WHY YOU SHOULD NEVER INVEST IN SHARES AS A MINORITY SHAREHOLDER

This is based on my personal experience and that of my parents. Investing in shares is better for those who are acquiring majority shareholding or are into frequent trading of stocks. Don’t ever make the mistake of long-term investments as a minority shareholder in Nigeria.

Shares of over 4m naira I acquired in 2008 is now worth about 900,000 in 2024.
About 3000 units Omega Bank shares (purchased in 2005) and over 2000 units of Platinum Bank shares (purchased in 2008) had to be forfeited because the companies were delisted from the Nigerian Stock Exchange. What then is the function of SEC if they cannot protect investors?
10000 units of AP petroleum shares I bought at 250 naira per unit in 2008 became less than 18 naira per unit after Ardova PLC took over AP Petroleum. Now, Ardova has also been delisted without any assurance of pay-out. All that money gone down the drain.

AP Petroleum Shares Scam

https://allafrica.com/stories/200904230002.html
SEC Boss sent on Compulsory leave

https://allafrica.com/stories/200904230358.html
Reps threaten to arrest Otedola over shares scam

https://allafrica.com/stories/200903270560.html
AP shares manipulation.
You impose a fine of only N500,000 after investors have lost billions. Nothing was said about refunding investors.

https://guardian.ng/business-services/shareholders-kick-against-buyout-price-of-ardovas-minority-stakes/
Shareholders kick against buyout price of Ardova’s minority stakes. (The news article has been pulled down by Guardian)

Imagine buying shares at N250 per unit and ending up with N17 naira after few years.

20,000 units of Transcorp Limited shares I bought at 14 naira per share in 2008 is now 10.80naira in 2024. Investing in shares as a minority shareholder is no different from forex gambling or is just a tad better than sports gambling.

The Dangote Flour Mill shares my mum owned was sold to Olams yet the registrars have refused to pay the shareholders. They said they returned the money to SEC and SEC has been promising to pay since 2019.

https://www.icirnigeria.org/n120bn-dangotes-payoff-since-2019-drags-as-sec-keeps-silent-on-investors-money/

https://fij.ng/article/lamido-yuguda-led-sec-withholds-over-12bn-shareholders-funds-for-years/#:~:text=Investigations%20by%20THECONSCIENCEng%2C%20a%20Nigerian,years%2C%20citing%20countless%20administrative%20bottlenecks.

https://sunnewsonline.com/shareholders-kick-as-sec-keeps-mum-over-alleged-hoarding-of-n12bn-investors-funds/

Before Intercontinental Bank was sold to Access Bank, my mum held 4000 shares in ICB. However, the acquisition clause was that for every 8 units you hold in ICB, you will get only 1 unit in Access Bank. This is the same with Diamond Bank where I had 1000 shares. For every 7 units you hold in Diamond Bank, you will get only 2 units in Access Bank. This is also our experience with Oceanic Bank after its acquisition by Ecobank. There are many of such shares that we own that are now almost valueless or totally lost because of mergers, delisting, winding down of companies etc.

DIVIDENDS
My mum has thousands of shares in over 30 Companies yet she barely got a total of N40,000 from annual dividends last year. The thousand of shares I own in several companies also own pay a very paltry sum as annual dividends. These are shares that were bought with substantial amounts of money almost a decade ago (for me) and several decades ago for my mum.

Again, if you are not a major investor with hundreds of millions or perhaps billions and you are not a frequent trader, please stay away from the stock market, it will impoverish you on the long run.
Imagine how AP petroleum (I don’t want to mention a person’s name) made away with investors money. Look at Heritage Bank that was recently delicensed, what is the fate of the minority shareholders? SEC will not protect you. That is another agency the government needs to put a spotlight on. Too many news articles about their scandalous operations online. I will share some here.

https://www.premiumtimesng.com/opinion/editorial/4405-analysis_sec_a_regulator_tainted_by_corruption_immorality.html

https://www.premiumtimesng.com/news/headlines/257672-golden-handshake-how-sec-board-approved-n1-7-billion-for-staff-retirement-package.html

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.nigeriacommunicationsweek.com.ng/frc-accuses-sec-npa-of-not-remitting-n28-27bn/&ved=2ahUKEwiKs7Ch0eGGAxVlWkEAHSnpBKA4FBAWegQIHRAB&usg=AOvVaw2q07pkFezaCMCX52pZ_5HD

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.premiumtimesng.com/business/167882-securities-and-exchange-commission-has-no-profit-since-2009.html&ved=2ahUKEwjJ0euF0eGGAxUVVkEAHfBjB5IQFnoECDAQAQ&usg=AOvVaw2HLQDC-9UTSKsJ_Zcg8MJ6

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.channelstv.com/2024/04/22/sec-workers-seek-exemption-from-50-operating-surplus-remittance/&ved=2ahUKEwjJ0euF0eGGAxUVVkEAHfBjB5IQFnoECDMQAQ&usg=AOvVaw1IwV4g_NwnA-UdP2U04NWO

https://www.google.com/amp/s/punchng.com/senate-indicts-sec-dg-commissioners-in-n594m-vehicle-scandal/%3famp

https://www.google.com/amp/s/punchng.com/senate-knocks-sec-for-spending-revenues-on-salaries-emoluments/%3famp

Since SEC cannot protect small investors, is it not better to scrap the commission instead of wasting revenue on paying bogus salaries to them?

If you want to invest, please invest in real estate or gold. These two almost always never fail.

Picture 1: Shares certificate of Omega bank acquired in 2005 but which is no longer redeemable. Money gone down the drain.

Picture 2: Receipt of shares acquired in 2008. Nigerian breweries was bought at 50 per share then, but it is now 31.90. Platinum Bank was bought at 23 per unit but it is no longer redeemable. Another money gone down the drain. WAPCO was purchased at 55 naira, it is now 34 naira. Dangote Flour purchased at 26.40 per share is what SEC has refused to pay since 2019 after the acquisition by OLAMS.

Picture 3: The response I got from NGX after enquiring about some shares.

And with all these, we are made to believe the Nigerian stock market is currently at its best since inception. I am compelled to ask, what will now be the fate of investors if the stock market is not at its best?

Such amount of shares won't make you a millionaire if that's what your aiming at. Coronation bank helps in purchasing huge volume of shares.
Invest 10million in shares today and earn 20million tomorrow.

MatrixReloaded:
Such amount of shares won't make you a millionaire if that's what your aiming at. Coronation bank helps in purchasing huge volume of shares.
Invest 10million in shares today and earn 20million tomorrow.

you clearly did not read. Get the fuccccck out of this thread

lastmessenger:
you clearly did not read. Get the fuccccck out of this thread

Your re stupid for saying such..

I have yet to see a Nigerian who became a billionaire by buying shares like Warren Buffet.

For me, there are things we aren't just matured enough to do. I could be wrong, but that's what I think because most Nigerian companies die the moment their founders kick the bucket.

Most times, big Nigerian companies are handed down by their founders as parting gifts to their irresponsible rich kids who know zilch about how to run a business. In the end, they will crash the company and investors will bear the brunt.

So, if you must buy stocks, follow news around Wall Street and make an informed decision from it. Or you can invest in S&P 500 through Nigerian companies/brokers that help Nigerians invest in the US stock market.

Stop wasting your money investing in Nigerian companies; Nigeria is not a serious country.

You're better off buying meme coins than investing in Nigeria's shitty stock market.

Painful very painful, sorry about your losses

This is really sad. How can one sow in Tears with the expectation of reaping in Joy and then all your hopes are dashed - after so many years?

I have always believed that there is no business in Nigeria that thrives without some modicum of fraud & illegality.

Anybody who buys shares in any company in Nigeria (No matter how prestigious the company seem) is only contributing his/her quota to enriching the fraudulent Bastards that own the companies.

All the regulatory bodies that are put in place to strengthen the standards & ensure consistent compliance will act deaf & dumb, sending you on a wild goose chase, when your assets & investments in those fictitious companies are transferred or reduced to zero.

The is because the Directors of these regulatory bodies are directly or indirectly benefiting from the scam being perpetrated by these companies.

Everything and every sector you can think of in Nigeria is rotten from the Top to the Bottom.

Saturnalia:
This is really sad. How can one sow in Tears with the expectation of reaping in Joy and then all your hopes are dashed - after so many years?

I have always believed that there is no business in Nigeria that thrives without some modicum of fraud & illegality.

Anybody who buys shares in any company in Nigeria (No matter how prestigious the company seem) is only contributing his/her quota to enriching the fraudulent Bastards that own the companies.

All the regulatory bodies that are put in place to strengthen the standards & ensure consistent compliance will act deaf & dumb, sending you on a wild goose chase, when your assets & investments in those fictitious companies are transferred or reduced to zero.

The is because the Directors of these regulatory bodies are directly or indirectly benefiting from the scam being perpetrated by these companies.

Everything and every sector you can think of in Nigeria is rotten from the Top to the Bottom.

Thank you for this wonderful response. You just accurately presented the thoughts in my head which I couldn't articulately pour out.
I am counting my losses right now. I have contacted a stockbroker and will be putting up all the shares for sale by next week. Never again!

Evening bro pls I sent u a mail

AmiableMosquito:
WHY YOU SHOULD NEVER INVEST IN SHARES AS A MINORITY SHAREHOLDER

This is based on my personal experience and that of my parents. Investing in shares is better for those who are acquiring majority shareholding or are into frequent trading of stocks. Don’t ever make the mistake of long-term investments as a minority shareholder in Nigeria.

Shares of over 4m naira I acquired in 2008 is now worth about 900,000 in 2024.
About 3000 units Omega Bank shares (purchased in 2005) and over 2000 units of Platinum Bank shares (purchased in 2008) had to be forfeited because the companies were delisted from the Nigerian Stock Exchange. What then is the function of SEC if they cannot protect investors?
10000 units of AP petroleum shares I bought at 250 naira per unit in 2008 became less than 18 naira per unit after Ardova PLC took over AP Petroleum. Now, Ardova has also been delisted without any assurance of pay-out. All that money gone down the drain.

AP Petroleum Shares Scam

https://allafrica.com/stories/200904230002.html
SEC Boss sent on Compulsory leave

https://allafrica.com/stories/200904230358.html
Reps threaten to arrest Otedola over shares scam

https://allafrica.com/stories/200903270560.html
AP shares manipulation.
You impose a fine of only N500,000 after investors have lost billions. Nothing was said about refunding investors.

https://guardian.ng/business-services/shareholders-kick-against-buyout-price-of-ardovas-minority-stakes/
Shareholders kick against buyout price of Ardova’s minority stakes. (The news article has been pulled down by Guardian)

Imagine buying shares at N250 per unit and ending up with N17 naira after few years.

20,000 units of Transcorp Limited shares I bought at 14 naira per share in 2008 is now 10.80naira in 2024. Investing in shares as a minority shareholder is no different from forex gambling or is just a tad better than sports gambling.

The Dangote Flour Mill shares my mum owned was sold to Olams yet the registrars have refused to pay the shareholders. They said they returned the money to SEC and SEC has been promising to pay since 2019.

https://www.icirnigeria.org/n120bn-dangotes-payoff-since-2019-drags-as-sec-keeps-silent-on-investors-money/

https://fij.ng/article/lamido-yuguda-led-sec-withholds-over-12bn-shareholders-funds-for-years/#:~:text=Investigations%20by%20THECONSCIENCEng%2C%20a%20Nigerian,years%2C%20citing%20countless%20administrative%20bottlenecks.

https://sunnewsonline.com/shareholders-kick-as-sec-keeps-mum-over-alleged-hoarding-of-n12bn-investors-funds/

Before Intercontinental Bank was sold to Access Bank, my mum held 4000 shares in ICB. However, the acquisition clause was that for every 8 units you hold in ICB, you will get only 1 unit in Access Bank. This is the same with Diamond Bank where I had 1000 shares. For every 7 units you hold in Diamond Bank, you will get only 2 units in Access Bank. This is also our experience with Oceanic Bank after its acquisition by Ecobank. There are many of such shares that we own that are now almost valueless or totally lost because of mergers, delisting, winding down of companies etc.

DIVIDENDS
My mum has thousands of shares in over 30 Companies yet she barely got a total of N40,000 from annual dividends last year. The thousand of shares I own in several companies also own pay a very paltry sum as annual dividends. These are shares that were bought with substantial amounts of money almost a decade ago (for me) and several decades ago for my mum.

Again, if you are not a major investor with hundreds of millions or perhaps billions and you are not a frequent trader, please stay away from the stock market, it will impoverish you on the long run.
Imagine how AP petroleum (I don’t want to mention a person’s name) made away with investors money. Look at Heritage Bank that was recently delicensed, what is the fate of the minority shareholders? SEC will not protect you. That is another agency the government needs to put a spotlight on. Too many news articles about their scandalous operations online. I will share some here.

https://www.premiumtimesng.com/opinion/editorial/4405-analysis_sec_a_regulator_tainted_by_corruption_immorality.html

https://www.premiumtimesng.com/news/headlines/257672-golden-handshake-how-sec-board-approved-n1-7-billion-for-staff-retirement-package.html

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.nigeriacommunicationsweek.com.ng/frc-accuses-sec-npa-of-not-remitting-n28-27bn/&ved=2ahUKEwiKs7Ch0eGGAxVlWkEAHSnpBKA4FBAWegQIHRAB&usg=AOvVaw2q07pkFezaCMCX52pZ_5HD

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.premiumtimesng.com/business/167882-securities-and-exchange-commission-has-no-profit-since-2009.html&ved=2ahUKEwjJ0euF0eGGAxUVVkEAHfBjB5IQFnoECDAQAQ&usg=AOvVaw2HLQDC-9UTSKsJ_Zcg8MJ6

https://www.google.com/url?sa=t&source=web&rct=j&opi=89978449&url=https://www.channelstv.com/2024/04/22/sec-workers-seek-exemption-from-50-operating-surplus-remittance/&ved=2ahUKEwjJ0euF0eGGAxUVVkEAHfBjB5IQFnoECDMQAQ&usg=AOvVaw1IwV4g_NwnA-UdP2U04NWO

https://www.google.com/amp/s/punchng.com/senate-indicts-sec-dg-commissioners-in-n594m-vehicle-scandal/%3famp

https://www.google.com/amp/s/punchng.com/senate-knocks-sec-for-spending-revenues-on-salaries-emoluments/%3famp

Since SEC cannot protect small investors, is it not better to scrap the commission instead of wasting revenue on paying bogus salaries to them?

If you want to invest, please invest in real estate or gold. These two almost always never fail.

Picture 1: Shares certificate of Omega bank acquired in 2005 but which is no longer redeemable. Money gone down the drain.

Picture 2: Receipt of shares acquired in 2008. Nigerian breweries was bought at 50 per share then, but it is now 31.90. Platinum Bank was bought at 23 per unit but it is no longer redeemable. Another money gone down the drain. WAPCO was purchased at 55 naira, it is now 34 naira. Dangote Flour purchased at 26.40 per share is what SEC has refused to pay since 2019 after the acquisition by OLAMS.

Picture 3: The response I got from NGX after enquiring about some shares.

And with all these, we are made to believe the Nigerian stock market is currently at its best since inception. I am compelled to ask, what will now be the fate of investors if the stock market is not at its best?

With all these banks running Ads to buy their shares. I have been doin research on getting some of these shares and I am yet to see any positive investor

How do I sell my MTN shares abeg?

@OP, I empathize with you. Nigeria is not a country where you can buy shares of listed companies and go to sleep. The past history of the NSE cannot define the current NGX; things have changed. Investors are more enlightened now, and 80-85% of listed companies are submitting their financial statements quarterly. The millennials are making significant profits on the exchange, and I personally aim to have a portfolio worth N2 billion by 2026. Do not write off NGX; it remains the safest place to build generational wealth. The regulator is improving, and information is now readily available. Companies that cannot cope are being delisted under strict conditions. If you and your mom had invested in PRESCO, OKOMU OIL, DANGOTE CEMENT, GTB, ZENITH, UBA, UCAP, and other companies that are relatively doing well, the story would have been different. Moreover, Nigerians are now investing in other global stock exchanges.

AmiableMosquito:
WHY YOU SHOULD NEVER INVEST IN SHARES AS A MINORITY SHAREHOLDER

Dear OP, this your post is a mixed bag of ignorance , truths and half -truths.

It's unfortunate that you are not a diligent investor and it was partly responsible for why you are in this your self-imposed misery. In the first place, Heritage Bank is not a listed company.

Secondly, that same Dangote Flour made some people multimillionaire today. The price sank to as low as N1 and many people who loaded millions ended up being paid over N22 for each unit they bought around N1. While you were not following up on your investments, you missed out on a lot of opportunities and same fate await you if you don't take time to learn about your investments and follow up.

Btw, I am not sure you are referring to same AP that stood at around N24 for donkey years and eventually many sold at over N200 at huge profit. If you had been monitoring your investments, you may have known when to exit. Access Bank bought IB and the bank is still paying regular dividends.

To those other banks that folded up, I am so sorry for the capital you and your mum lost as part of the owners of the defunct banks, you could have exited if you were monitoring your investments. Take the hard lessons and don't blame the stock market.

Thank you for sharing this! And sorry about your losses. This is all a "pessimist" needs to discourage him or her.

For months now, I have been seeing different adverts of companies offering shares. I haven't been impressed enough (based on instinct and observations) to do some personal research to decide if they're worthwhile. I mean a 50 kobo share offered at more than N30, paying at best N2-4 a year as dividend (unguaranteed).

I finally had time to give a bit more time to the research today. That's how I came about this thread.

Now, factor in the rather rapid loss of naira value (inflation) and possible share price drops. I guess it's better to spend that money today for something worthwhile - food, health, knowledge, real estate, charity etc - depending on the amount. After all, the future isn't guaranteed.

Saviola86:
With all these banks running Ads to buy their shares. I have been doin research on getting some of these shares and I am yet to see any positive investor

Lol, funny, that was what brought me here also. Want to buy some bank shares and decided to do a little research about it... Seems I'll rather invest the funds elsewhere, no matter how little the funds are

Somrone dropped a link of Gtbnak saying they've made #1trillion pre tax. I was like, trillion ke. The same bank that is advertising shares and telling you made this. Invest in Nigerian bank shares at your own risk