The institutional stock entity in Nigeria is the Nigerian Exchange Group (NGX), with 360 listed companies available for purchase, sales or exchange of shares.
The best-traded companies listed there are generally agreed on by a number of fund managers and investment specialists. When considering when and how to buy shares in Nigeria, the top 5 stocks among these are listed below.
1. Honeywell Flour Mill
Flour Mills of Nigeria is buying a 71.69% stake in Honeywell, and this deal, valued at NGN80 billion, will be subject to regulatory approval. This transaction will see a positive merger between two leading entities in the grain-based foods industry, with 85 years of market experience.
The financial statements of both companies involved show a consistent record of revenue growth. With proposed production increases on the cards, and a broader product range in the offing, this is a stable and rewarding investment opportunity.
2. Conoil Plc
The company markets refined petroleum products, as well as producing LPG and numerous other related products. A current leader in the downstream petroleum sector, it aims to attract greater investment by upping returns on investments.
Part of the company’s expansion agenda is to grow developing markets while maintaining its own leadership position in the petroleum sphere. Previous years of consistent progress make this a stable and forward-looking opportunity for investors.
3. Seplat Energy Plc
Seplat is the leading energy provider in Nigeria, with policies aimed at tapping into the emerging market for renewables in the process of the green transition. Its oil and gas exploration ventures cover a large portfolio of assets in the Niger Delta area.
As Nigeria’s largest energy company in terms of market value, and taking into account the company’s forward-looking energy policies, Seplat remains a consistent performer with excellent and stable prospects for investors.
4. MTN Nigeria
Listed on the NGX in 2019, MTN Nigeria offers wide opportunities for investment in the telecom domain. Though there have been some structural problems that have led to an undervalued market value, these are now set to take an upward turn.
With a month-on-month share price that shows steady growth, more positive results are expected in the offing. Expert analysts are almost unanimous in predicting a bright future for telecommunications in Nigeria, and in this regard MTN reveals itself as a very promising player.
5. Zenith Bank Plc
As one of the largest financial service providers in Nigeria and English-speaking West Africa, Zenith Bank is a consistently secure investment portfolio with numerous areas of projected growth. With its sustained focus on corporate good governance, it offers investors a relationship based on reliability and trust.
It was voted Best Bank in Nigeria in the 2020 awards list, and remains a very attractive bet.
How to buy shares in Nigeria
- As in all other cases, it is important to make use of a local stockbroker registered by the Securities Exchange Commission (SEC).
- Online options for opening an investors account are provided by your broker.
- Diligent research is key to obtaining profitable results.
- For tracking data and opportunities, be sure to select an online broker that allows access to this information in his or her own available toolkit.
- Limit orders are a good way to spread your investment when markets are volatile, and these are recommended for beginners wanting to gain experience before making more informed and adventurous trading ventures.