In a significant development, the Nigerian Exchange Limited (NGX) has reported a substantial increase in retail participation in equity markets, reaching 35% as of September 2023, up from 28% in 2022. The announcement was made by Jude Chiemeka, the Executive Director of Capital Markets at NGX, during the virtual NGX RegCo Retail Investor Workshop. The workshop, themed “Expanding Reach for More Impact: Deepening financial inclusion in the retail investor,” highlighted the transformative role of technology in this remarkable surge.
Chiemeka emphasized the pivotal role of increased access and technological tools such as X Mobile in reshaping the landscape of investing for all stakeholders. He stressed the importance of fostering a market that provides opportunities for everyone to participate, aligning with Nigeria’s goal of achieving 95% financial inclusion by the end of 2024.
“At NGX, we believe that by deepening financial inclusion, we can unlock the true potential of retail investors and ensure they have the tools, knowledge, and support to achieve their financial goals,” Chiemeka stated. He acknowledged the notable growth of retail investors in the Nigerian capital market in recent years.
Addressing concerns about investor protection, Abimbola Babalola, Market Head of Market Surveillance and Investigations at NGX RegCo, assured retail investors of the organization’s commitment to ensuring fairness and transparency. Babalola highlighted NGX Regulation’s mandate to protect investors and explained the implementation of rules with interpretative guidelines to enhance understanding among market participants.
“In order to achieve this, at NGX RegCo, we ensure that all our rules are properly documented with interpretative guidelines issued alongside them,” Babalola explained. He emphasized the use of technology-driven methods, including automated trading engines with algorithms devoid of human elements, to detect and prevent any unscrupulous activities in the market.
Peter Omoregie, the Managing Director of CardinalStone Securities Limited, offered valuable advice to retail investors. He encouraged them to set clear financial goals, understand associated risks, and assess their risk tolerance before making investment decisions.
“Understand the risks involved and assess your risk tolerance,” Omoregie advised. “Ask questions like ‘What do you have available in terms of resources to invest in and what kind of returns do you need to make’?” he added, stressing the importance of informed decision-making in the dynamic capital market environment.
Photo (Annastacia Wairimu)
By Delino Gayweh
Serrari Financial Analyst
15th November, 2023
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