions like fear and confidence, not necessarily because companies suddenly become better or worse. Investors changing their minds play a big role in these movements.
3. Benefits: Patient investors who understand these patterns can build wealth over time by making informed financial decisions.
4. Risks: Emotional investors who react impulsively to market movements may end up losing money instead of gaining wealth.
5. Real-life example: Companies like FirstHoldCo, MTN Nigeria, and Stanbic IBTC helped push the market value back up, showing how specific companies can influence market trends.
6. Common mistakes: Beginner investors often celebrate market gains without understanding the reasons behind them, while experienced investors analyze the market movements before reacting.
7. Practical steps: Instead of blindly following market trends, take the time to learn how the stock market works, read financial reports, and make informed investment decisions.
In a nutshell, understanding the stock market and making informed decisions can help you build wealth over time.
Now, let me ask you: What do you think can help you become more confident in making financial decisions in the stock market?
To trace shares you bought, you can follow these steps: 1. Check Purchase Records: Begin by reviewing your purchase records. This may include trade confirmations, account statements, or receipts from your broker showing the details of the shares you bought. 2. Review Account Statements: Look throughRead more
To trace shares you bought, you can follow these steps:
1. Check Purchase Records: Begin by reviewing your purchase records. This may include trade confirmations, account statements, or receipts from your broker showing the details of the shares you bought.
2. Review Account Statements: Look through your account statements to identify the transaction when you bought the shares. This should include the date of purchase, number of shares, and price per share.
3. Check Online Brokerage Account: Log in to your online brokerage account if you have one. Most online platforms provide a detailed transaction history that can help you trace the shares you bought.
4. Contact Your Broker: If you are unable to locate the information on your own, consider reaching out to your broker directly. Provide them with relevant details such as the date of purchase, the stock symbol, and any other pertinent information to help them assist you in tracing your shares.
5. Review Tax Forms: Sometimes, details of stock transactions can be found on your tax forms such as Form 1099-B, provided by your broker at the end of the tax year. This can help you track down the shares you bought.
By following these steps and utilizing the resources available to you, you should be able to successfully trace the shares you bought.
What you observed is a real market phenomenon, and your explanation to him was on the right track. Let's use BUA Cement as the example. What happened? When your friend placed a sell order, he was saying: "I want to sell my shares." For the trade to happen, someone else must be willing to buy those sRead more
What you observed is a real market phenomenon, and your explanation to him was on the right track.
Let’s use BUA Cement as the example.
What happened?
When your friend placed a sell order, he was saying:
“I want to sell my shares.”
For the trade to happen, someone else must be willing to buy those shares.
If the order book shows only offers (sell orders) and no bids (buy orders), it means:
Many investors want to sell.
No buyers are currently willing to buy at the available prices.
Without a matching buyer, the order remains “Executing” or “Open” until:
a buyer enters the market,
the seller changes the asking price, or
the order expires or is cancelled.
Why would there be no bids?
Several reasons can lead to this:
1. Investors think the price is too high. If sellers are asking ₦100 per share but buyers only want to pay ₦90, no trade occurs.
2. Weak market sentiment. Investors may be waiting for earnings, dividend announcements, or broader market news before buying.
3. Low liquidity. Some stocks don’t trade frequently. Even large companies can occasionally experience periods with few or no active buyers.
4. One-sided order book. Sometimes many shareholders decide to sell at the same time, but buyers are waiting at lower prices rather than bidding at current levels.
Why didn’t cancelling and placing the order again help?
Because the problem wasn’t his order—it was the market.
Imagine selling a car:
If you advertise it at ₦5 million and nobody wants to pay that amount, removing the advert and posting it again at the same price won’t attract buyers.
Either a buyer appears or you reduce your asking price.
The stock market works similarly.
What if he reduced his price?
Suppose the order book looked like this:
Offers (Sellers):
₦100.00 – 500,000 shares
Bids (Buyers):
₦97.00 – 300,000 shares
If he insists on selling at ₦100, he may wait.
If he is willing to sell at ₦97, his shares could be matched immediately (assuming the exchange’s order-matching rules and available bid volume).
Does this mean BUA Cement is a scam?
No.
It simply means that, at that moment, demand was lower than supply at the quoted prices.
This happens on stock exchanges worldwide, including the Nigerian market.
A lesson for investors
Before placing an order, it’s useful to check:
the order book,
bid volume,
offer volume,
recent trades.
This helps you see whether there are active buyers and sellers and at what prices.
Since you’ve been investing in Nigerian stocks for some time, I can also explain why some NGX stocks (including BUA Cement on certain days) can appear to have “only sellers and no buyers” even though the company itself is fundamentally strong. That involves market makers, price limits, investor psychology, and liquidity, and it often surprises even experienced investors.
Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) are two investment vehicles that allow you to invest in a diversified portfolio without having to buy many individual assets. Exchange-Traded Funds (ETFs) An ETF is a fund that holds a basket of assets—such as stocks or bonds—andRead more
Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) are two investment vehicles that allow you to invest in a diversified portfolio without having to buy many individual assets.
Exchange-Traded Funds (ETFs)
An ETF is a fund that holds a basket of assets—such as stocks or bonds—and its units are traded on the Nigerian Exchange Group just like ordinary shares.
For example:
An ETF that tracks the NGX 30 Index invests in many of the largest listed Nigerian companies.
When you buy one unit of the ETF, you indirectly own small portions of all the companies in that index.
The ETF’s price rises or falls based on the value of its underlying investments.
Advantages
Diversification
Lower risk than buying a single stock
Easy to buy and sell during market hours
Some ETFs pay dividends
Real Estate Investment Trusts (REITs)
A REIT pools money from many investors to buy income-generating real estate such as:
Shopping malls
Office buildings
Hotels
Warehouses
Residential properties
The rental income and other profits are distributed to investors as dividends.
Instead of buying a building worth hundreds of millions of naira, you can buy units of a REIT with a much smaller amount.
Advantages
Regular dividend income
Exposure to real estate without owning property directly
Professionally managed
Can appreciate in value over time
Where can you invest in ETFs and REITs in Nigeria?
You can invest through licensed Nigerian stockbrokers and investment platforms such as:
Meristem Securities Limited (Meritrade)
Afrinvest Securities Limited (Afrinvestor)
Chapel Hill Denham (InvestNaija)
CardinalStone Securities
Stanbic IBTC Stockbrokers
United Capital Securities
Since you’ve mentioned before that you already use InvestNaija, Afrinvestor, and Meritrade, you can buy ETFs and REITs directly through those platforms if they offer trading access to the relevant securities.
Examples of Nigerian ETFs
Vetiva Griffin 30 ETF
NewGold ETF
Lotus Halal Equity ETF (suitable for investors seeking halal investments)
Examples of Nigerian REITs
UPDC REIT
SFS REIT
Which is better?
Choose an ETF if you want broad exposure to the stock market and long-term capital growth.
Choose a REIT if you want exposure to real estate and the potential for regular dividend income.
That's a very good question. Shares are not physically manufactured like products. Instead, they are created legally when a company decides how ownership will be divided. Here's how it works: 1. A company is incorporated When a company is registered with the Corporate Affairs Commission, its founderRead more
That’s a very good question. Shares are not physically manufactured like products. Instead, they are created legally when a company decides how ownership will be divided.
Here’s how it works:
1. A company is incorporated
When a company is registered with the Corporate Affairs Commission, its founders decide how much ownership the company will have.
For example, they may decide that the company will have:
100 million ordinary shares.
A nominal value of ₦1 per share.
This means the company’s ownership is divided into 100 million equal pieces.
2. The founders own the first shares
If there are two founders, they might split the shares like this:
Founder A: 60 million shares (60%)
Founder B: 40 million shares (40%)
No money has been “created.” The shares simply represent ownership.
3. The company can issue more shares
As the business grows and needs more capital, it may issue additional shares to new investors through a rights issue, private placement, or public offering.
Issuing new shares raises money for the company, but it also dilutes existing shareholders unless they buy some of the new shares.
Is there a maximum number of shares?
There is no fixed maximum number under Nigerian law.
Instead, a company has an authorized share capital, which is the maximum number (or value) of shares it is currently allowed to issue under its constitutional documents and applicable law.
If the company wants to issue more than that, it must:
Obtain shareholder approval.
Increase its authorized share capital in accordance with Nigerian corporate law.
File the necessary documents with the Corporate Affairs Commission.
So, a company could have:
10 million shares,
1 billion shares,
or even 100 billion shares,
provided it follows the legal procedures.
Does having more shares make a company more valuable?
No.
For example:
Company A has 1 million shares worth ₦100 each. Total value = ₦100 million.
Company B has 100 million shares worth ₦1 each. Total value = ₦100 million.
Both companies have the same total value. The number of shares only determines how ownership is divided.
This is why companies like Zenith Bank Plc or MTN Nigeria Communications Plc can have billions of shares outstanding, while smaller companies may have only millions. The number of shares alone does not indicate whether a company is large or small.
In Nigeria, there are currently no listed stocks that pay dividends monthly. Most companies listed on the Nigerian Exchange Group pay dividends: Once a year (the most common). Twice a year (interim and final dividends), which is common among some banks and a few other companies. For example: ZenithRead more
In Nigeria, there are currently no listed stocks that pay dividends monthly.
Most companies listed on the Nigerian Exchange Group pay dividends:
Once a year (the most common).
Twice a year (interim and final dividends), which is common among some banks and a few other companies.
For example:
Zenith Bank Plc – usually pays interim and final dividends.
Guaranty Trust Holding Company Plc – typically pays interim and final dividends.
United Bank for Africa Plc – generally pays interim and final dividends.
Presco Plc – usually pays an annual dividend.
If your goal is to receive monthly income, individual stocks are not the best choice. Instead, consider:
Money market mutual funds, which accrue returns daily and often credit investors monthly.
Bond mutual funds, which may distribute income periodically.
Building a portfolio of several dividend-paying stocks with different payment months so that you receive dividends at various times during the year, although not every month.
How much do you need to start?
You can start with as little as the price of one share, plus your broker’s minimum order requirements. For example:
If a share costs ₦100, you can buy one share (though buying a larger number is usually more practical because of transaction costs).
Many Nigerian stockbrokers allow you to start investing with ₦5,000–₦10,000.
If your objective is to generate monthly passive income, let me know how much you plan to invest (for example, ₦100,000, ₦500,000, or ₦1 million). I can suggest a portfolio that balances monthly cash flow with long-term growth.
Dematerialization is the process of converting your physical share certificates into electronic form and crediting them into your CSCS account. Once dematerialized, you no longer need to keep paper certificates, and you can easily receive dividends, bonuses, and sell the shares through a stockbrokerRead more
Dematerialization is the process of converting your physical share certificates into electronic form and crediting them into your CSCS account. Once dematerialized, you no longer need to keep paper certificates, and you can easily receive dividends, bonuses, and sell the shares through a stockbroker.
How to Dematerialize Share Certificates in Nigeria
Open a CSCS account
If you don’t already have one, open a CSCS account through a registered stockbroker or investment platform that provides stockbroking services.
Gather your documents
Original share certificate(s)
Valid means of identification
Passport photograph (if required)
Completed Dematerialization Form from your stockbroker
Submit the documents
Give the original certificates and completed forms to your stockbroker.
The broker forwards them to the company’s registrar for verification.
Verification and Credit
The registrar verifies the certificates.
Once approved, the shares are credited electronically to your CSCS account.
Confirmation
You receive confirmation from your broker when the shares appear in your CSCS account.
How Much Does It Cost?
For most investors, dematerialization itself is usually free or attracts minimal administrative charges, depending on the broker and registrar involved. However:
Some stockbrokers may charge processing fees.
You may incur costs if there are issues such as name discrepancies, signature updates, estate-related transfers, or lost certificates.
It is best to confirm the current charges with your stockbroker before submission.
If the Certificates Are Old
If the certificates are from many years ago:
Check whether the company still exists or has undergone mergers, acquisitions, or restructuring.
Verify whether bonus shares were issued over the years.
Update your e-dividend registration simultaneously so future dividends go directly to your bank account.
Yes, there was a plan to merge NASCON Allied Industries, Dangote Sugar Refinery, and Dangote Rice into a single food company. The proposal was announced in 2023 as part of an internal restructuring by the Dangote Group. The idea was to create a larger food business combining sugar, salt, seasonings,Read more
Yes, there was a plan to merge NASCON Allied Industries, Dangote Sugar Refinery, and Dangote Rice into a single food company. The proposal was announced in 2023 as part of an internal restructuring by the Dangote Group. The idea was to create a larger food business combining sugar, salt, seasonings, and rice operations under one entity.
However, the proposed merger was later suspended. In 2024, NASCON informed the market that the process had been put on hold following comments and recommendations from the Nigerian Securities and Exchange Commission (SEC), particularly because Dangote Rice was not yet operational.
So, as of now:
A merger was proposed in 2023.
The companies even worked on merger terms and share-exchange arrangements.
The merger was subsequently suspended and has not been completed.
For investors in NASCON or Dangote Sugar, this means there is currently no approved merger in effect, although the possibility could re-emerge in the future if the group revives the plan and obtains the necessary regulatory approvals.
What Is a Blue-Chip Company in the Nigerian Stock Market?
A blue chip company is like that very ripe, big, and round tomato in Mama Ngozi's basket that everyone wants to buy because they know it's good quality and will last long. In the stock market, blue chip companies are the big, well-known companies that have a good track record of making profits and pRead more
A blue chip company is like that very ripe, big, and round tomato in Mama Ngozi’s basket that everyone wants to buy because they know it’s good quality and will last long. In the stock market, blue chip companies are the big, well-known companies that have a good track record of making profits and paying dividends to their shareholders.
Here’s how it works:
– Blue chip companies are usually the leaders in their industry, like Dangote Cement or MTN in Nigeria.
– Investors like to buy shares of blue chip companies because they are seen as less risky compared to smaller companies.
– These companies have strong balance sheets and cash flow, which means they are financially stable.
Benefits:
– Investing in blue chip companies can provide a steady income through dividends.
– Their share prices are usually less volatile, which can be less stressful for investors.
– Over the long term, blue chip companies tend to provide a good return on investment.
Risks:
– Even though blue chip companies are considered safer, their share prices can still go down during tough economic times.
– Investing in just one blue chip company may not provide enough diversification to reduce risk.
Real-life Nigerian example:
– Nestle Nigeria is a blue chip company known for its consistent performance and strong presence in the Nigerian market.
Common Mistakes:
– Some people think all big companies are automatically blue chip companies, but that’s not always the case.
– It’s important to research and make sure the company’s financial health aligns with the criteria of a blue chip company before investing.
Practical steps to get started:
– Research and identify blue chip companies in Nigeria or globally.
– Consider investing in blue chip mutual funds or exchange-traded funds (ETFs) for diversification.
– Start with a small amount to test the waters before investing larger sums.
Short summary:
Blue chip companies are like the top-quality tomatoes in the market that are known for their reliability and stability. Investing in these companies can provide steady dividends and long-term growth potential, but it’s important to do your research and not put all your eggs in one basket.
See lessAre Nigerian ETFs a Good Long-Term Investment?
Ah, my dear, investing in Nigerian ETFs can be a good idea for the long term, especially considering the situation of the economy. Let me explain in simple terms what they are before diving into the details.ETF stands for Exchange-Traded Fund. It's like a basket that holds different investments likeRead more
Ah, my dear, investing in Nigerian ETFs can be a good idea for the long term, especially considering the situation of the economy. Let me explain in simple terms what they are before diving into the details.
ETF stands for Exchange-Traded Fund. It’s like a basket that holds different investments like stocks, commodities, or bonds. When you buy shares of an ETF, you’re buying a small piece of the whole basket.
How it works:
– Nigerian ETFs are listed on the stock exchange and can be bought and sold like shares of a company.
– They can give you diversification by spreading your money across different assets without buying each one individually.
Benefits:
– Lower cost: ETFs typically have lower fees compared to mutual funds.
– Diversification: Investing in an ETF gives you exposure to a variety of assets, reducing risk.
– Liquidity: ETFs can be easily bought or sold on the stock exchange.
Risks:
– Market risk: The value of the ETF can go up or down based on market conditions.
– Sector risk: If the sectors within the ETF perform poorly, it can affect your investment.
Real-Life Nigerian Example:
Imagine you have a basket with different types of tomatoes. If one type spoils, you still have others to sell. That’s like diversifying your investments through Nigerian ETFs.
Common Mistakes:
– Not understanding what’s in the ETF before investing.
– Buying based on hype or short-term trends instead of a long-term strategy.
Practical Steps to Get Started:
1. Research different Nigerian ETFs available.
2. Consider your investment goals and risk tolerance.
3. Open a brokerage account to buy ETF shares.
4. Invest regularly to benefit from compound interest over time.
In summary, Nigerian ETFs can be a good long-term investment choice due to their diversification benefits, lower costs, and ease of trading.
Now, my dear, have you ever considered what your long-term financial goals are when it comes to investing?
See lessWhat Should Beginner Investors Learn From a ₦719 Billion Increase in the Nigerian Stock Market?
Wow, that was quite a detailed explanation of how the Nigerian Stock Market works! It's amazing how emotions can affect the stock market just like how they influence the price of tomatoes in the market.To sum it up in simpler terms, here's what happened: 1. What happened: Just like how Mama Ngozi'sRead more
Wow, that was quite a detailed explanation of how the Nigerian Stock Market works! It’s amazing how emotions can affect the stock market just like how they influence the price of tomatoes in the market.
To sum it up in simpler terms, here’s what happened:
1. What happened: Just like how Mama Ngozi’s tomato prices went down due to fear on a rainy day and then went back up when the sun came out and customers returned, the stock market saw a ₦719 billion increase in value after investors gained confidence and started buying quality companies again.
2. How it works: The stock market moves based on human emotions like fear and confidence, not necessarily because companies suddenly become better or worse. Investors changing their minds play a big role in these movements.
3. Benefits: Patient investors who understand these patterns can build wealth over time by making informed financial decisions.
4. Risks: Emotional investors who react impulsively to market movements may end up losing money instead of gaining wealth.
5. Real-life example: Companies like FirstHoldCo, MTN Nigeria, and Stanbic IBTC helped push the market value back up, showing how specific companies can influence market trends.
6. Common mistakes: Beginner investors often celebrate market gains without understanding the reasons behind them, while experienced investors analyze the market movements before reacting.
7. Practical steps: Instead of blindly following market trends, take the time to learn how the stock market works, read financial reports, and make informed investment decisions.
In a nutshell, understanding the stock market and making informed decisions can help you build wealth over time.
Now, let me ask you: What do you think can help you become more confident in making financial decisions in the stock market?
See lessHow Can I Trace Shares I Bought in Nigeria?
To trace shares you bought, you can follow these steps: 1. Check Purchase Records: Begin by reviewing your purchase records. This may include trade confirmations, account statements, or receipts from your broker showing the details of the shares you bought. 2. Review Account Statements: Look throughRead more
To trace shares you bought, you can follow these steps:
1. Check Purchase Records: Begin by reviewing your purchase records. This may include trade confirmations, account statements, or receipts from your broker showing the details of the shares you bought.
2. Review Account Statements: Look through your account statements to identify the transaction when you bought the shares. This should include the date of purchase, number of shares, and price per share.
3. Check Online Brokerage Account: Log in to your online brokerage account if you have one. Most online platforms provide a detailed transaction history that can help you trace the shares you bought.
4. Contact Your Broker: If you are unable to locate the information on your own, consider reaching out to your broker directly. Provide them with relevant details such as the date of purchase, the stock symbol, and any other pertinent information to help them assist you in tracing your shares.
5. Review Tax Forms: Sometimes, details of stock transactions can be found on your tax forms such as Form 1099-B, provided by your broker at the end of the tax year. This can help you track down the shares you bought.
By following these steps and utilizing the resources available to you, you should be able to successfully trace the shares you bought.
See lessWhy Is My Sell Order for BUA Cement Shares Still Showing as "Executing" on the NGX?
What you observed is a real market phenomenon, and your explanation to him was on the right track. Let's use BUA Cement as the example. What happened? When your friend placed a sell order, he was saying: "I want to sell my shares." For the trade to happen, someone else must be willing to buy those sRead more
What you observed is a real market phenomenon, and your explanation to him was on the right track.
See lessLet’s use BUA Cement as the example.
What happened?
When your friend placed a sell order, he was saying:
“I want to sell my shares.”
For the trade to happen, someone else must be willing to buy those shares.
If the order book shows only offers (sell orders) and no bids (buy orders), it means:
Many investors want to sell.
No buyers are currently willing to buy at the available prices.
Without a matching buyer, the order remains “Executing” or “Open” until:
a buyer enters the market,
the seller changes the asking price, or
the order expires or is cancelled.
Why would there be no bids?
Several reasons can lead to this:
1. Investors think the price is too high. If sellers are asking ₦100 per share but buyers only want to pay ₦90, no trade occurs.
2. Weak market sentiment. Investors may be waiting for earnings, dividend announcements, or broader market news before buying.
3. Low liquidity. Some stocks don’t trade frequently. Even large companies can occasionally experience periods with few or no active buyers.
4. One-sided order book. Sometimes many shareholders decide to sell at the same time, but buyers are waiting at lower prices rather than bidding at current levels.
Why didn’t cancelling and placing the order again help?
Because the problem wasn’t his order—it was the market.
Imagine selling a car:
If you advertise it at ₦5 million and nobody wants to pay that amount, removing the advert and posting it again at the same price won’t attract buyers.
Either a buyer appears or you reduce your asking price.
The stock market works similarly.
What if he reduced his price?
Suppose the order book looked like this:
Offers (Sellers):
₦100.00 – 500,000 shares
Bids (Buyers):
₦97.00 – 300,000 shares
If he insists on selling at ₦100, he may wait.
If he is willing to sell at ₦97, his shares could be matched immediately (assuming the exchange’s order-matching rules and available bid volume).
Does this mean BUA Cement is a scam?
No.
It simply means that, at that moment, demand was lower than supply at the quoted prices.
This happens on stock exchanges worldwide, including the Nigerian market.
A lesson for investors
Before placing an order, it’s useful to check:
the order book,
bid volume,
offer volume,
recent trades.
This helps you see whether there are active buyers and sellers and at what prices.
Since you’ve been investing in Nigerian stocks for some time, I can also explain why some NGX stocks (including BUA Cement on certain days) can appear to have “only sellers and no buyers” even though the company itself is fundamentally strong. That involves market makers, price limits, investor psychology, and liquidity, and it often surprises even experienced investors.
How Do Exchange-Traded Funds (ETFs) and REIT Work in Nigeria?
Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) are two investment vehicles that allow you to invest in a diversified portfolio without having to buy many individual assets. Exchange-Traded Funds (ETFs) An ETF is a fund that holds a basket of assets—such as stocks or bonds—andRead more
Exchange-Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) are two investment vehicles that allow you to invest in a diversified portfolio without having to buy many individual assets.
See lessExchange-Traded Funds (ETFs)
An ETF is a fund that holds a basket of assets—such as stocks or bonds—and its units are traded on the Nigerian Exchange Group just like ordinary shares.
For example:
An ETF that tracks the NGX 30 Index invests in many of the largest listed Nigerian companies.
When you buy one unit of the ETF, you indirectly own small portions of all the companies in that index.
The ETF’s price rises or falls based on the value of its underlying investments.
Advantages
Diversification
Lower risk than buying a single stock
Easy to buy and sell during market hours
Some ETFs pay dividends
Real Estate Investment Trusts (REITs)
A REIT pools money from many investors to buy income-generating real estate such as:
Shopping malls
Office buildings
Hotels
Warehouses
Residential properties
The rental income and other profits are distributed to investors as dividends.
Instead of buying a building worth hundreds of millions of naira, you can buy units of a REIT with a much smaller amount.
Advantages
Regular dividend income
Exposure to real estate without owning property directly
Professionally managed
Can appreciate in value over time
Where can you invest in ETFs and REITs in Nigeria?
You can invest through licensed Nigerian stockbrokers and investment platforms such as:
Meristem Securities Limited (Meritrade)
Afrinvest Securities Limited (Afrinvestor)
Chapel Hill Denham (InvestNaija)
CardinalStone Securities
Stanbic IBTC Stockbrokers
United Capital Securities
Since you’ve mentioned before that you already use InvestNaija, Afrinvestor, and Meritrade, you can buy ETFs and REITs directly through those platforms if they offer trading access to the relevant securities.
Examples of Nigerian ETFs
Vetiva Griffin 30 ETF
NewGold ETF
Lotus Halal Equity ETF (suitable for investors seeking halal investments)
Examples of Nigerian REITs
UPDC REIT
SFS REIT
Which is better?
Choose an ETF if you want broad exposure to the stock market and long-term capital growth.
Choose a REIT if you want exposure to real estate and the potential for regular dividend income.
How Do Companies Create and Issue Shares in Nigeria?
That's a very good question. Shares are not physically manufactured like products. Instead, they are created legally when a company decides how ownership will be divided. Here's how it works: 1. A company is incorporated When a company is registered with the Corporate Affairs Commission, its founderRead more
That’s a very good question. Shares are not physically manufactured like products. Instead, they are created legally when a company decides how ownership will be divided.
See lessHere’s how it works:
1. A company is incorporated
When a company is registered with the Corporate Affairs Commission, its founders decide how much ownership the company will have.
For example, they may decide that the company will have:
100 million ordinary shares.
A nominal value of ₦1 per share.
This means the company’s ownership is divided into 100 million equal pieces.
2. The founders own the first shares
If there are two founders, they might split the shares like this:
Founder A: 60 million shares (60%)
Founder B: 40 million shares (40%)
No money has been “created.” The shares simply represent ownership.
3. The company can issue more shares
As the business grows and needs more capital, it may issue additional shares to new investors through a rights issue, private placement, or public offering.
Issuing new shares raises money for the company, but it also dilutes existing shareholders unless they buy some of the new shares.
Is there a maximum number of shares?
There is no fixed maximum number under Nigerian law.
Instead, a company has an authorized share capital, which is the maximum number (or value) of shares it is currently allowed to issue under its constitutional documents and applicable law.
If the company wants to issue more than that, it must:
Obtain shareholder approval.
Increase its authorized share capital in accordance with Nigerian corporate law.
File the necessary documents with the Corporate Affairs Commission.
So, a company could have:
10 million shares,
1 billion shares,
or even 100 billion shares,
provided it follows the legal procedures.
Does having more shares make a company more valuable?
No.
For example:
Company A has 1 million shares worth ₦100 each. Total value = ₦100 million.
Company B has 100 million shares worth ₦1 each. Total value = ₦100 million.
Both companies have the same total value. The number of shares only determines how ownership is divided.
This is why companies like Zenith Bank Plc or MTN Nigeria Communications Plc can have billions of shares outstanding, while smaller companies may have only millions. The number of shares alone does not indicate whether a company is large or small.
Are There Stocks That Pay Monthly Dividends in Nigeria?
In Nigeria, there are currently no listed stocks that pay dividends monthly. Most companies listed on the Nigerian Exchange Group pay dividends: Once a year (the most common). Twice a year (interim and final dividends), which is common among some banks and a few other companies. For example: ZenithRead more
In Nigeria, there are currently no listed stocks that pay dividends monthly.
See lessMost companies listed on the Nigerian Exchange Group pay dividends:
Once a year (the most common).
Twice a year (interim and final dividends), which is common among some banks and a few other companies.
For example:
Zenith Bank Plc – usually pays interim and final dividends.
Guaranty Trust Holding Company Plc – typically pays interim and final dividends.
United Bank for Africa Plc – generally pays interim and final dividends.
Presco Plc – usually pays an annual dividend.
If your goal is to receive monthly income, individual stocks are not the best choice. Instead, consider:
Money market mutual funds, which accrue returns daily and often credit investors monthly.
Bond mutual funds, which may distribute income periodically.
Building a portfolio of several dividend-paying stocks with different payment months so that you receive dividends at various times during the year, although not every month.
How much do you need to start?
You can start with as little as the price of one share, plus your broker’s minimum order requirements. For example:
If a share costs ₦100, you can buy one share (though buying a larger number is usually more practical because of transaction costs).
Many Nigerian stockbrokers allow you to start investing with ₦5,000–₦10,000.
If your objective is to generate monthly passive income, let me know how much you plan to invest (for example, ₦100,000, ₦500,000, or ₦1 million). I can suggest a portfolio that balances monthly cash flow with long-term growth.
How Can I Dematerialize My Share Certificate in Nigeria?
Dematerialization is the process of converting your physical share certificates into electronic form and crediting them into your CSCS account. Once dematerialized, you no longer need to keep paper certificates, and you can easily receive dividends, bonuses, and sell the shares through a stockbrokerRead more
Dematerialization is the process of converting your physical share certificates into electronic form and crediting them into your CSCS account. Once dematerialized, you no longer need to keep paper certificates, and you can easily receive dividends, bonuses, and sell the shares through a stockbroker.
See lessHow to Dematerialize Share Certificates in Nigeria
Open a CSCS account
If you don’t already have one, open a CSCS account through a registered stockbroker or investment platform that provides stockbroking services.
Gather your documents
Original share certificate(s)
Valid means of identification
Passport photograph (if required)
Completed Dematerialization Form from your stockbroker
Submit the documents
Give the original certificates and completed forms to your stockbroker.
The broker forwards them to the company’s registrar for verification.
Verification and Credit
The registrar verifies the certificates.
Once approved, the shares are credited electronically to your CSCS account.
Confirmation
You receive confirmation from your broker when the shares appear in your CSCS account.
How Much Does It Cost?
For most investors, dematerialization itself is usually free or attracts minimal administrative charges, depending on the broker and registrar involved. However:
Some stockbrokers may charge processing fees.
You may incur costs if there are issues such as name discrepancies, signature updates, estate-related transfers, or lost certificates.
It is best to confirm the current charges with your stockbroker before submission.
If the Certificates Are Old
If the certificates are from many years ago:
Check whether the company still exists or has undergone mergers, acquisitions, or restructuring.
Verify whether bonus shares were issued over the years.
Update your e-dividend registration simultaneously so future dividends go directly to your bank account.
Is Dangote Planning to Merge NASCON Allied Industries, Dangote Sugar, and Dangote Rice?
Yes, there was a plan to merge NASCON Allied Industries, Dangote Sugar Refinery, and Dangote Rice into a single food company. The proposal was announced in 2023 as part of an internal restructuring by the Dangote Group. The idea was to create a larger food business combining sugar, salt, seasonings,Read more
Yes, there was a plan to merge NASCON Allied Industries, Dangote Sugar Refinery, and Dangote Rice into a single food company. The proposal was announced in 2023 as part of an internal restructuring by the Dangote Group. The idea was to create a larger food business combining sugar, salt, seasonings, and rice operations under one entity.
See lessHowever, the proposed merger was later suspended. In 2024, NASCON informed the market that the process had been put on hold following comments and recommendations from the Nigerian Securities and Exchange Commission (SEC), particularly because Dangote Rice was not yet operational.
So, as of now:
A merger was proposed in 2023.
The companies even worked on merger terms and share-exchange arrangements.
The merger was subsequently suspended and has not been completed.
For investors in NASCON or Dangote Sugar, this means there is currently no approved merger in effect, although the possibility could re-emerge in the future if the group revives the plan and obtains the necessary regulatory approvals.