The Chairman of the Nigerian Exchange Group Plc, Umaru Kwairanga, has bemoaned the low number of investors in the Nigerian capital market, describing it as unacceptable given the population size of the country.

Kwairanga said this at the 2024 annual conference of the Capital Market Correspondents Association of Nigeria held in Lagos recently.

Early this year, the Securities and Exchange Commission stated that less than five per cent of adult Nigerians invest in the Nigerian capital market despite improvement in financial inclusion in the country as seen in the latest EFInA Access to Finance Survey report, which put formal financial inclusion in Nigeria at 64 per cent in 2023 from 56 per cent in 2020.

He said, “We are coming from less than 100,000 with a population of over 200 million, which is unacceptable. Today, with the support of the Securities and Exchange Commission and other capital market players, we notice that the target should be the younger generation. It has been noticed not just in Africa but by the world that Nigeria is the hub for Bitcoin, blockchain, and all the modernisation. We have noticed that the younger generation prefers no paperwork; they want to do everything with their handset. That is why we invest in all the technology that they use. What we have achieved in the last six months is doubling or tripling the number of investors, a feat that we were unable to achieve in the last 20 years in the Nigerian capital market.

“We are seeing a situation where all the people who participated in the banking recapitalisation using the latest technology are part of the primary market.

At the end of the day, we want them to be part of the secondary market. We are not just looking at the short term but the long term. That is why we are using this opportunity to call on the CBN; let’s try and see how to reduce the verification process. Verification is good, but it is unacceptable when people are seeing the prices go up and can’t take advantage of it.”

Kwairanga, who spoke on the theme, ‘Banks’ Recapitalisation: Bridging the Gap Between Investors and Issuers in the Capital Market,’ noted that the Nigerian Exchange Group remained unwavering in its commitment to creating a capital market ecosystem that supports these objectives.