How to Buy & Sell Shares in Nigeria


As the economy of each country becomes increasingly tied to global companies, stock markets and investments are becoming global. Investors are looking for increased opportunities to maximize investment returns and emerging markets economies, such as Nigeria, are becoming prime investment locations. Stocks in Nigeria may have additional risks over domestic stocks. Nigeria has abundant natural resources and highly underdeveloped markets. Barring corruption and stability risks, growth opportunities in Nigerian companies have the ability to quickly increase company profits and stock prices.

Things You'll Need

  • Investment account
  • Buy an American Depository Receipt (ADR). The easiest way to buy a Nigerian stock is through an ADR. ADR stocks are traded on local exchanges in the United States in United States dollars. They represent shares of stock in foreign companies. You can find ADRs through your brokerage web site or a free finance site like Google Finance or Yahoo! Finance.

  • Buy a Nigerian stock directly on the Nigerian Stock Exchange. The Nigerian Stock Exchange is located in Lagos and has 283 listed companies. You can buy a stock on a foreign exchange directly through your brokerage, though buying companies listed outside of major exchanges like the New York Stock Exchange, Euronext, NASDAQ, and American Stock Exchange are very expensive. Buying on a foreign exchange requires a transaction to be in the local currency of the exchange and exposes investors to currency risk in addition to the risk of the stock investment.

  • Buy through a Nigerian stock brokerage. If you have trustworthy contacts with a major bank or brokerage in Nigeria, you can buy stocks directly and hold them through the Nigerian brokerage. To do this, you will need to comply with both United States and Nigerian investment laws and have Nigerian Naira, the local currency, to buy the stock.

  • Buy a Nigerian company listed on a foreign market. Some companies choose to list on foreign markets for greater access to capital and liquidity. Some Nigerian companies are located on other major stock exchanges, such as the JSE Securities Exchange located in Johannesburg, South Africa.

Tips & Warnings

  • Foreign investing comes with much larger risks than domestic investing. You are exposed to possibilities of currency fluctuation, economic and political events abroad, and fraud.

Related Searches


  • Photo Credit toits de casablanca image by Emmanuelle Combaud from
Promoted By Zergnet



You May Also Like

Related Searches

Check It Out

4 Credit Myths That Are Absolutely False

Is DIY in your DNA? Become part of our maker community.
Submit Your Work!