How To Trade In The Nigerian Stock Exchange From Any Part Of The World
My Start Small Business Series Volume 4
Introduction
Nigeria
population: 188 million; GDP: $484 Billion; Per Capita: $2640; Currency: Naira, $1 = N391; Official Language: English.
Nigerian Stock Exchange (NSE)
The Nigerian Stock Exchange (NSE or the Exchange) is the establishment saddled with the responsibility of regulating the capital market in Nigeria. The Nigerian Stock Exchange was founded in 1960 and today services the largest economy in Africa. The NSE, a registered company limited by guarantee, is licensed under the Investments and Securities Act (ISA) and is regulated by the Securities and Exchange Commission(SEC).
NSE operates on T-3 basis meaning that if you buy or sell stock on it, it takes about 3 days to get cleared before you can receive the value transacted. The T-3 window of clearing makes room for a careful clearance of every transaction and also gives investors chance to file complaint and possibly suspend the transaction should there be any unwholesome act that occurred in it.
The clearing house of the Nigerian Stock Exchange is the Central Securities Clearing System (CSCS) which serves as both the clearing house and the depository for all the instruments traded on the NSE.
image from nigeriamassageboard.com
Stock Brokers
To trade shares or any other instrument in the NSE, you have to go through a stock broking firm or through a bank (in the case of money instrument). Most of the trusted stock broking firms in Nigeria presently have online portal where you can register and trade from any part of the world. This means that with an access to a computer or a mobile phone ( Android or IOS) connected to the internet, you can actually trade in the Nigerian Stock Exchange from any part of the world.
With this development, with as little as Ten thousand Naira (about 20 dollars) you can open an account with any of these stock brokers online and trade from there.
The procedure for registration is usually simple. Just fill your details online, upload some know-your-customer (KYC) documents like driving license, electricity bill, signature specimen, bank details including sorting code and you are good to go.
Some of the Stock brokers that have these online presence are as follows: Procedure
After you have registered with the stock broking firm through any of the online portals, it will take them at least two working days to register you with CSCS which is a must before you can trade on the NSE. After this registration, an account will be opened for you, a number called the clearing house number which starts with "C" will be issued to you.
Security of Your Investment
It is advised that you register on your own with the CSCS by going to their portal and registering with a token of N2500 naira for an individual investor or about N10000 for institutional investor.
Through the CSCS, you can monitor your holdings separately independent of your stock broker. You can also request that your stock broker apply for a trade alert service with the NSE on your behalf. This sends you a text massage anytime a transaction is done on your account.
With the above steps followed strictly, you are on the right path to trading in the Nigerian capital market. More information will be given with regards to how to trade on Nigerian Stock Exchange if you ask question through comments.
References:
https://en.wikipedia.org/wiki/Nigeria
https://www.cscsnigeriaplc.com/home/index
http://www.nse.com.ng/about-us
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Nigeria has a stock market?
who knew?
The Nigerian Stock Market is one of the most lucrative to trade in in the whole world. Give it a try and you wont regret!!!
OK..I will. As soon as I get the money from the Nigerian Prince who need my help to transfer some of the money that he received from his father.
I got an email.
He PROMISED.
That is likely a scammer. Be careful! There is no such thing.
Yeah..I thought Nigeria was pretty much a scam.
thanks for confirming it.
It is wrong of you to tag 180 million people a scam. If one person tries to scam you, that is very bad but does not justify you tagging a whole lot of people as a scam.
well see..that's the thing.
all of MY experience with Nigerians has to do with SCAMS.
would you tell me to NOT rely on my own personal experience?
are you trying to scam me?
It is quite unfortunate you had such experience! However, I maintain, your disposition is wrong. Harlibuton is an American Company that brought terrible corrupt practices into nigerian oil industry. Does that now make all American companies corrupt? Be nice and stop defending the indefensible. Scamming you? That is an insult on my person and I demand an apology.
Interesting read, then again the conversation with @everittdmickey got me hooked, the amicable way it ended. Wow! one of my favorite authors once did a TED Talk on "The danger of a single Story" and this to me was a witness of it.