How to identify a Pump-and-Dump stock on the NGX

 

The Nigerian Exchange (NGX) has seen a surge in retail participation, especially this year.

However, with the increase in retail investors comes the rise of pump-and-dump stocks, which are manipulated to attract investor interest for quick gains.

What are pump-and-dump stocks? 

Pump-and-dump stocks are those that experience a rapid, artificial rise in price, driven by hype or coordinated trading rather than genuine business growth or strong fundamentals.

For example, in 2024, Juli Plc ranked first on the NGX in terms of share price valuation, with a staggering 1,646% year-to-date gain.

• In the 9-month 2024, Juli Plc reported a turnover of just N349 million.
• 67% (134 million) of the 200 million shares outstanding were held by just three entities.

This concentration of ownership means that a small number of shareholders can significantly influence the stock price.

In a pump-and-dump stock, insiders can quickly inflate the price by buying large volumes, then dump their shares once the price is inflated, leaving unsuspecting investors holding shares that rapidly lose value when the price corrects.

What to look out for 

Pump-and-dump stocks often share common traits that investors can watch for to avoid falling into it and losing money.

Low trading liquidity  

• overvalued and susceptible to speculative behavior.

Let us look at SCOA Nigeria.  The company has a market capitalization of N4.61 billion and has seen a 245% YtD gain in 2025, ranking 11th on the NGX.

Despite this price movement, SCOA Nigeria reported a loss of N36 million in 9M of 2025, though it posted a profit of N56 million in 9M 2024.

With revenue hovering around N1.5 billion and net assets of N1.2 billion, the 245% YtD gain and market cap seem out of sync with the company’s earnings and asset base.

This could indicate that the stock is overvalued or driven by speculative trading rather than strong fundamentals.

What investors should do 

Above are typical characteristics of pump and dumb stocks, investors should watch out for, to avoid buying these pump-and-dump stocks:

That said, it is important for investors to

• Spread investments across multiple stocks and sectors to reduce risk and avoid getting caught in speculative bubbles.
•  Do thorough Research: Never rely solely on share price movement.
•  Always verify the fundamentals of a stock, check its earnings, revenue growth, and market position before making any investment decision.
•  Avoid penny stocks with low volume penny stocks with low trading volume.  Penny stocks here mean those trading below N5 per share.

While these stocks may seem appealing due to their low price, they are often more volatile and prone to manipulation.

• Stick to well-established companies with higher trading volumes and liquidity; banking stocks are good here

Read also

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The Right Nigerian Stocks to Pick in 2025

The Epidemic of Modern Colonialism: Has Nigeria Caught one?

We Political analysts have continued to observe events happening round the world, a pattern has been spotted. It is a case of Powerful countries trying to exert influence over less developed ones. Modern colonialism is complex and multifaceted, it is rooted in historical colonial practices but manifesting in new forms through economic and cultural dominance. 

 Who are these Modern Colonialists and what makes them invested in this act?

In lay man terms, Modern Colonialists deserved to be called bullies. They take advantage of the incapacities and inadequacy of under developed countries , to achieve their selfish agenda. In Modern Colonialism various tools are utilized to create an open door or climate to usher them in. We will point out the modern colonialists using past events and unfolding scenarios as well as the ulterior motives behind their power play. 

 Reasons for modern Colonialism

Political Influence: Most analysts believe international organizations (e.g, IMF, World Bank) are used to impose conditions that favour the interest of powerful nations. Economic Exploitation, Cultural and Religious Domination, Military Presence.

Case Studies 

Iran exerts its influence in several nations, through political, military and economic means. Iran aims to establish itself as the dominant power in the Middle East, Countering the influence of rival powers such as Saudi Arabia and the United States.

 Influence in these countries allows Iran to secure vital resources, including energy supplies and trade routes, which are crucial for its economy. 

Iran aims to create a network of loyal allies that can provide military and political support, enhancing its security and influence. 

Iran and Iraq: Iran has strong ties with various factions and militias, particularly those aligned with shia islam.

 Iran and Syria: Iran supported the Assad regime, providing military and financial assistance and has established a military presence in the country. 

Iran and Lebanon: Iran backs Hezbollah, a powerful political and military group that plays a significant role in Lebanese politics.

 Iran supports the Houthi movement: Houthini Movement has been in conflict with Yemeni government and its allies, Saudi Arabia is uncomfortable, with this move, it made them almost feeling besieged, Iran has influenced all their neighbors they could be invaded or over powered by IRAN. 

Iran and Bahrain: There are allegations of Iranian influence in Bahrain particularly regarding its shia population. 

Iran and Afghanistan: Iran has relationships with various factions, including support for the Taliban in some contexts. 

 Palestine and Isreal: The ongoing isreali occupation and settlement expansion in Palestinian territories are frequently cited as example of modern colonialism, but then Israel feels Palestinians are Iranian puppets. 

USA and Puerto Rico: As a territory of the united states, Puerto rico experiences limitations on governance and economic autonomy often leading to discussions of colonial status.

 China and Taiwan, France and Francophone Countries.

 Russia and Ukraine: Russia’s ambitions regarding Ukraine are driven by a complex mix of strategic, economic, cultural, and security interests. Russia views Ukraine as a critical buffer between itself and NATO. By exerting influence over Ukraine, it aims to prevent NATO’s eastward expansion. 

 a. Regional Dominance: To Russia, control over Ukraine is seen as essential to maintain its status as a major power in Eastern Europe.

 b. Shared Heritage: Russia often emphasizes the historical and cultural connections with Ukraine, Russia views Ukraine as part of its historical sphere. 

 c. Economic Interests: Ukraine is rich in natural resources and agricultural land. Control over these can enhance russia’s economy 

 d. Energy Transit: Ukraine is a key transit route for Russian gas to Europe, and influence over Ukraine allows Russia to manage energy flows. 

 e. Military Presence: Russia seeks to ensure that Ukraine does not join Western military alliances, which it perceives as a direct threat. The prospect of Ukraine joining NATO is a significant concern for Russia, driving

  f. Internal Politics : Distraction from Domestic Issues: Conflict abroad helps Russia leaders to distract from internal problems such as economic challenges. 

 g. Support for Separatists: Backing separatist movements in Eastern Ukraine aligns with efforts to destabilize Ukraine and potentially gain control over additional territories. 

 What makes a country vulnerable for the modern colonialist?

Economic Dependence: Many under developed nations remain economically dependent on these world super powers for trade, technology and investment. 

Debt Diplomacy: The modern colonialists utilizes debt as means of control, indebted countries are coerced into unfavourable agreements.

 Vast Mineral Resources: A country with vast mineral resources will continue to be an attraction for the modern colonialists.

 Constant Migration: Economic disparities lead to migration from less developed countries to more developed countries, this often creates cycle of dependency and control. Nigerian leaders have constantly experienced this, the latest being US VISA denial to the literal icon Wole soyinka.

 Has Nigeria Caught the attention of Modern Colonialists? Over the decades Nigeria has refuse to rise above the status of colonial tool. It has been a decade of looting, mass corruption, ethnic unrest, which constantly affects economic performance and growth prospects. 

it is always a new leader, a new economic reform, the leaders choose to turn blind eye on what needs to be urgently addressed.

 In these recent times most developed nations are plagued with rising inflation rates which is influenced by supply chain disruptions, energy prices and increased consumer demand. Nigeria seem to be ripe for a colonialist tool. With its vast natural resources and endowed minerals it has refuse to rise above mediocrity.

 Nigeria is still a country servicing debts, about 50% of Nigeria’s population lives below poverty line. This translates to over 80 million people living in poverty making it one of the highest number of poor people. The Multidimensional Poverty Index (MPI) takes into account education, health and living standard. With this level of poverty it is absurd to think Nigeria has any military might to ward of modern colonialists such as IRAN, RUSSIA OR USA.

 Poverty needs to be tackled as a matter of urgency; this affects other indices such as Unemployment. 

Standard of living need to be lifted as well. With unemployment and poverty the youths are easy target for separatist group recruitment by Modern colonialists.

 With the recent warning by President Trump of USA in sending troops to Nigeria over the killing of Christians, one is left to wonder if this is an avenue or pathway to usher Modern Colonialism. 

 Some individuals say, modern colonialism in Nigeria already came in through Boko Haram activities in the Northern Nigeria. 

Boko Haram is believed to have ties with IRAN. The Motive of the BOKO HARAM group was Religious Domination. 

Nigeria also made itself a tool for Modern Colonialism by IMF using Debt diplomacy. 

 If only Nigerians will rise up and fix a leader who will tap into the vast Mineral and Agricultural resources to lift them out of poverty line , A leader who will shun ethnic Bias and corruption to lift this country out of its disgraceful level. At least a level that will command respect and fear, from this Modern Colonialists.

Read also FUEL SUBSIDY REMOVAL,  FOREIGN APPEASMENT & TAXATION: President Tinubu’s most hyped Policies. Unfortunately no Empowerment model among them!.

Jacqueline C

Data/Political Analyst.

Reps seeks N350m allocation to revive ailing SMEs

The House of Representatives has called on the Federal Government to allocate N350 million in the 2026 budget to revive moribund industries and support small and medium-sized enterprises (SMEs) across Nigeria.

The resolution followed the adoption of a motion moved by Hon. Akarachi Amadi, who represents the Mbaitoli/Ikeduru Federal Constituency of Imo State.

Amadi noted that several formerly thriving industries across the country have collapsed or become inactive due to poor power supply, high interest rates, and weak infrastructure, leading to job losses and economic decline.

Citing data from the National Bureau of Statistics (NBS), he said Nigeria’s unemployment rate has risen from 25 percent in 2022 to over 40 percent in 2025, largely due to the closure of key manufacturing industries.

“The moribund state of local industries has led to an increase in the importation of goods previously produced in Nigeria, causing capital flight, worsening exchange rates, and fueling inflation, especially in sectors where we were once self-reliant,” Amadi said.

He added that the collapse of local industries has also contributed to rising insecurity, kidnapping, and other social vices, as many unemployed youths turn to crime out of frustration.

The lawmaker highlighted that several industries across the six geopolitical zones remain inactive, including the Katsina Steel Rolling Mill in Katsina State, the National Paper Manufacturing Company in Ogun State, and the Standard Shoe Industry Limited in Imo State. Others include the Taraba Tomato Processing Company, the Idah Glass Company in Kogi State, and the Cross River Wood Processing Plant.

Amadi warned that some Nigerian manufacturers are already relocating to neighbouring countries such as Ghana due to Nigeria’s poor infrastructure and high operating costs.

He stressed that reviving industries like the Osogbo Steel Rolling Mill, Osogbo Machine Tools, and Ceramic Industry, Umuahia would strengthen Nigeria’s economy, reduce reliance on imports, and create more jobs.

Following the motion’s adoption, the House urged the Federal Ministry of Industry, Trade, and Investment to include the N350 million allocation in the 2026 budget to kick-start the revival of these industries.

An 18-year-old rejected by Ivy Leagues, now the founder of a million dollar AI empire

 Zach Yadegari is 18 years old and has already built a technology business that generates millions in revenue annually. His story challenges traditional ideas about college, career success, and what it takes to achieve them.

He demonstrates that self-driven learning, consistent persistence, and hands-on practical experience can open doors—often without following the usual academic or professional paths. Zach’s journey highlights how unconventional approaches and a strong entrepreneurial mindset can lead to remarkable achievements at a young age.

Cal AI's users upload a photo of their food, and the app's artificial intelligence-based software gives them an estimate of the total calories. The app, which Yadegari says has a 90% accuracy rate, was launched in May 2024.

Learning to code early

Yadegari started coding at seven. By ten, he was teaching others how to code and charging $30 per hour.

He launched it in May 2024 with partners Henry Langmack, Blake Anderson, and Jake Castillo. The app grew quickly, reaching $30 million in annual revenue. Yadegari created it after realizing how difficult it was to track calories accurately during his own fitness routine. The app focuses on usability, allowing people to log meals by taking a picture rather than manually entering every item.

Cal AI’s growth shows how young developers can spot problems in daily life and build solutions that many people find useful.

Yadegari and his team handled coding, design, and marketing themselves, gaining practical experience that few classroom settings can provide.

Facing Ivy League rejections

Even with a 4.0 GPA and a 34 ACT score, Yadegari was rejected by Stanford, MIT, Harvard, Yale, Columbia, and Princeton. He received offers from Georgia Tech, University of Miami, and University of Texas. He chose the University of Miami for its social environment, preferring opportunities to meet people and learn outside the classroom rather than focusing on prestige.

College as a learning experience

Yadegari initially enrolled in the business school at Miami. Later, he switched to philosophy and continues with one entrepreneurship course. He has said that most of what he learns in class is less valuable than running a business himself. College is important to him for the social experience and the chance to explore different ideas, but he views it as a supplement to practical learning rather than the main path to success.

Lessons from Yadegari’s path

Yadegari’s story reflects a broader trend among young innovators. Many are questioning whether elite colleges are necessary for building careers. Instead, they are focusing on skills, entrepreneurship, and technology projects. Yadegari’s journey shows that results, impact, and problem-solving ability can matter more than a degree from a top university.

From teaching himself to code at seven to co-founding a company generating millions at 18, Yadegari offers a model for young people who want to explore alternatives to traditional education.

His experience shows that it is possible to build a career through creativity, learning by doing, and persistence. It also demonstrates that education can take many forms, and success is increasingly measured by what people can create and accomplish rather than where they went to school.

The takeaway

Yadegari continues to explore business ideas and technology projects. He still attends some classes but spends most of his time on ventures that interest him. His approach suggests that college can be one part of a larger learning journey rather than the only route to achievement.

Zach Yadegari’s journey highlights that today’s youth can shape success on their own terms, demonstrating how determination, hands-on experience, and curiosity can open doors that conventional paths may not.

Investing in Nigerian Stock

 

Investing in stocks can be a profitable venture. Yet, it requires knowledge, strategy, and an understanding of the market.

Nigeria’s stock market offers a unique opportunity for investors. It’s a vibrant and dynamic market with a diverse range of stocks.

Before diving in, it’s crucial to understand the economic landscape of Nigeria. This includes key sectors showing promising growth and investment opportunities.

This article aims to guide you through the process of investing in Nigeria stocks. It provides actionable tips and insights to help you make informed decisions.

Whether you’re a beginner or have some experience, this guide will be beneficial. It covers everything from setting up an account to choosing stock picks.

So, let’s embark on this journey to explore the potential of Nigeria stocks investment.

Understanding the Nigerian Stock Market

The Nigerian Stock Exchange (NSE) is the heart of the country’s stock market. It’s where companies list their shares for investors to buy and sell.

The NSE operates under a well-regulated environment. This ensures transparency and protection for investors.

Investing in Nigeria stocks involves understanding the economic landscape. This includes the key sectors that drive the economy.

Political stability also plays a significant role. It can impact the performance of stocks and the overall market.

In essence, a deep understanding of the Nigerian stock market is crucial. It forms the foundation for successful investing.

Setting Up for Investment Success

To start investing in Nigeria stocks, you need to set up an account. This involves choosing a brokerage firm.

The brokerage firm will act as your intermediary in the stock market. They will execute your buy and sell orders.

It’s important to choose a reputable brokerage. They should have a good track record and offer excellent customer service.

Consider the brokerage’s trading platform too. It should be user-friendly and offer useful tools for investors.

Here are some factors to consider when choosing a brokerage:

• Reputation and track record
• Customer service
• Trading platform and tools
• Fees and charges

Choosing the Right Brokerage

Choosing the right brokerage is a crucial step. It can significantly impact your investing experience.

Ensure the brokerage is registered with the Nigerian Stock Exchange. They should also be a member of the Central Securities Clearing System (CSCS).

Consider the brokerage’s fees and charges. These can eat into your investment returns if they are too high.

Lastly, check the brokerage’s customer reviews. They can give you insights into the brokerage’s service quality.

Account Setup and CSCS Registration

Once you’ve chosen a brokerage, you’ll need to set up an account. This involves providing your personal details and bank information.

You’ll also need to register with the CSCS. This is a mandatory step for all investors in the Nigerian stock market.

The CSCS is responsible for the clearing and settlement of trades. They also handle the custody of securities.

Remember to keep your CSCS number safe. You’ll need it for all your transactions in the stock market.

Crafting a Solid Investment Strategy

Investing in Nigeria stocks requires a solid strategy. This strategy should align with your financial goals and risk tolerance.

Your strategy should also consider the economic landscape of Nigeria. This includes the political stability and key growth sectors.

It’s important to stay updated with market news. This can help you make informed investment decisions.

Remember, investing is not a get-rich-quick scheme. It requires patience and discipline.

Lastly, don’t forget to review and adjust your strategy periodically. This can help you stay on track with your financial goals.

Diversification and Risk Management

Diversification is a key risk management strategy. It involves spreading your investments across different assets.

In the context of Nigeria stocks, this means investing in different sectors. This can help mitigate the risk of a single sector performing poorly.

You can also diversify by investing in different types of stocks. This includes large-cap, mid-cap, and small-cap stocks.

Remember, the goal of diversification is not to maximize returns. It’s to spread the risk and increase the chances of achieving consistent returns.

Fundamental vs Technical Analysis

Fundamental and technical analysis are two key methods for picking stocks. Fundamental analysis involves evaluating a company’s financial health.

This includes analyzing the company’s financial statements. It also involves assessing the company’s management and competitive position.

Technical analysis, on the other hand, involves studying price patterns. This can help predict future price movements.

Both methods have their strengths and weaknesses. It’s important to understand these before deciding which method to use.

Remember, no method can guarantee success in the stock market. It’s all about making informed decisions and managing risk.

Key Sectors and Stock Picks

Investing in Nigeria stocks involves picking the right sectors. Some sectors show promising growth and investment opportunities.

These include the financial sector, consumer goods sector, and the oil and gas sector. Each sector has its unique risks and rewards.

When picking stocks, it’s important to do your research. Look for undervalued stocks with growth potential.

Here are some tips for identifying such stocks:

• Look at the company’s earnings growth.
• Check the company’s debt levels.
• Assess the company’s competitive position.
• Consider the company’s dividend policy.

Remember, picking the right stocks requires patience and discipline. It’s not about timing the market, but time in the market.

Monitoring and Adjusting Your Portfolio

Once you’ve invested in Nigeria stocks, the work doesn’t stop. It’s crucial to monitor your portfolio regularly.

This involves reviewing your investment performance. You should also adjust your strategy as needed.

Remember, the stock market is dynamic. Your investment strategy should be too.

Staying Informed: Market News and Trends

Staying updated with market news is key. It can affect stock performance significantly.

Also, understanding market trends can guide your investment decisions. For instance, demographic trends can shape investment opportunities.

Keep an eye on global economic events too. They can influence the Nigerian stock market.

The Role of Professional Advisors

Professional financial advisors can be helpful. They can guide your Nigeria stocks investment.

However, it’s important to choose the right advisor. Look for those with a solid track record.

Remember, the final investment decision always rests with you.

Common Pitfalls to Avoid

Investing in Nigeria stocks comes with potential pitfalls. One common mistake is not diversifying your portfolio.

Another pitfall is making impulsive investment decisions. It’s important to keep emotions in check.

Also, avoid timing the market. It’s a risky strategy that often fails.

Lastly, beware of investment scams. Always verify the legitimacy of investment schemes.

The Future of Nigeria Stocks Investment

The future of Nigeria stocks investment looks promising. Technology and fintech are transforming the landscape.

Investors can now trade stocks with mobile apps and online platforms. This makes investing more accessible.

However, it’s important to stay informed. Continuous learning and staying updated with investment strategies is key.

Conclusion: Building Wealth through Nigeria Stocks

Investing in Nigeria stocks can be a path to wealth. It requires patience, discipline, and a well-thought-out strategy.

Understanding the market and making informed decisions is crucial. It’s not just about picking stocks, but about building a diversified portfolio.

In conclusion, with the right approach, Nigeria stocks investment can be a rewarding venture.