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!
Ah, buying shares and investing are related, but not exactly the same thing. Let me explain it in a simple way:- Simple Explanation:• Buying shares means purchasing a part of a company, making you a part-owner.• Investing involves putting money into something with the hope of making a profit in theRead more
Ah, buying shares and investing are related, but not exactly the same thing. Let me explain it in a simple way:
– Simple Explanation:
• Buying shares means purchasing a part of a company, making you a part-owner.
• Investing involves putting money into something with the hope of making a profit in the future.
– How it works:
• When you buy shares, you are investing in the company’s growth and success.
• The value of your shares can increase if the company does well, allowing you to make a profit by selling them later.
– Benefits:
• Potential for profit through share price appreciation.
• Some companies pay dividends to shareholders, which is like a bonus for owning their shares.
– Risks:
• Share prices can go down, causing you to lose money.
• Companies can perform poorly, affecting the value of your shares.
– Real-life Nigerian Example:
• Imagine you buy shares in a popular Nigerian bank. If the bank’s profits increase, the value of your shares may go up, allowing you to sell them at a higher price.
– Common Mistakes:
• Not diversifying your investments by putting all your money into one company.
• Selling shares when the market is down due to panic.
– Practical Steps to Get Started:
• Research companies you are interested in investing in.
• Open a brokerage account to buy shares.
In summary, buying shares is a way of investing in a company, but investing involves a broader concept of putting money into different assets to grow wealth over time.
Now, can you think of a Nigerian company you would like to invest in and why?
If your sell order for BUA Cement Plc keeps failing on Bamboo, it does not necessarily mean there is a problem with the company or your shares. There are several possible reasons: No buyer at your asking price. If you're using a limit order and your selling price is higher than what buyers are williRead more
If your sell order for BUA Cement Plc keeps failing on Bamboo, it does not necessarily mean there is a problem with the company or your shares. There are several possible reasons:
No buyer at your asking price.
If you’re using a limit order and your selling price is higher than what buyers are willing to pay, the order may remain unfilled or eventually fail.
Insufficient market liquidity.
Sometimes there are very few buyers or sellers in the market. Even good companies can experience periods of low trading activity.
Price movement.
If the market price changes significantly while your order is being processed, the order may fail, especially if the price moves outside your limit.
Trading restrictions or market rules.
The Nigerian Exchange has daily price movement limits. If a stock reaches its upper or lower price limit, trading activity can become restricted.
Technical issues with Bamboo.
App or server problems can cause orders to fail even when there is enough market activity.
Corporate actions.
During events such as a share reconstruction, rights issue, or other corporate action, trading may be temporarily affected.
What you should do
Check whether your order was a Market Order or a Limit Order.
Review the current bid and ask prices for BUA Cement.
Cancel the failed order and submit a new one if appropriate.
If the problem continues for more than one trading day, contact Bamboo customer support and ask them to check the order status.
A question for you
When you say the sale “keeps failing,” do you mean:
the order is rejected immediately,
it stays on “Executing” for a long time and then fails, or
it is cancelled automatically after some time?
Also, approximately how many BUA Cement shares are you trying to sell, and are you using a Market Order or a Limit Order? That will help narrow down the likely cause.
Investing your school fees can be a risky decision, so let's break it down step by step for better understanding: 1. Simple Explanation:It's like Mama Ngozi giving her son money to buy rice, but instead of buying rice, he decides to gamble with it. 2. How It Works:Instead of paying your school feesRead more
Investing your school fees can be a risky decision, so let’s break it down step by step for better understanding:
1. Simple Explanation:
It’s like Mama Ngozi giving her son money to buy rice, but instead of buying rice, he decides to gamble with it.
2. How It Works:
Instead of paying your school fees immediately, you invest the money first to make it grow. Then, when you need to pay your fees, you sell some of your investments to cover the cost.
3. Benefits:
– Your money has the potential to earn more while waiting to be used.
– You can potentially pay your fees and help others if your investments do well.
4. Risks:
– Investments can go up or down in value, so there’s a risk of losing money.
– If you’re not experienced or knowledgeable about investing, you could make poor decisions.
5. Real-Life Nigerian Example:
Imagine using money meant for important family needs on gambling. If you win, it’s great, but if you lose, the consequences can be dire.
6. Common Mistakes:
– Not understanding the risks involved in investing.
– Following someone else’s investment strategy without proper knowledge.
7. Practical Steps to Get Started:
– If you want to invest your school fees, start by educating yourself about different investment options.
– Consider lower-risk options like Money Market Mutual Funds where you can access your money easily.
In summary, investing your school fees can be a risky move if you’re not knowledgeable about it. It’s essential to understand the risks involved and consider safer options if you’re not experienced in investing.
Now, what steps can you take to educate yourself about investing before making any financial decisions?
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.
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.
This is an excellent question. The biggest mistake beginners make is treating stocks, forex, and crypto as the same thing. They are completely different markets, with different drivers. Market What you own/trade What determines value? Stocks Ownership in a company Company profits, growth, dividends,Read more
This is an excellent question. The biggest mistake beginners make is treating stocks, forex, and crypto as the same thing. They are completely different markets, with different drivers.
Market
What you own/trade
What determines value?
Stocks
Ownership in a company
Company profits, growth, dividends, economy
Forex
One currency against another
Interest rates, inflation, central bank policies, economic strength
Crypto
Digital assets
Adoption, utility, scarcity, technology, regulation, market sentiment
1. Stocks – You own part of a business
When you buy shares, you become a small owner of that company.
Example:
Buy shares of a bank.
If the bank earns more profits, expands, and pays dividends, the stock price may rise.
If the bank performs poorly, the share price may fall.
Stock fundamentals include:
Revenue
Profit
Earnings per share (EPS)
Dividends
Debt
Management quality
Industry growth
Economic conditions
Think of stocks as investing in businesses.
2. Forex – You trade one currency against another
Forex (Foreign Exchange) is not investing in a company. You are trading the value of one country’s currency relative to another.
Example:
EUR/USD
GBP/USD
USD/JPY
If you buy EUR/USD, you expect the euro to strengthen against the US dollar.
Forex fundamentals
The value of a currency mainly depends on:
Interest rates
Countries with higher interest rates often attract foreign investors, increasing demand for their currency.
Inflation
Lower inflation generally supports a stronger currency.
Economic growth
Strong GDP growth usually strengthens a country’s currency.
Employment
Low unemployment often signals a healthy economy and can support the currency.
Central bank decisions
Central banks influence currencies through interest rate changes and monetary policy.
Examples include:
Central Bank of Nigeria
Federal Reserve
European Central Bank
Political stability
Stable governments tend to support stronger currencies.
Think of Forex as investing in the strength of an economy.
3. Crypto – Digital assets
Crypto is different from both stocks and forex.
Most cryptocurrencies are not companies or national currencies.
Examples include:
Bitcoin
Ethereum
Solana
Crypto fundamentals
Utility
Does the coin solve a real problem?
Adoption
How many people and businesses use it?
Scarcity
For example, Bitcoin has a maximum supply of 21 million coins.
Technology
Is the blockchain secure, scalable, and reliable?
Developer activity
Projects with active developers tend to evolve more quickly.
Regulation
Government policies can significantly affect crypto prices.
Market sentiment
Crypto prices are heavily influenced by investor confidence and fear.
Think of crypto as investing in digital technology and networks.
Which market is easiest to understand?
Stocks – Easiest, because you can analyze real businesses.
Forex – Harder, because you need to understand economics and central bank policies.
Crypto – Often the most volatile, combining technology, regulation, and market psychology.
Which is best for long-term wealth?
For most people:
Stocks: Excellent for building wealth over many years.
Forex: Primarily used for short- to medium-term trading; very few people invest in currencies for decades.
Crypto: Can offer high potential returns but also carries much higher risk.
Since you’ve been asking about long-term investing, mutual funds, Treasury bills, and shares, learning stock investing first is a solid foundation. Once you understand how businesses create value, it becomes much easier to understand why markets move, including forex and crypto. Forex and crypto trading generally require more specialized knowledge and carry higher risk than long-term investing in quality businesses.
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.
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 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
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
A Financial Literacy Advocate and Investment Strategist On a mission to build
10 million financially free Nigerians and Africans
Through the right knowledge.
You’re thinking in the right direction—but let’s sharpen it. Yes, equity funds are high risk, but a bullish market actually changes how that risk behaves. Let’s break it down clearly. 📈 What a bullish market means When the market (like the NGX All-Share Index) is bullish: Stock prices are generallyRead more
You’re thinking in the right direction—but let’s sharpen it.
Yes, equity funds are high risk, but a bullish market actually changes how that risk behaves.
Let’s break it down clearly.
📈 What a bullish market means
When the market (like the NGX All-Share Index) is bullish:
Stock prices are generally rising
Investor confidence is high
More money is entering the market
👉 In simple terms: most stocks are going up
🟢 How this affects Equity Funds
An equity fund is just:
A basket of stocks managed by professionals
So if the market is going up:
✅ 1. Fund value (NAV) increases
The stocks inside the fund rise
So your investment grows
👉 You’ll likely see good short-term returns
✅ 2. Strong performance across many funds
Even average fund managers look good in a bull market.
Why?
The market is doing most of the work
✅ 3. Easier profit (temporarily)
You may feel like:
“This fund is amazing!”
But be careful…
⚠️ The hidden risk (most people miss this)
Bull markets can hide risk, not remove it.
❗ 1. Overvaluation risk
Stocks may become:
Too expensive
Driven by hype
👉 When correction comes, equity funds drop fast.
❗ 2. Volatility increases later
What goes up fast can:
Come down just as fast
Equity funds will follow that drop.
❗ 3. Timing risk for new investors
If you invest late in a bull run:
You buy at high prices
Returns may slow or reverse
🧠 So is it good or bad to invest now?
👉 Short answer:
Good for growth ✅
Risky for timing ⚠️
✔️ Smart way to use equity funds in a bullish market
Instead of guessing the market, do this:
🔹 1. Use “Gradual Investing” (very important)
Don’t put everything at once.
Example:
Invest ₦10k weekly or monthly
👉 This reduces risk of entering at the top.
🔹 2. Combine with safer assets
Don’t go all-in equity funds.
Example structure:
40–50% → Money Market Fund
30–40% → Equity Fund
10–20% → REIT / NIDF
🔹 3. Focus on fund quality (not just returns)
Look for:
Consistent performance
Good fund manager
Diversification
🔹 4. Have a mindset
Equity funds are:
Not for quick money
But for 3–5+ years growth
🔚 Simple explanation (clear takeaway)
Bullish market → equity funds perform well
But → risk is building underneath
Smart investors → don’t rush, they pace their entry
✔️ Direct advice to you
Since you’re still building your investment base:
👉 Don’t chase returns
👉 Use equity funds as growth engine, not your entire portfolio
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 lessIs buying shares the same as investing in Nigeria?
Ah, buying shares and investing are related, but not exactly the same thing. Let me explain it in a simple way:- Simple Explanation:• Buying shares means purchasing a part of a company, making you a part-owner.• Investing involves putting money into something with the hope of making a profit in theRead more
Ah, buying shares and investing are related, but not exactly the same thing. Let me explain it in a simple way:
– Simple Explanation:
• Buying shares means purchasing a part of a company, making you a part-owner.
• Investing involves putting money into something with the hope of making a profit in the future.
– How it works:
• When you buy shares, you are investing in the company’s growth and success.
• The value of your shares can increase if the company does well, allowing you to make a profit by selling them later.
– Benefits:
• Potential for profit through share price appreciation.
• Some companies pay dividends to shareholders, which is like a bonus for owning their shares.
– Risks:
• Share prices can go down, causing you to lose money.
• Companies can perform poorly, affecting the value of your shares.
– Real-life Nigerian Example:
• Imagine you buy shares in a popular Nigerian bank. If the bank’s profits increase, the value of your shares may go up, allowing you to sell them at a higher price.
– Common Mistakes:
• Not diversifying your investments by putting all your money into one company.
• Selling shares when the market is down due to panic.
– Practical Steps to Get Started:
• Research companies you are interested in investing in.
• Open a brokerage account to buy shares.
In summary, buying shares is a way of investing in a company, but investing involves a broader concept of putting money into different assets to grow wealth over time.
Now, can you think of a Nigerian company you would like to invest in and why?
See lessWhy Does My BUA Cement Share Sell Order Keep Failing on the Bamboo App?
If your sell order for BUA Cement Plc keeps failing on Bamboo, it does not necessarily mean there is a problem with the company or your shares. There are several possible reasons: No buyer at your asking price. If you're using a limit order and your selling price is higher than what buyers are williRead more
If your sell order for BUA Cement Plc keeps failing on Bamboo, it does not necessarily mean there is a problem with the company or your shares. There are several possible reasons:
See lessNo buyer at your asking price.
If you’re using a limit order and your selling price is higher than what buyers are willing to pay, the order may remain unfilled or eventually fail.
Insufficient market liquidity.
Sometimes there are very few buyers or sellers in the market. Even good companies can experience periods of low trading activity.
Price movement.
If the market price changes significantly while your order is being processed, the order may fail, especially if the price moves outside your limit.
Trading restrictions or market rules.
The Nigerian Exchange has daily price movement limits. If a stock reaches its upper or lower price limit, trading activity can become restricted.
Technical issues with Bamboo.
App or server problems can cause orders to fail even when there is enough market activity.
Corporate actions.
During events such as a share reconstruction, rights issue, or other corporate action, trading may be temporarily affected.
What you should do
Check whether your order was a Market Order or a Limit Order.
Review the current bid and ask prices for BUA Cement.
Cancel the failed order and submit a new one if appropriate.
If the problem continues for more than one trading day, contact Bamboo customer support and ask them to check the order status.
A question for you
When you say the sale “keeps failing,” do you mean:
the order is rejected immediately,
it stays on “Executing” for a long time and then fails, or
it is cancelled automatically after some time?
Also, approximately how many BUA Cement shares are you trying to sell, and are you using a Market Order or a Limit Order? That will help narrow down the likely cause.
Can I use my school fees to invest and still pay my fees later?
Investing your school fees can be a risky decision, so let's break it down step by step for better understanding: 1. Simple Explanation:It's like Mama Ngozi giving her son money to buy rice, but instead of buying rice, he decides to gamble with it. 2. How It Works:Instead of paying your school feesRead more
Investing your school fees can be a risky decision, so let’s break it down step by step for better understanding:
1. Simple Explanation:
It’s like Mama Ngozi giving her son money to buy rice, but instead of buying rice, he decides to gamble with it.
2. How It Works:
Instead of paying your school fees immediately, you invest the money first to make it grow. Then, when you need to pay your fees, you sell some of your investments to cover the cost.
3. Benefits:
– Your money has the potential to earn more while waiting to be used.
– You can potentially pay your fees and help others if your investments do well.
4. Risks:
– Investments can go up or down in value, so there’s a risk of losing money.
– If you’re not experienced or knowledgeable about investing, you could make poor decisions.
5. Real-Life Nigerian Example:
Imagine using money meant for important family needs on gambling. If you win, it’s great, but if you lose, the consequences can be dire.
6. Common Mistakes:
– Not understanding the risks involved in investing.
– Following someone else’s investment strategy without proper knowledge.
7. Practical Steps to Get Started:
– If you want to invest your school fees, start by educating yourself about different investment options.
– Consider lower-risk options like Money Market Mutual Funds where you can access your money easily.
In summary, investing your school fees can be a risky move if you’re not knowledgeable about it. It’s essential to understand the risks involved and consider safer options if you’re not experienced in investing.
Now, what steps can you take to educate yourself about investing before making any financial decisions?
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.
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.
What Is the Difference Between Crypto, Forex, and Stock Investing?
This is an excellent question. The biggest mistake beginners make is treating stocks, forex, and crypto as the same thing. They are completely different markets, with different drivers. Market What you own/trade What determines value? Stocks Ownership in a company Company profits, growth, dividends,Read more
This is an excellent question. The biggest mistake beginners make is treating stocks, forex, and crypto as the same thing. They are completely different markets, with different drivers.
See lessMarket
What you own/trade
What determines value?
Stocks
Ownership in a company
Company profits, growth, dividends, economy
Forex
One currency against another
Interest rates, inflation, central bank policies, economic strength
Crypto
Digital assets
Adoption, utility, scarcity, technology, regulation, market sentiment
1. Stocks – You own part of a business
When you buy shares, you become a small owner of that company.
Example:
Buy shares of a bank.
If the bank earns more profits, expands, and pays dividends, the stock price may rise.
If the bank performs poorly, the share price may fall.
Stock fundamentals include:
Revenue
Profit
Earnings per share (EPS)
Dividends
Debt
Management quality
Industry growth
Economic conditions
Think of stocks as investing in businesses.
2. Forex – You trade one currency against another
Forex (Foreign Exchange) is not investing in a company. You are trading the value of one country’s currency relative to another.
Example:
EUR/USD
GBP/USD
USD/JPY
If you buy EUR/USD, you expect the euro to strengthen against the US dollar.
Forex fundamentals
The value of a currency mainly depends on:
Interest rates
Countries with higher interest rates often attract foreign investors, increasing demand for their currency.
Inflation
Lower inflation generally supports a stronger currency.
Economic growth
Strong GDP growth usually strengthens a country’s currency.
Employment
Low unemployment often signals a healthy economy and can support the currency.
Central bank decisions
Central banks influence currencies through interest rate changes and monetary policy.
Examples include:
Central Bank of Nigeria
Federal Reserve
European Central Bank
Political stability
Stable governments tend to support stronger currencies.
Think of Forex as investing in the strength of an economy.
3. Crypto – Digital assets
Crypto is different from both stocks and forex.
Most cryptocurrencies are not companies or national currencies.
Examples include:
Bitcoin
Ethereum
Solana
Crypto fundamentals
Utility
Does the coin solve a real problem?
Adoption
How many people and businesses use it?
Scarcity
For example, Bitcoin has a maximum supply of 21 million coins.
Technology
Is the blockchain secure, scalable, and reliable?
Developer activity
Projects with active developers tend to evolve more quickly.
Regulation
Government policies can significantly affect crypto prices.
Market sentiment
Crypto prices are heavily influenced by investor confidence and fear.
Think of crypto as investing in digital technology and networks.
Which market is easiest to understand?
Stocks – Easiest, because you can analyze real businesses.
Forex – Harder, because you need to understand economics and central bank policies.
Crypto – Often the most volatile, combining technology, regulation, and market psychology.
Which is best for long-term wealth?
For most people:
Stocks: Excellent for building wealth over many years.
Forex: Primarily used for short- to medium-term trading; very few people invest in currencies for decades.
Crypto: Can offer high potential returns but also carries much higher risk.
Since you’ve been asking about long-term investing, mutual funds, Treasury bills, and shares, learning stock investing first is a solid foundation. Once you understand how businesses create value, it becomes much easier to understand why markets move, including forex and crypto. Forex and crypto trading generally require more specialized knowledge and carry higher risk than long-term investing in quality businesses.
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 does a bullish Nigeria stock market affect equity fund performance and risk for investors?
You’re thinking in the right direction—but let’s sharpen it. Yes, equity funds are high risk, but a bullish market actually changes how that risk behaves. Let’s break it down clearly. 📈 What a bullish market means When the market (like the NGX All-Share Index) is bullish: Stock prices are generallyRead more
You’re thinking in the right direction—but let’s sharpen it.
See lessYes, equity funds are high risk, but a bullish market actually changes how that risk behaves.
Let’s break it down clearly.
📈 What a bullish market means
When the market (like the NGX All-Share Index) is bullish:
Stock prices are generally rising
Investor confidence is high
More money is entering the market
👉 In simple terms: most stocks are going up
🟢 How this affects Equity Funds
An equity fund is just:
A basket of stocks managed by professionals
So if the market is going up:
✅ 1. Fund value (NAV) increases
The stocks inside the fund rise
So your investment grows
👉 You’ll likely see good short-term returns
✅ 2. Strong performance across many funds
Even average fund managers look good in a bull market.
Why?
The market is doing most of the work
✅ 3. Easier profit (temporarily)
You may feel like:
“This fund is amazing!”
But be careful…
⚠️ The hidden risk (most people miss this)
Bull markets can hide risk, not remove it.
❗ 1. Overvaluation risk
Stocks may become:
Too expensive
Driven by hype
👉 When correction comes, equity funds drop fast.
❗ 2. Volatility increases later
What goes up fast can:
Come down just as fast
Equity funds will follow that drop.
❗ 3. Timing risk for new investors
If you invest late in a bull run:
You buy at high prices
Returns may slow or reverse
🧠 So is it good or bad to invest now?
👉 Short answer:
Good for growth ✅
Risky for timing ⚠️
✔️ Smart way to use equity funds in a bullish market
Instead of guessing the market, do this:
🔹 1. Use “Gradual Investing” (very important)
Don’t put everything at once.
Example:
Invest ₦10k weekly or monthly
👉 This reduces risk of entering at the top.
🔹 2. Combine with safer assets
Don’t go all-in equity funds.
Example structure:
40–50% → Money Market Fund
30–40% → Equity Fund
10–20% → REIT / NIDF
🔹 3. Focus on fund quality (not just returns)
Look for:
Consistent performance
Good fund manager
Diversification
🔹 4. Have a mindset
Equity funds are:
Not for quick money
But for 3–5+ years growth
🔚 Simple explanation (clear takeaway)
Bullish market → equity funds perform well
But → risk is building underneath
Smart investors → don’t rush, they pace their entry
✔️ Direct advice to you
Since you’re still building your investment base:
👉 Don’t chase returns
👉 Use equity funds as growth engine, not your entire portfolio