‘Domestic investors now control 80% of stock market’

‘Domestic investors now control 80% of stock market’

The Group Managing Director of Anchoria, a financial services group, Sam Chidioka, said Nigeria’s capital market is now more stable, with domestic investors accounting for about 80 per cent of market participation, reducing the dominance of foreign portfolio investors.

Chidioka revealed this in an exclusive interview with our correspondent after a ‘Quorum – Anchoria Investor Forum,’ an investor engagement platform designed to educate clients and expose investment opportunities in the Nigerian economy.

Speaking at the event in Victoria Island, Lagos, Chidioka emphasised that foreign investors, who previously dominated the Nigerian equities market, now account for less than 20 per cent of market activities.

“Before now, our market was dominated by foreign investors, but today foreign investors are about

20 per cent of our market. About 80 per cent are Nigerians – corporates, asset managers, pension

fund administrators and individual investors buying shares,” he said.

According to him, the shift has strengthened the resilience of the market against external shocks.

“Eighty per cent means stability. If foreigners still dominated the market, any adverse development could make them pull out their funds immediately. That is what we call hot money. Today, Nigeria has more cool money than hot money, and that puts the market in a better position,” he said.

Chidioka emphasised that relative stability in key macroeconomic indicators was also supporting investor confidence: “When you look at the exchange rate, you will see that it has become a bit stable. Interest rates are also stable, and the economy has shown some stability. We expect this trend to continue.”

He said  the initiative was  created to  deepen  investor education  and  highlight  opportunities available in the economy.

“This is an attempt to engage our clients and the wider market on important economic issues, particularly investment opportunities for growth. There are opportunities in the economy, but most times they are hidden from the vast majority of people. We want to expose those opportunities and show people how they can take advantage of them,” he said.

Chidioka cautioned retail investors against making investment decisions without professional guidance, stressing that stock market investing requires expertise and continuous research.

He said, “You don’t just enter the market on your own. Just as you need experienced people to guide you when buying in a traditional market, investors should rely on professionals in the capital market.

“At Anchoria, for instance, we study the macro and micro economy, analyse industries and evaluate stocks before making recommendations. Rather than general buy or sell advice, we recommend that investors speak to professionals who understand the market.”

He explained that portfolio recommendations should be based on each investor’s financial goals, age and risk appetite, saying, “My portfolio may not be the same as yours. Someone saving for children’s school fees has different investment needs from a young graduate starting a career or a retiree. We tailor portfolios to individual needs and advise clients on what to buy, hold or sell.”

Reflecting on the 2008 market crash, Chidioka said many investors suffered losses because they invested funds meant for short-term obligations such as school fees and rent in equities: “Equities are long-term investments. If you are looking for quick returns, fixed-income instruments may be more appropriate. People must understand the difference and invest accordingly.”

He identified poor investor education as the biggest risk facing the market, urging Nigerians to invest only through Securities and Exchange Commission-registered professionals.

“The biggest risk is people investing without understanding the market. Opportunities exist, but investors should avoid anyone promising instant wealth. We are not money doublers. We are professionals,” Chidioka added.

Corroborating his position, the Managing Director of Anchoria, Esther Ugwu, said successful investing is driven by informed decisions, discipline and the ability to anticipate changes in the market rather than reacting to them.

She said the investor forum was conceived to help participants better understand evolving economic realities, including interest rate movements, inflation, exchange rate fluctuations, technological innovation, regulatory changes and global capital flows, all of which continue to shape investment decisions and long-term wealth creation.

An economist and Chief Executive Officer of Kainos Edge Consulting, Dr Doyin Salami, said Nigeria’s economy is growing, noting that its currency is more stable, and inflation is easing, pointing to a genuine recovery, though the pace of improvement looks like it’s levelling off rather than accelerating.

Salami, who doubled as the keynote speaker, stressed that at global and domestic levels, there are investment opportunities whose returns are higher than domestic inflation. However, the gains from the domestic side are bigger.

He explained that Nigeria’s economy is gradually gaining strength, GDP is expanding, business activity remains positive, inflation is easing, the naira is trading in a calmer range, and monetary policy has become more stable.

He said, “Global opportunities are driven by concentrated sectors like AI, while domestic opportunities are shaped by homegrown economic reforms, rising oil prices, and improving FX conditions.

“These strong returns depend on global tensions easing, Nigeria’s reforms staying on track, and the 2027 elections not causing disruption. Clear rules, regulations and policies globally and domestically protect these opportunities.”

Source: https://punchng.com/domestic-investors-now-control-80-of-stock-market/