Experts Provide Insights on Investing in the Stock Market in Nigeria

Financial experts recently gave their advice on the advantages of stock market investing and to leverage it in Nigeria.

During a virtual event hosted by Stanbic IBTC Stockbrokers to educate Nigerians on the benefits of stock market investing, the head of sales, Afolabi Gbenro, highlighted supply, demand, news, and investor moods as variables that affect stock prices.

“The benefits of investing include dividend yield, capital appreciation, equity shareholder privileges and utilising investments as collateral”, he said.

The expert recommended that before going into stock market investing in Nigeria, ensure you perform due diligence and evaluation.

“You would need capital, investment objective, and risk profile assessment to determine the kind of investment you should venture into. You would also need to stay abreast of market updates”, he added.

Benjamin Jesumuyiwa, the Head of Mandate and Settlements at Stanbic IBTC Stockbrokers, urged Nigerians to invest in stocks for long-term goals.

He said, “The stock market makes it easy to buy shares of companies and they can be purchased through a broker or via online platforms.

Stanbic IBTC Stockbrokers offers a discounted rate of 0.7 per cent on brokerage fees. Once you have set up an account, stocks can be purchased in minutes”.

Tosin Olaseinde, the founder of Money Africa, recommended novices to invest while learning about the stock market.

She suggested exchange-traded funds as a starting point, particularly for those who are wary of high-risk investing. 

“As a beginner, the best place to start is the exchange traded funds. It is a mixture of different equities in one stock. It offers you the opportunity to participate in a couple of stocks without buying everything individually”, she said.

Solafunmi Oyeneye of Wealth Motley, a personal financial educator, stated that the advantages of trading stocks include liquidity and dividends paid over a lengthy period.

Jennifer Awirigwe, a certified finance educator, described the stock market as a suitable location to invest, 

“Because it is highly regulated, and the risks can be easily assessed”, she said.

READ MORE: Where to Start with Investing in Stocks