Let me break this down for you in the simplest way possible, just like when you're buying fresh tomatoes from Mama Ngozi. Imagine you have ₦500,000, and you're wondering where to put it - should it be in a Nigerian money-market fund, Treasury Bills, or Nigerian stocks?Now, let's look at it this way:Read more
Let me break this down for you in the simplest way possible, just like when you’re buying fresh tomatoes from Mama Ngozi. Imagine you have ₦500,000, and you’re wondering where to put it – should it be in a Nigerian money-market fund, Treasury Bills, or Nigerian stocks?
Now, let’s look at it this way:
If you put your money in a Nigerian money-market fund, it’s like giving your money to a group of people who know how to buy and sell things very well. They use the money to buy short-term government or corporate debts and pay you some profit in return.
On the other hand, investing in Treasury Bills is somewhat similar to lending money to the government. You give the government your ₦500,000, and in return, they promise to pay you back with some extra money after a fixed period.
Lastly, if you decide to invest in Nigerian stocks, it’s like owning a small piece of different Nigerian companies. You become a shareholder and have a share in their profits or losses.
Here’s the thing, Mama Ngozi: each option has its benefits and risks.
Money-market funds are usually safer but offer lower returns. Treasury Bills are considered secure but may tie up your money for some time. Stocks have the potential for higher returns but also come with more risks.
So, before you decide, think about how much risk you’re willing to take and when you may need your money back. Be sure to do your research and understand what you’re getting into before making a choice.
Remember, just like in the market where you carefully pick the best tomatoes to sell, you need to carefully pick the investment option that fits your goals and aspirations.
Now, go ahead, weigh your options, and make a choice that is best suited for you and your hard-earned money. Your financial journey starts with a thoughtful decision.
In the bustling village of Obodo Ukwu, where Mama Ngozi sells her juicy tomatoes, there is a big, new refinery being built by Dangote. Ah, yes, my dear, you see, just like when Mama Ngozi gets new baskets to store her tomatoes, the Dangote Refinery will benefit several other companies directly and iRead more
In the bustling village of Obodo Ukwu, where Mama Ngozi sells her juicy tomatoes, there is a big, new refinery being built by Dangote. Ah, yes, my dear, you see, just like when Mama Ngozi gets new baskets to store her tomatoes, the Dangote Refinery will benefit several other companies directly and indirectly too.
Now, imagine this: when the Dangote Refinery starts operating, it will need a lot of raw materials to refine into different products like petrol and diesel. So, companies that supply these raw materials, such as crude oil, will directly benefit. These companies will be like Mama Ngozi’s suppliers who bring her fresh tomatoes from the farm.
Indirectly, other businesses like transportation companies will also benefit. Just like how Mama Ngozi relies on the local bike man to bring her tomatoes to the market, these companies will transport goods to and from the refinery, earning money in the process.
Furthermore, businesses that provide services like maintenance, security, and catering to the workers at the refinery will also benefit indirectly. These service providers will be like the children who help Mama Ngozi arrange her tomatoes neatly for sale.
In essence, the Dangote Refinery will create a ripple effect, positively impacting various businesses in the community, just as Mama Ngozi’s tomato sales benefit different people in Obodo Ukwu. So, you see, my dear, it’s not just Dangote who will benefit from the refinery; it will be a blessing for many others too.
Imagine you are in the village market with Mama Ngozi, the tomato seller. Let's say you have a special tomato that gives birth to baby tomatoes every month. Yes, funny, right? Now, these baby tomatoes are like the dividends you get from a company when you own their shares.So, you decide you want toRead more
Imagine you are in the village market with Mama Ngozi, the tomato seller. Let’s say you have a special tomato that gives birth to baby tomatoes every month. Yes, funny, right? Now, these baby tomatoes are like the dividends you get from a company when you own their shares.
So, you decide you want to plant these baby tomatoes in Mama Ngozi’s tomato farm to get even more tomatoes in the future. To make this happen, you need to activate the Dividend Reinvestment Plan (DRIP) in your InvestNaija account.
Activating the DRIP is like telling the company, “Hey, instead of giving me cash for these baby tomatoes (dividends), plant them back into buying more shares for me.” This way, your investment grows faster because you’re getting more shares instead of just cash.
To set it up, you can log into your InvestNaija account and look for the option to enroll in the DRIP. It’s usually a simple process of clicking a few buttons or selecting the option to reinvest dividends. Once you activate it, the company will automatically use your dividends to buy more shares for you.
Now, instead of just enjoying the cash from your baby tomatoes (dividends), you’re planting them back to grow a bigger tomato farm (investment portfolio). It’s like compound interest but with tomatoes! And who doesn’t love more tomatoes in the future, right? Happy investing, just like Mama Ngozi planting her tomatoes for a plentiful harvest!
Once upon a time in a small village in Nigeria, there lived Mama Ngozi, a hardworking tomato seller who saved a little money every month. One day, Mama Ngozi asked: "How can I start investing in stocks with the small money I save?"Imagine Mama Ngozi saved between ₦10,000 to ₦30,000 monthly. Should sRead more
Once upon a time in a small village in Nigeria, there lived Mama Ngozi, a hardworking tomato seller who saved a little money every month. One day, Mama Ngozi asked: “How can I start investing in stocks with the small money I save?”
Imagine Mama Ngozi saved between ₦10,000 to ₦30,000 monthly. Should she invest every month, or should she wait until she has a larger amount? Let’s break it down simply for Mama Ngozi and everyone else who wants to begin investing in Nigeria:
1. Starting Small: Mama Ngozi, just like you, can start investing with a small amount. She doesn’t need a large sum to begin her investment journey. With as little as ₦10,000, she can start buying stocks.
2. Consistent Investing: Mama Ngozi can choose to invest her money every month, even if it’s a small amount. By investing regularly, she can grow her investment over time through a strategy called “dollar-cost averaging.” This means she buys more shares when prices are low and fewer shares when prices are high, helping to reduce the effect of market volatility.
3. Patience and Discipline: Mama Ngozi should remember that investing is a long-term game. She should be patient and disciplined, focusing on building her portfolio gradually.
4. Setting Goals: Mama Ngozi can set achievable goals for her investments, whether it’s saving for her children’s education, retirement, or other long-term plans.
5. Education and Research: Mama Ngozi should educate herself about the stock market, different investment options, and how to analyze companies before investing. Knowledge is key to making informed investment decisions.
6. Seek Guidance: Mama Ngozi can also seek guidance from licensed stockbrokers or financial advisors to help her navigate the stock market and make informed decisions.
7. Start Today: Mama Ngozi shouldn’t wait for a large sum to start investing. The earlier she starts, the more time her investments have to grow.
Remember, investing always carries risks, and Mama Ngozi should be prepared for ups and downs in the market. By starting small, investing regularly, and being patient, Mama Ngozi can begin her journey to financial growth and security.
So, Mama Ngozi, go ahead and take that first step towards building your wealth through investing in stocks, one small tomato at a time!
You're starting a new small business and looking to maximize your revenue through savings and investments in stocks and bonds. Well, let's break it down so even Mama Ngozi from the village can understand!Imagine you're setting up a small shop in the village to sell your tasty tomatoes. You've savedRead more
You’re starting a new small business and looking to maximize your revenue through savings and investments in stocks and bonds. Well, let’s break it down so even Mama Ngozi from the village can understand!
Imagine you’re setting up a small shop in the village to sell your tasty tomatoes. You’ve saved up some money to start, but you want to make sure your business grows and brings in more profit. That’s where savings and investments come in!
Savings is like setting aside some of your tomato sales every day in a piggy bank. It’s a safe way to keep your money for emergencies or future plans, like buying more tomatoes or expanding your shop.
Now, let’s talk about stocks and bonds. Think of stocks as seeds you plant in your tomato farm. When the tomatoes grow and are ready to be sold, you get to share in the harvest. Similarly, when you invest in stocks, you buy tiny pieces of a company. If the company does well, you can earn money through dividends and selling your stocks at a higher price.
On the other hand, bonds are like lending your money to someone. Imagine your friend wants to expand his vegetable farm but needs extra cash. He promises to pay you back with some interest after a set period. That’s how bonds work – you lend money to a company or government, and they pay you back with interest.
For your small business, you can consider investing some of your savings in stocks to potentially earn more money as the companies grow. However, since stocks can be unpredictable like the weather, it’s essential to research and choose wisely.
Bonds, on the other hand, offer a more stable way to grow your money, though with lower returns compared to stocks. They can provide a regular income stream and help balance the risk in your investment portfolio.
To maximize your revenue and finance for your small business, it’s crucial to diversify your investments. Just like you wouldn’t put all your tomatoes in one basket, spreading your savings across different types of investments like stocks and bonds can help reduce risk and increase your chances of success.
Remember, investing in stocks and bonds requires patience, understanding, and a long-term view. By saving smartly and investing wisely, you can help your small business thrive and grow like a healthy tomato plant in your backyard.
That Would Be Depending On What You Are Looking For Like Growth, Dividend etc For Growth ; Airtel,Bua Food,Dangote Cement,Seplat etc. For Dividends;Gtco,Zenith,Mtn etc. For Stability+ Dividends;Ndif (Not A Stock),Real Estate Stock Etc
That Would Be Depending On What You Are Looking For Like Growth, Dividend etc
For Growth ; Airtel,Bua Food,Dangote Cement,Seplat etc.
For Dividends;Gtco,Zenith,Mtn etc.
For Stability+ Dividends;Ndif (Not A Stock),Real Estate Stock Etc
Let's break this down in a way that Mama Ngozi from the village would get it. So, you have the NGX app but can't see any trading options, and you noticed it lists companies under "gainers" and "losers." Now, when the app shows companies as "gainers" and "losers," it's like when Mama Ngozi sees whichRead more
Let’s break this down in a way that Mama Ngozi from the village would get it. So, you have the NGX app but can’t see any trading options, and you noticed it lists companies under “gainers” and “losers.” Now, when the app shows companies as “gainers” and “losers,” it’s like when Mama Ngozi sees which of her tomatoes are selling fast (gainers) and which ones are taking longer to sell (losers).
This doesn’t mean the app is predicting the future or overseeing things. It’s more like giving you a snapshot of what’s happening right now. It’s like when Mama Ngozi checks her daily sales to see which products are doing well and which ones need a little push.
Now, about your experience at the Onitsha stock exchange, where the old men showed you old ticket cover registers without explaining – that sounds frustrating! It’s like if someone showed Mama Ngozi an old sales register without saying a word.
When you have questions about stocks or investing and the answers seem unclear, it can be like trying to read a book in a language you don’t understand. Just like Mama Ngozi would need someone to explain the market to her in simple terms, you deserve clear explanations too.
In the world of investing, it’s essential to have things broken down into understandable bits, just like how Mama Ngozi breaks down the prices of her tomatoes for her customers. So, keep asking questions until you fully grasp the concept, just like Mama Ngozi learns about a new farming technique before using it on her crops. Remember, understanding is key!
In Nigeria, a child can ultimately inherit a late father's shares, mutual funds, bonds, money-market investments and other financial assets, but normally the child cannot simply approach the stockbroker and withdraw or transfer them. The assets first have to be dealt with as part of the deceased's eRead more
In Nigeria, a child can ultimately inherit a late father’s shares, mutual funds, bonds, money-market investments and other financial assets, but normally the child cannot simply approach the stockbroker and withdraw or transfer them. The assets first have to be dealt with as part of the deceased’s estate.
1. First establish whether there was a Will
There are two main situations:
A. Father left a valid Will
The Will should identify the beneficiaries and appoint an executor/executors.
The executor obtains a Grant of Probate from the appropriate Probate Registry.
The executor then administers the investments according to the Will.
B. Father died without a Will
The family applies for Letters of Administration.
The Probate Registry appoints the administrator(s).
The administrator(s) collect and administer the deceased’s investments before distributing them to the lawful beneficiaries.
For shares specifically, SEC rules provide for transmission to the deceased’s legal representatives, subject to the required documentation. �
SEC Nigeria +1
2. Find all the father’s investments
This is very important because families sometimes know about only one or two investments.
Look for:
CSCS statement/CHN
Stockbroker account details
Share certificates
Dividend warrants or e-dividend records
Bank statements showing dividend payments
Mutual fund statements
Money-market fund accounts
Treasury bills/bonds
Investment apps/platforms
Pension or insurance investments
Fixed deposits
Other securities
If the family doesn’t know which shares he owned, CSCS has services such as Global Search, stock-position statements and portfolio valuation that can help establish holdings. �
CSCS
3. Obtain the death certificate
The original death certificate or acceptable certified documentation will normally be required when processing the deceased’s investments. SEC’s published transmission requirements specifically include the original death certificate for sighting. �
SEC Nigeria
4. Obtain Probate or Letters of Administration
This is usually the critical step.
The family should approach the Probate Registry of the appropriate State High Court to process the estate.
The legal representative—not simply one of the children—will generally be the person authorised to deal with the investments.
5. Approach the stockbroker/registrar/CSCS
Once Probate or Letters of Administration has been obtained, the legal representative can approach the relevant institutions.
For Nigerian shares, the process can involve:
CSCS → Stockbroker → Registrar
CSCS confirms that for an estate account, documentation can include the Will/Letter of Administration, along with identification for the person being captured on behalf of the estate. �
CSCS
The registrar may require documents including:
Letter introducing the executor/administrator
Death certificate
Probate or Letters of Administration
Newspaper advert/Gazette where applicable
Evidence that the deceased owned the shares, such as CSCS statements, share certificates or dividend records. �
SEC Nigeria
6. The assets are then distributed to the beneficiaries
Suppose the deceased left:
₦20 million in Nigerian shares
₦10 million in a money-market fund
₦5 million in Treasury bills
₦3 million in other investments
The total investment estate could be ₦38 million.
The executor/administrator doesn’t simply give the entire ₦38 million to the eldest child. The assets are administered according to the Will or applicable succession law, after settling legitimate estate obligations and expenses.
If the child is a minor, the situation is different. The child’s inheritance may need to be held and administered by an appropriate legal representative/trustee until the child reaches the relevant age or pursuant to the court’s directions.
Important point
Being the deceased’s biological child does not, by itself, give the child authority to sell or withdraw the father’s shares.
The safer sequence is:
Father dies → locate investments → obtain death certificate → Probate/Letters of Administration → identify estate assets → transmission/collection → settle estate obligations → distribute to beneficiaries.
Also, don’t allow a family member to sell the deceased’s shares merely because they possess his CSCS statement, password, phone or broker details. There have been regulatory cases involving unauthorised dealings in deceased investors’ shares, and the SEC has required restoration of shares to estates.
SEC Nigeria
Let's dive in! Imagine Mr. Emeka, a civil servant earning around 50,000 naira monthly, is looking to invest a portion of his income, about 15,000 to 20,000 naira, to beat inflation. He doesn't have any previous knowledge of investments or shares. How can he start investing wisely to gain valuable exRead more
Let’s dive in! Imagine Mr. Emeka, a civil servant earning around 50,000 naira monthly, is looking to invest a portion of his income, about 15,000 to 20,000 naira, to beat inflation. He doesn’t have any previous knowledge of investments or shares. How can he start investing wisely to gain valuable experience?
Now, let’s break this down the Nigerian way. Mr. Emeka can start by thinking of investing like planting seeds in his small backyard garden. Instead of just storing his money under the mattress or in the bank where inflation may slowly eat away at its value, he can plant some seeds (money) to grow more valuable over time.
A good starting point for Mr. Emeka, who is new to the world of investing, is to consider investing in a secure and easy-to-understand option like Treasury Bills or Mutual Funds.
Let’s take a quick walk through the market to understand these options better:
1. Treasury Bills (T-Bills): Imagine T-Bills like lending money to the government with a promise to pay you back with interest after a set period, like borrowing a friend some money and getting it back with an extra token for helping out.
2. Mutual Funds: Picture Mutual Funds as a bowl where many people, including Mr. Emeka, come together to put their money. A professional ‘chef’ (fund manager) then decides how to invest this money in various ‘ingredients’ like stocks, bonds, or other securities, reducing the risk for everyone involved.
By opting for T-Bills or Mutual Funds, Mr. Emeka can start his investment journey without needing to worry too much about individual stocks or complex financial jargon. These options provide a good balance between safety and potential returns, serving as a beginner-friendly introduction to the world of investing.
As Mr. Emeka nurtures his investment garden, he can slowly learn more about different investment opportunities and grow his knowledge over time. Remember, the key is to start small, stay patient, and continuously seek to learn more about the investment world to make informed decisions.
So, Mr. Emeka, get your gardening tools ready, and let’s start growing your money tree in the financial garden!
In the stock market, when investors decide to sell shares of a company to take their profits, it can affect the stock's price. Let me break this down in a way that Mama Ngozi in the village can understand.Imagine Mama Ngozi has a tomato farm. She plants tomatoes and waits for them to grow. When theRead more
In the stock market, when investors decide to sell shares of a company to take their profits, it can affect the stock’s price. Let me break this down in a way that Mama Ngozi in the village can understand.
Imagine Mama Ngozi has a tomato farm. She plants tomatoes and waits for them to grow. When the tomatoes are ripe and ready for harvest, Mama Ngozi takes them to the market to sell. She sells some and makes a profit.
Now, let’s say Mama Ngozi’s friend, Mr. Emeka, also has a tomato farm. He sees that tomatoes are selling well in the market, so he decides to sell a large quantity of his tomatoes to make a profit too.
If both Mama Ngozi and Mr. Emeka bring a lot of tomatoes to the market at the same time, the price of tomatoes may drop because there are more tomatoes available than people buying them. This is similar to what happens in the stock market.
When big investors sell a large amount of shares in a company all at once, it can create an oversupply of those shares in the market. This oversupply can lead to a decrease in demand for the shares, causing the price to fall. As a result, when there is a huge sale by big investors, it can impact the overall market by influencing stock prices to go down.
So, just like in the tomato market, when there is more supply than demand, the price tends to drop. This is why profit-taking by big investors can affect the price of stocks in the market.
I have ₦500,000. Should I put it in a Nigerian money-market fund, Treasury Bills or Nigerian stocks?
Let me break this down for you in the simplest way possible, just like when you're buying fresh tomatoes from Mama Ngozi. Imagine you have ₦500,000, and you're wondering where to put it - should it be in a Nigerian money-market fund, Treasury Bills, or Nigerian stocks?Now, let's look at it this way:Read more
Let me break this down for you in the simplest way possible, just like when you’re buying fresh tomatoes from Mama Ngozi. Imagine you have ₦500,000, and you’re wondering where to put it – should it be in a Nigerian money-market fund, Treasury Bills, or Nigerian stocks?
Now, let’s look at it this way:
If you put your money in a Nigerian money-market fund, it’s like giving your money to a group of people who know how to buy and sell things very well. They use the money to buy short-term government or corporate debts and pay you some profit in return.
On the other hand, investing in Treasury Bills is somewhat similar to lending money to the government. You give the government your ₦500,000, and in return, they promise to pay you back with some extra money after a fixed period.
Lastly, if you decide to invest in Nigerian stocks, it’s like owning a small piece of different Nigerian companies. You become a shareholder and have a share in their profits or losses.
Here’s the thing, Mama Ngozi: each option has its benefits and risks.
Money-market funds are usually safer but offer lower returns. Treasury Bills are considered secure but may tie up your money for some time. Stocks have the potential for higher returns but also come with more risks.
So, before you decide, think about how much risk you’re willing to take and when you may need your money back. Be sure to do your research and understand what you’re getting into before making a choice.
Remember, just like in the market where you carefully pick the best tomatoes to sell, you need to carefully pick the investment option that fits your goals and aspirations.
Now, go ahead, weigh your options, and make a choice that is best suited for you and your hard-earned money. Your financial journey starts with a thoughtful decision.
See lessWhat Companies Could Benefit From Dangote Refinery’s Operations in Nigeria?
In the bustling village of Obodo Ukwu, where Mama Ngozi sells her juicy tomatoes, there is a big, new refinery being built by Dangote. Ah, yes, my dear, you see, just like when Mama Ngozi gets new baskets to store her tomatoes, the Dangote Refinery will benefit several other companies directly and iRead more
In the bustling village of Obodo Ukwu, where Mama Ngozi sells her juicy tomatoes, there is a big, new refinery being built by Dangote. Ah, yes, my dear, you see, just like when Mama Ngozi gets new baskets to store her tomatoes, the Dangote Refinery will benefit several other companies directly and indirectly too.
Now, imagine this: when the Dangote Refinery starts operating, it will need a lot of raw materials to refine into different products like petrol and diesel. So, companies that supply these raw materials, such as crude oil, will directly benefit. These companies will be like Mama Ngozi’s suppliers who bring her fresh tomatoes from the farm.
Indirectly, other businesses like transportation companies will also benefit. Just like how Mama Ngozi relies on the local bike man to bring her tomatoes to the market, these companies will transport goods to and from the refinery, earning money in the process.
Furthermore, businesses that provide services like maintenance, security, and catering to the workers at the refinery will also benefit indirectly. These service providers will be like the children who help Mama Ngozi arrange her tomatoes neatly for sale.
In essence, the Dangote Refinery will create a ripple effect, positively impacting various businesses in the community, just as Mama Ngozi’s tomato sales benefit different people in Obodo Ukwu. So, you see, my dear, it’s not just Dangote who will benefit from the refinery; it will be a blessing for many others too.
See lessHow do I set up a dividend reinvestment plan on InvestNaija?
Imagine you are in the village market with Mama Ngozi, the tomato seller. Let's say you have a special tomato that gives birth to baby tomatoes every month. Yes, funny, right? Now, these baby tomatoes are like the dividends you get from a company when you own their shares.So, you decide you want toRead more
Imagine you are in the village market with Mama Ngozi, the tomato seller. Let’s say you have a special tomato that gives birth to baby tomatoes every month. Yes, funny, right? Now, these baby tomatoes are like the dividends you get from a company when you own their shares.
So, you decide you want to plant these baby tomatoes in Mama Ngozi’s tomato farm to get even more tomatoes in the future. To make this happen, you need to activate the Dividend Reinvestment Plan (DRIP) in your InvestNaija account.
Activating the DRIP is like telling the company, “Hey, instead of giving me cash for these baby tomatoes (dividends), plant them back into buying more shares for me.” This way, your investment grows faster because you’re getting more shares instead of just cash.
To set it up, you can log into your InvestNaija account and look for the option to enroll in the DRIP. It’s usually a simple process of clicking a few buttons or selecting the option to reinvest dividends. Once you activate it, the company will automatically use your dividends to buy more shares for you.
Now, instead of just enjoying the cash from your baby tomatoes (dividends), you’re planting them back to grow a bigger tomato farm (investment portfolio). It’s like compound interest but with tomatoes! And who doesn’t love more tomatoes in the future, right? Happy investing, just like Mama Ngozi planting her tomatoes for a plentiful harvest!
See lessHow Can a Beginner Buy NGX Shares With ₦10,000 or ₦30,000?
Once upon a time in a small village in Nigeria, there lived Mama Ngozi, a hardworking tomato seller who saved a little money every month. One day, Mama Ngozi asked: "How can I start investing in stocks with the small money I save?"Imagine Mama Ngozi saved between ₦10,000 to ₦30,000 monthly. Should sRead more
Once upon a time in a small village in Nigeria, there lived Mama Ngozi, a hardworking tomato seller who saved a little money every month. One day, Mama Ngozi asked: “How can I start investing in stocks with the small money I save?”
Imagine Mama Ngozi saved between ₦10,000 to ₦30,000 monthly. Should she invest every month, or should she wait until she has a larger amount? Let’s break it down simply for Mama Ngozi and everyone else who wants to begin investing in Nigeria:
1. Starting Small: Mama Ngozi, just like you, can start investing with a small amount. She doesn’t need a large sum to begin her investment journey. With as little as ₦10,000, she can start buying stocks.
2. Consistent Investing: Mama Ngozi can choose to invest her money every month, even if it’s a small amount. By investing regularly, she can grow her investment over time through a strategy called “dollar-cost averaging.” This means she buys more shares when prices are low and fewer shares when prices are high, helping to reduce the effect of market volatility.
3. Patience and Discipline: Mama Ngozi should remember that investing is a long-term game. She should be patient and disciplined, focusing on building her portfolio gradually.
4. Setting Goals: Mama Ngozi can set achievable goals for her investments, whether it’s saving for her children’s education, retirement, or other long-term plans.
5. Education and Research: Mama Ngozi should educate herself about the stock market, different investment options, and how to analyze companies before investing. Knowledge is key to making informed investment decisions.
6. Seek Guidance: Mama Ngozi can also seek guidance from licensed stockbrokers or financial advisors to help her navigate the stock market and make informed decisions.
7. Start Today: Mama Ngozi shouldn’t wait for a large sum to start investing. The earlier she starts, the more time her investments have to grow.
Remember, investing always carries risks, and Mama Ngozi should be prepared for ups and downs in the market. By starting small, investing regularly, and being patient, Mama Ngozi can begin her journey to financial growth and security.
So, Mama Ngozi, go ahead and take that first step towards building your wealth through investing in stocks, one small tomato at a time!
See lessShould I Invest in Stocks or Bonds While Building a New Business in Nigeria?
You're starting a new small business and looking to maximize your revenue through savings and investments in stocks and bonds. Well, let's break it down so even Mama Ngozi from the village can understand!Imagine you're setting up a small shop in the village to sell your tasty tomatoes. You've savedRead more
You’re starting a new small business and looking to maximize your revenue through savings and investments in stocks and bonds. Well, let’s break it down so even Mama Ngozi from the village can understand!
Imagine you’re setting up a small shop in the village to sell your tasty tomatoes. You’ve saved up some money to start, but you want to make sure your business grows and brings in more profit. That’s where savings and investments come in!
Savings is like setting aside some of your tomato sales every day in a piggy bank. It’s a safe way to keep your money for emergencies or future plans, like buying more tomatoes or expanding your shop.
Now, let’s talk about stocks and bonds. Think of stocks as seeds you plant in your tomato farm. When the tomatoes grow and are ready to be sold, you get to share in the harvest. Similarly, when you invest in stocks, you buy tiny pieces of a company. If the company does well, you can earn money through dividends and selling your stocks at a higher price.
On the other hand, bonds are like lending your money to someone. Imagine your friend wants to expand his vegetable farm but needs extra cash. He promises to pay you back with some interest after a set period. That’s how bonds work – you lend money to a company or government, and they pay you back with interest.
For your small business, you can consider investing some of your savings in stocks to potentially earn more money as the companies grow. However, since stocks can be unpredictable like the weather, it’s essential to research and choose wisely.
Bonds, on the other hand, offer a more stable way to grow your money, though with lower returns compared to stocks. They can provide a regular income stream and help balance the risk in your investment portfolio.
To maximize your revenue and finance for your small business, it’s crucial to diversify your investments. Just like you wouldn’t put all your tomatoes in one basket, spreading your savings across different types of investments like stocks and bonds can help reduce risk and increase your chances of success.
Remember, investing in stocks and bonds requires patience, understanding, and a long-term view. By saving smartly and investing wisely, you can help your small business thrive and grow like a healthy tomato plant in your backyard.
See lessWhat stock is suitable in the NGX market to purchase currently?
That Would Be Depending On What You Are Looking For Like Growth, Dividend etc For Growth ; Airtel,Bua Food,Dangote Cement,Seplat etc. For Dividends;Gtco,Zenith,Mtn etc. For Stability+ Dividends;Ndif (Not A Stock),Real Estate Stock Etc
That Would Be Depending On What You Are Looking For Like Growth, Dividend etc
For Growth ; Airtel,Bua Food,Dangote Cement,Seplat etc.
For Dividends;Gtco,Zenith,Mtn etc.
For Stability+ Dividends;Ndif (Not A Stock),Real Estate Stock Etc
See lessDoes the NGX App Allow Investors to Buy and Sell Stocks in Nigeria?
Let's break this down in a way that Mama Ngozi from the village would get it. So, you have the NGX app but can't see any trading options, and you noticed it lists companies under "gainers" and "losers." Now, when the app shows companies as "gainers" and "losers," it's like when Mama Ngozi sees whichRead more
Let’s break this down in a way that Mama Ngozi from the village would get it. So, you have the NGX app but can’t see any trading options, and you noticed it lists companies under “gainers” and “losers.” Now, when the app shows companies as “gainers” and “losers,” it’s like when Mama Ngozi sees which of her tomatoes are selling fast (gainers) and which ones are taking longer to sell (losers).
This doesn’t mean the app is predicting the future or overseeing things. It’s more like giving you a snapshot of what’s happening right now. It’s like when Mama Ngozi checks her daily sales to see which products are doing well and which ones need a little push.
Now, about your experience at the Onitsha stock exchange, where the old men showed you old ticket cover registers without explaining – that sounds frustrating! It’s like if someone showed Mama Ngozi an old sales register without saying a word.
When you have questions about stocks or investing and the answers seem unclear, it can be like trying to read a book in a language you don’t understand. Just like Mama Ngozi would need someone to explain the market to her in simple terms, you deserve clear explanations too.
In the world of investing, it’s essential to have things broken down into understandable bits, just like how Mama Ngozi breaks down the prices of her tomatoes for her customers. So, keep asking questions until you fully grasp the concept, just like Mama Ngozi learns about a new farming technique before using it on her crops. Remember, understanding is key!
See lessHow Can a Child Claim His Late Father’s Shares and Investments in Nigeria?
In Nigeria, a child can ultimately inherit a late father's shares, mutual funds, bonds, money-market investments and other financial assets, but normally the child cannot simply approach the stockbroker and withdraw or transfer them. The assets first have to be dealt with as part of the deceased's eRead more
In Nigeria, a child can ultimately inherit a late father’s shares, mutual funds, bonds, money-market investments and other financial assets, but normally the child cannot simply approach the stockbroker and withdraw or transfer them. The assets first have to be dealt with as part of the deceased’s estate.
See less1. First establish whether there was a Will
There are two main situations:
A. Father left a valid Will
The Will should identify the beneficiaries and appoint an executor/executors.
The executor obtains a Grant of Probate from the appropriate Probate Registry.
The executor then administers the investments according to the Will.
B. Father died without a Will
The family applies for Letters of Administration.
The Probate Registry appoints the administrator(s).
The administrator(s) collect and administer the deceased’s investments before distributing them to the lawful beneficiaries.
For shares specifically, SEC rules provide for transmission to the deceased’s legal representatives, subject to the required documentation. �
SEC Nigeria +1
2. Find all the father’s investments
This is very important because families sometimes know about only one or two investments.
Look for:
CSCS statement/CHN
Stockbroker account details
Share certificates
Dividend warrants or e-dividend records
Bank statements showing dividend payments
Mutual fund statements
Money-market fund accounts
Treasury bills/bonds
Investment apps/platforms
Pension or insurance investments
Fixed deposits
Other securities
If the family doesn’t know which shares he owned, CSCS has services such as Global Search, stock-position statements and portfolio valuation that can help establish holdings. �
CSCS
3. Obtain the death certificate
The original death certificate or acceptable certified documentation will normally be required when processing the deceased’s investments. SEC’s published transmission requirements specifically include the original death certificate for sighting. �
SEC Nigeria
4. Obtain Probate or Letters of Administration
This is usually the critical step.
The family should approach the Probate Registry of the appropriate State High Court to process the estate.
The legal representative—not simply one of the children—will generally be the person authorised to deal with the investments.
5. Approach the stockbroker/registrar/CSCS
Once Probate or Letters of Administration has been obtained, the legal representative can approach the relevant institutions.
For Nigerian shares, the process can involve:
CSCS → Stockbroker → Registrar
CSCS confirms that for an estate account, documentation can include the Will/Letter of Administration, along with identification for the person being captured on behalf of the estate. �
CSCS
The registrar may require documents including:
Letter introducing the executor/administrator
Death certificate
Probate or Letters of Administration
Newspaper advert/Gazette where applicable
Evidence that the deceased owned the shares, such as CSCS statements, share certificates or dividend records. �
SEC Nigeria
6. The assets are then distributed to the beneficiaries
Suppose the deceased left:
₦20 million in Nigerian shares
₦10 million in a money-market fund
₦5 million in Treasury bills
₦3 million in other investments
The total investment estate could be ₦38 million.
The executor/administrator doesn’t simply give the entire ₦38 million to the eldest child. The assets are administered according to the Will or applicable succession law, after settling legitimate estate obligations and expenses.
If the child is a minor, the situation is different. The child’s inheritance may need to be held and administered by an appropriate legal representative/trustee until the child reaches the relevant age or pursuant to the court’s directions.
Important point
Being the deceased’s biological child does not, by itself, give the child authority to sell or withdraw the father’s shares.
The safer sequence is:
Father dies → locate investments → obtain death certificate → Probate/Letters of Administration → identify estate assets → transmission/collection → settle estate obligations → distribute to beneficiaries.
Also, don’t allow a family member to sell the deceased’s shares merely because they possess his CSCS statement, password, phone or broker details. There have been regulatory cases involving unauthorised dealings in deceased investors’ shares, and the SEC has required restoration of shares to estates.
SEC Nigeria
How Should Someone Earning ₦50,000 Monthly Invest ₦15,000 to ₦20,000 in Nigeria?
Let's dive in! Imagine Mr. Emeka, a civil servant earning around 50,000 naira monthly, is looking to invest a portion of his income, about 15,000 to 20,000 naira, to beat inflation. He doesn't have any previous knowledge of investments or shares. How can he start investing wisely to gain valuable exRead more
Let’s dive in! Imagine Mr. Emeka, a civil servant earning around 50,000 naira monthly, is looking to invest a portion of his income, about 15,000 to 20,000 naira, to beat inflation. He doesn’t have any previous knowledge of investments or shares. How can he start investing wisely to gain valuable experience?
Now, let’s break this down the Nigerian way. Mr. Emeka can start by thinking of investing like planting seeds in his small backyard garden. Instead of just storing his money under the mattress or in the bank where inflation may slowly eat away at its value, he can plant some seeds (money) to grow more valuable over time.
A good starting point for Mr. Emeka, who is new to the world of investing, is to consider investing in a secure and easy-to-understand option like Treasury Bills or Mutual Funds.
Let’s take a quick walk through the market to understand these options better:
1. Treasury Bills (T-Bills): Imagine T-Bills like lending money to the government with a promise to pay you back with interest after a set period, like borrowing a friend some money and getting it back with an extra token for helping out.
2. Mutual Funds: Picture Mutual Funds as a bowl where many people, including Mr. Emeka, come together to put their money. A professional ‘chef’ (fund manager) then decides how to invest this money in various ‘ingredients’ like stocks, bonds, or other securities, reducing the risk for everyone involved.
By opting for T-Bills or Mutual Funds, Mr. Emeka can start his investment journey without needing to worry too much about individual stocks or complex financial jargon. These options provide a good balance between safety and potential returns, serving as a beginner-friendly introduction to the world of investing.
As Mr. Emeka nurtures his investment garden, he can slowly learn more about different investment opportunities and grow his knowledge over time. Remember, the key is to start small, stay patient, and continuously seek to learn more about the investment world to make informed decisions.
So, Mr. Emeka, get your gardening tools ready, and let’s start growing your money tree in the financial garden!
See lessWhy Does Profit-Taking Affect Stock Prices Even When Every Sale Has a Buyer?
In the stock market, when investors decide to sell shares of a company to take their profits, it can affect the stock's price. Let me break this down in a way that Mama Ngozi in the village can understand.Imagine Mama Ngozi has a tomato farm. She plants tomatoes and waits for them to grow. When theRead more
In the stock market, when investors decide to sell shares of a company to take their profits, it can affect the stock’s price. Let me break this down in a way that Mama Ngozi in the village can understand.
Imagine Mama Ngozi has a tomato farm. She plants tomatoes and waits for them to grow. When the tomatoes are ripe and ready for harvest, Mama Ngozi takes them to the market to sell. She sells some and makes a profit.
Now, let’s say Mama Ngozi’s friend, Mr. Emeka, also has a tomato farm. He sees that tomatoes are selling well in the market, so he decides to sell a large quantity of his tomatoes to make a profit too.
If both Mama Ngozi and Mr. Emeka bring a lot of tomatoes to the market at the same time, the price of tomatoes may drop because there are more tomatoes available than people buying them. This is similar to what happens in the stock market.
When big investors sell a large amount of shares in a company all at once, it can create an oversupply of those shares in the market. This oversupply can lead to a decrease in demand for the shares, causing the price to fall. As a result, when there is a huge sale by big investors, it can impact the overall market by influencing stock prices to go down.
So, just like in the tomato market, when there is more supply than demand, the price tends to drop. This is why profit-taking by big investors can affect the price of stocks in the market.
See less