Brokerage Account vs Cowrywise, Trove & Bamboo: What’s the Difference?

Question: 

Is there difference between broker account and Cowrywise, Trove and Bamboo?

Answer

Yes — there is a difference between a brokerage account and platforms like Cowrywise, Trove, and Bamboo. Here’s a simple breakdown:

 1. Brokerage Account (Traditional NGX Broker)

What it is:

An account you open with a licensed stockbroker (e.g., CardinalStone, Meristem, United Capital, Afrinvest, APT, United Capital, etc.).

Purpose:

To trade Nigerian Exchange (NGX) stocks directly. You MUST have a brokerage account before you can trade stocks on the NGX.

Key Features:

✔ Gets you a CSCS account & CHN

✔ You can place buy/sell orders on NGX through a broker or third-party apps like Cowrywise/Bamboo/Trove

✔ Direct ownership of shares

Who it’s best for:

Anyone who wants to actively trade or own NGX stocks.

 2. Third-Party Investment Platforms (Cowrywise, Trove, Bamboo)

These are fintech apps that make investing simpler — but they work a bit differently.

✨ Cowrywise

Type: Investment app + savings platform

How it works:

•⁠  ⁠Can invest in naira and US dollar mutual funds. Creates a brokerage account for you via Meristem to trade NGX shares

•⁠  ⁠Beginner-friendly

•⁠  ⁠Offers other savings/investment plans too, including Halal options

Best for:

Beginners who want simpler access + savings plans + investing without deep stock trading experience.

✨ Trove

Type: Online wealth app

How it works:

•⁠  ⁠Lets you buy NGX stocks and U.S./international stocks. Creates a brokerage account for you via a primary broker to trade NGX shares

•⁠  ⁠Simplified trading experience

•⁠  ⁠Often friendlier UI than some brokers

Best for:

People new to stocks who want local & global investing under one roof.

✨ Bamboo

Type: Online wealth app

How it works:

•⁠  ⁠Provides access to NGX stocks plus U.S. stocks. Creates a brokerage account for you via a primary broker to trade NGX shares

•⁠  ⁠User-friendly and beginner-oriented

•⁠  ⁠Has order book and basic charting

Best for:

Investors who want both Nigerian and foreign equities with a simple interface.

🧠 Summary

•⁠  ⁠A brokerage account gives you direct access to NGX and is essential if you want to trade Nigerian stocks seriously and hold shares in your own name.

•⁠  ⁠Cowrywise, Trove, Yochaa and Bamboo are investment platforms/fintech apps that make investing simpler.

o They can access NGX stocks (via linked primary brokers) after creating a brokerage account for you on their platforms. You need a minimum of about 5,000 naira to buy any stock on any third-party app/platform irrespective of the stock’s price. Usually, primary brokers like APT, Meristem, United Capital, etc. do not have any minimum buying amount. You can buy a stock for as little as less than 1,000 naira.

o They also offer other products like international stocks or mutual funds. You can buy mutual funds without necessarily possessing a brokerage account.

o They are great if you want an all-in-one investing experience

Which Should You Choose?

✔ If your main goal is active trading on NGX stocks→ get a brokerage account.

✔ If you want easy access, diversification, and simple tools → platforms like Trove or Bamboo are excellent. 

✔ If you want saving + investing + beginner tools + mutual funds → Cowrywise is great. Remember, you don’t need a brokerage account to trade mutual funds. 

How to Start Trading Stocks in Nigeria — Step-by-Step (Slides)

 

How to Start Trading Stocks in Nigeria — Step-by-Step

1️⃣ Get Your Residential Address Verified

Before anything else, you need proof of residential address (often part of KYC for both bank & brokerage accounts). Valid documents include:

PHCN bill or prepaid meter receipt

Bank statement

Water bill

Tenancy agreement with receipt

These help verify your identity when opening accounts. 

2️⃣ Open a Bank Account (Naira Account)

You must have an account with a licensed deposit money bank — not OPAY or Moniepoint for brokerage funding because many brokers require a traditional bank for opening an account, but can be funded using any other bank, including OPAY, so long as it is your account.

Examples:

✔ GTBank

✔ Zenith Bank

✔ Access Bank

✔ UBA

Your bank account will be used to fund your trading account and receive dividends or withdrawals. 

3️⃣ Choose a Good Stockbroker or Trading Platform

In Nigeria, you cannot buy NGX stocks directly — you must use a licensed stockbroker or SEC-registered trading platform. Some options include:

Traditional Brokers (Direct NGX Focus)

CardinalStone Securities

APT Securities

United Capital Securities

Meristem Securities

Afrinvest Securities 

Online / Third-Party Platforms (Beginner-Friendly)

Cowrywise – investing via Meristem, beginner-friendly

Bamboo – Nigerian & global stocks

Trove – NGX & foreign stocks

Chaka / Yochaa / Risevest – diversified access 

📌 Always confirm that the broker/platform is registered with the Securities and Exchange Commission (SEC) Nigeria and listed as a Dealing Member of NGX. 

4️⃣ Open a Brokerage Account

Once you’ve chosen a broker/app:

✔ Fill the broker’s account opening form online

✔ Provide:

Valid ID (NIN, passport, driver’s license, National ID)

Proof of residential address

Bank account details & BVN

Source of funds (employment letter, company certificate, self-employed, etc.)

✔ Passport photograph(s)

This usually takes 24–72 hours for KYC verification and CSCS registration. 

5️⃣ Get Your CSCS & CHN

When your brokerage account is approved, your broker will help you open a Central Securities Clearing System (CSCS) account — this is like the electronic vault where your shares are held securely. Your CSCS number is similar to your bank account number, meaning you can have many CSCS numbers, one per broker, if you register with many brokers. 

You are issued a Clearing House Number (CHN) — a unique identifier that stays with you even if you switch brokers, similar to your BVN. 

⏱ Typically, obtaining your CSCS & CHN takes at least 2 more working days. Your brokerage account can be ready within 5 working days. 

6️⃣ Fund (Deposit) Your Trading Account

Once CHN & CSCS are set, fund your brokerage account from your bank account.

Use bank transfer, or the platform’s preferred method.

Some brokers/mobile apps allow instant funding or using a personal virtual account. 

⚠️ Always fund from your verified bank account — this ensures easy withdrawal later. It is also allowed to fund your account using any of your other accounts from other banks that bear your name.

7️⃣ Understand How to Place Orders

Now you can place buy/sell orders:

✔ Market Order — Buy/Sell immediately at the current market price, depending on the availability of offers/bids at the time.

✔ Limit Order — Specify a price you want to buy/sell at and how long (1, 2, 3, 5 days, weeks?) to hold your order until a match is found for your order. Check the order book (provided by most brokers at the point of placing orders) and decide the price you wish to buy/sell at a maximum range ±10% of the opening price of the stock for the day. A minimum allowable decimal of 0.01 and 0.05 for stock prices below 100 and above 100, respectively. 

Always use the Limit Order to take advantage of the market and buy stocks at a discount price or sell at a higher price for more profit. Sometimes, you may need to cancel a buy/sell order or revise it by changing your bid/offer based on the order book entries. Highest bids and lowest offers are executed first, and then what follows them in descending and ascending orders, respectively.

Your broker executes these orders on NGX on your behalf. 

8️⃣ Start with Education and Practice

Before investing serious funds, educate yourself and practice:

📌 YouTube channels & content creators that visually show this process:

Nigerian Exchange Group (official NGX learning) – covers basics and market structure

YouTube search: “How to open brokerage account Nigeria stock market”

Cowrywise tutorial videos (many beginner walkthroughs)

Meristem’s MeriTrade app tutorials (https://www.youtube.com/@MeristemNigeria)

Chaka, Bamboo, and Trove tutorial playlists

Many creators show step-by-step how to open accounts and place trades (search on YouTube for e.g., “Bamboo Nigeria stock trading tutorial”).

9️⃣ Learn Market Research Techniques

Once ready to trade, develop basic research habits:

✔ Review company financials

✔ Look at share price history, say, 1-5 years (Cowrywise, Bamboo, Yochaa, etc.)

✔ Study dividends, earnings, leadership

✔ Understand basic market indicators like the NGX All-Share Index, sectoral indices, YtD, MtD, traded volume/value, deals, etc.

These help you invest wisely, not just react emotionally. 

10️⃣ Monitor, Adjust, & Stay Patient

Set your investment goal ab initio (trading or medium to long-term investment), but remember that investment is more profitable in the long-term. Even if your investment goal is for the medium to long-term holding, you can still take profit if you wish, depending on the portfolio (collection of held stocks) performance.

✔ Track news and earnings

✔ Use reliable data sources (NGX website, Nairametrics, Proshare)

✔ Avoid panic selling (never sell in RED)

✔ Create a strong diversified portfolio to maximize your profit and minimize losses. 

Smart beginners who stay informed tend to outperform emotionally driven traders and investors. 

📌 Helpful Practical Links to Tutorials

👉 Nigerian Exchange Group (official learning) — search NGX Exchange Group on YouTube

👉 Search on YouTube: “how to open a brokerage account Nigeria stock market walkthrough”

👉 Search: “Cowrywise stock investing tutorial”

👉 Search: “Bamboo Nigeria stocks tutorial”

These visual guides show step-by-step how to:

✔ Register

✔ Fund accounts

✔ Get CHN & CSCS

✔ Place buy/sell orders

🧠 Key Takeaway (Simplified Flow)

📍 Valid residential address →

🏦 Bank account with a real bank →

📈 Choose broker/app →

📝 Open brokerage account →

🔑 Get CSCS & CHN →

💰 Fund your account →

📊 Place trades →

📚 Learn & grow gradually.

Boom or Bust? Know What You’re Buying — Why Smart Investors Still Win in a Rising Market

“I remain deeply skeptical about buying shares when the market is booming. But that's me. I can be wrong on this. I am happy to hear success stories 2–4 years from now if buyers can hold through the market cycles. Know what you are buying. Good luck.” - Dr. Usman Isyaku

Dr., you have already said it all with one powerful statement:

“Know what you are buying.”

While buying shares in a booming market may appear risky, sound investment decisions are not based on sentiment alone. When a stock is backed by strong fundamentals, historical performance, and technical indicators, it is entirely possible to enter during a bullish phase and still make meaningful gains.

The stock market is naturally cyclical—it rises and falls over time. Buying the dip is often the best entry point, but waiting endlessly for the “perfect moment” can also lead to missed opportunities. Even when the NGX All-Share Index (NGXASI) is rising, some quality stocks are still undervalued or temporarily declining. Likewise, during bearish periods, certain stocks continue to grow or remain largely unaffected.

This shows that not all stocks move with the market. Some companies—across both high and low market capitalizations—have shown consistent long-term growth regardless of market cycles. That is why proper research is essential.

Looking at 3–5 year performance charts, while the NGX gained about 303% despite periodic downturns, several individual stocks delivered extraordinary returns with only minor dips. Companies such as BUAFOODS, PRESCO, EUNISELL, NCR, MECURE, and GEREGU recorded gains ranging from 1,000% to over 5,300%.

So yes, skepticism is healthy. But history shows that informed, patient, and research-driven investors can still succeed—whether the market is booming or dipping.

In the end, success in the stock market is not about fear of cycles, but about knowledge, discipline, and conviction in what you own.

Beyond Politics and Election Cycles: Rethinking Investment Timing and the Long-Term Promise of Nigeria’s Stock Market

Introduction 

The concern about investing during an election cycle is understandable, especially in a country where politics often influences economic outcomes. However, while political uncertainty can affect short-term market sentiment, long-term investment performance is driven more by economic fundamentals, policy reforms, and structural improvements. This rebuttal explains why Nigeria’s current economic indicators still present promising opportunities for patient and informed investors, even as the 2027 elections approach.

Original comment from Dr. Usman Isyaku:

"These are thoughtful details, Prof. My concern is still valid. You can't enter a market at the beginning of an election cycle. Politics and economics work together. Let's see how much profit people will declare in 2028."

I completely understand your concern — entering a market at the beginning of an election cycle can feel risky, and it is true that politics and economics interact. But saying that one cannot enter the market because of elections oversimplifies how markets behave and ignores key macroeconomic strengths and structural reforms already underway.

Let’s unpack this with economic realities rather than fear-based assumptions.

Disclaimer:

On a lighter note, Dr., I am well aware of your political leanings and your support for Atiku ahead of the 2027 elections, just as I know you are not a supporter of the current APC administration under President Bola Ahmed Tinubu. I genuinely respect your political convictions and your right to express them freely. Out of the same respect, I have always chosen not to engage with your political posts, as I am neither a politician nor aligned with any political party.

Therefore, my advocacy for stock market investment should not be misconstrued as an endorsement of the Tinubu administration. It is purely an expression of my personal journey as a beginner investor who has come to appreciate the stock market as a legitimate tool for building financial independence, regardless of the prevailing political climate.

1.⁠ ⁠Political Cycles Don’t Dictate Market Returns Alone

While elections introduce uncertainty, history shows that elections do not automatically derail markets — especially when the economy is supported by strong fundamentals.

For example:

•⁠  ⁠After the 2015 elections, the NGX continued to attract investors and delivered positive returns in subsequent years.

•⁠  ⁠In 2019, despite a tightly contested election, companies with strong earnings still delivered dividends and price gains.

Elections may add noise, but markets react more consistently to economic performance than headlines.

2.⁠ ⁠Stable FX Rate = Better Business Planning

Exchange rate stability is critical for corporate performance and investor confidence. Recently, Nigeria has seen:

•⁠  ⁠More stable FX rates relative to recent volatility, reducing uncertainty for importers and exporters.

•⁠  ⁠Less erratic naira depreciation in official windows, helping companies plan earnings, costs, and dividend distributions.

A stable FX helps:

✔ Multinationals operating in Nigeria

✔ Export-oriented businesses

✔ Consumer goods companies with imported inputs

This supports earnings predictability, which investors value highly.

3.⁠ ⁠Decreasing Inflation Rate Supports Real Growth

Inflation is one of the biggest enemies of investment returns. When inflation begins to fall:

•⁠  ⁠Real wages improve

•⁠  ⁠Consumer demand stabilizes

•⁠  ⁠Cost pressures on companies ease

A sustained downward trend in inflation helps improve:

✔ Consumer confidence

✔ Corporate profitability

✔ Long-term capital formation

Investors are more willing to put money to work when inflation pressure eases — even during election cycles.

4.⁠ ⁠Removal of Fuel Subsidy = Market Discipline

The removal of the fuel subsidy may be politically sensitive, but economically it:

✔ Reduces fiscal drain on government budgets

✔ Encourages private sector participation in energy markets

✔ Improves government revenue allocation to infrastructure, security, and social services

This may cause short-term price pain, but it forces market efficiency and reduces long-term fiscal imbalance.

Fiscal discipline strengthens macro stability, which is good for markets.

5.⁠ ⁠Dangote Oil Refinery = Domestic Energy Security

With the Dangote oil refinery coming online:

•⁠  ⁠Nigeria no longer needs to import refined petroleum products

•⁠  ⁠Fuel scarcity could become a thing of the past

•⁠  ⁠Cost of energy for industries could drop over time

This is a game-changing structural development with far-reaching economic implications:

✔ Lower production costs

✔ Better profitability for energy-intensive sectors

✔ Potential foreign-currency savings on import bills

Investors reward economies that reduce dependency and improve internal value chains.

6.⁠ ⁠Stronger Capital Market Regulation = Healthier Market

Post-2008 and post-2020 reforms reflect a more mature regulatory environment:

•⁠  ⁠Banks face recapitalization and stress tests

•⁠  ⁠Capital market reforms tighten governance

•⁠  ⁠Broker-dealer oversight is stronger

•⁠  ⁠Corporate disclosures are more transparent

Stronger regulation reduces systemic risk — which is exactly what long-term investors want.

A regulated and disciplined market attracts:

✔ Institutional investors

✔ Foreign portfolio flows

✔ Pension funds and insurance capital

These are the engines of sustainable capital market growth.

7.⁠ ⁠Elections Don’t Cancel Economic Momentum

Economic growth drivers often outlast the election cycle:

📌 GDP recovery & broadening

📌 Increased private investment

📌 Infrastructure expansion

📌 Corporate earnings growth

📌 Consumer demand resilience

Yes, elections matter — but markets are forward-looking. They price future expectations, not just present uncertainty.

In many countries, markets have:

•⁠  ⁠Rallied before elections

•⁠  ⁠Recovered quickly after

•⁠  ⁠Rewarded companies with strong earnings continuity

The Nigerian market is no different in principle.

8.⁠ ⁠Looking to 2028: A Promising Outlook

Despite political noise, there are several structural forces supporting market growth into 2028 and beyond:

🚀 Stable FX — supports corporate predictability

🚀 Lower inflation — boosts real returns

🚀 Fiscal reform — strengthens macro stability

🚀 Dangote refinery — enhances energy security

🚀 Tighter regulation — healthier market

🚀 Rising local and institutional participation

🚀 Strong dividend culture in many companies

🚀 Growth prospects in consumer, industrials, banking, and energy sectors

These are economic drivers, not just political sentiment.

Final Thought

No investment environment is risk-free — especially in emerging markets. But risk is not the same as uninvestable.

The smart investor does not wait for certainty — they manage risk through:

•⁠  ⁠fundamental analysis

•⁠  ⁠diversification

•⁠  ⁠strategic entry and exit

•⁠  ⁠long-term perspective

Elections may add uncertainty, but they don’t erase economic fundamentals. And markets always look ahead — not backwards.

So the real question isn’t:

Can we invest during an election cycle?

It’s:

Do we understand the underlying drivers of growth?

And today, the evidence suggests there are real structural opportunities for growth through 2028 and beyond, despite the political calendar.

Fear vs Facts: Lessons from 2008, Opportunities in 2026, and the Real Truth About Buying Shares Today

In every market cycle, there are voices of caution — some rooted in wisdom, others shaped by past losses and fear. While history offers valuable lessons, it should guide us, not paralyze us. A recent comment circulating on Nigerian investment discussions reflects this sentiment and deserves a thoughtful, data-informed response.

Here is the original Facebook post by my friend, Dr. Usman Isyaku:

“I read so many people encouraging others to buy Nigerian stocks now. You don't buy anything when people are talking about it. It signals the market top. Buy now and lose your money. We are back in 2007–2008 era once again. I was smart enough to resist buying booming banks and telecoms shares that collapsed with my colleagues' money. 2–3x isn't worth the risk. Be careful!”

While caution is healthy in investing, broad conclusions based solely on past market crashes can be misleading. The Nigerian stock market of today is not the same market of 2007–2008, and history itself shows that popular markets do not always signal a top.

Let’s examine this claim through multiple real-world scenarios and today’s market realities to separate fear from facts using concrete NGX (Nigerian Exchange Group, formerly Nigerian Stock Exchange – NSE) examples. 

1.⁠ ⁠When “Everyone Was Talking” — Yet Prices Still Rose

In 2020 and 2021, after the COVID-19 crash, Nigerian stocks became widely discussed again. Many investors were skeptical, claiming the rebound was just hype.

Yet, companies like:

•⁠  ⁠BUA Foods (1,700%+ gains, 2022-2026)

•⁠  ⁠Jaiz Bank (1,000%+ gains, 2021-2026)

•⁠  ⁠Geregu Power (1,000%+ gains, 2022-2026)

•⁠  ⁠Presco (2,100%+ gains, 2021-2026)

•⁠  ⁠Okomu Oil (1,100%+ gains, 2021-2026)

•⁠  ⁠Seplat Energy (1,100%+ gains, 2021-2026)

went on to record massive multi-year gains, in some cases exceeding 2,000% in just 5 years. These were not speculative bubbles — they were driven by:

•⁠  ⁠Strong earnings

•⁠  ⁠FX revaluation benefits

•⁠  ⁠Real business expansion

•⁠  ⁠Rising consumer demand

Popularity did not mean the market was at its peak.

Fundamentals did.

2.⁠ ⁠2–3x Returns Are Not “Small” in Real Life

Calling a 2–3x return “not worth the risk” ignores the reality of wealth building.

For example:

•⁠  ⁠Dangote Cement (pays final dividends only per year)

•⁠  ⁠Seplat Energy (pays quarterly dividends, 4 times per year)

•⁠  ⁠GTCO - GTBank (pays interim and final dividends, i.e., twice per year)

•⁠  ⁠Zenith Bank (pays interim and final dividends, i.e., twice per year)

have delivered solid capital appreciation (at least 100% returns in the last 5 years) plus consistent dividend payouts over the years. For long-term investors, this means:

•⁠  ⁠Compounding growth

•⁠  ⁠Regular income

•⁠  ⁠Lower volatility than crypto

•⁠  ⁠Better inflation protection

Wealth is not built only by chasing “10x”.

It is built on repeatable, sustainable gains.

3.⁠ ⁠2007–2008 Was a Different Market Structure

The 2007–2008 crash was fueled by:

•⁠  ⁠Heavy margin lending

•⁠  ⁠Weak regulation

•⁠  ⁠Excessive speculation

•⁠  ⁠Poor corporate governance

Today’s NGX has:

•⁠  ⁠Stronger regulation

•⁠  ⁠Better disclosure standards

•⁠  ⁠Less leverage

•⁠  ⁠More institutional participation

Companies like MTN Nigeria, Airtel Africa, Seplat Energy, and BUA Cement operate under stricter financial reporting and governance frameworks.

The risks still exist —

But the structure is not the same.

4.⁠ ⁠The 2007 Stock Market Bubble

From 2005 - 2007, Nigeria experienced:

•⁠  ⁠Banking sector consolidation

•⁠  ⁠Easy access to credit

•⁠  ⁠Massive public interest in stocks

•⁠  ⁠Aggressive margin lending by banks

Stock prices rose far beyond the real value of companies.

People were:

•⁠  ⁠Borrowing money to buy shares

•⁠  ⁠Using shares as collateral to borrow more

•⁠  ⁠Chasing quick profits without understanding fundamentals

This created a speculative bubble.

Weak Regulation and Poor Risk Management

At the time:

•⁠  ⁠Risk controls were weak

•⁠  ⁠Corporate governance was poor

•⁠  ⁠Financial disclosures were limited

•⁠  ⁠Insider trading was common

Many investors didn’t know:

•⁠  ⁠The true financial health of companies

•⁠  ⁠How risky the market had become

The system lacked transparency.

The Global Financial Crisis (2008)

The U.S. financial crash spread worldwide.

Foreign investors:

•⁠  ⁠Pulled money out of emerging markets

•⁠  ⁠Sold Nigerian stocks

•⁠  ⁠Reduced liquidity

This added external pressure to an already fragile market.

Banking Sector Crisis (2009)

In 2009, the Central Bank of Nigeria (CBN) discovered:

•⁠  ⁠Massive non-performing loans

•⁠  ⁠Poor corporate governance

•⁠  ⁠Excessive exposure to stock market loans

Several bank CEOs were removed.

Some banks collapsed or were rescued.

Confidence in the financial system dropped sharply.

Why Many Investors Lost Money

People lost money because:

•⁠  ⁠They bought at extremely inflated prices

•⁠  ⁠They leveraged, i.e., used borrowed money 

•⁠  ⁠They panicked and sold at the bottom

•⁠  ⁠They didn’t diversify

•⁠  ⁠They chased hype, not fundamentals

Many never recovered because they:

•⁠  ⁠Exited the market completely

•⁠  ⁠Never benefited from later recoveries

Key Lesson from 2007–2009

The crash was not caused by:

❌ Investing in stocks

❌ The NGX itself

It was caused by:

✔ Excessive borrowing

✔ Weak regulation

✔ Herd mentality

✔ Poor risk control

✔ Speculation without fundamentals

The lesson is not:

“Never invest again.”

The lesson is:

Invest wisely. Avoid leverage. Focus on fundamentals. Diversify.

Markets recover.

Good companies grow.

Informed investors win over time.

5.⁠ ⁠Market Timing Often Costs More Than It Saves

Many investors waited for another “big crash” after 2020. While they waited, stocks like:

•⁠  ⁠Geregu Power (IPO at ₦100, later over ₦1,000)

•⁠  ⁠BUA Foods

•⁠  ⁠Presco

•⁠  ⁠Okomu Oil

multiplied in value.

Waiting for the “perfect moment” often leads to missed opportunities. One should understand that whenever the overall market performance is appreciating or bullish, i.e, NGX all-share-index (NGXASI) increasing, you would still find out that some company stocks are depreciating. Conversely, whenever the NGXASI is negative or bearish, some stocks would still be surging or remain completely unaffected by the overall market downward performance. 

What this means is that the market rewards:

•⁠  ⁠Patience

•⁠  ⁠Staying well-informed

•⁠  ⁠Fundamentals

•⁠  ⁠Consistency

Not fear-based decisions.

6.⁠ ⁠Popularity vs Fundamentals

Yes, blind hype can be dangerous.

But informed participation is not the same as speculation.

When people talk about:

•⁠  ⁠Strong earnings

•⁠  ⁠Dividend growth

•⁠  ⁠FX-driven revenue gains

•⁠  ⁠Expansion projects

•⁠  ⁠Consistent historical capital gains

That is not hype —

That is fundamental investing.

7.⁠ ⁠Strong Market Growth Projections in 2026

Economists, like Birmarch Rewane, forecast significant expansion in the NGX market capitalization, with estimates suggesting it could grow from the current ₦106 trillion to about ₦262 trillion by the end of 2026, driven by:

•⁠  ⁠new major listings (Dangote Oil Refinery, NNPCL, Dangote Fertilizer Refinery, etc.)

•⁠  ⁠improved corporate earnings

•⁠  ⁠structural reforms

•⁠  ⁠broader institutional participation 

This implies potential broad-market gains if fundamentals continue to improve.

Anyone who trades in stocks - traders and long-term investors – would confirm that market growth has already started in just 15 market days in 2026, given the year-to-date (YtD) % returns of some stocks. Can you imagine the capital gains to be accrued for someone who invests, say, ₦100,000 in each of these stocks from the beginning of this year alone?

•⁠  ⁠JAIZ BANK – 80% (Gains = ₦80,000)

•⁠  ⁠DEAPCAP – 135% (Gains = ₦135,000)

•⁠  ⁠MAY & BAKER – 74% (Gains = ₦74,000)

•⁠  ⁠MULTIVERSE MINING & EXPLORATION – 112% (Gains = ₦112,000)

•⁠  ⁠NCR – 77% (1,300%+, in 2025) (Gains = ₦77,000)

•⁠  ⁠NEIMETH INTERNATIONAL PHARMACEUTICALS – 74% (Gains = ₦74,000)

•⁠  ⁠SCOA – 110% (Gains = ₦110,000)

•⁠  ⁠RED STAR EXPRESS – 52% (Gains = ₦52,000)

•⁠  ⁠OMATEK VENTURES – 57%, (Gains = ₦57,000)

•⁠  ⁠MECURE INDUSTRIES – 50%, (Gains = ₦50,000)

•⁠  ⁠EUNISELL INTERLINKED– 36% (Gains = ₦36,000)

•⁠  ⁠FIDSON HEALTHCARE – 40% (Gains = ₦40,000)

•⁠  ⁠ETRANZACT INTERNATIONAL – 62% (Gains = ₦62,000)

•⁠  ⁠LOTUS HALAL EQUITY ETF – 26% (Gains = ₦26,000)

•⁠  ⁠MCNICHOLS – 84% (Gains = ₦84,000)

You cannot realize such gains without patience, staying well-informed, being consistent, and investing fundamentally. I first bought 

•⁠  ⁠Jaiz Bank shares in 2024 at ₦2.14, closed today at ₦8.19 (283%)

•⁠  ⁠FIDSON in November last year at ₦36, closed today at ₦70 (94%), with right issue going for ₦35, i.e., 100% instant return

•⁠  ⁠NCR in October 2025 at ₦18, closed today at ₦129 (614%)

•⁠  ⁠BUAFOODS in 2024 at ₦347, closed today at ₦799 (130%)

•⁠  ⁠MTN in 2024 at ₦200, closed today at ₦580 (190%)

•⁠  ⁠EUNISELL in November, 2025, at ₦60, closed today at ₦157 (161%)

•⁠  ⁠SEPLAT in 2024, at ₦3416, closed today at ₦6,700 (96%)

•⁠  ⁠SCOA in December last year at ₦7.33, closed today at ₦14.9 (103%)

With the right diversification, positioning, and patience, the stock market – especially NGX - is one of the best passive wealth-creating machines. 

Study it. Embrace it.  

Final Thought

Every market cycle has:

•⁠  ⁠Winners

•⁠  ⁠Losers

•⁠  ⁠Skeptics

•⁠  ⁠Opportunists

Those who succeed are not the ones who avoid the market forever,

but those who understand it, respect risk, and act with discipline.

History should educate, not intimidate.

The lesson from 2008 is not “never invest again.”

The lesson is:

Invest smarter. Diversify. Focus on fundamentals.

The Nigerian stock market is not perfect. Two mortgage banks went under last year - Asosavings & Loans and Union Homes - NDIC has started the process of liquidating their assets to pay depositors and shareholders.

But it remains a powerful tool for long-term wealth creation for those who approach it with knowledge, patience, and discipline.

Fear protects you from losses —

But knowledge positions you for gains.

Stocks, Bitcoin, or Gold? Debunking the Myth and Revealing the Data-Driven Truth About Wealth Creation vs Wealth Preservation

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.

Stock market update

Within just 7 market days, i.e., 2 - 12 January 2026, the year-to-date (YtD) returns of some stocks - especially pharmaceutical companies - have surged up to 85 %. I've attached some of the share price charts.

The highest ascent ever of the NGX is given below.

 

New Year, New Money Moves: Stock Market Takeaways for 2026

 

📈 New Year, New Money Moves: Stock Market Takeaways for 2026 💰

By: Dr. Salihu Lukman

As we step into a new year, one truth keeps getting louder: money that sleeps loses value; money that works grows.

Here are some powerful stock-market lessons worth carrying into 2026 👇

1️⃣ Stocks are not just risky — they are powerful wealth builders.

Despite volatility, stocks remain one of the best vehicles for capital preservation and massive appreciation. The wealthy understand this deeply.

Take Femi Otedola, a dollar billionaire: he bought GEREGU Power at its IPO in 2022 for ₦100 per share and exited recently at about ₦1,141.50 — earning billions of naira. Another heavyweight, former Zamfara governor Abdulaziz Yari, stepped in afterward.

Now pause and study this carefully: some of the top 10 performing stocks in 2025 delivered between 272% and 1,354% returns in just one year. This is not luck — it’s strategy.

2️⃣ How you place your trade matters more than you think.

From 4 months of close, real trading experience, here’s a golden rule:

🔹 Avoid buying or selling at market price. It often kills instant profit opportunities.

🔹 Always check the order book before trading.

The order book shows you what buyers are bidding and what sellers are offering — real market intentions, not averages.

Platforms like Cowrywise make this very clear. With the order book, you can place limit orders, choose how long your order stays active, and squeeze more value from every trade. Truly, experience is the best teacher.

3️⃣ Fundamentals + price history = smarter profits.

Always aim for fundamentally sound companies (strong financials, leadership, and prospects) with a track record of price performance.

From my observations, solid stocks fall into three broad patterns:

• 📈 Progressive growers with minor dips (e.g. BUAFOODS, EUNISELL, FIDSON).

• 📉 Strong companies with long price stagnation or decline — better for patient, long-term investors (e.g. Transcorp, Accesscorp, Oando).

• 🔄 Fluctuating but appreciating stocks, common with banks (GTCO, Zenith, NAHCO), great for both trading and long-term strategies depending on your goal.

Before buying any stock, check at least its 1-year or 5-year price chart. You’re in the market to make money — so plan to maximize it.

4️⃣ Never forget: risk is real.

Stock investing rewards knowledge, not assumptions. Just recently, Aso Savings & Loans and Union Homes lost their operating licenses. Shareholders must now wait for NDIC liquidation — if funds remain.

👉 Due diligence is not optional.

5️⃣ Eyes on 2026: potential golden IPOs 👀

Start positioning your mind (and capital) for these expected listings:

• Dangote Oil Refinery

• Dangote Fertilizer Company

• NNPCL

Dangote plans to float only about 10% of the refinery, with dividends promised in U.S. dollars — a strong hedge against inflation. Many analysts believe this could become the golden stock of the Nigerian market.

📊 For context:

• The stock market gained about 37% in 2024

• It surged to about 51% in 2025, despite volatility

2026 holds even stronger promise.

6️⃣ Diversification is not optional — it is protection.

With over 140 companies listed on the Nigerian Stock Exchange (NGX) and dozens of them being fundamentally sound, do not limit yourself to just a few familiar names. The more (quality stocks), the merrier.

Spread your investments across different categories — NGX 30 Index, Lotus Islamic Index, Consumer Goods, Growth Index, Premium Index, etc. — based on your conviction and investment goals. This strategy helps consolidate gains and reduce risk over time. If one or two stocks underperform or even go under, strong performers in other sectors will neutralize the impact, keeping your portfolio healthy. The attached pie chart illustrates a simple example of smart diversification.

7️⃣ Master your entry and exit: buy the dip, don’t sell the red.

Your entry point into any stock is critical. Buying quality stocks after a price dip allows you to enter at a discount. Remember, the market naturally moves between bullish (up) and bearish (down) cycles, driven by changing market dynamics. Not all stocks experience prolonged bearish trends, and the only reliable way to identify a genuine dip is by reviewing the stock’s historical price performance chart.

Also, watch closely for Public Offers (POs), Rights Issues (RIs), and Initial Public Offers (IPOs) of fundamentally sound companies. These often provide excellent entry points at discounted prices. For instance, TIP currently has an ongoing PO and RI that ends tomorrow, while FIDSON has just announced a RI. IPOs, in particular, often see price appreciation shortly after listing.

As much as possible, avoid selling stocks in red (at a loss)—provided the company remains fundamentally sound and is not going under, as was the case with Aso Savings and Loans, which was recently shut down. You are in the market to make profits, not to lock in losses. Be patient, allow time for recovery, and sell when the stock turns green (profitable), if you choose to exit.

Do not panic during price drops. Volatility is a permanent feature of the stock market. The market rewards the patient and informed, not the impulsive. If checking your portfolio daily gives you negative vibes, step back—long-term investing does not require daily emotional monitoring.

That said, selling at a loss can sometimes be strategic. If careful analysis shows that exiting a losing position will free capital for a stronger opportunity whose gains can offset the loss, then selling in red may be justified. Remember: a loss remains theoretical until you sell.

🌅 CONCLUSION:

The stock market rewards knowledge, patience, and discipline — not emotions or shortcuts. Wealth is rarely built overnight, but it is consistently built by those who learn the rules, study the patterns, manage risks, and position early.

2026 is not a year to sit on the sidelines. It is a year to plan intentionally, diversify wisely, trade intelligently, and invest with conviction. Let your money stop resting and start working for you.

📈 The market does not move money from the rich to the poor — it moves money from the impatient to the informed.

Be informed. Be prepared. Be positioned.

Let your money start working for you — not against you.

If you found this valuable, like, share, and save this post — and tag someone who needs to start 2026 on a smarter financial path.

More Than a Game: How Ludo Sharpens the Mind, Counters Cognitive Decline, and Restores Human Bonding in the Age of Screens

Ludo, a game invented in India, modified and commercialized in England, has always fascinated me—not merely as a pastime, but as a living classroom for probability, risk-taking, strategy, and the intelligent deployment of the mind. Anyone who has played Ludo seriously, especially when it is a two-player game occupying opposite houses, knows that winning goes far beyond luck. It is about thinking ahead, reading probabilities, managing risk, and timing moves with mathematical intuition.

In Ludo, every roll of the dice is a probability experiment. With two dice, the numbers you hope for are not equally likely. Low numbers like 1 or 2 are actually rare, while numbers like 6, 7, or 8 are more probable because they can be formed in multiple ways. For example, 7 can be obtained as (1+6, 2+5, 3+4, 4+3, 5+2, 6+1) — six different combinations — whereas 2 can only come from (1+1). This simple mathematical truth changes how a smart player plans: when to release a seed, when to block an opponent, when to take calculated risks, and when to wait patiently.

This same thinking once helped me in real life. I previously wrote about how I unlocked my suitcase whose 4-digit combination was accidentally changed during air travel. I didn’t try numbers randomly. I applied probability and permutation, narrowing down the most likely combinations first, based on how humans tend to set numbers and how permutations work. Mathematics, once again, moved from abstraction to practical problem-solving.

That is the beauty of probability: it trains the mind to estimate outcomes, manage uncertainty, and make better decisions—whether on a Ludo board, in science and engineering problems, or in everyday life. Games like Ludo quietly teach us that success is not about hoping for luck, but about understanding the odds, respecting risk, and playing intelligently.

Mathematics is not distant. It is alive. Sometimes, it even sits quietly on a Ludo board, waiting for those who can see it.

Ludo enhances intelligence and helps reduce cognitive decline, especially in older adults, by constantly engaging the brain in counting, probability assessment, memory, and decision-making. Each move requires players to evaluate risk (whether to advance, block, or capture), anticipate opponents’ responses, and recall patterns of dice outcomes, which stimulates executive functions and working memory. The social interaction involved also reduces stress and loneliness—both known risk factors for cognitive decline—while the repetitive yet strategic nature of the game strengthens neural connections, helping to keep the mind sharp, active, and resilient with age.

Ludo enhances physical interaction and social cohesion by bringing people together around a shared physical space, encouraging face-to-face conversation, laughter, eye contact, and healthy competition—things often lost in a world dominated by smartphones and smart TVs. Sitting together to play fosters bonding across ages, strengthens family and community ties, and creates moments of collective joy and cooperation. In an era of digital isolation, Ludo serves as a simple but powerful tool for reconnecting people, rebuilding social warmth, and restoring the human element of play.

Conclusion

In conclusion, Ludo reminds us that intelligence, mental agility, and human connection do not always require complex technology or sophisticated tools. Through simple dice rolls and deliberate moves, the game quietly trains the mind in probability, strategy, patience, and risk assessment, while simultaneously fostering face-to-face interaction, laughter, and shared presence. In an era dominated by screens and digital isolation, Ludo stands as a powerful counterbalance—preserving cognitive health, strengthening social bonds, and reaffirming that some of life’s most profound lessons are learned not from devices, but from thoughtful play around a table. Try playing it with your family or friends and thank me later.