Apps push retail investments to ₦516.5bn on Nigeria’s stock market

Retail investors are tapping into Nigeria’s ₦89.06 trillion stock market as apps lower barriers to entry, pushing retail trades up 88.07% month-on-month to ₦516.50 billion in July 2025, from ₦274.63 billion in June.

Trading activity on the Nigerian Exchange (NGX) hit ₦1.82 trillion ($1.18 billion) in July, a 133.09% jump from June’s ₦778.65 billion ($509.02 million). Domestic investors led the charge with ₦1.67 trillion—a 161.07% month-on-month rise—while foreign transactions were up 4.76% to ₦145.95 billion ($95.17 million), according to the NGX’s July breakdown of investment flows.

While institutional investors, accounting for 69.06% of domestic trade, continue to dominate, there has been an uptake in retail investors as stockbrokers, investment firms, and fintechs roll out digital platforms.

According to a report quoting Central Securities Clearing System data, the rise of digital-first brokerage firms has fuelled a rise in the number of brokerage accounts. Between January and May, just five firms captured 70% (105,442) of 151,749 new accounts. Bamboo (via Lambeth Capital) led with nearly 48,000, followed by Afrinvest (34,473) and Meristem (9,041).

“Traditional minimum investment thresholds of ₦100,000 to ₦500,000 immediately exclude most Nigerians,” said Oluwagbenga Magbagbeola, MD of Sycamore Investment and Asset Management, an asset management platform. “Technology now enables fractional and micro-investments, allowing people to start with as little as N8,000, which significantly expands the potential investor base.”

This shift has not gone unnoticed by the NGX, with the 2024 launch of NGX Invest, an e-offering platform to improve capital flow between investors and the market. “Our digital product can distribute various services,” said Temi Popoola, group managing director, NGX Group, at the time.

“In Nigeria, 74% of the population is under 24 years. This demographic requires us to digitise our processes and engage them through technology they understand, like apps and digital platforms,” said Emomotimi Agama, DG, Securities and Exchange Commission (SEC), at NGX Invest launch.

Traditional institutions are now embracing digital platforms. Stanbic IBTC now has BluNest, Sterling Bank has Doubble, and Meristem runs Meritrade. Meanwhile, fintechs like Cowrywise and Sycamore have moved into the local capital markets.

As inflation and naira volatility push Nigerians toward assets that protect value, fintechs believe they can plug the gap. “Traditional banks aren’t adequately addressing these challenges for everyday Nigerians, creating a significant opportunity gap,” said Magbagbeola.

In a customer note, Cowrywise highlighted the NGX’s 15% historical average return over the past decade, far outpacing bank savings rates of 2–5% which was well below the average inflation rate of 18–22% rate, as it asked people to join its waiting list. 12,000 people joined in less than a week.

However, as access widens, so does competition. Magbagbeola believes that accessibility, personalisation, and user experience will be key battlegrounds.

“The most intense competition will emerge around data capabilities, specifically who can best leverage customer data to deliver truly personalised investment strategies that adapt to changing market conditions and individual circumstances,” he said. “This differs dramatically from the traditional one-size-fits-all fund approach and requires technological innovation and investment expertise to execute successfully.”

Fintechs disrupted Nigeria’s financial market and accelerated the growth of digital payments and financial inclusion in the country. A similar disruption might now be emerging in the investment sector.

“The winners in this converging landscape will be those who successfully combine institutional-grade investment capabilities with fintech’s accessibility and user-centricity,” Magbagbeola added.

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