The stock market in Nigeria has been developing into a player on the global stage in recent years, and the demand for the best Nigerian stocks to buy continues to gather pace.
In this article, we are going to delve in to 8 of the best Nigerian stocks to buy, along with some of the factors that continue to drive the demand for the Nigerian economy.
Economic growth fuels stock market growth
A thriving economy is vital to the success of any country, and Nigeria is no exception. Stock markets usually move upwards with the health of underlying economy, and this is monitored in process called fundamental analysis.
The Nigerian economy is the largest in Africa and is one of the fastest growing in the world. Despite challenges such as high unemployment and corruption, there are many opportunities for investors in Nigeria.
The Nigerian economy is diversified, with sectors such as agriculture, manufacturing, oil and gas, and services accounting for a significant portion of GDP. This diversity provides you as an investor with numerous options when it comes to choosing which sectors to invest in.
What To Consider From The Best Nigerian Stocks
There are many factors to consider when choosing the best Nigerian stocks to buy but some of the most important include the company’s financial stability, growth potential, and dividend yield.
The Nigerian stock market is one of the most promising markets in Africa and saw growth of more than 6.5% in 2021. Nigerian stocks have outperformed many other African markets in recent years with the Nigerian Stock Exchange (NSE) now the 6th largest stock exchange in Africa, with a market capitalization of over $56 billion.
There are many reasons to invest in Nigerian stocks, and if you are still learning about how to buy stocks from Nigeria, we have broken that down into a separate guide. Nigeria has a large and growing population, a rapidly expanding economy, and a young and dynamic workforce. Nigeria also has abundant natural resources, including oil and gas, which make it an attractive destination for foreign investors.
From a regulatory standpoint, the SEC in Nigeria are the referee appointed to ensure market fairness, and oversee the health of the companies listed on the Nigerian stock exchange.
the best Nigerian stocks to buy
1. Dangote Cement Plc (DCP)
Dangote Cement is the largest cement producer in Africa and one of the largest in the world. The company has a market capitalization of over $12 billion USD, or 5 trillion Naira. Dangote Cement is a leading player in the Nigerian cement market; including preparation, manufacturing and distribution of cement products. The company also has operations in other African countries, including Ghana, Senegal, and South Africa and has experienced growth in the stock price of over 37% in the past 12 months.
2. Zenith Bank Plc (ZENB)
Zenith Bank is one of Nigeria’s leading banks. The bank has a market capitalization of over $1.8 billion. Zenith Bank is a leading player in the Nigerian banking sector, with over 20% market share. The bank has a strong focus on retail and SME banking, and has a nationwide network of branches and ATMs.
3. Nestle Nigeria Plc (NESN)
Nestle Nigeria is the largest food and beverage company in Nigeria. The company has a market capitalization of over $2 billion. Nestle Nigeria is a leading player in the Nigerian food and beverage industry, offering a wide range of products, including milk, cereals, infant formula, and bottled water.
4. United Bank for Africa Plc (UBA)
United Bank for Africa is one of Nigeria’s leading banks. The bank has a market capitalization of over $800 million. UBA is a leading player in the Nigerian banking sector, and maintains a strong focus on retail and SME banking, and has a nationwide network of branches and ATMs.
5. GTI Express Transport Plc (GTI)
GTI Express Transport is a leading logistics and transportation company in Nigeria. The company has a nationwide network of offices and warehouses and is the largest provider of logistics and transportation services in Nigeria.
6. Nigerian Breweries Plc (NB)
Nigerian Breweries is the largest brewing company in Nigeria. The company has a market capitalization of over $1.3 billion. Nigerian Breweries is a leading player in the Nigerian beer market, with operations in other African countries, including Ghana, Senegal, and South Africa. Over the preceding 12 months, shares in NB have grown 5.7%.
7. MTN Nigeria Communications Plc (MTNN)
MTN Nigeria is the largest telecommunications company in Nigeria. The company has a market capitalization of over $12 billion. MTN Nigeria is the leading player in the Nigerian mobile telephone market, with a 60% market share and MTN shares have grown by more than 40% over the preceding 12 months.
8. Flour Mills of Nigeria Plc (FMN)
Flour Mills of Nigeria is the second largest flour milling company in Nigeria. The company has a market capitalization of over $360 million. Flour Mills of Nigeria is a leading player in the Nigerian flour milling industry and has seen stock growth of 26% in the past 12 months. The company was incorporated way back in 1960, and now employs more than 5000 people in their operation.