The Nigerian Exchange Limited has stated that as of September 2023, retail involvement in equities markets has risen from 28% in 2022 to 35%.
This was stated by the Executive Director of NGX Capital Markets, at the virtual NGX RegCo Retail Investor Workshop, which had as its theme “Expanding Reach for More Impact: Deepening Financial Inclusion in the Retail Investor.”
Chiemeka went on to say that greater access to and usage of technology were crucial factors in this ascent, pointing out how tools like X Mobile changed the investing landscape for all parties involved.
He pointed out that in order for Nigeria to meet its aim of 95% financial inclusion by the end of 2024, it is imperative to cultivate a market that gives everyone the chance to engage in the financial system.
“At NGX, we think that by expanding financial inclusion, we can help retail investors reach their full potential and make sure they have the resources, information, and assistance they need to meet their financial objectives.
“It is imperative to pause and recognize the noteworthy surge in the number of individual investors in the Nigerian capital market throughout the past few years.”
The Market Head, Market Surveillance and Investigations, NGX RegCo, Mr. Abimbola Babalola, assured retail investors of the company’s commitment to ensuring fairness and transparency in the capital market, as it seeks to boost investor confidence and drive financial inclusion in the retail investor ecosystem. Babalola pointed out that the goal of the NGX Regulation is to safeguard investors.
“At NGX RegCo, we make sure that all of our rules are appropriately written and accompanied by interpretive guidance in order to achieve this. By going over these, everyone involved in the market will understand the regulations and how the market works.
“The majority of our work in the market is entirely automated. The trading engine, for instance, uses an algorithm free of human intervention. We make sure that all participants follow the exchange’s rules, and we have technology-driven ways to identify dishonest people attempting to take advantage of the market,” he stated.
The Managing Director of CardinalStone Securities Limited, Peter Omoregie, urged retail investors to define clear financial goals before investing in the capital market.
He said, “Assess your risk tolerance and understand the risks involved. Ask questions such as, “What are your resources available for investment and what kind of returns are you looking for?” Omoregie added.
