FG’s economic reforms are reshaping market, retail trading growth – Ufot

The rapid growth of retail trading participation in Nigeria is being shaped by a convergence of economic conditions and policy direction, with remarks by Victor Ufot, managing director/CEO, TenTrade Africa, providing a market-grounded perspective that aligns with ongoing reforms under Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy.

Speaking recently on the drivers of retail trading expansion, Ufot stated that “retail trading has grown in markets like Nigeria for a few simple reasons,” pointing first to shifting economic realities.

According to him, “a lot of people are dealing with inflation, weaker purchasing power, and income that no longer stretches the way it used to,” stating further that “many are looking beyond traditional jobs or salary income for other ways to improve their financial position.” His remarks reflect a broader trend of individuals seeking alternative financial channels in response to macroeconomic pressure.

Ufot further emphasised the role of technology in lowering entry barriers, noting that “today, with just a smartphone and internet connection, someone can access financial markets from anywhere.”

He also stated that “what was once limited to institutions and professionals is now open to everyday people,” highlighting how digital platforms have democratised access to trading. The expansion in accessibility is complemented by increased awareness, as he observed that “social media, online communities and educational content have made trading much more visible.”

The policy environment under Oyedele appears to reinforce these structural shifts. The federal government reforms aimed at simplifying tax systems and improving compliance are expected to provide a more stable and predictable operating framework for financial service providers. This aligns with Ufot’s observation that access alone is insufficient without a structured system, particularly as participation continues to broaden across demographics.

On capital access, Ufot pointed to the growing relevance of alternative entry models, stating that “prop firms and other low-entry trading models have reduced the capital barrier,” noting that “people no longer need large amounts of money to begin exploring the space.”

Oyedele’s focus on improving foreign exchange liquidity corresponds with this dynamic, potentially strengthening the capacity of retail traders to participate more actively in global markets.

However, Ufot cautioned that the growth trend is not without risks. “Not all of this growth is happening for the right reasons,” he said, explaining that “some people are entering because trading is being marketed as a fast route to wealth,” which “creates unrealistic expectations.”

He stressed that “many come in without the discipline or preparation the market actually requires,” concluding that “whether it becomes sustainable depends on whether the industry can move beyond just giving people access and start giving them the structure, discipline, and education needed to participate responsibly.”