Despite an estimated N7 trillion lost to fraudulent investment schemes, a growing number of Nigerian youths are increasingly turning away from the N85 trillion local stock market in favour of foreign investment apps.
Experts warn that this trend exposes young investors to significant risks, as many of the offshore platforms operate outside the protective scope of Nigerian regulations.
Driven by the promise of instant transactions, seamless user experience, and access to markets such as the U.S., China, and cryptocurrency exchanges, tech-savvy Nigerians are abandoning the slower, less flexible systems offered by the Nigerian Exchange Group (NGX).
Digital gap threatens domestic market
The migration to foreign platforms underscores the widening digital divide between Nigeria’s traditional capital market and the fast-evolving global financial landscape that appeals to younger investors.
Analysts caution that unless issues around cross-border investments, fintech regulation, and investor protection are urgently addressed, Nigeria could face a looming financial crisis.
“Many young investors, lured by quick-profit schemes, are stepping into unregulated markets that could wipe out their savings,” one expert warned. “We risk creating a financially bankrupt generation if the local market doesn’t adapt.”
Call for urgent reforms
The experts argue that Nigeria’s capital market must modernise rapidly or risk losing its future investors entirely to unregulated digital platforms. While the recently enacted Investments and Securities Act (ISA) 2025 is seen as a major step forward, they insist it falls short in tackling the complexities of cross-border securities trading and fails to provide strong frameworks for collaboration with foreign regulators.
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