Start Investing in Shares with as Low as ₦5,000: Here’s How

The idea that you need a large amount of money to start investing in shares has discouraged millions of Nigerians from tapping into one of the most proven ways to build long-term wealth. Many still think stock market investing is only for the rich, or that you must have hundreds of thousands of naira before you can even open an account.

But things have changed. Today, with just ₦5,000 — or even less — you can start buying shares in some of the biggest companies listed on the Nigerian Exchange (NGX). And the best part? You don’t need to go to a stockbroker’s office or fill out complicated forms. It can all be done from your smartphone.

If you’ve ever said “I’ll start investing when I have more money,” this is your sign to stop waiting. Here’s how to start investing in shares in Nigeria with as little as ₦5,000 — step by step.

What You Need Before You Begin

To start investing with ₦5,000, you need three basic things:

• A valid means of identification (National ID, Voter’s card, or Driver’s License)
• A smartphone with internet access
• A functional bank account with at least ₦5,000

With these in place, you’re ready to open an investment account and start buying shares right away.

Choosing the Right Investment App or Platform

Instead of going through traditional brokerage firms, most small-scale investors now use digital investment apps. These apps are easy to use, beginner-friendly, and tailored for Nigerians who want to start small.

Some top-rated apps and platforms include:

• Trove – Lets you buy both Nigerian and foreign stocks.
• Chaka – Offers access to NGX-listed shares and international markets.
• Bamboo – More focused on U.S. stocks, but may offer select Nigerian stocks.
• Risevest – Allows you to invest in expert-managed portfolios.
• InvestNow by CSL – Good for local stock purchases and NGX trading.
• ARM Stocktrade – Offers access to the full NGX market.

You can download these apps from the Play Store or App Store, create an account, and get started without leaving your home.

Account Setup and KYC Process

After downloading your preferred app, the next step is account registration. This usually takes a few minutes and involves submitting:

• Your name, email, and phone number
• A photo of your ID
• A selfie for identity confirmation
• Your BVN to verify your bank account

Most platforms complete this process within 24–48 hours. Once your identity is verified, you’ll receive access to your investment dashboard.

Funding Your Investment Account

The next step is to transfer money from your bank account to your investment wallet. This is where your ₦5,000 comes in. Use the bank transfer or card payment option provided in the app to add funds. Once the money reflects in your wallet, you can start searching for stocks to buy. Before buying, check:

• The current price per share of the company
• How many shares you can afford with your ₦5,000
• Any transaction fees (usually under 1%)

With ₦5,000, you can often buy shares in banks, manufacturing companies, fintech firms, agriculture companies, and more — depending on market prices at the time.

Types of Shares You Can Buy

Some Nigerian stocks trade at over ₦1,000 per share, but many trade far below that. With ₦5,000, some of the shares you might be able to afford include:

• UBA (United Bank for Africa)
• Transcorp
• Fidelity Bank
• Jaiz Bank
• Wema Bank
• Livestock Feeds
• Courteville Business Solutions
• FTN Cocoa

These companies are listed on the NGX, and their shares can be bought on any licensed investment app. You can own 10, 20, or even 100 shares, depending on the stock price.

Buying the Shares

Once you’ve selected a company and confirmed the current price, simply:

• Type in the number of shares you want
• Click “Buy” or “Place Order”
• Wait for confirmation of a successful transaction

The shares will be credited to your CSCS account (your secure shareholding account), and you’ll be able to see them in your app dashboard.

You can check your portfolio value, monitor price changes, and decide whether to hold or sell — all from the same app.

What Happens After You Buy?

After buying shares, two things can happen:

1. You Hold for Long-Term Gains: If the share price rises over time, your investment grows. You can sell later at a profit.
2. You Receive Dividends: If the company declares profits and shares dividends, you’ll receive your payment directly into your linked bank account or wallet.

Many Nigerian companies pay dividends annually or semi-annually. Even small investors who own just a few shares are eligible to receive these payments.

Tips for Success When Starting Small

Starting with ₦5,000 is not the end goal — it’s the beginning. Here are a few things to keep in mind if you’re serious about growing your investments over time:

• Invest consistently – Even if it’s ₦2,000 or ₦5,000 per month, make it a habit.
• Don’t panic over price drops – Stocks go up and down. Focus on long-term potential.
• Research before buying – Know what the company does and how it performs financially.
• Diversify – Don’t put all your ₦5,000 into one company. Buy a mix of shares over time.
• Reinvest your dividends – Instead of withdrawing, use them to buy more shares.

Common Myths About Starting Small

“I need at least ₦100,000 to make any profit.” 

False. While larger investments offer more returns, compounding works even on small amounts if you’re consistent.

“I’ll lose all my money if the company crashes.”

Possible, but unlikely if you invest in well-known companies with strong records.

“Apps are not safe.” 

Stick to apps licensed by the SEC and NGX, and your investments will be held in your name via the CSCS.

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