Nigeria Risks Losing Digital-Native Investors Amid Capital Market Bottlenecks – Proshare Report
Nigeria, widely recognized for its rapid adoption of cryptocurrencies and digital wallets, is struggling to convert its tech-savvy population into active investors in the local capital market, according to Proshare’s 2025 Online Trading Report released Thursday. Despite the nation boasting 14.35 million market accounts, fewer than 10 percent are actively trading, highlighting a significant gap in participation as the global online trading industry surges past $12 billion.
The report identifies structural bottlenecks that are holding back Nigeria’s capital market. Key challenges include the 100,000-unit minimum print rule, limited trading hours of just 4.5 hours, a T+3 settlement cycle lagging the global T+1 standard, complex closing auctions, and the absence of derivatives products such as index futures and stock options. Additionally, high brokerage fees, an under-capitalized broker community, and restricted access to market data are limiting modern, AI-driven trading methods.
Analysts warn that Nigeria’s youthful and digitally adept population could increasingly bypass domestic markets for foreign platforms offering speed, sophistication, and self-service tools reminiscent of sports betting apps. The report emphasizes that without urgent reform, the country risks losing a generation of investors eager for real-time, autonomous, and technologically advanced trading experiences.
Proshare highlights the need for modernization using Artificial Intelligence (AI) and Distributed Ledger Technology (DLT) to improve execution speed, automated trading, and transparent data access. Real-time operations and investor autonomy are now considered minimum requirements for competing effectively in the global capital market. “Today’s digital-native investors want autonomy, speed, and independence in making investment decisions,” the report notes, warning that current inefficiencies could accelerate capital outflows to offshore platforms.
Despite these challenges, the report suggests that Nigeria still has a window of opportunity. With the global digital trading industry projected to grow to $17.28 billion by 2029 at a 5.5 percent annual growth rate, decisive action by policymakers and regulators could unlock substantial untapped potential and position Nigeria as a competitive hub for online trading.
Source: The sun