The National Council President, Nigerian Stock Exchange (NSE), Mr. Abimbola Ogunbanjo, has revealed that a survey conducted by Enhancing Financial Innovation & Access (EFIA) on access to Financial services in Nigeria, indicated that over 40.1 million Nigerian adults are financially excluded.
Speaking during the 21st Annual Conference of the Chartered Institute of Stockbrokers (CIS) in Lagos, Ogunbanjo said the survey results indicated that participation in the financial markets was low and could further slow its growth.
“The survey conducted by EFinA indicates that over 40.1 million Nigerian adults are financially excluded, this is a key challenge for all capital market stakeholders because low participation of retail investors in the Nigerian capital market translates to low trading volumes and this results to slow growth of the market and the overall economy”. He explained the key solution lies in educating the critical mass through awareness programmes and it is imperative for all capital market participants to begin to take on strategic steps to address these issues and initiate robust solutions.
“As a provider of Certification Programmes and Continuous Professional Education in the Financial services sector, the Institute is strategically positioned to align with and contribute to the National Financial Inclusion Strategy (NFIS) inaugurated in 2012 which aims to reduce the percentage of adult Nigerians that are financially excluded to below 20 per cent by year 2020”.
Ogunbanjo noted that the Institute has a major role to play in ensuring that the market does not return to the burst years of 2008-2011, an era he characterised as being of low financial literacy, and market indiscipline which saw a spike in retail participation with first time investors pouring into the market with absolutely no understanding nor guidance on how the market works.
Source- THE SUN