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How To Buy Shares In Nigeria: Step By Step Guide

Posted by Ebo Victor on August 14, 2022 in Guide

How To Buy Shares In Nigeria: Step By Step Guide


With the current economic situation in Nigeria, making investments has become one of the ways to grow your wealth and live comfortably. Most people who only depend on their income without looking for ways to increase it gets little or no interest from just saving it in the banks. But if you’re keen on being financially secure in Nigeria, then buying stocks should be on your to-do list. Although buying shares or stocks in Nigeria used to be difficult for investors, the evolution of technology has made it a lot easier. Now both young and old investors can buy shares with ease without having to go through long protocols and requirements. Just like any other form of investment, buying shares can provide the foundation you need to secure your future financially but it involves some form of risk. In this article, you will learn how to buy shares or stocks in Nigeria, some of the companies to buy from, and the advantages and disadvantages of investing in the Nigerian stock market. But before we look at the different ways to buy stocks and start earning in Nigeria, let’s get familiar with the meaning of shares or stocks.

What are shares/stocks?

The term “Stock” (also known as Share) is a unit of ownership in a public company, corporation, or firm. Buying stocks gives the person (shareholder) the ability to invest in the company, be a part owner of the company and receive regular interests on investment called a dividend. However, the capital gains or losses are dependent on how many stocks were purchased. For instance, Dangote Cement has stocks available for the public and as of November 2021, the price of a share in the company was N280.00. This means that will N280 you can be a part owner of the company and make profits if the company does and vice versa. But an investor who buys more Dangote Cement shares will have more dividends than you if you buy lesser units of shares from the same company.

How to buy shares from a particular Nigerian stockbroker

The birth of technology has made the process of buying stocks from any company in the world a lot easier. With just your smartphone and a good internet connection, you can invest in any company of your choice. However, you’ll have to create an account with a stockbroker, go through some ID verification process and fund your account before you can buy stocks. A stockbroker is a company that connects buyers and sellers to complete a transaction in the stock market. These companies earn commissions or fees once a transaction is completed. Although there are many stockbrokers available for Nigerians, we’ll go through the steps on how to buy stocks from OctaFX.

How To Start Stocks Investment With OctaFX

  1. Registration and verification

    To begin your investment journey with OctaFX you’ll first need to register with the broker. This step requires just your email address and you’ll then get a message containing your Personal Area login details, trading account credentials, and all the necessary instructions.

    You then have to verify your account with OctaFX by providing your passport, national identity card, name, date of birth, signature, photograph, or any other government-issued photo ID. Make sure that the ID issue/expiry dates and serial number show very well. This verification process allows OctaFX to protect you against fraud and also confirm your identity. It’s important to get your account verified before making deposits especially if you’re using Visa/Mastercard. Also, you can only make withdrawals if your account with OctaFX is verified.

  2. Make a deposit Inkedoctasc2 Although it’s advisable to verify your account before making deposits with Visa/Mastercard, you can still go ahead without verification. OctaFX allows users to deposit with other options like Bitcoin, Ethereum, Skrill, Neteller, and directly from your Nigerian bank account.

    The minimum deposit amount varies according to the option you are using but you can start with N15,000 when depositing with your bank account. Now let’s look at how to deposit with your Nigerian bank account.

    • Step 1. Log into your Personal Area and click Deposit.
    • Step 2. Select the account you want to deposit to.
    • Step 3. Choose your preferred transfer method (bank account).
    • Step 4. Select the Local Bank option.
    • Step 5. Select the amount you want to deposit or type it manually.
    • Step 6. Select the method you want to use in depositing your money – via online banking, ATM, or at a bank branch.
    • Step 7. Let them know you’re done with the transfer by clicking on Notify Us After Transfer.

    The deposit will reflect on your account within 1-3 hours during business days or can also take up to one business day.

  3. Withdrawing Funds

    Before making any withdrawals from your OctaFX account, you must get your account verified. When done, you can choose to withdraw from either your wallet or trading account.

    OctaFX allows users to withdraw via Bitcoin, Ethereum, Bank account, Perfect Money, Neteller, Skrill, Visa/Mastercard.

    • Step 1. Log into your Personal Area on their site and choose whether you want to withdraw money from your Wallet or your trading account.
    • Step 2. Select the account you want to withdraw and click Withdraw.
    • Step 3. Select the payment method that suits you best and press Next.
    • Step 4. Enter the details required for the payment method you selected and click Request.

    The withdrawal will reflect within 1-3 hours but can take longer based on the payment system.

Pros and Cons of buying stocks

Just like any other form of investment, buying stocks can be both profitable and risky. Sometimes, companies might have a bad market which will cause you to lose money if you bought their shares. But with such investments, you can make more than you would by saving in a regular bank account. So what are the pros and cons of buying shares?


  1. Easy to buy

    Buying stocks these days has become easy with the help of smartphones and the internet. Once you create an account with a stockbroker like OctaFX or Chaka, then you can buy stocks within a few minutes.

  2. You can start with little capital

    Just like the Dangote Cement shares which sold for N280 last year, you can buy stocks in other companies with a small number of funds. However, your gains or losses will be based on the amount of capital you invested.

  3. Liquidity

    With the help of stockbrokers, you can enter the stock market and leave anytime you want. For instance, if you suddenly need your money back, you can quickly turn your shares into cash and withdraw them.


  1. Involves risk:

    Although buying stocks can get you secured from inflation you can lose your entire capital from one investment. No matter how profitable a company has been, the price of its shares will go back if they face financial difficulties.

  2. Exposure to many choices:

    Many stockbrokers give investors access to buy shares from many companies which can be overwhelming for newbies. This can easily lead you into making the wrong investment decisions. The best way is to pick a few companies and focus on them.

  3. Not for free:

    Investing in the stock market may be easy and fast, but it’s not for free. Even though it requires little capital to buy shares from some companies you need to pay a separate transaction fee every time you buy or sell.

Final thoughts

As a Nigerian, making investments in the stock market has been made easy by different stock brokers and you can start with Piggyvest or XTB. However, you still need to get proper knowledge of how the stock market works before starting your journey in the financial world. It is advisable to buy shares based on your financial goals and know the risk involved. Also, note that you’re solely responsible for an investment decision you make as this article is not a piece of financial advice.