How to Buy Shares on the NASD OTC Market

Understand What You Are Buying

Before investing a single naira on the NASD OTC market, make sure you understand what OTC securities are and the risks involved. NASD OTC securities are shares of public companies registered with the SEC but not listed on the main NGX board. They tend to be less liquid than NGX stocks, have less publicly available research, and carry a wider price band of 15% versus the NGX's 10%. Read our full guide on NASD OTC vs NGX to understand the key differences before investing.

Choose a NASD Participating Institution

You cannot buy or sell NASD OTC securities directly. All trades must go through a licensed Participating Institution — a stockbroking firm registered and licensed to deal on the NASD OTC exchange. Not all Nigerian stockbrokers are registered on NASD. You need to specifically confirm that your broker is a NASD Participating Institution before attempting to trade. A full list is available on the official NASD website at nasdng.com. Many major brokers operate on both exchanges — contact your existing broker first to ask.

Open an Investor Trading Account

Once you have chosen a NASD Participating Institution, you need to open an investor trading account. You will typically need:

• Valid government-issued ID — National ID, International Passport, or Driver's Licence
• Bank Verification Number (BVN)
• Proof of address — utility bill or bank statement
• Passport photographs
• Completed account opening forms from the broker

Some brokers allow you to complete this process online. Others require an in-person visit. For broker recommendations visit the NGX Pulse brokers directory.

Fund Your Account

Once your account is open and verified, transfer funds to your broker's account using the details they provide. Most brokers accept bank transfers. Minimum investment amounts vary by broker — some have no minimum while others require an initial deposit. Confirm with your broker before funding.

Research the Securities You Want to Buy

This is the most important step and the one most new investors skip. Before buying any NASD OTC security, research the company thoroughly. Look for:

• Latest available financial statements from the company
• Company profile and business description on nasdng.com
• Any news coverage of the company
• Price history and trading volumes on NGX Pulse NASD OTC tracker

Place Your Trade

Once you have funded your account and identified the security you want to buy, contact your broker to place a buy order. You will need to specify:

• The name or ticker symbol of the security
• The number of shares you want to buy
• The price you are willing to pay — or a market order at the current price

Your broker will execute the trade through the NASD OTC platform. Settlement typically occurs on a T+3 basis — three business days after the trade date.

Monitor Your Investment

After buying, track the price, volume, and any company news that might affect your holding. The easiest way to monitor your NASD OTC holdings alongside your NGX portfolio is through NGX Folio — the NGX Pulse portfolio tracking app — and the NGX Pulse NASD OTC market page for daily market data.