Introduction
In recent times, many investors have become skeptical about the Nigerian stock market, especially in the face of inflation, currency depreciation, and the global popularity of Bitcoin and gold. While such concerns are understandable, sweeping conclusions based on sentiment rather than data can lead to costly investment decisions.
Below is a comment that sparked this response after I shared that some stocks performed up to 85% in just 7 trading days:
“I don’t believe the stock market is a wealth generation engine anymore, more like wealth preservation now and in the end you’ll end up at loss when we calculate real value.
You’re better off selling everything and buying either Bitcoin if aiming for portfolio growth or just physical gold to preserve wealth.
But if you’re doing it for the dividends then it may make sense, still you’re in a massive disadvantage!”
This rebuttal is not based on opinions, emotions, or hype. Instead, it relies on verifiable data, real market performance, and practical investment realities from the Nigerian Stock Exchange (NGX), Bitcoin, and Gold. The goal is simple: to separate perception from performance and show where real, sustainable wealth creation actually happens.
Let’s examine the above 3 claims vis-à-vis the facts. 📊
Claim 1:
“The stock market is no longer a wealth generation engine, only wealth preservation, and real value is lost over time.”
🔍 Reality in the Nigerian Market
The NGX has clearly generated massive real wealth for informed investors — even after accounting for inflation.
Concrete Examples:
📈 Geregu Power (2022–2025)
• IPO price (2022): ₦100
• 2025 price: ~₦1,140
• Over 1,000% gain in 3 years
Even after Nigeria’s high inflation that reached 34 %, this is huge real wealth creation, not just preservation.
📈 BUA Foods (2021–2025)
• Listed around ₦40
• Now trades around ₦798+
That’s over 1,700% growth in 5 years.
Conclusion
The Nigerian stock market has clearly generated real wealth for:
• Early IPO, PO, RI investors
• Long-term holders
• Smart dip buyers
Losses happen mostly to:
• Emotional traders
• People who buy at peaks and then panic-sell
Wealth generation hasn’t disappeared — strategy matters.
Claim 2:
“You’re better off selling everything and buying Bitcoin or physical gold.”
🔍 Reality Check
Bitcoin in Nigeria
• Crypto volatility is extreme
• Regulation risk remains high
Some argue that Bitcoin is speculative, not a guaranteed growth engine.
Gold
Gold is primarily a wealth preservation asset:
• Low long-term growth
• Doesn’t generate income
• Prices often stagnate for years
Gold protects value — it does not aggressively grow wealth like stocks.
Nigerian Stock Market Comparison
Some Nigerian stocks have outperformed both gold and Bitcoin over certain periods:
Asset 3–5 Year Performance
Geregu Power ~1,000%+
BUA Foods ~1,700%+
Bitcoin (2021–2022) ~185%+
Gold (typical) ~140%+
Conclusion
Bitcoin = high risk, high volatility
Gold = low growth, defensive
Stocks = balanced growth + income + compounding
A diversified portfolio beats an all-in approach.
Claim 3:
“Only dividends make sense, and even then you’re at a disadvantage.”
🔍 Nigerian Dividend Reality
Dividends in Nigeria can be very powerful, especially when combined with capital appreciation.
Examples:
Zenith Bank
• Strong annual dividends
• Share price also appreciates over time
• Offers income + growth
GTCO
• Consistent dividend history
• Strong capital base
• Rewards long-term investors
Seplat Energy
• Dollar-linked earnings
• Solid dividends
• Strong stock performance
When dividends are reinvested, investors benefit from:
• Compounding
• Higher share ownership
• Long-term wealth growth
This is not a disadvantage — it’s a proven wealth strategy. For you to get any reasonable dividend from a stock, you have to hold a very large amount of shares of that company; otherwise, you only get a peanut dividend. Imagine a company whose stock price is N10 announces to pay N1 per share, i.e., a 10 % yield, which is good for the multi-million or billion investor.
• N1 Million gives 100,000 shares: Dividend = N10,000
• N10 Million gives 1000,000 shares: Dividend = N100,000
• N1 Billion gives 100,000,000 shares: Dividend = N10 Million
Sometimes dividend is not just about the yield, but an indication of a strong, profit-making company.
The Real Issue: Not the Market — the Strategy
Most losses in the Nigerian stock market come from:
❌ Buying hype
❌ Chasing spikes
❌ Panic selling
❌ No diversification
❌ No understanding of fundamentals
Meanwhile, informed investors:
✔ Buy quality
✔ Buy dips
✔ Hold patiently
✔ Diversify
✔ Reinvest dividends
They win consistently.
Final Verdict
Claim Reality
Stocks no longer create wealth ❌ False
Bitcoin is better ❌ High risk, unstable
Gold is better ❌ Preserves, doesn’t grow as much as stocks
Dividends are weak ❌ Powerful indication and when reinvested
Investors always lose ❌ Only uninformed ones
Bottom Line
The Nigerian stock market is still:
✅ A wealth creation engine
✅ A hedge against inflation
✅ A source of income
✅ A compounding machine
— for informed, disciplined investors.
The market doesn’t punish investors.
It punishes impatience and ignorance.
Concluding Remarks
The idea that the Nigerian stock market is no longer a wealth-creation engine is not supported by data. In recent years, the NGX has delivered impressive capital appreciation – 51% in 2025 alone - consistent dividend income, and inflation-beating returns for informed and patient investors. While Bitcoin has produced extraordinary gains over its lifetime, it remains highly volatile and unpredictable in the short to medium term. Gold, on the other hand, has proven to be a reliable store of value, but cannot match the growth potential of quality equities.
Each asset class serves a different purpose:
• Stocks build wealth through business growth and dividends.
• Bitcoin offers high-risk, high-reward speculative growth.
• Gold preserves value during uncertainty.
The smartest investors do not choose one and reject the others entirely. They diversify, align investments with their risk tolerance, and focus on long-term fundamentals rather than short-term noise. Wealth is not created by hype, fear, or extreme positions — it is created through knowledge, discipline, and data-driven decisions.
In the end, the Nigerian stock market is not the problem.
Poor strategy, lack of patience, and emotional investing are.
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