Promoting youths participation, critical to a viable capital market

WITH youth comprising 70 percent of the Nigerian population, it is believed that participation of these about 160 million would promote the nation’s capital market.

Speaking at the 2024 Securities and Exchange Commission (SEC) Journalist Academy, Akeem Oyewale, CEO of Marble Capital Limited noted that despite the barriers to youth participation in the capital market, leveraging modern technology, youths involvement is achievable.

He however noted that despite the potential, youth participation in the Nigerian capital market remains low, with many young people unaware of investment opportunities or skeptical due to the risks involved, adding the challenges include lack of trust in the capital market, lack of financial education and public awareness, economic challenges, lack of simplified financial products and services and regulatory and structural issues.

Despite these challenges, Oyewale explained that with the introduction of modern technology, there are chances for youth’s participation in the capital market, thus their contribution to the realization of Nigeria’s $1 trillion economy goal.

With the introduction of digital platforms such as mobile apps for easy and accessible trading; educating the youth through digital financial literacy; promoting youth-friendly investment products; using blockchain and cryptocurrencies for innovative investments; and government initiatives and regulatory support, Oyewale noted that youth involvement in capital market is achievable.

Speaking further, he noted that social media platforms such as Instagram, Twitter, YouTube, and TikTok; are powerful tools with the high level of mobile phone and internet penetration in the country, as over 40 percent of the population has access to the internet. With these social media platforms heavily used by young Nigerians, Oyewale noted that this makes digital engagement and social media campaigns a powerful tool for promoting capital market participation.

Olatunde Amolegbe, CEO of Arthur Stevens Asset Management, while speaking on “Unlocking the Potential of the Nigerian Capital Market: Challenges and Opportunities” noted that in deepening the market, the Nigeria Exchange (NGX), embracing technology, introduced a USSD platform to improve capital market access, allowing investors to track stocks, obtain price information, and communicate with brokers in real time. He noted that this initiative highlighted the ability to democratise investment access and enhance financial literacy, especially among the younger generation.

Speaking on the opportunities waiting ahead, Amolegbe noted that foreign investors are probably going to participate more in the capital market as the macroeconomic stability is maintained and currency reforms are anticipated to develop, thus enhancing the Foreign Portfolio Investments (FPI).

He added that the planned introduction of a dedicated SME board on the NGX would provide small and medium enterprises with better access to public capital, thus unlocking significant growth potential for businesses and diversify the market base.

“The introduction of more retail-friendly instruments, like ETFs and fractional shares, could also contribute to this expansion. The NGX’s collaboration under the West African Capital Market Integration (WACMI) initiative and partnerships like the AfCFTA will likely enhance cross-border investment opportunities,” he said.

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