Nigerian fintechs lure Gen Z retail investors to financial markets

“Retirement may seem far away,” Nigerian fintech brokerage Trove Finance teases in a promotional message. “But for Gen Z, the earlier you start planning, the richer your future.” Trove Finance is one of several fintech companies in Nigeria credited with driving a surge of retail investments in the country’s financial markets among younger people by offering them access through apps and websites. Its rivals include Bamboo, Chaka, Cowrywise, RiseVest, I-invest and PiggyVest.

Millions of young Nigerians are now trading with those apps on their mobile devices – and the impact is being felt. For instance, retail trading on the stock market jumped 88% month-on-month in July to 516.5bn naira ($351m), nearly a third of the 1.8 trillion naira worth of total trade recorded that month on the Nigerian Exchange. Though institutional investors such as pension funds still dominate the market, there has been a steady growth of retail buyers in recent years, with trading apps playing a recognised role in bringing in younger investors.

Where the fintechs have made a difference is in lowering the barriers of entry. While traditional investment accounts would need between 100,000 naira and 500,000 naira to run, fintechs are offering market access for as little as 1,000 naira. This was helped by a proactive review of the investment regulations in the Investment and Securities Act that went into effect earlier this year, replacing the 2007 law and providing regulatory clarity for online and digital assets.

‘Youthful, dynamic and decentralised’

“The Nigerian digital economy is youthful, dynamic and increasingly decentralised,” Emomotimi Agama, the director general of the Securities and Exchange Commission (SEC) said at a recent event. With about 74% of Nigeria’s population less than 24 years old, it is crucial to “digitise our processes and engage them through technology they understand, like apps and digital platforms,” he said.

The best-known apps and digital platforms now providing financial market access are still in their first decade, but have made inroads with younger people. Among them is PiggyVest, which currently has more than 4m subscribers who can invest in fixed-income instruments, equities and real estate and make money market placements.

Cowrywise started with a focus on mutual funds and money-market investments. Following the new Investment and Securities Act, it opened stock trading access to its more than 800,000 users in March and more than 12,000 signed up in one week.

Trove Finance offers its subscribers the opportunity to buy fractions not only of Nigerian stocks but also international stocks, exchange-traded funds (ETFs) and real estate investment trusts (REITs). Its main rival is Bamboo Finance, which also offers Nigerian and international stocks in fractions. RiseVest focuses more on dollar-denominated assets such as US stocks and bonds. I-Invest is another digital investment focused more on fixed-income securities including treasury bills, bonds, commercial papers and fixed deposits.

Out of 151,749 brokerage accounts registered with the Central Securities Clearing System (CSCS) – responsible for securities settlements – between January and June, 70% or 105,442 were by digital-based brokers such as Cowrywise, Bamboo, Trove and Chaka, with 30% traditional stockbrokers.

Fractionalisation of securities and the aggregation of investable capital are strategies that have enabled the fintechs to thrive in a terrain previously dominated by banks and traditional stock brokers. Nigerian banks with international links such as Standard Chartered, Citibank and Stanbic IBTC already offer clients access to invest in international stocks and bonds through bank apps but require bigger fund outlays. With fractional ownership, fintechs are starting with contributions of as little as $10. That way they’re able to put the smallest amounts of capital to work while helping to expand financial inclusion.

Hedge against inflation and devaluation

For many Nigerians, the big attraction is the opportunity to make foreign currency investments that provide a hedge against inflation and the devaluation of the naira. Two major devaluations in 2016 and 2023, which wiped out the savings of many citizens, were moments that prompted a general search for safe havens.

“That was when I decided to diversify,” says Tekena Gbalafuma, a 29-year-old electronic engineer who lost most of the money he saved for postgraduate school in the US. “I started investing in cryptos and then signed up with an app to invest in international stocks and bonds three years ago.”

Gbalafuma now has a diversified portfolio made up of US stocks and bonds, Chinese stocks, ETFs that track major emerging market indexes as well as Nigerian stocks, government bonds and commercial paper (debt). While the foreign holdings provided his portfolio with much-needed balance, Gbalafuma is glad he missed out neither on the Nigerian stock rally of the past two years nor on the high-yields regime in the fixed-income market that was triggered by record interest rates set by the monetary authorities as they battled inflation.

The Nigerian Exchange All-Share Index rose 37.7% in 2024 and was up 38.7% in the nine months to September 2025 largely driven by domestic investors. The record interest rate maintained by the Central Bank saw treasury bill rates above 24% at one point and commercial paper exceeding 30%.

Regulators show flexibility

The regulatory authorities have shown flexibility in adapting to the new technologies and innovations now transforming Nigeria’s financial market. The SEC, for instance, set up the “FinPort”, a portal for engaging both upcoming and existing fintech companies on the regulatory aspects of their projects. The investment and securities regulator has outlined its approach to include monitoring emerging financial innovations, building requisite assessment capacity and developing adaptive regulatory responses where necessary. A major regulatory consideration is safety; it also says it welcomes “tools and platforms that broaden participation, increase liquidity and deepen the capital market’s reach”.

Similarly, the CSCS has transformed its systems to accommodate digital innovations by fintechs, creating a “custodian portal” to enable market participants to keep transparent and accurate user records of investments. “Digital transformation remains at the core of our strategy to enhance the efficiency, transparency and accessibility of Nigeria’s capital market services,” says Haruna Jalo-Waziri, the chief executive officer of CSCS. “We will continue to evolve the platform in line with users’ needs and industry trends.”

Venture capitalists back model

The fintech startups are finding funding support from venture capitalists impressed by Nigeria’s record of unicorns in the payments and financial services sphere. The success of the likes of Flutterwave, now valued at more than $2bn; Paystack, bought for $200m by Stripe; and Interswitch, which has a valuation exceeding $1bn, have encouraged expectations of more success in other financial sector niches.

Bamboo, which started operations in 2020, initially raised $2.4m to roll out. It raised $15m in a subsequent round with US firms Greycroft and Tiger Global participating among others.

Founded in 2017, Cowrywise has received funding from Quona Capital, a US venture capital firm focused on fintechs, Kairoos Ventures, Catalyst Fund and the Y Combinator startup accelerator programme. PiggyVest has received funding from the Nigerian investment vehicle VFD Group as well as payments company Flutterwave. Trove’s main backer has been Lagos-based asset management company Asset Resource Management, from whose initial incubator programme it emerged. It has also attracted funding from several other investors.

As their apps and services continue to diffuse and win market acceptance, some, such as Chaka and Bamboo, have begun cross-border expansion to extend their services to other African countries. To quote one of Bamboo’s slogans: “We are helping Africans build actual wealth.”