an important read
“Nigeria's potential is real.
But potential is not destiny. Potential can rot. Potential can relocate. Potential can become resentment if it is never given structure, opportunity, security, justice.
Life is very hard for the average Nigerian today. And it will get worse if nothing changes.”
Ever wondered what CHN and CSCS mean in the Nigerian stock market? Let me break it down in plain English.
CHN (Clearing House Number) is like your BVN for the stock market.
It’s your unique investor ID. One person = one CHN. It stays the same forever, no matter which stockbroker you use (Bamboo, Chapel Hill Denham, Zedcrest, Cardinalstone, Meristem, Cowrywise etc.). It ties all your investments together so you can see your full portfolio across different brokers.
CSCS (Central Securities Clearing System) Account Number is like your bank account number.
This is what actually holds your shares. Each broker you open an account with usually gives you a different CSCS number, but they’re all linked to your single CHN.
Simple analogy:
• CHN = Your National ID / BVN (who you are)
• CSCS = Your different bank accounts (where your money/shares live)
When you buy stocks, your shares are safely kept in your CSCS account and identified by your CHN.
Always keep both numbers safe. If you trade with multiple brokers, your CHN helps everything connect as one portfolio. That’s why I don’t mind having up to 3 or 4 brokers😁
Ask your stockbroker for your numbers if you don’t have them accessible on your app.
Do you have any questions?
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The 2020 pandemic taught me many lessons. A new house and a new car can bring joy, but investments bring relief long after the car and house get old and start costing you money to maintain. The things that bring immediate joy usually hide future pain. Choose friction and relief.
When you make a lot of money at once, two feelings come over you. Joy and relief.
Joy makes you want to meet all your cash needs and wants and share it with others who make you happy.
Relief makes you realize that the pressure of poverty is gone or lessened. Choose relief.
do this for just 3 years and i promise you’ll already start feeling like a billionaire.
if you’re coming from a humble background and want to build wealth, whether you’re a small business owner or an employee earning a salary or business profits, one of the best places to start is with two types of assets: money market mutual funds and the capital market.
but listen carefully;
one of the most important things you need to work on is your mind. people who come from poor or humble backgrounds always develop what is called a scarcity mentality.
work on your mindset, per se. you must understand that delayed gratification is essential for building wealth. many people say they want to become wealthy but cos of their background, they struggle with delayed gratification. they invest, sell for quick returns, make a little profit and that’s it. they never allow wealth to compound.
let me tell you a profound truth; wealth building is hard but it is also simple if you follow sound wealth principles, it has to do with consistency.
when i say consistency, i mean that every month you should budget a specific amount to put into your mutual funds and another amount to invest in stocks. choose a few quality companies and keep adding to your positions. you shouldn’t be concerned about price. what you should be thinking about is ownership. focus on quantity not short term price movements. there is a difference between focusing on price and focusing on ownership.
every month, when your salary arrives or your business profits, take an amount, no matter how small and consistently add to your treasury bills, mutual funds, and stock holdings. don’t do it cos you want to feel among or cos you made more money that month. put a structure in place and follow it consistently.
learn this early and execute, your future self will thank you in 3-5 years 👍
The difference is the South tend to be more proactive and vocal in demanding security and accountability while the North deal with additional challenges such as extremism and weak institutions and that is why we don’t really speak up. Some of us see bandits as our brothers 🤦🏽♂️