It all started during my second year at the University of Lagos. My name is Tobi, and like many students, I was constantly looking for ways to supplement my allowance. The idea of investing had always intrigued me, but it seemed like something only wealthy people could do. However, a chance conversation with a senior student, who was already making a decent income from the stock market, changed my perspective.

The First Step: Learning the Basics

I remember sitting down with Kunle, the senior student who became my mentor in the world of investing. He told me that anyone could start investing, even with a small amount of money. He introduced me to the Nigerian Stock Exchange (NSE) and explained the basic concepts of stocks, shares, and dividends.

To get started, I needed to open a brokerage account. Kunle recommended a few online platforms that were student-friendly, offering low fees and easy access to the Nigerian market. After some research, I settled on one and opened my account with just ?10,000, the equivalent of $20. It wasn’t much, but it was a start.

Research and Selection

The next step was deciding which stocks to invest in. Kunle emphasized the importance of doing thorough research. I spent hours online, reading about different companies listed on the NSE. I looked at their financial performance, the sectors they operated in, and their growth potential. I was particularly interested in companies in the technology and banking sectors, as they seemed to have the most potential for growth in Nigeria.

Kunle taught me about the importance of diversification—spreading investments across different companies to minimize risk. With my limited funds, I decided to invest in three companies: a bank, a telecom giant, and a startup in the tech space. This way, I could spread my risk while still having a stake in industries I believed in.

Making the First Investment

Making my first investment was both exciting and nerve-wracking. I logged into my brokerage account, selected the stocks I had researched, and clicked the buy button. It felt surreal, knowing that I was now a shareholder in three Nigerian companies.

I quickly learned that investing isn’t about making money overnight. The stock market is volatile, and prices can fluctuate daily. At first, I was constantly checking my portfolio, panicking whenever the value dipped. But Kunle reminded me to focus on the long-term goal. He encouraged me to set specific financial goals—like using my dividends to pay off student loans or reinvesting profits to grow my portfolio.

Overcoming Challenges

One of the biggest challenges I faced as a student investor was managing my limited resources. Unlike full-time investors, I couldn’t commit large sums of money to my investments. But I learned to be patient and consistent. Whenever I had extra cash—whether from a part-time job, a gift, or savings—I would invest it in my portfolio.

Another challenge was staying informed about the market. I subscribed to financial news sites, followed investment forums, and attended webinars. The more I learned, the more confident I became in making investment decisions.

Leveraging Student Loans

A game-changer for me was realizing I could leverage my student loan to invest. Now, this is where caution comes in. Student loans are meant for education, but I decided to use a small portion of my loan for investments, hoping the returns would help pay off the debt faster. It was a risky move, but I was careful not to overextend myself. I kept the majority of the loan for its intended purpose and only invested what I could afford to lose.

Reaping the Benefits

By the time I graduated, my small initial investment had grown significantly. I used the profits to pay off a portion of my student loans and reinvested the rest. I also gained invaluable knowledge and experience that would serve me well in the future.

Investing in stocks as a student taught me discipline, patience, and the importance of financial literacy. Today, I continue to invest, but with more confidence and a larger portfolio. I’ve also started sharing my knowledge with other students, encouraging them to start investing early.

Final Thoughts

If there’s one thing I wish I had known earlier, it’s that anyone can start investing, no matter how small. The key is to start early, stay informed, and be patient. The Nigerian stock market may have its challenges, but with the right approach, it can be a powerful tool for building wealth, even for students.