The Securities and Exchange Commission (SEC) has recognized the critical importance of investor education in stimulating interest in financial technology and enhancing participation in Nigeria’s financial markets. This was articulated by SEC’s Director General, Emomotimi Agama, during the IOSCO World Investor Week event held in Lagos. The initiative, a collaborative effort between the SEC and AFEX commodities, aimed to unite various stakeholders from the financial sector, government, and media to address the evolving landscape of investing in Nigeria. Agama’s assessment underlined that empowering investors with knowledge is essential, particularly in a rapidly changing financial environment influenced by technological advancements.
During his address, Agama, represented by Executive Commissioner, Operations, Bola Ajomale, highlighted the risks posed by the increasing reliance on technology for financial services. He stressed the necessity for investors to be well-informed to avoid potential pitfalls, including scams and unregulated financial schemes. The SEC’s commitment to fostering an educated and engaged investor base is seen as pivotal for the future of Nigeria’s capital market. This approach aims to not only attract a diverse range of investors but also to ensure that underserved populations, including rural farmers, have access to financial opportunities that can stimulate economic growth.
Ayodeji Balogun, the Chief Executive Officer of AFEX Commodities Exchange, contributed to the discussion by acknowledging the transformative impact of digital finance on how individuals approach trading and investing. He expressed AFEX’s dedication to linking rural communities and small-scale agricultural producers with broader market access, thereby ensuring that technological advancements benefit everyone rather than leaving marginalized groups behind. This commitment to inclusivity aims to foster economic resilience within these communities as they adapt to changing market dynamics.
A notable event during the week was the unveiling of the comic book ‘Tradevers’, which aims to enhance investor education by presenting complex financial concepts in a more accessible and engaging format. This initiative reflects a broader strategy to simplify financial education, particularly aimed at younger individuals and those new to investing. By utilizing creative mediums such as comics, the SEC and its partners are working to make financial literacy more appealing and relatable, ultimately fostering a new generation of informed investors.
Further addressing social disparities, Yomi Ogunleye, co-founder of HerVest, discussed the significant financial gender gap impacting women, particularly in the agricultural sector. Despite women comprising roughly 70% of smallholder farmers, only 10% have access to necessary financial resources. HerVest aims to mitigate this gap by offering women tailored services that include savings and impact investment opportunities. With over 50,000 users benefitting from their programs, both in rural and urban settings, Ogunleye highlighted a growing trend of improving livelihoods through targeted financial solutions.
As part of the ongoing commitment to investor education, the SEC has announced plans for investor clinics in major cities such as Lagos, Abuja, and Port Harcourt. Scheduled during World Investor Week 2024 from October 7-11, these clinics will serve as platforms for direct engagement between investors and financial experts, enhancing practical knowledge while addressing specific investment-related queries. The SEC’s proactive measures signify a robust strategy aimed at fostering sustainable growth in Nigeria’s capital markets by cultivating a financially literate and engaged populace.
