Economy
Building Wealth in Stock Market by Capital Appreciation and Dividend Payment
By Emmanuel C Agubuo
The stock market is a device for transferring wealth from the impatient (pessimistic and fearful investor) to the patient (intelligent and daring investor), Warren Buffett.
Success in stock market investment is dependent on the understanding of its intricacies and managing them to your advantage, Emmanuel C Agubuo.
Purpose of Stock Market
The need for companies to raise money and investors to profit from it is the essence of the stock market and that is what keeps it going.
There are three major ways to profit from the capital market.
1 By capital appreciation.
2 Dividend yields.
3 Bonus issue.
The first two are regular, but the third isn’t and it occurs when the company decides to do it.
Now, if you’re a capitalist-minded investor, you can decide to take profits as many times as possible and as you choose, especially if the stock appreciates more than you bought it. What this means in essence is that the capitalist investor decides what he wants and earns.
But a core dividend income investor has no such option(s). His only option is when the company declares dividends or bonus, either once or twice in a year and in rare cases, more.
So, his earnings or profits depend entirely on what the company chooses to give him at a particular time and not on what he decides to earn.
In order to make sure these set of passive investors keep their money with them, companies declare dividends and sometimes, bonus issues so as to make shareholders happy.
But one key question to ask is ‘is dividend income the real deal in stock market investments?’ Well, the answer varies from one investor to the other because each of their investment objective isn’t the same.
However, it is advisable that you do all you can to maximize more profits from the capital market. I believe that’s what brought you into it in the first place. Or is there anything else? You just came to watch others make the big money?
Or are you just satisfied with the peanuts from dividends? Ok, that’s your choice. Everyone is entitled to his or her choice. There’s no problem about that.
Now hear this, dividend payments in stock market investment is a bait. Don’t be caught and don’t be distracted by it. Because if you focus on it as your core means of building wealth through the capital market, it will deter you from maximizing opportunities of share appreciation, which can fetch you over 100 percent yield.
See, dividend payment is a device conceived by stock market inventors (companies) to access and consolidate huge capital almost free of charge or with lesser interest rates or payment, unlike if they had gone to the bank to borrow such huge amount of money.
The companies pay the dividends simply for consolation as to enable them keep the huge funds perpetually. This is one of the reasons you shouldn’t make dividend income your CORE mission in stock market investment. Simply take it whenever it comes, but don’t make it your CORE; that’s what I do.
However, it depends on your age, shrewdness and level of risk taking. But you have to be very smart.
Nevertheless, investing for dividend income yields is a strategy of its own; based on one’s major objective in the stock market. Investing for capital appreciation or gain is a strategy of its own too and everything boils down to individual perception, understanding, shrewdness and preference.
Though, the two can be combined. But for me, the fastest way to build wealth through the stock market is by capital appreciation in the medium to long term horizon. This doesn’t mean you should sell all your holdings at once. You can sell some or in tranches, but leave your core holdings and watch until the price rises to its top most peaks if needs be.
In other words, building wealth through capital appreciation in the stock market is not a sprint. It is a marathon. It is like a relay race. You need to be savvy, patient and persistent.
Theretofore, to profit more from the stock market investment, do all you can to learn the art of investing in it than the act. The profit is made in the arts and not the act.
A word is enough for the wise. See you at the top. Cheers.
Emmanuel C Agubuo is an entrepreneur, an investor in stocks, real estate and a stock market information strategist. He also helps to strategize on better ways to invest in the stock market profitably.
By Adedapo Adesanya
TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the divestment of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
The Renaissance JV, formerly known as the SPDC JV, is an unincorporated joint venture between Nigerian National Petroleum Company Limited (55 per cent), Renaissance Africa Energy Company Ltd (30 per cent, operator), TotalEnergies EP Nigeria (10 per cent) and Agip Energy and Natural Resources Nigeria (5 per cent), which holds 18 licences in the Niger Delta.
In a statement by TotalEnergies on Wednesday, it was stated that under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil.
Production from these licences, it was said, represented approximately 16,000 barrels equivalent per day in company’s share in 2025.
The agreement also stated that TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the three other licences of Renaissance JV which are producing mainly gas, namely OML 23, OML 28 and OML 77, while TotalEnergies will retain full economic interest in these licences, which currently account for 50 per cent of Nigeria LNG gas supply.
Business Post reports that the conclusion of the deal is subject to customary conditions, including regulatory approvals.
“TotalEnergies EP Nigeria has signed a Sale and Purchase Agreement with Vaaris for the sale of its 10 per cent non-operated interest in the Renaissance JV licences in Nigeria.
“Under the agreement signed with Vaaris, TotalEnergies EP Nigeria will sell to Vaaris its 10 per cent participating interest and all its rights and obligations in 15 licences of Renaissance JV, which are producing mainly oil. Production from these licences represented approximately 16,000 barrels equivalent per day in the company’s share in 2025.
“TotalEnergies EP Nigeria will also transfer to Vaaris its 10 per cent participating interest in the 3 other licenses of Renaissance JV, which are producing mainly gas (OML 23, OML 28 and OML 77), while TotalEnergies will retain full economic interest in these licenses, which currently account for 50 per cent of Nigeria LNG gas supply. Closing is subject to customary conditions, including regulatory approvals,” the statement reads in part.
The development is part of TotalEnergies’ strategies to dump more assets to lighten its books and debt.
By Aduragbemi Omiyale
The trading licence of Monument Securities and Finance Limited has been revoked by the regulatory arm of the Nigerian Exchange (NGX) Group Plc.
Known as NGX Regulations Limited (NGX Regco), the regulator said it took back the operating licence of the organisation after it shut down its operations.
The revocation of the licence was approved by Regulation and New Business Committee (RNBC) at its meeting held on September 24, 2025, a notice from the signed by the Head of Market Regulations at the agency, Chinedu Akamaka, said.
“This is to formally notify all trading license holders that the board of NGX Regulation Limited (NGX RegCo) has approved the decision of the Regulation and New Business Committee (RNBC)” in respect of Monument Securities and Finance Limited, a part of the disclosure stated.
Monument Securities and Finance Limited was earlier licensed to assist clients with the trading of stocks in the Nigerian capital market.
However, with the latest development, the firm is no longer authorised to perform this function.
Economy
NEITI Advocates Fiscal Discipline, Transparency as FG, States, LGs Get N6trn in Three Months
By Adedapo Adesanya
The Nigeria Extractive Industries Transparency Initiative (NEITI) has called for fiscal discipline and transparency as data showed that federal government, states, and local governments shared a whopping N6 trillion Federation Account Allocation Committee (FAAC) disbursements in the third quarter of last year.
In its analysis of the FAAC Q3 2025 allocation, the body revealed that the federal government received N2.19 trillion, states received N1.97 trillion, and local governments received N1.45 trillion.
According to a statement by the Director of Communication and Stakeholders Management at NEITI, Mrs Obiageli Onuorah, the allocation indicated a historic rise in federation account receipts and distributions, explaining that year-on-year quarterly FAAC allocations in 2025 grew by 55.6 per cent compared with Q3 of 2024 while it more than doubling allocations over two years.
The report contained in the agency’s Quarterly Review noted that the N6 trillion included 13 per cent payments to derivative states. It also showed that statutory revenues accounted for 62 per cent of shared receipts, while Value Added Tax (VAT) was 34 per cent, and Electronic Money Transfer Levy (EMTL) and augmentation from non-oil excess revenue each accounted for 2 per cent, respectively.
The distribution to the 36 states comprised revenues from statutory sources, VAT, EMTL, and ecological funds. States also received additional N100 billion as augmentation from the non-oil excess revenue account.
The Executive Secretary of NEITI, Mr Sarkin Adar, called on the Office of the Accountant General of the Federation, the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) FAAC, the National Economic Council (NEC), the National Assembly, and state governments to act on the recommendations to strengthen transparency, accountability, and long-term fiscal sustainability.
“Though the Quarter 3 2025 FAAC results are encouraging, NEITI reiterates that the data presents an opportunity to the government to institutionalise prudent fiscal practices that will protect the gains that have been recorded so far in growing revenue and reduce vulnerability to commodity shocks.
“The Q3 2025 FAAC results are encouraging, but windfalls must be managed with discipline. Greater transparency, realistic budgeting, and stronger stabilisation mechanisms will ensure these resources deliver durable benefits for all Nigerians,” Mr Adar said.
NEITI urged the government at all levels to ensure the growth of Nigeria’s sovereign wealth and stabilisation capacity, by committing to regular transfers to the Nigeria Sovereign Wealth Fund and other related stabilisation mechanisms in line with the fiscal responsibility frameworks.
It further advised governments at all levels to adopt realistic budget benchmarks by setting more conservative and achievable crude oil production and price assumptions in the budget to reduce implementation gaps, deficit, and debt metrics.
This, it said, is in addition to accelerating revenue diversification by prioritising reforms that would attract investments into the mining sector, expedite legislation to modernise the Mineral and Mining Act, support reforms in the downstream petroleum sector, as well as the full implementation of the Petroleum Industry Act (PIA) to expand domestic refining and value addition.
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