The Chairman of the Nigerian Exchange Group Plc, Dr Umaru Kwairanga, has expressed concerns over the low number of investors in Nigeria’s capital market, describing it as a major issue given the country’s population of over 220 million.
Speaking at the 2024 annual conference of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos recently, Kwairanga emphasised the need to harness technology and engage the younger generation in addressing the disparity.
Kwairanga pointed out that while Nigeria had become a global hub for Bitcoin, blockchain, and other financial innovations, the growth of the traditional market has remained sluggish. “We are coming from less than 100,000 investors, which is unacceptable. Today, with the support of the Securities and Exchange Commission and other stakeholders, we have doubled or tripled that number in just six months — a milestone we could not achieve in the last 20 years, but I believe we can do better than this,” he said.
He underlined the importance of technology in attracting the younger generation to the market. “The younger generation wants convenience and efficiency. They prefer to do everything with their phones. That is why we have invested in technology to eliminate paperwork and simplify processes. However, challenges like lengthy verification processes remain a barrier. We urge the Central Bank of Nigeria to reduce these obstacles, enabling more Nigerians to capitalise on market opportunities quickly.”
Reflecting on the theme of the event, ‘Banks’ Recapitalisation: Bridging the Gap Between Investors and Issuers in the Capital Market,’ Kwairanga commended the Nigerian Exchange Group’s efforts in enhancing the capital market. He highlighted the launch of NGX Invest, a digital platform that has transformed public offerings and rights issues, and facilitated over N1.26 trillion in capital-raising initiatives by major banks, such as Zenith Bank, GTCO, and Access Bank.
“The capital market is a bridge between issuers seeking capital and investors looking to create value. At NGX Group, our mission is to ensure this bridge is efficient, transparent, and accessible. Through platforms like NGX Invest, we are building investor confidence and supporting economic growth across sectors,” he explained.
Kwairanga also addressed journalists, urging them to uphold the highest standards of reporting. “Accurate and contextual reporting is essential to maintaining the credibility of our market. In an era of rapid misinformation, journalists must inspire confidence and foster transparency,” he remarked. He concluded by emphasizing the importance of integrity in journalism and its role in sustaining the market’s growth and long-term vitality.