How to Buy Stocks on the NGX in Nigeria in 2026

The Nigerian Exchange (NGX) in short

The Nigerian Exchange (NGX) is the main stock exchange of Nigeria and trades in naira (NGN). Securities are held at the Central Securities Clearing System (CSCS), and the market is supervised by the Securities and Exchange Commission Nigeria. Official information on listed companies is published on the exchange website.

AfricanDividends tracks 92 companies on this market, with 1,019 recorded dividend payments since 2000. Average estimated yield: 2.17%.

Step by step: how to buy Nigeria stocks

1. Choose a licensed intermediary

   You cannot buy shares directly from the exchange. You need a licensed stockbroking firm (dealing member of the NGX). Check that the firm is authorised using the SEC Nigeria register of capital market operators. Compare brokerage fees, minimum amounts, the trading platform and how they handle dividends.

2. Open your account

   Fill in the broker's form and send your documents. You will usually need: a valid ID (international passport, driver's licence, national ID or voter's card); your Bank Verification Number (BVN) if you live in Nigeria; proof of address and a passport photograph; your bank account details for dividend payments. The broker then opens your securities account with the Central Securities Clearing System (CSCS).

3. Fund the account

   Transfer money to the broker or to the bank account it names. Prices are in naira (NGN), so a foreign investor also takes a currency step. Ask about transfer fees and how long funds take to arrive.

4. Research before you buy

   Look at each company's dividend history, how steady the payments are and when the next ex-dividend date falls. On AfricanDividends you can compare every tracked NGX company in the dividend stock list.

5. Place your order

   Tell your broker the company, the number of shares and the price you accept. A limit order sets the maximum price you will pay, which matters for stocks that trade rarely.

6. Receive and track dividends

   Shares bought before the ex-dividend date carry the right to the next dividend. Dividends are usually paid to your bank account through an e-dividend mandate, which you register with the company's registrar. Without a mandate, payment can be delayed or issued as a warrant.

How dividends work on the NGX

A company announces a dividend, then sets an ex-dividend date and a payment date. You receive the dividend if you own the share before the ex-date. Dividends are usually paid to your bank account through an e-dividend mandate, which you register with the company's registrar. Without a mandate, payment can be delayed or issued as a warrant.

Dividends paid by Nigerian companies are subject to withholding tax. The rate depends on your residency and on any tax treaty, so check the current rules with the Federal Inland Revenue Service or a tax adviser.

Foreign investors can buy NGX shares. Funds are normally brought in through an authorised dealer bank, which issues a Certificate of Capital Importation. Keep it: it supports the later repatriation of dividends and sale proceeds.

Risks to keep in mind

• Naira exchange-rate moves can erase local-currency gains for a foreign investor.
• Some stocks trade thinly, so selling a large position can take time.
• Banks and a few large companies make up much of the market, so a portfolio can end up concentrated.
• Dividends are declared by boards and can be cut or skipped.

This page is general information, not investment, tax or legal advice. Check every detail with the exchange, the regulator and your broker.