Who can open an account with Network Capital Limited?

Any Nigerian citizen or resident aged 18 or older with a valid Bank Verification Number (BVN). Corporate entities, partnerships, estates, clubs, and associations registered in Nigeria can also open accounts with appropriate documentation. Foreign nationals with valid Nigerian residence permits are welcome.

The digital application takes about fifteen minutes to complete. After submission, our Compliance team reviews your application and forwards it to the Central Securities Clearing System for Bank Verification Number matching and account creation. The full process typically completes within one to two business days, depending on how quickly CSCS processes the verification.

There is no fixed minimum for opening an account. The practical starting point is the cost of your first trade, which depends on the share price of the stock you want to buy. Most Nigerian investors begin with between fifty thousand and two hundred thousand naira to cover a meaningful first position plus applicable fees. Speak to your Relationship Officer about the right starting amount for your goals.

For an individual account: a valid government-issued ID (International Passport, Driver’s Licence, or National ID Card), a utility bill dated within the last three months, your BVN, and bank account details. For corporate accounts, you will also need your CAC registration documents, Memorandum and Articles of Association, board resolution, and KYC documents for all authorised signatories. The full checklist is shown during the application process.

The Central Securities Clearing System (CSCS) is Nigeria’s electronic depository for shares. Every investor needs a CSCS account to hold shares bought on the NGX. We create yours automatically when you open your Network Capital Limited account. Your CSCS number is your unique investor identity across the entire Nigerian market.

CSCS will flag the mismatch, and the account opening will not proceed. You will need to rectify the discrepancy — either by updating your BVN record with your bank to reflect your correct name, or by submitting the application using the exact name your BVN carries. We cannot override CSCS verification. This is a regulatory safeguard that protects everyone.

Yes. We process inter-member transfers through CSCS. Your shares move electronically from your old broker to your Network Capital account. No shares are sold in the process — it is simply a change of custodian. We will guide you through the paperwork.

Yes. You can hold securities with multiple stockbrokers, and each broker may open a separate CSCS sub-account for you. However, your Clearing House Number remains unique to you across all accounts. If you want to consolidate your holdings with Network Capital from another broker, we can process an inter-member transfer, which moves your shares electronically without selling them.

How do I place a trade?

Send us a mandate specifying the stock name, quantity, and price limit (or market price). You can submit mandates by email to your Relationship Officer, through your client portal, or by phone. Mandates received before 8:00 AM on a business day are executed the same day. After that deadline, execution happens on the next business day.

For a sell transaction: brokerage (up to 1.35% of consideration), NGX fee (0.3%), CSCS fee (0.3%), stamp duty (0.075%), CSCS trade alert (N6 per ticket), and 7.5% VAT on brokerage, NGX, and CSCS fees. For a buy transaction: SEC fee (0.3%) replaces NGX fee, and all other charges apply similarly. Use our fee calculator for an exact breakdown on any trade.

The Nigerian market operates on a T+1 settlement cycle, meaning proceeds are available one business days after your trade executes. With CSCS Direct Settlement enabled on your account (which we set up by default), funds are transferred directly to your bank account. No cheques. No delays at our end.

Network Capital operates as an execution-only stockbroker. This means we execute your buy and sell instructions on the NGX floor but do not provide personalised investment advice or recommendations on specific stocks. The decision to buy or sell is always yours. For clients who want advisory services, our portfolio management service offers a managed solution.

Netcap Trader is our online trading application where clients can view their portfolio, place buy and sell mandates, monitor their holdings, and access trading tools. It is a separate platform accessible from our website via the “Trade on Netcap Trader” button. Your Relationship Officer provides your login credentials after your account is activated.

A market order tells us to execute at the best available price when the mandate reaches the trading floor — you prioritise speed of execution. A limit order tells us to execute only if we can achieve your specified price or better — you prioritise price, but the order may not execute if the market does not reach your limit. For most retail investors, limit orders are the safer choice because they prevent unexpected fill prices in fast-moving markets.
Yes, this can happen. A buy order will not execute if the offer price exceeds your limit. A sell order will not execute if the bid price falls below your limit. Orders may also fail if the stock is illiquid and there are no matching orders, if trading in that stock is suspended, or if insufficient volume is available at your price. We notify you when an order fails or partially fills.

You can cancel or modify a mandate at any time before it executes on the trading floor. Send the cancellation or modification through the same channel you used to submit the original mandate. Once a trade has executed, it cannot be reversed — this is a fundamental rule of market operations.

“T+1” simply stands for “Transaction Date plus 1 business days.” It is the standard timeline for processing stock trades on the Nigerian Exchange (NGX). 

Here is how it works: If you sell your shares on a Monday (the transaction date), the trade takes one business day to fully clear. This means your cash proceeds will settle and arrive in your bank account on Tuesday. The same rule applies when buying—it takes one business day for new shares to officially reflect in your CSCS account. (Note: Weekends and public holidays are not counted as business days). 

How do I fund my account?
Transfer funds directly from your registered bank account to your dedicated Network Capital client account. The account details are provided when you activate your account. We accept bank transfers and cheques. For amounts above N50,000, payments must be made by cheque or bank transfer in compliance with SEC anti-money laundering rules.
Yes. Submit a bank account update request through your client portal or by email. Changes to bank details require identity verification and compliance approval for your protection. Processing typically takes 1-2 business days.

If your account has been inactive, you can reactivate it online through our Account Reactivation portal. You will verify your identity, update any outdated information (address, bank details), and confirm that you wish to resume trading. Reactivation is typically processed within one business day.

Changes to bank account details require identity verification and a written request. Submit the request along with a utility bill confirming your address, a valid ID, and account confirmation from your new bank. Processing takes one to two business days. Changes to contact details (phone, email) are simpler and can be requested by email from your registered address, though we may call you to confirm.

An account is considered dormant if there has been no trading activity for an extended period, typically twelve months or more, depending on regulatory thresholds. Dormant accounts remain valid, and your holdings are unaffected, but new transactions require reactivation. Reactivation involves verifying your current identity and contact details, confirming your bank details are still accurate, and completing a short reactivation declaration.

Your shares form part of your estate and pass to your beneficiaries in accordance with your will or, if you die intestate, under Nigerian succession law. Your administrators will need to obtain Letters of Administration from the probate registry, after which we will work with them to transfer shares to the beneficiaries. Estate administration is a specialised service we provide, and we also help beneficiaries trace and claim any uncollected dividends.

How do I receive my dividends?
With Direct Settlement enabled on your account, dividends are credited directly to your registered bank account by the paying company’s registrar. You receive an SMS or email alert from the registrar when the payment is made. We do not handle dividend payments ourselves — this is a direct relationship between you and the registrar of each company whose shares you hold.
The e-dividend mandate is the instruction you give a registrar to pay your dividends electronically into your bank account rather than by physical cheque. You must complete and submit an e-dividend mandate form to each registrar for each company whose shares you hold. We can provide the forms and help you complete them for all your holdings.

Yes, in most cases. Unclaimed dividends are held by the registrar of the paying company and remain claimable indefinitely for listed Nigerian shares. Provide us with the share certificate or holding details, and we will trace the outstanding dividends across registrars and help you claim them. This service is part of our Estate and Recovery offering.

A bonus issue is when a company rewards shareholders by issuing additional shares for free, proportionate to existing holdings for example, one new share for every two held. The number of shares you own increases, but each share price adjusts downward, so your total investment value does not change immediately. A stock split is mechanically similar but usually larger in scale (like one-to-ten) and typically done to make the share price more accessible to retail investors. Both are non-cash corporate actions that affect your CSCS holdings automatically.
A rights issue is when a listed company offers existing shareholders the opportunity to buy additional shares at a discount to the market price, in proportion to their existing holdings. You can subscribe, partially subscribe, or ignore the offer; it is your choice. If you do nothing, your rights lapse, and you are left with your original holding. Whether to subscribe depends on your view of the company’s prospects and whether you have cash available. Our research team issues commentary on major rights issues to help you decide.
What will I pay when I buy shares?

The charges on a buy transaction are Brokerage commission of 1.35 percent of the transaction value, SEC fee of 0.3 percent, CSCS fee of 0.3 percent, Stamp duty of 0.075 percent, CSCS Trade Alert of N6, and VAT of 7.5 percent applied to brokerage, SEC fee, and CSCS fee. Your cost is the value of the shares plus all these charges. We publish the complete breakdown on every contract note.

The charges on a sell transaction are similar, but the regulatory fee goes to the NGX instead of the SEC: Brokerage commission of 1.35 percent, NGX fee of 0.3 percent, CSCS fee of 0.3 percent, Stamp duty of 0.075 percent, CSCS Trade Alert of N6, and VAT of 7.5 percent on the fee components. Your net proceeds are the sale value minus these charges. Again, the breakdown appears on your contract note.

No. We do not charge monthly or annual account maintenance fees. We do not charge inactivity fees. We do not charge for standard document requests like contract notes, statements of account, or dividend confirmations. The only charges you will ever see are the statutory trading charges listed above, plus any fees for specific services like share-backed loans or portfolio management, which are disclosed upfront before you engage.

The 1.35 percent is the maximum brokerage rate permitted by regulation. For clients with larger transaction volumes or institutional mandates, lower brokerage rates may apply based on your relationship with us. Speak to your Relationship Officer about the rate that applies to your account.

Dividends paid to you are subject to a 10 percent withholding tax, which is deducted at source by the paying company’s registrar before the dividend reaches your account. Capital gains on the sale of listed shares on the NGX are currently exempt from Capital Gains Tax under Nigerian law. Tax rules can change; consult a tax adviser for your specific situation.

What research does Network Capital Limited publish?

Our research team publishes daily market commentary after each trading session, weekly market wraps summarising key movements, monthly macroeconomic reports, quarterly sector studies covering banking, consumer goods, oil and gas, industrial, and other sectors, and individual equity notes on companies we cover closely. We also publish special reports around major events, Monetary Policy Committee meetings, federal budgets, and major corporate actions.

Our daily market wrap and weekly summaries are free and publicly available on our website. Deeper research, equity notes, sector studies, and quarterly outlooks are available to clients on request through your Relationship Officer. We do not currently charge a separate research subscription.

We are licensed as an execution-only stockbroker, which means we do not provide personalised investment advice or tell individual clients which stocks to buy or sell. Our research publications express our analysts’ views on companies and sectors — these are informational, not advisory. If you want personalised portfolio recommendations, our Portfolio Management service provides managed investment solutions under a separate engagement.

We use publicly available data sources, company annual reports and quarterly filings, NGX Daily Official List, Central Bank of Nigeria publications, National Bureau of Statistics releases, Debt Management Office bond auction results, and press releases from listed companies. Our analysts add independent interpretation and forecasting. We do not redistribute real-time market data.
Can I invest in Nigerian stocks while living abroad?

Yes. Nigerians in the diaspora and foreign investors of any nationality can invest in the Nigerian Exchange. The Nigerian government has removed legislation restricting foreign capital flows, and the capital market is open to international investment. You open an account with the same documentation as resident Nigerians, plus evidence of your overseas address and, where applicable, your residency status.

You fund your account through a bank transfer from your overseas account or a Nigerian domiciliary account in your name. Funds must arrive through your own account — we cannot accept third-party payments. Your dividends and sale proceeds are paid into your nominated bank account in naira. If you want to remit proceeds abroad, you coordinate that with your bank in line with CBN repatriation rules.

A Certificate of Capital Importation is a document issued by your Nigerian bank when you bring foreign currency into Nigeria for investment purposes. It is essential for foreign investors who want to eventually repatriate their investment proceeds abroad at the official exchange rate. Without a CCI, repatriation becomes complicated. Ask your bank to issue a CCI at the point of funding your investment account. We can guide you through the process if helpful.
Most stocks on the NGX are open to foreign investors without restriction. A small number of strategic sectors have foreign ownership limits set by regulation, but these apply at the company level (total foreign shareholding), not at the individual investor level. In practical terms, foreign retail investors can buy essentially any stock listed on the NGX.
Is my data secure with Network Capital Limited?

We comply with the Nigeria Data Protection Act 2023 and apply appropriate technical and organisational measures to protect your information. Your personal data is used only for the purposes of operating your account and meeting regulatory obligations. We never sell or share your data with third parties for marketing purposes. You have the right to access your data, correct inaccuracies, and request deletion, subject to regulatory retention requirements.

Do not respond. Do not click any links. Do not share any account details. Contact us directly on 0706 200 2333 to verify whether the communication came from us. If the impersonation is serious, we will also report it to the relevant authorities. Forward suspicious emails to our compliance team for investigation.

Understanding Instruments Traded on the NGX
If you are new to investing or simply want to understand what kind of security you are buying, this glossary explains the main instruments available on the Nigerian Exchange and on the wider Nigerian capital market. Each definition is written in plain English with enough detail to matter, but without burying you in jargon.
An ordinary share is a unit of ownership in a listed company. When you hold ordinary shares of Zenith Bank, for example, you own a small piece of the bank. You are entitled to your proportionate share of any dividends the company declares, you have voting rights at the Annual General Meeting, and your share price moves up or down with the market’s view of the company. Ordinary shares are the most common instrument traded on the NGX and what most retail investors buy when they start investing.
A preference share is a hybrid between an ordinary share and a bond. Holders of preference shares typically receive a fixed dividend, paid before ordinary shareholders receive anything. In the event the company is wound up, preference shareholders are paid out before ordinary shareholders (but after bondholders). Preference shares usually do not carry voting rights. They are less volatile than ordinary shares but also have less upside if the company performs very well. Preference shares are relatively uncommon on the NGX compared to ordinary shares.
An FGN Bond is a debt instrument issued by the Nigerian federal government through the Debt Management Office. When you buy an FGN Bond, you are lending money to the government for a fixed period (typically 2, 3, 5, 7, 10, or 20 years) in exchange for semi-annual coupon payments. At maturity, the government returns your principal. FGN Bonds are considered the safest naira-denominated investment in Nigeria because they are backed by the full faith and credit of the federal government.
An FGN Eurobond is an FGN bond denominated in US dollars rather than naira. The Nigerian government issues Eurobonds to raise foreign currency from international investors. For a Nigerian investor, holding an FGN Eurobond provides dollar-denominated income and protects the principal from naira depreciation. Eurobonds typically pay coupons twice a year and mature after 10, 15, or 30 years.

A Treasury Bill (T-Bill) is a short-term debt instrument issued by the Central Bank of Nigeria on behalf of the federal government, usually with maturities of 91 days, 182 days, or 364 days. Unlike bonds, T-Bills do not pay periodic coupons. Instead, you buy them at a discount to face value and receive the full-face value at maturity. The difference is your return. T-Bills are very liquid and widely used by individuals and institutions as a place to park short-term cash.

A state bond, sometimes called a sub-national bond, is a debt instrument issued by a state government (such as Lagos State or Kaduna State) to fund infrastructure projects or refinance existing debt. Mechanically they work like FGN Bonds: fixed coupons, fixed maturity, principal returned at the end. The risk profile is slightly higher than federal bonds because the creditworthiness of a state is lower than that of the federal government. Yields are usually correspondingly higher.

A corporate bond is a debt instrument issued by a company to raise capital. Investors receive fixed coupon payments for the life of the bond and get their principal returned at maturity. Corporate bonds carry higher risk than government bonds, since the company could default, and they therefore offer higher yields. On the NGX, corporate bonds are listed by major Nigerian companies as well as supranational issuers, banks, and infrastructure vehicles.

A Sukuk is the Islamic finance equivalent of a conventional bond, structured to comply with Shariah law. Instead of paying interest (which is prohibited in Islamic finance), Sukuk provide investors with a share of the profits from an underlying asset, typically an infrastructure project or a portfolio of assets. The Nigerian government has issued several Sukuk to fund road construction across the country. Non-Muslim investors can also buy and hold Sukuk; the structure is simply a different way of achieving fixed-income-like returns.
Commercial Paper is a short-term debt instrument issued by a company, typically with maturities of less than one year. Companies use commercial paper to meet short-term working capital needs. For investors, commercial paper offers yields higher than bank deposits but comes with corporate credit risk. Commercial paper is sold in Nigeria primarily through FMDQ.
An ETF is a basket of securities that trades on the exchange like a single stock. Instead of buying ten different bank shares separately, you could buy one share of a banking ETF and gain exposure to the entire sector in a single transaction. ETFs on the NGX track various indices or themes, including broad market indices, sector-specific indices, a commodity (gold), and Shariah-compliant equity baskets. ETFs usually have lower fees than actively managed funds and offer built-in diversification.
A REIT is a company that owns, operates, or finances income-producing real estate, and whose shares are listed and traded on the exchange. When you buy a REIT on the NGX, you gain exposure to Nigerian real estate (residential, commercial, mixed-use) without having to buy or manage a property yourself. REITs are required by regulation to distribute the majority of their income as dividends, which makes them attractive to income-seeking investors.
A mutual fund is a professionally managed pool of money collected from many investors to invest in a diversified portfolio of stocks, bonds, or other assets. When you invest in a mutual fund, you buy units in the fund rather than individual securities. The fund manager makes the investment decisions. Mutual funds are not traded on the NGX the way ETFs are. Instead, you subscribe and redeem units at the fund’s Net Asset Value, usually with the fund manager or through authorised distributors.
A warrant is a security that gives the holder the right (but not the obligation) to buy a company’s shares at a specific price within a specific time period. Warrants are usually issued by companies as part of a larger capital raising exercise, and they can be listed and traded on the NGX. The value of a warrant depends on the current price of the underlying stock, the strike price, and the time remaining before expiry. Warrants are relatively uncommon on the Nigerian market and are generally more suitable for sophisticated investors.
A derivative is a financial instrument whose value is derived from the price of an underlying asset (a stock, an index, a currency, or a commodity). The most common derivatives are options and futures. Derivatives allow investors to hedge existing positions, take directional views with leverage, or lock in future prices. The Nigerian capital market is still in the early stages of derivatives development. Products are introduced gradually by the NGX and FMDQ. Derivatives are not suitable for beginner investors because they can produce losses larger than the initial outlay.
A dividend is a cash payment made by a company to its shareholders out of the company’s profits. On the NGX, companies typically declare dividends annually, sometimes with an interim dividend mid-year. To qualify for a dividend, you must be on the company’s register of shareholders by the qualification date. Dividend income is subject to a 10 percent withholding tax in Nigeria, deducted at source before the payment reaches your account.
A bonus issue is when a company gives existing shareholders additional shares for free, in proportion to what they already hold. A 1-for-4 bonus issue means you receive one new share for every four you own. The total market value of your holding does not change immediately; the share price simply adjusts downward to reflect the increased number of shares outstanding.
A rights issue is when a listed company gives existing shareholders the right to buy additional shares at a discount to the market price, in proportion to their existing holdings. A 1-for-3 rights issue at N10 means you can buy one new share at N10 for every three you already hold. You can subscribe fully, subscribe partially, renounce your rights to another investor, or ignore the offer entirely.

A stock split is when a company divides its existing shares into multiple new shares to make the share price more accessible to retail investors. A 10-for-1 split means every 1 share you owned is replaced by 10 shares, at one-tenth the original price. Your total holding value does not change. Stock splits are less common on the NGX than bonus issues, but the mechanics are similar.

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