FCT retail investors’ zeal still low despite SEC’s investment campaigns
DESPITE SUS TAINED EFFORTS BY THE SECURITIES and Exchange Commission (SEC) on investor education and other enlightenment initiatives, investigations in Federal Capital Territory indicated that whereas retail investors in the city appreciated the commission’s efforts, most of the residents in the city were not really interested to investment in the market so soon.
Business a.m interviews with some of the residents, particularly middle to senior cadre civil servants, showed that they were not averse to investment in stocks but claimed that the economic situation in the country had made it difficult to save.
Lukman Sadiq, one of the workers who commended the SEC on its investment campaigns even down to the market women and students in the FCT, said “if my salary increases, I can think of investment in stocks but now I can’t because my salary is not enough to even feed my family.
“Yes, I am aware that if I invest, it is like saving for the rainy day but as we speak now, I don’t want want to think about that because the money is not there. Let government pay the minimum wage, then I will know what to do. But as I have said, investing in stocks or Treasury Bills is not in my agenda now”, Sodiq added.
In a chat with our correspondent, Roseline Adeleye, a school teacher in Kuje, confirmed that she was aware of the activities of the SEC and the Nigerian Stock Exchange (NSE), but said that she won’t invest in the bourse due to two reasons.
First, the mother of two said that her understanding of the returns on investments in the market had not been encouraging, especially on real sector investment. Secondly, she pointed out that her salary would not support savings for now as her employers are not paying her enough to save now.
She explained: “From my understanding, the stock market has not been doing well in terms of what investors in shares get as returns, exept the big investors. I have a sister who invested in one manufacturing company over 15 years ago and has not gotten up to N5,000 as dividends since then. So, I don’t see the market as good for small investors like me.
“Also, my salary is less than N80,000 now, despite the fact that I have served my employer for over 7 years after completing my Youth Service. So, when you look at the cost of living in the country, you will see that it is difficult for somebody like me to invest”, Adeleye stressed.
Commenting, a business man in Kubwa, Haruna Abdullahi, told Businessa.m that “it is not my agenda to invest in stocks at all. I am still struggling to grow this small business and meet my immediate needs like paying my rent and providing for my children’s education. Let me tell you, what I hear about stockbrokers diverting investors’ funds to do their business is not encouraging at all and this is one of the reasons some people, who are rich, are not even going there.
“But let me say that with what SEC is doing to punish those stockbrokers and fraudsters is good. Let the commission continue to deal with thieves in the market so that people will have confidence in the place. It should work with EFCC and ICPC to get these people imprisoned,’ Abdullahi added.
The business man, who said he got an ordinary national diploma (OND) certificate in business management, said that if Nigerians see on television that the fraudulent stockbrokers and fake scheme promoters were punished or jailed, then they will be happy to invest. I believe if my business grows by then, I can invest.
In her comments, an unemployed graduate, who simply identified herself as Amina to protect her parents from being embarrassed publicly, said that “investing in the stock is not the best any youth can think of when even my parents, who invested over N500,000 on some banks’ stocks about 12 years ago did not get any return on their investments.
“How, do you think people like us will invest when our parents lost money due to abuses in the stock market then. The banks have gone under and nobody is talking about how small investors like my father will get back their money. It is very bad. Yes, SEC is doing its best to make the place transparent but we need to see how they can go before we start to change our mind about the capital market”, Amina maintained.