By Mary Onyia
Many Nigerian youths are increasingly bypassing the nation’s capital market, opting instead for cryptocurrencies and other digital assets amid a growing appetite for quick financial returns.
This observation was made over the weekend in Lagos by the Chief Executive Officer of Coronation Registrars, Oluseyi Owoturo. The former President of the Institute of Capital Market Registrars (ICMR), who described the declining participation of young people in the capital market as troubling.
Owoturo attributed the trend to what he termed the “fast-food syndrome,” explaining that while the traditional capital market is built on patient capital and long-term investment, many young people today prefer instant access and rapid returns.
He noted that the onboarding process remains a major barrier. According to him, buying cryptocurrency can be completed seamlessly on a smartphone within minutes, whereas opening a stockbroker account often involves longer and more complex procedures.
Owoturo pointed out that the absence of a unified identity management system within the capital market affects user experience, making entry and exit less convenient compared to digital asset platforms. However, he revealed that the Securities and Exchange Commission (SEC) is currently working on a unified system aimed at simplifying the customer journey and attracting more young investors.
He also emphasized the need for improved financial literacy, stating that many people still perceive the capital market as a form of gambling due to limited understanding.
Speaking on the state of the registrars’ industry, Owoturo explained that registrars do not generate transactions themselves but rely on activities initiated by other market players, such as issuing houses and companies undertaking mergers, acquisitions, or corporate actions.
He disclosed that the sector has faced challenges, noting that only one new equity listing occurred last year, although several banks carried out follow-on and rights issues. Bond issuances were also subdued due to high interest rates.
Additionally, he observed that competition within the registrars’ industry is concentrated, with about 85 to 90 percent of activities controlled by the top four firms, limiting broader market dynamism.