How Much Money Do You Really Need to Start Buying Shares in Nigeria?

One of the biggest reasons people never invest in shares is the belief that it takes a lot of money. Many Nigerians think you need thousands or even millions before you can enter the stock market. This misunderstanding has stopped countless people from building long-term wealth.

But here’s the reality: you don’t need to be rich to start investing. The idea that investing is for the wealthy is outdated. In fact, with just a small amount—sometimes less than the price of a fast-food meal—you can buy your first share and start growing your financial future.

This article highlights the real cost of getting started with shares in Nigeria and how you can invest at your own pace without feeling pressured or overwhelmed.

What Is the Minimum Amount You Need?

Thanks to fintech apps, investing in Nigerian or US stocks has never been more accessible. Most digital platforms allow you to start with as little as ₦1,000.

That’s not an exaggeration. Apps like Trove, Chaka, and Bamboo let you buy a fraction of a share or start small with Nigerian companies listed on the Nigerian Exchange (NGX). Even traditional stockbrokers are beginning to accept smaller amounts due to competition. What really matters isn’t how much you start with, but how consistent you are over time.

How Shares Are Priced in Nigeria

Shares on the NGX are priced per unit. Some companies’ shares go for as low as ₦2–₦5 per unit, while others like Nestlé or Seplat trade above ₦1,000 per unit. That means you can start by buying 10 units of a ₦5 stock for ₦50 or just 1 unit of a ₦1,300 stock if you have the funds. The amount you need depends on the share price and how many units you want to buy. You’re not required to buy 100 units anymore, as most platforms now allow single-unit purchases.

What About Foreign Shares?

If you’re more interested in companies like Tesla, Apple, or Amazon, platforms like Bamboo and Risevest allow you to invest in dollar-denominated assets. The exciting part? You can start with as little as $1. These apps let you buy fractional shares, so you’re not forced to buy a full share of Amazon that may cost $150 or more. You simply deposit in Naira, convert to dollars within the app, and choose how much you want to invest.

Extra Costs to Consider

While starting amounts are low, there are a few additional costs you should be aware of:

1. Transaction Fees

Most investment apps and brokers charge small fees per trade—either as a flat rate or a percentage. For example, buying a Nigerian stock might come with a 1% fee. It’s not a dealbreaker, but it’s something to keep in mind when making frequent trades.

2. Stamp Duty and Commission

For local shares, you may also be charged regulatory fees like stamp duties or commissions by the NGX. These are minimal—often less than 1% combined—but they can slightly reduce your profit margins if you’re buying and selling frequently.

3. Exchange Rate Risk (for Foreign Shares)

When investing in US stocks from Nigeria, you’ll deal with currency conversion. If the Naira weakens, your dollar-based investments may be worth more in Naira terms—but the reverse can also happen. So you’re not just investing in the company, but also dealing with forex volatility.

How to Start Small and Grow Consistently

If you only have ₦5,000 to spare this month, you can still invest. The trick is not to wait until you have “enough.” The real power of investing is in compound growth over time. Set aside a fixed amount monthly—even if it’s small. With ₦5,000 every month for a year, you’ll have ₦60,000 invested, and that’s before any profits or dividends. There’s no shame in starting small. The biggest investors in the world started with pocket change. What matters is consistency and patience.

What Type of Shares Are Best for Small Investors?

If you’re starting with low capital, avoid high-priced, low-dividend stocks. Instead, consider:

• Affordable stocks with stable performance
• Companies with a track record of paying dividends
• Stocks from industries you understand (like telecoms or banks)
• Dollar-denominated investments through fractional shares

Your first goal should be learning how investing works. Don’t chase fast profits. Use your early days to build experience.

What If You Only Have ₦1,000?

Even ₦1,000 can start your investment journey. It might not buy you much in quantity, but it buys you experience. It gives you a feel of how the app works, how share prices move, and how to grow your money over time. Once you see your small investment grow—even if it’s just by ₦50—you’ll feel more confident to commit more funds later on.

Tips for Getting the Best Out of Your Investment

• Start with companies you already know and trust
• Don’t invest all your money at once—spread it over time
• Reinvest your dividends instead of withdrawing them
• Avoid panic selling when prices drop
• Track your investments regularly, but don’t obsess daily
• Stay updated on market trends through newsletters and finance news

Should You Save First or Invest First?

It’s always smart to have a small savings buffer for emergencies. However, if you have your basic needs and emergency fund covered, start investing early—even if it’s just a few thousand Naira each month. Waiting until you feel “ready” can cost you years of missed returns. Remember, money sitting in a savings account is losing value to inflation. Investing allows your money to grow over time.

ALSO READ: Zero to Investor: How to Buy Shares in Nigeria as a Complete Beginner