NGX Regulation to deepen financial inclusion for retail investors

NGX Regulation Limited (NGX RegCo) says it aims to further improve investor confidence and drive financial inclusion in the retail investor ecosystem.

Abimbola Babalola, head, market surveillance and investigations, NGX RegCo, said this during the virtual NGX RegCo retail investor workshop on Wednesday.

The webinar was themed “Expanding reach for more impact: Deepening financial inclusion in the retail investor”.

Babalola noted that NGX Regulation has a mandate of protecting investors.

“In other to achieve this, at NGX RegCo, we ensure that all our rules are properly documented with interpretative guidelines issued alongside them. By going through these, everyone participating in the market will understand the rules and how it is being operated,” he said.

“Most of what we do in the market is fully automated. For example, the trading engine has an algorithm devoid of human elements. We ensure that every participant observes the rule of the exchange, and we have technology driven methods of detecting unscrupulous elements trying to take advantage of the market.”

In his opening remarks, Jude Chiemeka, executive director, capital markets, NGX, said it is essential to foster a market that provides everyone with the opportunity to participate in the financial market if Nigeria is to fulfil the 95 percent financial inclusion target by the end of 2024.

“At NGX, we believe that by deepening financial inclusion, we can unlock the true potential of retail investors and ensure they have the tools, knowledge and support to achieve their financial goals,” he said.

Chiemeka added that it is important to take a moment to acknowledge the remarkable growth of retail investors in the Nigerian Ccpital market in recent years.

“Retail participation in equity markets increased from 28 percent in 2022 to 35 percent as of September 2023, according to the NGX market report,” he said.

The executive director added that increased access and the use of technology play a pivotal role in this rise, citing the importance of tools like X Mobile and NGX’s mobile app, to transform the world of investing for all stakeholders involved.

On his part, Peter Omoregie, managing director of CardinalStone Securities Limited, implored retail investors to set clear financial goals when they decide to invest in the capital market.