The Nigerian Exchange Limited (NGX) is setting an ambitious goal to attract 30 million retail investors, aiming to transform market participation, deepen liquidity, and broaden investment across multiple asset classes. This was disclosed by the Managing Director of NGX, Jude Chiemeka, during the FSDH Investor Conference held in Lagos.
Current State of Retail Participation
Chiemeka highlighted that despite Nigeria's large population of over 250 million people, the number of retail investors in the capital market remains remarkably low. He stated, "There is always that conversation around Nigeria's population of over 250 million people, but you would be surprised to know that the number of retail investors we currently have in the market is still very small." According to him, as of last year, the Nigerian capital market had only about 1.8 million retail investors—a figure that falls short of the expectations outlined in the Capital Market Master Plan.
Improvements and Challenges
While retail investor activity has shown improvement in recent periods, participation remains limited relative to the market's growth potential. Chiemeka noted, "Retail participation used to hover around 20 per cent, but we have seen a significant improvement to around 33 per cent. We believe that opening more investment products and allowing digital assets to bring more people into the market will further improve liquidity." He also pointed out that the Capital Market Master Plan had projected five million active retail investors by 2025, a target that has not been achieved. However, he expressed optimism that renewed collaboration between NGX and the Securities and Exchange Commission (SEC) would accelerate retail investor growth in the coming years.
Targeting 30 Million Investors
Chiemeka emphasized the renewed commitment to attracting retail investors, stating, "With what the SEC is doing and what NGX is doing, there is renewed commitment towards attracting more retail investors into the market. The current figure we are looking at is about 30 million retail investors, and that will significantly improve liquidity and participation across different asset classes traded in the market."
Market Performance and Liquidity
Discussing market performance, Chiemeka disclosed that liquidity in the Nigerian capital market has continued to improve over the last few years, supported by reforms in the foreign exchange market and rising investor confidence. He said, "Our market liquidity continues to improve. We have seen stronger participation and increasing investor activity over time, although there is still significant room for growth." He identified inadequate listings as a major challenge constraining market depth and liquidity. While the exchange currently has over 352 listed securities, the number of listed companies remains relatively small at around 46. "Even though more assets are being traded, we still need more listings to deepen participation and liquidity in the market," he added.
Broadening Investor Base
Chiemeka stressed the need to broaden the institutional investor base beyond domestic investors by attracting more international participation. He noted that improving foreign exchange liquidity and ongoing economic reforms by the Federal Government are beginning to restore confidence among offshore investors. He maintained that increasing access to more investment products for retail investors, alongside digital innovation and stronger market reforms, would be critical to unlocking the next phase of growth for Nigeria's capital market.
