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President Bola Tinubu

President Bola Tinubu has set an ambitious target to attract 20 million retail investors into Nigeria’s capital market and increase the number of listed companies to 250 by 2036, as the Federal Government seeks to deepen investment participation and expand access to long-term financing.

The targets are aimed at broadening the ownership of financial assets, encouraging Nigerians to invest in the formal economy and strengthening the capital market’s capacity to support businesses and national development.

Retail investors are individuals who invest their personal funds in financial instruments such as shares, bonds and other market-listed securities. Increasing their participation could help mobilise domestic savings and reduce the extent to which companies depend on bank loans or other traditional sources of funding.

The proposed expansion in listed companies is also expected to create more opportunities for businesses to raise capital from investors, finance expansion and support job creation.

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For Nigeria, where access to affordable long-term financing remains a challenge for many businesses, a deeper capital market could provide an additional channel for funding infrastructure, industrial development and private-sector growth.

A larger pool of retail investors could also strengthen market liquidity by increasing the number of individuals buying and selling securities. However, achieving that outcome would depend on investor confidence, effective regulation, financial literacy and the availability of suitable investment products.

The target of 250 listed companies by 2036 would require sustained efforts to encourage eligible businesses to consider listing on the Nigerian Exchange and other recognised market platforms.

Many businesses remain privately owned, while others may be reluctant to list because of compliance costs, disclosure requirements and concerns about losing some control over their operations.

Addressing these challenges would require improvements in the business environment, stronger corporate governance and measures that make listing more accessible to qualifying enterprises.

Investor protection will also be critical to the success of the expansion plan. Retail investors need reliable information, transparent trading systems and effective mechanisms for addressing misconduct in the market.

Financial education could help Nigerians better understand investment risks, distinguish legitimate investment opportunities from fraudulent schemes and make informed decisions based on their financial circumstances.

The Securities and Exchange Commission and other relevant institutions will have important roles in maintaining market integrity and supporting sustainable participation.

Although the 2036 targets provide a long-term direction for capital market development, progress will depend on implementation, measurable milestones and broader economic conditions.

Achieving the objectives could strengthen domestic capital formation and improve financing opportunities for Nigerian businesses. However, sustained investor confidence and a predictable regulatory environment will be essential to turning the targets into lasting economic gains.

Ihesiulo Grace Amarachi is a Nigerian journalist, writer and media professional serving as the Editor-in-Chief of TheTraffic.NG, a digital news platform covering national and international affairs. Her editorial interests span politics, business, aviation, health, technology, entertainment, sports and social development. She is committed to credible journalism, insightful reporting and compelling storytelling that informs public discourse and keeps readers abreast of important developments in Nigeria, Africa and beyond.