The Securities and Exchange Commission (SEC), Nigerian Exchange Limited (NGX), United Capital Asset Management Limited (UCAML) and other capital market operators have canvassed the need for collaboration, enhanced education, product development among others to engender the growth of Nigerians’ participation in the Collective Investment Scheme (CIS).
The stakeholders noted that there is low participation of retail investors in the CIS, which is not good for the capital market.
Speaking at the UCAML’s investment forum held in Lagos, with the theme, ‘Deepening Financial Inclusion through Participation in Collective Investment Scheme’, Director General of the SEC, Lamido Yuguda, said the CIS has grown over the years. He, however, noted that the number of participants is still very low compared to the country’s population.
The SEC boss, who was represented by the Executive Commissioner, Operations, Dayo Obisan, said: “There is a need for collaboration among the operators to encourage more participation. The SEC has been collaborating with the market in turning out rules to help boost confidence in the market. We are instilling confidence and trust through regulation and market development. In a bid to manage risk and entrench trust in the scheme, the Commission mandated that all CIS funds be held in custody. This has helped the growth of these funds.
“We will continue to partner with operators to boost retail investors through the CIS funds, as they provide investors with the opportunity to have their investments managed by knowledgeable investment professionals.”
Also speaking, Acting Chief Executive Officer, CEO, NGX, Jude Chiemeka, said there is a need for collaboration among the capital market operators to deepen the participation in CIS, adding that the exchange will continue to improve investor confidence and drive financial inclusion in the retail investor ecosystem to promote the scheme.
He noted that it is essential to foster a market that provides everyone with the opportunity to participate in the financial market if Nigeria is to fulfill 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 added.
In her remark, the CEO, UCAML, Odiri Oginni, said with less than two per cent of people with active bank accounts in the CIS, patronage is poor.
“We need to collaborate to attract more people to the CIS to deepen financial inclusion. I agree with all the speakers that there is a need for collaboration, increased investor education and introduction of products tailored to meet the needs of investors to comply with rules among others.
Oginni also stressed the need for market operators to leverage technology to attract the young population.
