NSE Records Surge in Retail Investor Participation

By Modupe Gbadeyanka

The Nigerian Stock Exchange (NSE) has said in recent times, there has been an upsurge in the number of retail investors in the nation’s capital market.

It attributed this rise to the measures rolled out to encourage the involvement of retail investor in the capital market.

Speaking at a workshop organised on Monday themed Investment Masterclass: Making Your Money Work, at the NSE event center in Lagos, the Divisional Head, Trading Business at the NSE, Mr Jude Chiemeka, said at the moment, there are about three million retail investors in the Nigerian capital market, representing only three percent of the total adult population in the country.

He further said market data from 2019 showed that retail investors outperformed institutional investors by eight percent in January, and again by two percent in March 2019.

“Nigeria has a population of over 190 million people and is the largest economy in Africa. However, the current financial inclusion indices of 48 percent leave much to be desired.

“Currently, there are about three million retail investors in the Nigerian capital market, representing only three percent of the total adult population in the country,” he said.

“Financial inclusion is a priority for stakeholders in the capital market and the exchange makes it a primary concern to contribute towards the achievement of Nigeria’s National Financial Inclusion Strategy of reducing the proportion of adult Nigerians that are financially excluded to 20 percent in the year 2020.

“The exchange recognizes the need to improve investor participation and we are leveraging recent capital market initiatives such as the tiered Know Your Customer requirements for capital market investments, as well as promoting the introduction of globally competitive investment products with low entry thresholds, to achieve financial inclusion goals.

“These initiatives had begun to yield positive results as the market had, in recent times, witnessed an upturn in retail investor participation,” Mr Chiemeka said at the event.

He revealed during his address that the Retail Coverage Department of NSE will be rolling out measures directed at encouraging retail investor involvement in the capital market. Over the next few years, various investment workshops will be held across the country.

Business Post reports that the event, which featured presentations from key industry influencers market specialists and investment strategists across Nigeria, was designed to provide vital and strategic information targeted at equipping existing and prospective investors with useful skills to effectively manage and grow financial resources at their disposal, as well as expose them to retail investment opportunities available in the capital market.

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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