President of the Capital Market Academics of Nigeria (CMAN), Uche Uwaleke, has said the Securities and Exchange Commission’s plan to attract 20 million new investors in 2026 will only be achievable through strong collaboration with fintech firms and other market stakeholders.
Speaking in an interview with the News Agency of Nigeria (NAN) on Sunday, Uwaleke stated that while the target is realistic, it requires a coordinated ecosystem approach involving regulators, exchanges, banks, universities, market operators, and technology platforms to drive broad retail participation.
His comments follow the recent inauguration of a liquidity working group by the Securities and Exchange Commission of Nigeria aimed at expanding the investor base by no fewer than 20 million participants.
What Uwaleke is saying
According to him, scaling partnerships with fintech companies will be critical to enabling seamless onboarding, lowering entry barriers, and providing real-time access to market data for retail investors.
He added that product innovation tailored to small-ticket investors, including micro-investment offerings, would also help attract younger and first-time participants.
- “I also think collaboration with fintech firms should be scaled up to ensure seamless onboarding and real-time access to market data.
- “Trust is fundamental. It is a no-brainer that strong enforcement against market infractions and improved corporate governance standards will reinforce confidence and attract long-term participation.
- “If the 20 million target is realised, the impact on the market would be transformative,” he said.
Uwaleke further stressed the need for sustained financial literacy programmes, noting that investor education campaigns must be institutionalised rather than conducted on an ad hoc basis.
He disclosed that the commission has already inaugurated a curriculum review committee to promote capital market studies in Nigerian universities as part of efforts to build a pipeline of informed future investors.
He emphasised that embedding capital market literacy within tertiary education would create a sustainable foundation for long-term participation, particularly given Nigeria’s large youth population and increasing digital adoption.
Backstory
As part of moves to boost liquidity in the market, the SEC on Friday inaugurated a Capital Market Working Group on Market Liquidity with a mandate to attract up to 20 million new investors into Nigeria’s capital market using technology-driven solutions.
SEC DG, Emomotimi Agama, inaugurated the Working Group on Friday in Abuja, noting that expanding investor participation is essential to improving market liquidity and resilience.
The DG added that despite strong growth in market capitalization, active participation remains limited to a relatively small segment of the population.
According to him, a shallow investor base undermines the market’s ability to efficiently allocate capital, as trading activity becomes concentrated among a few institutional players and a narrow group of retail investors.
More insights
Uwaleke noted that Nigeria, with a population exceeding 200 million people, currently has fewer than one million active capital market investors, highlighting a significant gap compared to markets such as South Africa, which supports a deeper and more liquid market despite a smaller population.
- According to him, expanding the investor base would enhance market liquidity, reduce volatility driven by concentration risk, improve price discovery, and increase turnover ratios.
- It would also make it easier for companies to raise long-term capital and strengthen the capital market’s contribution to economic growth.
- Uwaleke added that stronger retail participation alongside institutional investment could position Nigeria’s capital market as a major driver of infrastructure financing, industrial expansion, and job creation while improving its competitiveness and resilience relative to peer markets.
What you should know
The Nigerian equities market closed January 2026, the first trading month of the year, on a strong note, rising 6.27% as over 15 billion shares exchanged hands.
- Tracked by the All-Share Index, the market rose from 155,612.9 points to 165,370.4, gaining 9,757.5 points and decisively breaking above the 160,000-mark for the first time.
- So far in February, the market has sustained its rally, pushing the market’s All-Share Index to cross the 190,000-mark for the first time on February 17, 2026.
