How Nigeria's Financial Market Can Create Investment Opportunities For Millennials - Tomie Balogun


Monday, July 06, 2020  / 10:00 AM/ NifemiTaiyese for Proshare WebTV/ Header Image Credit: Punch 

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The CEO of Vestract Company and Twelvevest, Mrs. Tomie Balogun, recently emphasized the importance of Investing for millennials.

She made this point in an interview she had with WebTV Market Opening Gong Anchor Nifemi Taiyese.


According to her "A lot of millennials work hard but do not know how to put their money to work" She described the investment as simply putting money to work.


Speaking on the importance of investments for young individuals, she identified the following opportunities it presents;

  • Creating an additional stream of income
  • Creating an opportunity for millennials to engage in more productive things that can help them impact the world.


Speaking further, she believed the essence of financial education for millennials and the need for universities to close the gap in the educational system between the financial jargon and its application to personal finance and the quest to create wealth to bridge the gap between gown and town.


She demystified the thought of most young individuals that financial education was complex and defined it as learning how to manage one's finances, how to budget, make financial decisions and multiply income and was simply an extra step towards having assets that can earn cash flow.


Addressing why most millennials do not invest, Mrs. Balogun explained key issues which include limited financial education resources, access to investment platforms and demography language barrier.


Limited Financial Educational Resources 

She noted that the information void in the Nigerian Markets and the access to get financial materials was a major area to address in the country. Balogun emphasized the need for materials and increased awareness on how to invest in capital markets online, which are readily available in developed nations like the UK or the US.


In Nigeria, because of the state of the market, the bulk of the information on how to invest in the Nigerian capital markets are with market experts, analyst and adults who have studied the markets over time and are still yet to be translated into online resource materials that millennials can understand.


Access to Investment Platforms 

Mrs. Balogun said over time and coupled with the advent of technology; more apps are being developed that young people can invest in digitally. From her research, she discovered that a lot of financial institutions do not understand how to serve the millennials and Generation Z market, as they do not understand how that demography thinks.


Demography Language Barrier 

A lot of the financial organizations have difficulties in explaining the financial securities and terms to the millennials in a language they can easily understand, which is also a major challenge.


For a lot of millennials, their inherent character traits like to live more in the present, spend the most time on social media and organize trips to travel to various destinations to see the world.

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Millennials want to live purposefully, impact the world, express themselves as social media plays a key role in opening up the world to them.


They according to her, millennials, need the funding that can help them live the life they want and achieve their dreams.


She underlined the fact that there needs to be a balance for these young individuals when it comes to making investment decisions for the future and being true to their nature.


Balogun called on financial institutions to bridge the investment gap for these millennials by providing products and solutions that will help millennials invest and own assets.


For Nigeria with its large population, Balogun noted that 60% or more of the population are young people; less than 35 years of age and she stated that it was time to focus on that segment of the population as they will determine the future of Nigeria in years to come.


She described the financial market as the place that bridges the gap between those that have and those that do not have.


"Government and companies are coming to the capital market to raise money and in return, investors are given interest or dividends," She said.


From her perspective, the financial market was created centuries ago in the western world, and it has grown globally as a way for companies to raise funds to do business.

In Nigeria, a lot of people stay away from the stock market because they are afraid that they will lose money.


Balogun also sheds light on success stories of individuals who have actively participated in the capital market for over 25 years and are trading and earning income through the market in terms of dividends.


She also highlighted the need to change the narrative of people telling more negative than positive stories of investment experiences and the essence of picking the right companies to invest in.


She said it is important for millennials to understand how economic indicators and circumstances affect investment opportunities, referring to the pandemic outbreak of COVID 19 and its impact on investment options.


According to her to boost millennial participation in investing, the financial regulators in charge of the financial markets need to take active steps to build more investor confidence through regular communication on the platforms where they are most actives, which will in turn attract the young individuals to the capital markets.


Talking on investment clubs, she said it was an opportunity for herself and the co-founders who are like-minded to raise money to embark on several investments and hold each other accountable while keeping each other motivated and thereby attracting over 1,000 young investors across Africa.


"it is one thing to have the money, it is another thing to understand how to invest the money".


The essence of having the education to understand how best to invest money cannot be overemphasized she stated.


She identified the different models of the investment club framework;

  • Financial Model
  • Community Model
  • Project-Based Model


For the major Exchanges to witness a surge of millennial participation on their platforms, Balogun advised that they need to understand how millennials think, communicate with them in their language and work on building financial products that will help them achieve their goals.


She identified the three core areas that the Exchanges should focus on and bridge gaps to reach a wider millennial and gen Z audience as

  • Products,
  • Education, and
  • Regulation


The CEO Vestract Company explained why some millennials are swindled through fraudulent transactions. She said, "it is because they do not know the correct way to invest and the reward of delayed gratification".


On her final words to millennials, she said "it is not about what you earn, it is about what you preserve", and she urged them to make investment a bill, and get "the education needed to start investing now".

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