Best Stocks to Invest in 2024 for Short Term in Nigeria

Investing in the stock market is not just about putting your money in blue-chip companies and waiting for the long term to gain some returns. It is also about identifying the best stocks that promise a substantial return within a short period. 

As the Nigerian Stock Exchange continues to offer a diversified array of investment opportunities, an understanding of the market and its possible performance is critical for investors. 

Hence, our focus today will be on predicting the best stocks to invest in 2024 for the short term in Nigeria. By pinpointing the potential growth stocks, this article aims to help prospective investors take full advantage of the fast-paced Nigerian stock market and secure commendable returns within a short period. 

Whether you are a new or seasoned investor, getting insights on which stocks might boom come 2024 could position you to increase your investment profitability significantly. Let’s delve into the details.

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Top 10 Best Stocks to Invest in 2024 for Short Term in Nigeria

Investing in stocks has always been a great way to grow your wealth, whether short-term or long-term. If you are looking to invest in Nigeria’s market specifically, here are ten potentially profitable short-term stock investments you can consider for 2024. 

These stocks are based on past performances, recent developments, and predicted future trends, and can yield high returns.

1. MTN Nigeria Plc (MTN) 

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MTN Nigeria Plc (MTN) is one of the prominent players in the Nigerian telecom industry with an ever-increasing customer base and a growing product line. MTN’s shares have consistently recorded substantial gains, making it an attractive short-term investment choice. 

Despite market volatility, the company has remained profitable with robust revenues and steady growth in earnings. Besides, the company’s focus on innovations and market expansion initiatives signal future growth potential. 

On the returns front, MTN Nigeria Plc (MTN) has been rewarding its shareholders with impressive dividends which further underpins the suitability of its stocks for short-term investment.

2. Dangote Cement

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Dangote Cement, part of the prominent Dangote Group, stands tall as one of the leading cement manufacturers in Africa. Being a heavyweight in the building materials industry, the company is backed by a strong brand, massive production capacity, and a vast distribution network. 

Over the past few years, Dangote Cement has experienced strong growth in terms of sales, profits, and return on investments. 

Investors who consider short-term stakes in the company are typically attracted by its stable earnings, impressive dividend payments, and resilient growth amid industry challenges. Therefore, short-term stocks of Dangote Cement can potentially provide profitable returns to investors.

3. Nestle Nigeria

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Nestle Nigeria is a promising choice for investors seeking short-term stocks to invest in. As one of Nigeria’s largest Fast-Moving Consumer Goods (FMCG) companies, Nestle continues to outshine its competitors due to its constant expansion strategies and new product introductions. 

The company recorded impressive returns over the past year and presents a bullish stock performance. In terms of returns, Nestle Nigeria guarantees good capital appreciation as the share prices are continually on the rise. 

Besides, it also offers annual dividends, contributing to the overall returns to the investors. A combination of stability, continual growth, and high demand makes Nestle Nigeria a must-have in the short-term investment portfolio.

4. Seplat Petroleum

If you’re looking for short-term investments in the petroleum sector, consider Seplat Petroleum. This Nigerian independent oil and gas company has shown a consistent growth rate over the past years, primarily due to its aggressive expansion strategy and successful explorations. 

Despite the volatility in the oil sector, Seplat has managed to sustain a healthy balance sheet with stable revenues. As an investor, you can anticipate promising returns, given the rising crude oil prices worldwide, driving the company’s profitability. 

It also gives regular dividends which, when combined with potential capital appreciation, can offer robust overall returns. As Nigeria’s energy sector continues to evolve, Seplat’s proactive approach makes it an ideal short-term investment choice.

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5. Unilever Nigeria

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Unilever Nigeria is one of the leading providers of fast-moving consumer goods (FMCG) in Nigeria and represents an appealing investment option for short-term traders. 

Operating in the consumer goods sector, the company produces a range of food and personal care items that have solid demand irrespective of economic cycles. For instance, the recent earnings reports showed an upward trend with a stable outlook, highlighting its excellent profitability ratios. 

Additionally, the company’s extensive distribution network across the country ensures it maintains steady revenue generation. The short-term return prospects are promising for this stock, making it a beneficial addition to your investment portfolio.

6. Nigerian Breweries

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Nigerian Breweries is the country’s largest brewing firm. Despite the general economic downturn, it has maintained its industry leadership by investing heavily in quality products, branding, and an efficient supply chain. 

It owns a diverse product portfolio that caters to different consumer tastes and budgets, including famous brands such as Star Lager Beer and Maltina. Its impressive sales volume coupled with robust profit margins promise positive returns for short-term investors. 

Also, it offers regular dividend payments, thus creating an additional income stream for its shareholders. Investing in Nigerian Breweries can offer substantial returns and diversified portfolio risks in the short run.

7. Zenith Bank Plc

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Zenith Bank Plc is an excellent short-term stock investment opportunity in Nigeria. The bank is among the biggest and most profitable banks in the country, indicating a strong financial performance. 

Despite the challenging economy, Zenith Bank’s commitment to achieving growth has seen it post robust financial results consistently. Its annual returns have proven highly beneficial for its shareholders. Moreover, it’s known for paying a good dividend yield which adds to the allure for short-term investors. 

The stock’s liquidity is also quite high, making it a popular choice among investors who desire easy entry and exit. In summary, investing in Zenith Bank’s shares can yield substantial short-term gains for shrewd investors.

8. Guinness Nigeria Plc

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Guinness Nigeria Plc is a subsidiary of Diageo Plc, the world-renowned alcoholic beverage company. Investing in Guinness Nigeria Plc stocks is a strategic move for short-term investors, as the company is well-positioned in Nigeria’s growing drinks and beverages market. 

Despite challenging market conditions, it consistently maintains its profitability, displaying its resilience. Guinness has demonstrated an ability to deliver regular dividend payouts, offering considerable returns for short-term investors. 

The company also continues to invest in product diversification and innovative marketing strategies, boosting its prospects. Overall, an investment in Guinness Nigeria Plc offers substantial short-term gains in terms of both capital appreciation and dividends. It’s an attractive investment for those eyeing immediate gains.

9. Dangote Sugar Refinery Plc.

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Dangote Sugar Refinery Plc. is a major contender in the short-term stock investment arena in Nigeria. Known for its reliability and robust market performance, this leading producer of refined sugar holds an essential place in the Nigerian food and beverage sector. 

From a short-term investment perspective, Dangote Sugar promises an attractive yield, underpinned by a growing demand for sugar and strong market dominance. 

With the added advantage of the company’s well-structured financial discipline, consistent dividend payments, and strategic expansion initiatives, it continues to deliver promising returns to its shareholders. The potential of consistent profit margins makes it an appealing short-term stock investment choice.

10. United Bank for Africa Plc.

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United Bank for Africa Plc. is another exciting short-term stock to invest in Nigeria. One of the largest financial institutions in Africa, the UBA has a strong presence not only in Nigeria but in twenty African countries and three global financial centers: London, Paris, and New York. 

As a stable bank with healthy financial results and a good dividend payout history, UBA’s stocks make a prudent short-term investment. Despite market fluctuations, UBA consistently rewards its shareholders with considerable returns on investment. 

This continued performance is boosted by its extensive retail footprint, diversification strategy, and strong corporate governance practices. The UBA remains an enticing choice for short-term investors who are keen on decent, consistent returns.

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Understanding the Nigerian Stock Market

The Nigerian Stock Market, operated by the Nigerian Stock Exchange (NSE), is an avenue for companies to raise capital and investors to purchase shares, contributing to the economy’s growth. 

Established in 1960, NSE has about 200 listed companies from diverse sectors, including banking, consumer goods, oil, and gas. The NSE operates an Automated Trading System (ATS), where all transactions are executed online in real time. 

It employs a stringent regulatory environment, ensuring the credibility of listed securities. It’s governed by the Securities and Exchange Commission (SEC) of Nigeria. Investors are encouraged by both potential capital appreciation and dividend returns. 

Understanding the Nigerian Stock Market demands comprehensive knowledge of its unique trends, operations, listed companies, economic influences, and market performance indicators like the NSE All-Share Index. 

Market participation necessitates informed decisions, underpinned by accurate data analysis and guided expert advice, to ensure promising returns and reduce potential risks. Investing in the Nigerian Stock Market offers substantial opportunities for local and international investors alike

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Why Consider Nigerian Stocks for Short-Term Investment?

The world of investments is becoming increasingly diverse and complex, offering individuals a range of avenues to expand their wealth. The Nigerian stock market is one area that’s garnering increasing interest, and for good reason. 

There are compelling reasons why you might want to consider Nigerian stocks for your short-term investment plans.

1. Emerging Market

Nigeria’s economy is one of the most vibrant in Africa. With the biggest GDP in Africa, it’s considered a key emerging market with significant growth potential. Emerging markets offer lucrative investment opportunities for investors due to their fast-paced growth.

2. Regulatory Improvements

Nigeria has implemented several reforms in recent years to strengthen the regulation and operation of its stock exchange. These changes have resulted in increased transparency, reduced risk, and better opportunities for investors.

3. Affordability

Generally, Nigerian stocks are relatively affordable compared to stocks from more developed markets. This affordability makes it easier for an investor to build a diversified portfolio with Nigerian stocks.

4. High Dividend Yield

Many Nigerian companies have a history of consistently paying high dividends, which can be an added advantage for short-term investors. A high dividend yield can provide a steady stream of income for investors in addition to potential capital gains.

5. Market Volatility

The Nigerian stock market is considered more volatile compared to developed markets, which is often seen as a drawback. However, this volatility can also provide more opportunities for short-term traders who can leverage price fluctuations for profit.

6. Untapped Opportunities

Nigeria is a resource-rich country, but several of its sectors are underexplored and present untapped opportunities. The financial, agricultural, and telecommunications sectors, among others, offer considerable potential for short-term gains.

7. Access to African Markets

By investing in Nigerian stocks, investors also get exposure to broader African markets. As Africa’s biggest economy, Nigeria has significant influence over regional trends, which could provide further investment opportunities.

While investing in Nigerian stocks may seem alluring due to these benefits, like any investment, they are not devoid of risks. However, with careful planning, a deep understanding of the Nigerian market, and a diversified portfolio, the short-term rewards can be significant.

Check Out the TransferXO’s list of – Top 15 Best Stock Brokers in Nigeria | 2023 List

Which are the Potential High-Growth Sectors in Nigeria?

The Federal Republic of Nigeria, often regarded as the Giant of Africa, possesses vast potential for economic growth across multiple sectors. Blessed with diverse natural resources and a large working-age population, the country continues to attract attention from investors worldwide. 

Here are some of the potential high-growth sectors in Nigeria.

1. Agriculture

Traditionally, Nigeria’s economy heavily relies on agriculture, providing income for about 70% of Nigerians. The country is rich in agricultural land, offering great potential for the cultivation of crops such as cocoa, cashew nuts, cotton, and various grains. This sector has considerable growth potential, with opportunities for agri-tech and farm mechanization to increase productivity and quality of products.

2. Oil and Gas

Despite current global shifts towards renewable energy, oil and gas remain significant sectors in Nigeria. With some of the largest oil and gas reserves in Africa, the country continues to see substantial growth and investment in this sector. Furthermore, investments in the local refining capacity could drastically increase the sector’s productivity and profitability.

3. Telecommunications

With a population of over 200 million people, Nigeria has one of the largest telecommunication markets in Africa. With rapid technological advancement and increasing mobile penetration, this sector is ripe for significant growth. Opportunities lie in mobile money, data services, and broadband expansion.

4. FinTech

As the largest economy in Africa, Nigeria’s financial technology sector is witnessing substantial growth. With the growing digital economy, Nigeria presents a substantial market for innovative financial services, including mobile banking, digital payments, and insurance tech.

5. Healthcare

There is a huge potential for growth in Nigeria’s healthcare sector. The country’s growing population, coupled with a significant gap in healthcare infrastructure and services, provides numerous opportunities for investment in areas like telemedicine, healthcare technology, and pharmaceutical production.

6. E-commerce and Retail

As internet usage continues to rise in Nigeria, so does the demand for online shopping. This creates great potential for e-commerce platforms and the digitization of retail businesses. Also, as urbanization continues to increase, there is a growing demand for organized retail outlets and supermarkets.

7. Real Estate

With rapid urbanization and a growing middle class, the real estate sector in Nigeria is ripe for development. Demand for residential, commercial, and retail space is set to increase in the coming years.

8. Manufacturing

There is substantial potential for growth in Nigeria’s manufacturing sector, particularly in areas related to agriculture such as food processing, and also in the production of consumer goods.

Nigeria’s diverse economy offers vast opportunities for growth across a multitude of sectors. However, realizing this potential requires considerable effort in improving the business environment, investing in infrastructure, and nurturing human capital. 

Nevertheless, with the right policies and strategies in place, these sectors hold promise for sustainable economic growth and development in Nigeria. Now you are familiar with the sectors, let’s explore the short-term stocks to invest in.

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Risk Factors Associated with Short-Term Stock Investments in Nigeria and How to Mitigate Them

Investing in the stock market, while potentially rewarding, always comes with a certain level of risk. For investors in Nigeria, the challenges and risks may differ somewhat from those in more established economies. 

Let’s outline some of the risk factors associated with short-term stock investments in Nigeria and offer practical strategies to mitigate these risks.

1. Economic Instability

As with many emerging economies, Nigeria’s economic performance is volatile, characterized by fluctuations in GDP growth rate, inflation, exchange rate, and other economic indicators. Such instability directly impacts the performance of listed companies on the Nigerian Stock Exchange (NSE) and ultimately the return on investment.

  • Mitigation Strategy

Investors can spread their investment portfolio across different sectors. Diversifying your portfolio can shield you against potential losses because the odds are very low that all sectors will underperform at the same time.

2. Regulatory Risks

The regulatory environment in Nigeria has sometimes proven unpredictable, with changes to policies, guidelines, or laws impacting various sectors. This uncertainty can directly impact the viability of some stocks as an investment.

  • Mitigation Strategy

Stay abreast of policy changes by consistently reading industry news and subscribing to newsletters from regulatory bodies. An investor with information on imminent policy changes can make a timely exit or reposition their portfolio.

3. Lack of Transparency

Some Nigerian companies have been criticized for not being entirely transparent with their financial reporting, which can skew investors’ perception and valuation of these companies.

  • Mitigation Strategy

Use reliable and independent research sources to verify any investment information you receive. Furthermore, diversifying your portfolio across different companies within different sectors reduces the risk of exposure to any one company’s dishonesty.

4. Limited Liquidity

In some instances, you may be unable to quickly sell a particular stock without causing a significant move in the price because of low liquidity. This can impact the performance of short-term investments.

  • Mitigation Strategy

It’s essential to stick to highly liquid stocks, i.e., stocks that have large volumes of trade daily, as they can be bought or sold quickly without causing significant price changes.

5. Foreign Exchange Risk

For international investors, changes in currency exchange rates can impact the overall return on investments. Even for locals, given the global nature of the modern economy, exchange rates can influence companies’ operations and, by extension, their stock performance.

  • Mitigation Strategy

Engage in currency hedging to manage the risk from foreign exchange fluctuations. A straightforward way is by diversifying your investment across other countries’ markets, reducing your dependence on a single currency.

Short-term investing in the Nigerian stock market can be fruitful, but understanding the risk factors and employing proper mitigation strategies is essential to minimize potential losses. Consult with an experienced financial advisor to better understand these risks and craft the best investment strategies for your financial goals.

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How to Stay Updated With The Nigerian Stock Market

Staying updated with the Nigerian stock market is essential for anyone keen on investments or business. 

The Nigerian stock market, under the control of the Nigerian Stock Exchange (NSE), has diverse sectors and listings, offering opportunities for significant profits. Real-time updates enable investors to make timely decisions and evaluate risks efficiently. 

Various resources like the NSE’s official website, financial news platforms, online forums, and apps provide reliable market insights, reports, and analytics. As it fluctuates due to local and global factors, the key is consistent monitoring. 

To maximize profit and minimize losses in this volatile yet rewarding market, one must be willing to understand, follow, and adapt to its ever-changing dynamics. It is important to continually educate oneself about trends and stock movements.

Frequently Asked Questions

What makes a stock good for short-term investment?

Stocks with strong financial performance, high liquidity, less volatility, and trending in an upward direction typically make good short-term investments. In addition, companies that are expected to benefit from economic, regulatory, or technological changes can also be a good option.

What is the expected ROI on short-term stock investments in Nigeria?

The expected ROI largely depends on the stock you choose and the market conditions. It is also important to note that short-term investment inherently carries a higher level of risk, and therefore the potential for both higher returns and higher losses is possible.

Is investing in stocks in Nigeria risky?

All forms of investments carry a degree of risk and stocks are no exception. While investing in stocks has the potential to yield high returns, it also comes with a possibility of losses, especially with short-term investments. Therefore, proper research and due diligence are critical before making any investment.


Short-term investing in Nigerian stocks can offer substantial returns when done wisely. Companies like Dangote Cement and Nestle Nigeria have proven to be robust investment opportunities due to their strong fundamentals, potential for growth, and stable profits. 

As always, it is important to stay informed about the economic climate and the financial health of companies before investing. 

A combination of thorough research, prudent decision-making, and a keen understanding of the Nigerian stock market can pave the way for rewarding short-term investments in 2024.

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