The Business NG - February 16, 2026

In this issue

Concerns are mounting within Nigeria’s financial community over the high cost of trading equities on the Nigerian Exchange Limited (NGX), with analysts warning that steep transaction charges are discouraging retail investors, weakening market liquidity, and accelerating capital migration to foreign platforms and cryptocurrency markets.


Market participants estimate that a full buy-and-sell transaction on the NGX costs retail investors more than four percent of their capital. In practical terms, an individual who buys ₦100,000 worth of shares and later sells them could lose over ₦4,000 to fees alone, regardless of whether the investment generated profit or loss.

Businessng notes that the cost structure is made up of multiple statutory charges calculated as percentages of transaction value. While stockbrokers’ commissions are capped at 1.35 percent, investors also pay fees to the Securities and Exchange Commission (SEC), the Nigerian Exchange Limited itself, and the Central Securities Clearing System (CSCS), which handles trade settlement and custody. Stamp duties further increase the burden, while a 7.5 percent Value Added Tax is applied to the service fees charged during transactions