A Kano State-based trader, Mr Oluwadare Olutosin, has narrated how one insurance stock changed his life in 2025. He spoke with Economy Post during an investment summit in Lagos, saying that he used to think that the stock market was meant for some special individuals.
According to him, he has now started believing investment experts who say that Nigerian stocks are among the best in the world in terms of returns.
“In April this year, a friend of mine gave me N5 million to keep for him. He wanted to start a building project sometime in September and didn’t want to tamper with the money. He asked me to keep it safe for him so that he wouldn’t spend it.
“In May, someone asked me to invest the money in the stock market, convincing me that the money would yield bigger returns by September if I did. On May 20, I heeded his advice and invested the whole money in Sovereign Trust Insurance, which was priced at N1.03k per share at that time.
“By August 18, the share price had risen to N3.20k, meaning that it had appreciated by 210 percent within three months. Without wasting much time, I decided to sell. At the end of the day, I earned additional N10.5 million from the stock.
“The beautiful thing is that I conducted the transaction with my phone. I needed no physical person, only the app provided by the stock broker. It was at first a highly-risky bet, which could have backfired. But it turned out to be a risk that was worth it.
“When I told my friend what happened, he didn’t believe me at first, But by the time he saw the receipts of the transactions, he was shocked,” Olutosin explained.
READ ALSO: Stocks or real estate: Which investment offers better returns?
His testimony reflects how the Nigerian exchange has transformed lives in the last two years, raising the lives of those who have dared to bet from rags to riches. Sovereign Trust Insurance is not the only stock in this category.
Honeywell Flour Mills has significantly turned investors into millionaires and billionaires, rising by 249 percent from January to September (year-to-date). In other words, if you had bought Honey Well shares with N500,000 in January 2025 at the cost of N6.30 per share, you would have earned extra N745,000 by end of last month.
Think about Ellah Lakes, which is involved in fish farming and , lately, palm oil production. The stock has appreciated by 289 percent this year. In other words, an investor like Oluwatosin, who dared to stake N5 million, could have earned extra N9.45 million this year.
Another stock is UPDC, which is a property development and investment company. It develops, sells and manages real estate such as residential and commercial properties. The stock has shown resiliece this year alone, appreciating by 316 percent. In oher words, if Oluwatosin had put the same N5 million into this stock, he would have earned extra N15.8 million by the end of last year.
Stocks or real estate?
Economy Post had earlier analysed the difference between stocks and real estate. In the short term, the financial market has outperformed the real estate sector. Stocks have turned several players into millionaires and billionaires in the last two years due to their high level of appreciation.
However, the real estate is a long-term investment and can turn a pauper into a millionaire in a matter of years. Nevertheless, the proper thing to do is to diversify: Put some money into real estate and the rest into stocks and other investments. In fact, real estate can take 40 percent of your income, while stocks, mutual funds and other fixed income assets take the rest. You may choose to invest more in stocks and less in real estate – it’s all your choice.
