Experts seek stronger domestic investments, controls at Money Fair
By Samuel Oamen Financial experts have called for stronger domestic investment and tighter financial controls to avoid ceding economic control to foreign investors. The experts spoke at the Nairametrics Financial
By Samuel Oamen
Financial experts have called for stronger domestic investment and tighter financial controls to avoid ceding economic control to foreign investors.
The experts spoke at the Nairametrics Financial Literacy Forum, tagged ‘The Money Fair,’ held in Lagos.
The fair, themed “Investing in Nigeria in 2026: Asset Classes, Timing Windows, Digital Tools, and Risk Navigation in a Reformed Economy”, brought together retail investors, young professionals, pension-focused audiences, high-net-worth individuals, regulators, and policy stakeholders.
In his address, Bolaji Balogun, Chief Executive Officer of Chapel Hill Denham, stressed the need for stronger domestic participation in capital formation.
He described the imbalance in the financial system as troubling, noting that money market and bond funds hold about N7.25 trillion, while equity funds which drive entrepreneurship remain at N95 billion.
Balogun said this was unlike in the United States where retail investors allocate about 50 per cent of their portfolios to equities, a trend he said significantly drive household wealth creation.
“With limited risk capital and minimal equity investment, it is no surprise young entrepreneurs struggle to raise funds. If they continue to rely on foreign investors, we risk recolonising ourselves and waking up to see 70 to 80 per cent of Nigerian innovations owned by outsiders,” he warned.
Ugodre Obi Chukwu, Founder and Chief Analyst at Nairametrics, said that financial literacy is no longer a choice but a necessity as the country navigates rising prices, volatile exchange rates, and sweeping economic reforms.
He said this as Nairametrics kicked off its inaugural MoneyFair-WISE, aiming to turn economic insights into practical wealth-building amid Nigeria's changing economic situation.
He noted that while Nairametrics has long provided insights, data, and analysis to millions of Nigerians, the team began to ask whether information alone was enough.
"Many people understand the economy but struggle to act within it. They read about investments but don’t know where to start, understand inflation but don’t know how to protect themselves, and hear about wealth creation but lack access to the right tools. MoneyFair was therefore created to bridge the gap between knowledge and action."
Managing Director/Chief Executive Officer of Nigerian Exchange Group, Temi Popoola, also stressed that financial literacy and digital access remain key to improve domestic participation in the capital market.
Represented by the Group Chief Strategy Officer, Jumoke Olaniyan at a panel session titled “Nigeria Investor Outlook 2026–2027: Regulation, Politics, and Capital Positioning in a Reformed Era,” Popoola emphasised that improved literacy often translates to increased participation.
He noted that progress was being made in retail engagement, disclosing that nearly 300,000 investors had been brought into the market through the NGX Invest platform across 15 recent initial public offerings.
“Infrastructure now exists for any Nigerian to invest at the tap of a button. ETF investments on the exchange have grown by 100 per cent in recent years, driven by deliberate efforts in access and education,” he said.
Also speaking at the session moderated by Founder/CEO of Nairametrics, Ugodre Obi-Chukwu, Executive Commissioner for Operations at the Security Exchange Commission (SEC), Bola Ajomale described as a snag, the proliferation of unlicensed operators.
“We need to put a stop to this. Unless we do, there will continue to be a perception of weak governance and limited transparency in the market,” he said.
On pension fund participation, Head of Corporate Communications at the National Pension Commission (PenCom), Ibrahim Buwai said the commission actively shifted resources towards equities to hedge against inflation.
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“Pension fund equity holdings rose from N3.9 trillion in December to N5.4 trillion by February, representing 18.8 per cent of total assets. This is driven partly by the Multi-Fund Investment Structure, which allows younger contributors to opt for higher-risk, higher-return portfolios,” he explained.
Meanwhile, Deputy Director and Head of Planning, Department of Strategic Services at the Nigerian Investment Promotion Commission (NIPC), Abdullahi Shiru, said Nigeria has continued to attract strong foreign direct investment (FDI) despite low domestic equity participation.
“FDI inflows increased from $90 million in Q1 2025 to $720 million by Q3, driven by policy reforms, macroeconomic stability and improved regulation. While foreign capital is important, it should not overshadow domestic ownership and entrepreneurship,” he cautioned.
Stakeholders at the forum agreed that while Nigeria’s regulatory framework remains viable for investment, sustained efforts are required to strengthen market structures, improve transparency and reinforce investor protection to rebuild trust.
