The 9 Best Shares for Beginners on the Nigerian Stock Exchange revealed. We have picked through hundreds of shares on the NGX to provide beginner investors with the best options to start with.
This is a complete guide to the 9 Best Shares for Beginners on the Nigerian Stock Exchange.
In this in-depth guide you’ll learn:
- What should you consider as a beginner investor?
- 9 Best Shares for Beginners on the Nigerian Stock Exchange
- How to choose the Right Share Broker in Nigeria
- The Best Share Brokers in Nigeria
What should you consider as a beginner investor?
Consider your investment objective and time horizon, or the amount of time you have available to spend before attaining that objective.
Every investment has some degree of risk, and the market is unpredictable, fluctuating over time. You must comprehend your own risk tolerance.
A recommendation for investing is not to put all your eggs in one basket but to diversify. By diversifying your investment portfolio, you may lower investment risk.
Zenith Bank Plc (NGX: ZENITHBANK)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | 18.90 NGN |
| 📊 Market Capitalization | 593 billion NGN |
| 📊 EPS | 7.95 NGN |
| 📊 Gross Turnover | 104 million NGN |
| 📊 P/E Ratio | 2.59 |
| 📊 Dividend Yield | 16.40% |
| 📊 Shares Outstanding | 31.4 billion |
Zenith Bank Plc is a Nigeria-based commercial bank that serves the requirements of corporate, commercial, and individual customers.
Zenith Bank Plc is the ninth most valuable company on the NGX with a market valuation of NGN 593 billion, which represents around 2.22% of the Nigerian Stock Exchange equity market.
Julius Berger Nigeria Plc (NGX: JBERGER)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | 25.90 NGN |
| 📊 Market Capitalization | 41.4 billion NGN |
| 📊 Gross Turnover | 2.94 million NGN |
| 📊 EPS | - |
| 📊 P/E Ratio | - |
| 📊 Dividend Yield | 9.65% |
| 📊 Shares Outstanding | 1.6 billion |
Julius Berger Plc is a Nigerian industrial company that offers integrated construction solutions and related contractual services via its subsidiaries.
Julius Berger Nigeria Plc is now the 35th most valuable stock on the NGX, with a market value of NGN 41,4 billion. This represents about 0.155% of the Nigerian Stock Exchange equity market.
MTN Nigeria Communications Plc (NGX: MTNN)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | 190.00 NGN |
| 📊 Market Capitalization | 3.87 trillion NGN |
| 📊 Gross Turnover | 38.9 million NGN |
| 📊 EPS | 15.81 NGN |
| 📊 P/E Ratio | 12.02 |
| 📊 Dividend Yield | 6.91% |
| 📊 Shares Outstanding | 20.4 billion |
MTN Nigeria Communications Plc is the Nigerian subsidiary of the MTN Group, a global telecommunications firm with operations in 22 African and Middle Eastern countries.
MTN Nigeria has been at the forefront of the evolution of the telecommunications industry from its inception, becoming the overall biggest mobile provider in West Africa.
MTN Nigeria is now the third most valuable stock on the NGX, with a market value of NGN 3.87 trillion, accounting for about 14.4% of the overall Nigerian Stock Exchange equities market.
Dangote Cement (NGX: DANGCEM)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | 265.00 NGN |
| 📊 Market Capitalization | 4.52 trillion NGN |
| 📊 Gross Turnover | 191,000 NGN |
| 📊 EPS | 21.22 NGN |
| 📊 P/E Ratio | 12.49 |
| 📊 Dividend Yield | 7.55% |
| 📊 Shares Outstanding | 17 billion |
Dangote Cement Plc runs cement factories and manufactures and distributes cement and cement products.
Nigeria and Pan-Africa are the company’s two business segments, and the firm participates in several activities via its subsidiaries, including limestone mining, coal production, cement grinding, and exploration.
Currently, Dangote Cement is the second most valuable company on the NGX, with a market valuation of NGN 4.52 trillion, representing around 16.9% of the whole Nigerian Stock Exchange equities market.
Fidelity Bank Plc (NGX: FIDELITYBK)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | 2.90 NGN |
| 📊 Market Capitalization | 84 billion NGN |
| 📊 Gross Turnover | 15.5 million NGN |
| 📊 EPS | 1.31 NGN |
| 📊 P/E Ratio | 2.21 |
| 📊 Dividend Yield | 12.07% |
| 📊 Shares Outstanding | 29 billion |
Fidelity Bank Plc, a Nigerian commercial bank formed in 1987 as a private limited company with a merchant banking license, is internationally approved by the Central Bank of Nigeria (CBN).
As a result of its 2005 acquisitions of FSB International Bank and Manny Bank, Fidelity Bank became one of the top 10 banks in Nigeria.
Fidelity Bank Plc is the twenty-fifth most valuable stock on the NGX with a market valuation of NGN 84 billion, representing about 0.314% of the Nigerian Stock Exchange’s equities market.
Lafarge Africa Plc (NGX: WAPCO)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | 22.60 NGN |
| 📊 Market Capitalization | 364 billion NGN |
| 📊 Gross Turnover | 782,000 million NGN |
| 📊 EPS | 3.69 NGN |
| 📊 P/E Ratio | 6.56 |
| 📊 Dividend Yield | 8.85% |
| 📊 Shares Outstanding | 16.1 billion |
Lafarge Africa Plc is a maker of cement that is listed on the Nigerian Stock Exchange and has its headquarters in Lagos.
The Holcim Group has had considerable influence on the company operations, and because of the merger between Lafarge and Holcim and the following consolidation of Lafarge’s interests in Nigeria and Nigeria, the firm is now known as Lafarge Africa.
Lafarge Africa is the thirteenth most valuable stock on the NGX with a market value of NGN 364 billion, which represents around 1.36% of the Nigerian Stock Exchange equity market.
Honeywell Flour Mills Plc (NGX: HONYFLOUR)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | 2.10 NGN |
| 📊 Market Capitalization | 16.7 billion NGN |
| 📊 Gross Turnover | 2.26 million NGN |
| 📊 EPS | -0.12 NGN (TTM) |
| 📊 P/E Ratio | - |
| 📊 Dividend Yield | 3.26% |
| 📊 Shares Outstanding | 7.93 billion |
Honey Flour Mills Plc’s principal activity is the production and sale of wheat-based goods, including flour, semolina, whole wheat meal, noodles, and pasta.
Honeywell Flour Mill is now the 52nd most valuable company on the NGX, with a market value of NGN 16.7 billion, which represents around 0.062% of the NGX equity market.
Seplat Energy Plc (NGX: SEPLAT)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | 1,430.50 NGN |
| 📊 Market Capitalization | 842 billion NGN |
| 📊 Gross Turnover | 16,800 NGN |
| 📊 EPS | 92.57 NGN |
| 📊 P/E Ratio | 15.51 |
| 📊 Dividend Yield | 6.62% |
| 📊 Shares Outstanding | 588 million |
Independent oil and gas firm Seplat Petroleum Development Business (SEPLAT) is listed on the London and Nigerian stock exchanges, with a key focus on the Niger Delta region of Nigeria.
In addition to its oil operations, the corporation has effectively started to commercialize, develop, and monetize its enormous gas assets.
Seplat Petroleum Development Co. is now the seventh most valuable company on the NGX, with a market value of NGN 842 billion, or 3.14% of the NGX equity market.
United Bank for Africa Plc (NGX: UBA)
| 📈 Growth and Valuation | ℹ️ Information |
| 📊 Share Price | 6.80 NGN |
| 📊 Market Capitalization | 233 billion NGN |
| 📊 Gross Turnover | 5.62 million NGN |
| 📊 EPS | 3.48 |
| 📊 P/E Ratio | 2.01 |
| 📊 Dividend Yield | 14.71% |
| 📊 Shares Outstanding | 34.2 billion |
United Bank for Africa (UBA) Plc, a leading pan-African financial services corporation, is present in 20 African countries as well as France, the United Kingdom, and the United States.
Banking, pension fund custody, and other financial services are available to individual, commercial, and corporate clients in the African market. UBA was founded in 1948 when the British and French Bank (BFB) began conducting business in Nigeria.
United Bank for Africa is the fifteenth most valuable company on the NGX with a market valuation of NGN 233 billion, which represents around 0.868% of the Nigerian Stock Exchange equity market.
How to choose the Right Share Broker in Nigeria
Traders could not have picked a more favorable time to enter the investment market than the present. Competition among online brokers is high, which means costs are dropping down and features are being boosted.
Those interested in trading global financial instruments could choose from a wide variety of online forex and CFD brokers. However, there are several factors to consider when choosing a broker and we will go through them here.
Commission Charges
Individual stocks, options, mutual funds, exchange-traded funds, and bonds are the main investment types offered by brokers. Some will also provide exposure to the forex market, futures trading, and cryptocurrency exchanges.
Both the suitability of the broker’s offerings to your investment requirements and the fees you must pay is dependent on the investments the broker has available. You should pay close attention to the commissions that are involved with the investments you like.
Overall Reliability
There is a diverse selection of brokers available. Several have been popular for many years, while others have just recently emerged.
That does not imply they cannot be trusted, but if they are managing transactions for clients, they are members of a self-regulatory organization like the Financial Industry Regulatory Authority (FINRA), the Financial Conduct Authority (FCA), and other regulators, or subject to additional oversight.
Account Fees
While it could be impossible to eliminate account fees, they may be kept to a minimum. To withdraw funds or investments, or to close your account, most brokers will assess a fee.
If a broker does not charge them, or if you do not use their optional services, you could avoid paying most additional costs.
Pricing and Execution on Trades
Cost is less of a factor today, leading to commission-free transactions becoming the norm at most brokerages.
However, you should consider the brokerage’s position on the controversial practice of paying for order flow and how much it costs before making a final decision.
This is especially true if you are an active trader who wants their deal completed at the best price possible, even if it means a difference of a few cents.
Additional Tools, Educational Materials, and Features
Look for a brokerage that provides free educational tools like live webinars, detailed how-to instructions, video tutorials, glossaries, and more if you are just starting in the investment world.
You should also look at the broker’s commitment to educating its customers about the inherent hazards of more complex trading tactics like options.
The Best Share Brokers in Nigeria
In this article, we have listed the best brokers which offer share trading to traders. We have further identified the brokers that offer additional services and solutions to traders.
Best MetaTrader 4 / MT4 Share Broker in Nigeria
Overall, BDSwiss is the best MT4 Share broker in Nigeria. BDSwiss provides access to more than a thousand different instruments using the robust MetaTrader 4.
Traders in Nigeria may open one of four real-time trading accounts with spreads starting at 0.3 pips EUR/USD and benefit from quick and market execution.
Best MetaTrader 5 / MT5 Share Broker in Nigeria
Overall, FOREX.com is the best MetaTrader 5 Share broker in Nigeria. Powered by GAIN Capital, FOREX.com is available to customers in more than 180 countries. Nigerians can trade a wide variety of instruments on FOREX.com using MetaTrader 5.
Best Share Broker for beginners in Nigeria
Overall, AvaTrade is the best Share broker for beginners in Nigeria. AvaTrade’s articles and webinars cover a wide range of topics that relate specifically to foreign exchange (FX) and investment.
Because of the wealth of educational resources available on both the trading platform and the AvaTrade YouTube channel, it is often considered the best option for novice traders in Nigeria.
Best Low Minimum Deposit Share Broker in Nigeria
Overall, FBS is the best Low Minimum Deposit Share Broker in Nigeria. FBS has been in business for more than a decade and now services over 150 nations.
You may open a trading account with FBS for as little as 400 NGN, and you will have access to both STP and ECN execution.
Best ECN Share Broker in Nigeria
Overall, FP Markets is the best ECN Share broker in Nigeria. If you are looking for a broker that offers zero-pip spreads and ECN execution in Nigeria, FP Markets is a great option. MAM/PAMM solutions and VPS hosting are also available from FP Markets.
Best Islamic / Swap-Free Share Broker in Nigeria
Overall, OANDA is the best Islamic / Swap-Free Share broker in Nigeria. Since OANDA has an award-winning trading platform and a special Islamic Account for Muslim traders, it is a popular option among Nigerians.
OANDA offers low pricing from 0.1 pips EUR/USD by partnering with trusted liquidity sources like JP Morgan.
Best Share Trading App in Nigeria
Overall, eToro is the best Share trading app in Nigeria. eToro is a top broker in the industry and a popular social trading platform, with access to more than 3,000 different assets.
eToro’s innovative iOS and Android apps provide Nigerians with a convenient way to trade on the move.
Best NGN Trading Account Share Broker in Nigeria
Overall, HFM is the best NGN trading account Share broker in Nigeria. HFM is a CFD and Forex broker that has been around for 12 years and has earned 55 accolades in its field.
Nigerians can easily open a trading account with HFM and use the Nigerian naira (NGN) as their base currency.
Best Lowest Spread Share Broker in Nigeria
Overall, Pepperstone is the best lowest spread Share broker in Nigeria. Pepperstone is a major broker that operates in over 170 countries.
As a result of Pepperstone’s access to liquidity from institutions like Barclays and HSBC, traders may anticipate a market with a zero-pip spread.
Best Nasdaq 100 Share Broker in Nigeria
Overall, Exness is the best Nasdaq 100 Share, broker. When it comes to trading the Nasdaq 100, Nigerians have Exness’ more than 300,000 registered traders and round-the-clock customer service to rely on.
Express trading accounts provide zero-pip spreads and cheap fees, and the company is compatible with both MetaTrader 4 and MetaTrader 5.
Best NDD Share Broker in Nigeria
Overall, Tickmill is the best NDD Share broker in Nigeria. Tickmill is a reputable and widespread international broker in Africa. Spreads on main instruments start at 0.0 pips on the NDD model thanks to STP and ECN execution.
Best STP Share Broker in Nigeria
Overall, Markets.com is the best STP Share broker in Nigeria. Markets.com is a market and rapid execution STP and ECN broker with two retail accounts.
Markets.com does not charge any commissions and just takes 0.8 pips to trade the EUR/USD and other major currency pairs.
Best Sign-up Bonus Broker in Nigeria
Overall, SuperForex is the best sign-up bonus broker in Nigeria. SuperForex provides Nigerians with the most diverse selection of retail trading accounts and trading instruments (over 400).
Traders from Nigeria may take advantage of SuperForex’s many advantages, including a $88 welcome bonus and subsequent bonuses of between 50% and 3,000% of their deposits.
Conclusion
You could start investing in the Nigerian Stock Exchange even if you are just starting and/or have a restricted budget. It is more complicated than simply selecting the best investment, which is already an arduous task.
You must also understand the restrictions that apply to you as a beginner. Therefore, we have compiled a detailed list of the five finest NGX-listed shares for Nigerian newcomers.
Frequently asked questions
When investing in Nigeria, how much money do I need?
Attributable to the ease with which individual shares could be purchased via a broker, there is no set investment amount to begin trading shares in Nigeria.
Where can I find out more information on the Nigerian stock market?
Documents like manuals, tutorials, electronic books, and others are available for reading online. In addition to a demo account, videos, online courses, professional advice, and consultations are all at your disposal.
How long will it take to sell shares in Nigeria?
It could take up to 48 hours for your stockbroker to sell your shares.
Can a beginner participate in day trading of stocks?
Day trading is accessible even to those with little to no experience. However, it is not always recommended as it needs more capital.
Is it worthwhile to invest in a single share?
Yes, it can be. However, if an investor insists on making a single-share purchase, they should at least try to place a limit order in the hopes of realizing capital gains large enough to offset the transaction expenses.
Top 4 Brokers
