Young Nigerians, fintech apps fuelling capital market expansion, says SEC DG

THE Securities and Exchange Commission (SEC) says a new generation of young Nigerian investors, supported by fintech investment platforms, is driving renewed growth in the country’s capital market.

Director-General of the SEC, Dr Emomotimi Agama, disclosed this during an appearance on Moneyline with Nancy, where he said early data points to a clear shift in investor behaviour, with mobile-first trading platforms expanding access to equities and other capital market instruments.

According to him, fintech adoption has lowered traditional entry barriers, enabling more retail investors, particularly young Nigerians, to participate in the market more actively than in previous years.

Agama noted that the Commission is currently conducting a nationwide survey on investor participation and will release updated findings by the end of 2026. He said the data will provide a clearer picture of how demographics in the capital market are evolving.

“One of the things we will do at the year-end, 2026, is to provide new data. That survey is happening now, so it will be premature to give you information. But beyond all of that is the fact that there is a new wave and a new interest in the Nigerian capital market, and that we must sustain,” he said.

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He linked the recent rally in the capital market to a combination of regulatory reforms, stronger policy backing, and deliberate efforts by the SEC to deepen market participation.

The Nigerian Exchange All-Share Index has surged past the 250,000-point mark, its highest level on record, while market capitalisation has expanded sharply to about N161 trillion, compared to N55 trillion when the current SEC leadership assumed office.

Agama said this reflects not only price performance but also improving market depth and investor confidence. He added that Nigeria’s market capitalisation-to-GDP ratio has risen from about 13 percent to over 33 percent, signalling broader financial market expansion.

Despite the gains, he acknowledged that retail participation remains relatively low in a country of over 220 million people, although he said that trend is beginning to change.

“Prior to this time, the information that was available suggested that not so many people were investing in the market. That is the old story. It’s completely changing,” he said.

He highlighted the role of fintech platforms in accelerating access, noting that more than 30 investment apps are now active in Nigeria, helping to boost daily transactions on the Nigerian Exchange (NGX) and attract first-time investors.

Agama also pointed to ongoing market reforms, including the shift to a T+1 settlement cycle, which reduces the time between trade execution and settlement to one business day.

“For the simple Nigerian investor, this means that when you do a transaction today, the trading day (T), in one day after that, you get your money,” he explained, adding that the change improves liquidity and encourages faster reinvestment.

The reform aligns with the Investments and Securities Act 2007 and the Capital Market Master Plan 1.0, which set T+1 settlement as a key milestone for market modernisation.

The Central Securities Clearing System (CSCS) has already implemented the T+1 framework, marking a major structural shift aimed at improving efficiency, liquidity, and investor confidence in Nigeria’s capital market.