How to Invest in Nigerian Stocks from South Africa

Nigerian citizens living in South Africa can buy and hold shares listed on the Nigerian Exchange (NGX) without going back to Nigeria. The shares are bought by a licensed Nigerian stockbroker and registered in your own name in the Central Securities Clearing System (CSCS). What is specific to South Africa is the way money leaves the country: outward transfers fall under exchange control, which is covered below.

Can Someone Living in South Africa Own NGX-Listed Shares?

Yes, if you are a Nigerian citizen. Nigerian company and securities law does not make share ownership depend on where the shareholder lives, so a Nigerian in Johannesburg, Pretoria, Cape Town or Durban can be a registered shareholder of an NGX-listed company on the same footing as a shareholder in Nigeria.

South Africans and other non-Nigerians are not prohibited from owning Nigerian shares, and foreign portfolio investors are active on the NGX. Their route is different, though. A retail broker account rests on the Bank Verification Number (BVN), which requires Nigerian identity documents, so foreign nationals generally invest through a custodian bank with a Certificate of Capital Importation. That arrangement is aimed at institutions and larger sums. Shares Saver currently accepts Nigerian citizens only.

The Nigerian Side: Identity and Accounts

Everything needed to open the account is Nigerian. A South African ID number, permit or bank account plays no part in the identity check, apart from proof of where you live.

• BVN: issued when you first opened a Nigerian bank account. Your bank can confirm it if you no longer have the number.
• Non-Resident BVN: for Nigerian passport holders abroad who never had a BVN. Applications are made online through NIBSS at https://nibss-plc.com.ng/nrbvn/, where the current requirements and fee are shown.
• NIN: the National Identification Number issued by NIMC. Enrolment options for Nigerians outside Nigeria are listed on nimc.gov.ng.
• A Nigerian bank account in your own name, for paying in naira and receiving dividends.
• Your Nigerian passport and a recent proof of your South African address.
• A CSCS account and Clearing House Number (CHN), which the stockbroker opens on your behalf during onboarding.

Sending Rand to Nigeria: Routes and Exchange Control

NGX shares are bought in naira, and a Shares Saver account is funded from your Nigerian bank account. Rand therefore has to become naira in that account first. In general terms the routes are an international transfer from your South African bank to your Nigerian account, a licensed remittance service that pays out to a Nigerian bank account, or a transfer into a domiciliary (foreign-currency) account at a Nigerian bank that you later convert to naira.

South Africa operates exchange controls, administered by the Financial Surveillance Department of the South African Reserve Bank (SARB). Money leaves the country through authorised dealers, which in practice means the banks and licensed operators, under allowances that carry limits. Larger transfers can involve a tax compliance step with the South African Revenue Service (SARS). The allowances and their limits are revised from time to time, so check the current position with the SARB or your bank before you plan a transfer.

Fees, delivery times and the rand-to-naira rate vary between providers and from day to day. Compare the total cost at the time you send, use licensed providers only, and keep every transfer confirmation.

Certificate of Capital Importation: When It Is Relevant

When foreign currency is brought into Nigeria for investment through a Nigerian bank, the bank can issue a Certificate of Capital Importation (CCI). The certificate is evidence of the inflow, and it gives the holder access to the official foreign exchange market to take dividends and sale proceeds back out of Nigeria in foreign currency.

The certificate belongs to a specific inflow and is arranged with the receiving bank at the time the funds arrive. A naira payout from a remittance service does not normally generate one. People who intend to spend or reinvest their proceeds inside Nigeria have little need for it. People who want a documented path for bringing capital back to South Africa raise it with their Nigerian bank before the first transfer, because it cannot easily be added later.

Dividends and the 10% Withholding Tax

Nigerian companies pay dividends in naira through the e-dividend system. The payment goes to the Nigerian bank account named on your mandate, after 10% Nigerian withholding tax has been taken off at source. Nothing is paid directly into a South African account. If you later move the money to South Africa, the naira-to-rand rate on the day sets the rand amount, and both currencies move against each other over time.

Tax in South Africa: General Position

South African tax residents are normally taxed by SARS on their worldwide income, which takes in foreign dividends and gains made on foreign shares, and the annual return asks about foreign assets and income. Whether you are a South African tax resident is itself a question of fact under the tests SARS applies, and a Nigerian in the country on a work or study visa may or may not meet them.

Nigeria and South Africa have a double taxation agreement, which can affect how Nigerian tax already withheld is treated. How it applies to a particular person is a matter for a qualified South African tax practitioner. In Nigeria, gains on share disposals are exempt under the Nigeria Tax Act 2025 where proceeds are below ₦150 million and gains do not exceed ₦10 million in any 12 months, or where the proceeds are reinvested in Nigerian shares.

NGX Hours in South African Time

The NGX trades from 9:00 to 16:00 West Africa Time (WAT, UTC+1), Monday to Friday, excluding Nigerian public holidays. South African Standard Time is UTC+2, and neither country uses daylight saving time. The gap is therefore one hour throughout the year: the NGX session runs from 10:00 to 17:00 in South Africa. Trades settle on T+1, the business day after the trade.

Registered to You, Not to a Platform

Shares Saver works with Crown Capital Limited, an NGX trading licence holder, which executes the purchase. The shares are then recorded in the CSCS under your CHN and in your legal name. There is no pooled or nominee holding between you and the company. The holding stays attached to your CHN if you change broker, move to another country or return to Nigeria.

Frequently Asked Questions

Can a South African citizen buy shares on the NGX?

Nigerian law permits it, but not through a retail account that depends on a BVN. Foreign nationals normally invest through a custodian bank and import their capital with a Certificate of Capital Importation. Shares Saver is available to Nigerian citizens only at present.

Is there a limit on how much I can send from South Africa to invest in Nigeria?

Outward transfers are subject to exchange control allowances, and the limit that applies depends on your residency status and the allowance used. The figures change, so confirm them with the SARB or with your bank as an authorised dealer.

Do I fund my account in rand or in naira?

In naira. The account is funded from a Nigerian bank account in your name, so the conversion from rand happens before the money reaches the investment account.

Is the NGX open at the same time as the South African working day?

Almost. The NGX session is 10:00 to 17:00 in South African time all year round, because neither country changes its clocks.

Will SARS want to know about my Nigerian shares?

South African tax residents normally declare worldwide income, and the return covers foreign assets and income. Whether you are tax resident, and what needs to be declared, depends on your circumstances. A registered South African tax practitioner can confirm it.

Can dividends be paid into my South African bank account?

Dividends are paid in naira to a Nigerian bank account under the e-dividend mandate, net of 10% withholding tax. Sending the money on to South Africa is a separate transfer through your Nigerian bank.