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Why SEC Nigeria Needs to Rethink Its Strategy on Investor Education

Capital Market	871 VIEWS
Capital Market
871 VIEWS

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Tuesday, January 18, 2022 / 10:24 AM / Ottoabasi Abasiekong for WebTV / Header Image Credit: WebTV

The Securities and Exchange Commission, Nigeria has been advised to rethink its strategy on investor education in the country, with the focus of decentralizing it and making it inclusive. Mr. Ambrose Omordion, the CEO of Invest Data emphasized this while exploring the opportunities for achieving a vibrant Nigerian capital market that could attract retail investors across the country.

The capital market analyst described as a welcome development the decision of the capital market regulator to revisit its 10-year capital market masterplan this year.

According to him, it was time for the Nigerian capital market to leverage technology to woo millennials who are currently operating in global markets and trading products like cryptocurrency.

He decried the fact that despite having over 150 stockbroking firms in the market, the participation of investors is still between 1% and 2% of the entire population.

Omordion challenged capital market operators to come up with innovative products that could attract more activities and increase market capitalization. He urged SEC Nigeria to broaden its scope in investor education to cover the informal sector which includes artisans, market women, farmers etc.

The Invest Data CEO said retail investors need more awareness of market opportunities and could benefit from participating in the market.

"In Invest Data academy we have been able to make investor education broad-based from intellectuals to broader audiences, which is inclusive and effective for achieving countrywide financial literacy" Omordion added.

He called on SEC Nigeria to learn from the experience in the pension industry and how the National Pension Commission (PENCOM) and operators have made the market attractive.

One area he believed investors need more information and guidance is how to "Buy and Sell", which he believed operators could support creatively and innovatively with relatable products.