Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, said mobile-based trading platforms are changing how citizens access stocks and other financial instruments, opening the market to a broader and younger audience that previously found entry difficult.
Speaking during an appearance on Moneyline with Nancy, Agama described what he sees as a structural shift in investor behaviour, noting that early indicators suggest a fresh surge of participation powered by technology.
“One of the things we will do at the year-end, 2026, is to provide new data. That survey is happening now, so it will be premature to give you information. But beyond all of that is the fact that there is a new wave and a new interest in the Nigerian capital market, and that we must sustain,” he said.
The SEC boss explained that a nationwide survey on investor behaviour is currently ongoing and will be used to better understand how demographics are evolving within the market.
Market Growth Accelerates on Reforms and Digital Access
According to Agama, recent growth in the capital market has been driven by a mix of regulatory reforms, policy backing from the presidency, and deliberate efforts by the SEC to deepen market access and confidence.
He pointed to strong performance indicators, including a historic rise in the Nigerian Exchange All-Share Index, which has crossed the 250,000-point mark—its highest level ever.
Market capitalisation has also surged significantly, rising to about N161 trillion from N55 trillion at the start of the current SEC leadership tenure, reflecting nearly a threefold increase in value.
At the same time, the market’s depth has improved, with the market capitalisation-to-GDP ratio climbing from 13 percent to over 33 percent. The Commission has also intensified investor protection efforts, issuing more than 130 advisories on Ponzi schemes as part of broader financial education campaigns.
Retail Investors Still Growing Despite Structural Gaps
Despite these gains, retail investor participation remains relatively low when compared to Nigeria’s population of over 220 million people. However, Agama rejected the long-held view that the market is not accessible to everyday Nigerians.
“Prior to this time, the information that was available suggested that not so many people were investing in the market. That is the old story. It’s completely changing,” he said.
He added that fintech adoption is accelerating this transformation, with more than 30 investment applications now active in Nigeria. These platforms, he noted, have significantly increased daily trading activity and simplified access to equities and other instruments.
While institutional investors still dominate market activity—a trend also observed in advanced economies—young Nigerians are increasingly entering the space and gradually reshaping the profile of retail participation.
Faster Settlement System Boosts Liquidity and Efficiency
Agama also highlighted ongoing market reforms, particularly improvements in settlement systems designed to make transactions faster and more efficient.
Nigeria has progressively moved from a T+5 settlement cycle to T+3, then T+2 in November 2025, and finally to a T+1 cycle six months later. Under this system, transactions are completed within one business day.
“For the simple Nigerian investor, this means that when you do a transaction today, the trading day (T), in one day after that, you get your money,” he explained. “It allows for faster reinvestment, increased liquidity, and higher earning potential.”
The reform aligns with the Investments and Securities Act 2007 and the Capital Market Master Plan 1.0, which originally set T+1 as a long-term objective. With that plan concluding in 2025, the SEC is now shifting focus toward strengthening institutions and expanding retail investor participation.
T+1 Transition Marks Key Milestone for Capital Market
Earlier this week, the Central Securities Clearing System (CSCS) Plc formally launched Nigeria’s T+1 settlement framework, completing the transition to next-day settlement for securities trades.
The ceremony brought together key market stakeholders, including the SEC, Nigerian Exchange Group (NGX), stockbrokers, custodians, registrars, institutional investors, and other capital market operators.
Under the new system, trades executed during a trading session are now settled the next business day, reducing delays between execution and final payment.
Market operators say the development brings Nigeria closer to global best practices, improving liquidity, boosting efficiency, and strengthening confidence among both retail and institutional investors.