"Retirement may seem far away," Nigerian fintech brokerage Trove Finance teases in a promotional message. "But for Gen Z, the earlier you start planning, the richer your future." Trove Finance is one of several fintech companies in Nigeria credited with driving a surge of retail investments in the country's financial markets among younger people by offering them access through apps and websites. Its rivals include Bamboo, Chaka, Cowrywise, RiseVest, I-invest and PiggyVest.
Millions of young Nigerians are now trading with those apps on their mobile devices - and the impact is being felt. For instance, retail trading on the stock market jumped 88 month-on-month in July to 516.5bn naira 351m, nearly a third of the 1.8 trillion naira worth of total trade recorded that month on the Nigerian Exchange. Though institutional investors such as pension funds still dominate the market, there has been a steady growth of retail buyers in recent years, with trading apps playing a recognised role in bringing in younger investors.
Where the fintechs have made a difference is in lowering the barriers of entry. While traditional investment accounts would need between 100,000 naira and 500,000 naira to run, fintechs are offering market access for as little as 1,000 naira. This was helped by a proactive review of the investment regulations in the Investment and Securities Act that went into effect earlier this year, replacing the 2007 law and providing regulatory clarity for online and digital assets.