The Nigerian Stock Exchange (NSE) has revealed that there are about 3 million retail investors in the Nigerian capital market. This figure, it said, is less than half a percent of the country’s 190 million population.
Speaking at the maiden edition of Retail Investor Workshop at the exchange in Lagos, Divisional Head, Trading Business, Nigerian Stock Exchange (NSE), Mr Jude Chiemeka, said the Nigerian capital market has about 3 million retail investors, citing it to be a rather dispiriting participation level bearing in mind the vast potential and population of the country.
The Need To Drive Financial Inclusion In The Financial Services Sector.
According to him, less than 3% of Nigeria’s total adult population participate in the stock market, accentuating the need to improve on financial literacy and investment education.
Chiemeka said the exchange identifies the need to improve on investors’ participation. It is leveraging current capital market initiatives and also promoting the introduction of universally competitive investment products with low entry debut to achieve financial inclusion goals in the economy.
“Nigeria has a population of over 190 million people and is also Africa’s second largest economy. However, the current financial inclusion indices of 48% leave so much to be desired. Financial inclusion is a priority of stakeholders in the capital market, and the Nigerian Stock Exchange makes it a primary concern to contribute towards the achievement of this plan to reducing the proportion of adult Nigerians that are financially excluded to 20% in the year 2020,” Chiemeka said.
Steps By The Exchange To Stimulate Investors’ Participation.
He said the exchange has been holding series of investment clinics to provide vital and strategic information aimed at equipping existing and prospective investors with useful skills to successfully manage and grow financial resources at their disposal, and also present retail investment opportunities available in the capital market.
“Over the next few years, various investment workshops will be held across the country, starting with this one here in Lagos. Investors can look forward to regular engagements targeted at promoting financial literacy, building investor confidence, as well as the introduction of innovative and technology driven solutions to stimulate investor participation,” Chiemeka said.
He said the retail handling department of the Nigerian stock exchange would be rolling out measures aimed at fostering retail investor participation in the capital markets.
Chiemeka summarised that retail investors would be exposed to various products and services tailored to cater to different investments and risk cravings and knowledge that will support the creation of a better understanding of the opportunities in the market.
The Nigerian Stock Exchange.
The Nigerian Stock Exchange (NSE) was founded in 1960 and licensed under the Investments and Securities Act (ISA). The NSE is a registered company limited by guarantee, and is regulated by the Securities and Exchange Commission (SEC) of Nigeria. The exchange services Africa’s largest economy, and is championing the development of Africa’s financial markets. The company offers licensing services, listing and trading services, ancillary technology services, market data solutions and more.