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Why ageing population account for over 60% equities holders

CAPITAL market operators have said that availability of higher investible income to the older investors compared to the younger generation of investors could account for possession of over 60 per cent equities holding by the ageing population.

Statistics from the Nigeria Inter-Bank Settlement System, NIBSS, shows that out of 433,164 mandated account with validated Bank Verification Number, BVN, 66.1 per cent of the number are investors in their retirement and near retirement age, while the remaining 33.9 per cent are made up of investors between the ages of 24 to 44.

The data from NIBSS on age distribution of investment in the market showed that investors between ages 45 to 54 represent the highest percentage of investors in the equities market, accounting for 31.3 per cent of the investors, followed by people between the ages of 35 to 44 at 24.9 per cent. The data further showed that another 22.6 per cent of investors are people between the ages of 55 to 64, while 12.2 per cent comprise of investors from 65 years and above. People between the ages of 25 to 34 make up another 8.1 per cent, while ages 15 to 24 account for 0.9 per cent of the investors.

Nigerian Stock Exchange

Reacting to the development, Mr. Chinenye Anyanwu, Managing Director/CEO, Dependable Securities said that young people are not necessarily shying away from the market. Rather, investible income is not with them.

“The older people are more comfortable. Ordinarily, that is the way so many economies work. People become more comfortable later in life than when they are grappling with a lot of issues. So, the investible income is simply not available for the younger people to invest. I am not sure that it is confidence or lack of it on the part of young people,” he said.

According to David Adonri, Managing Director/CEO, Highcap Securities, “It is so because the elderly people came into the market long ago, during the indigenization period and those shares have since multiplied in their favour. So, that is why they have higher holding more than the younger generation
Others highlights of the data indicate that the ratio of male to female investors is approximately 2 to one with 65 per cent comprising of male investors, while the remaining 35 per cent are made up of female investors.

By state of origin, Anambra State make up about 10 per cent of investors, the highest state represented in the equities market. Nine each percent of the investors hails from Imo and Ogun states, while seven per cent and six per cent of the investors hail from Delta and Edo states respectively. Lagos State has the highest concentration of investors with 38 per cent residing in the state, 0.4 per cent are non-resident in Nigeria.

In its presentation to the Capital Market Committee, CMC, last month, Mounir Gwarzo, Director General of the Securities and Exchange Commission, SEC, said the commission is taking steps to change the equation by attracting more of the young population into the capital market.

He said that the commission would commence sensitisation of the younger ones and also focus more attention on female related activities.
He said: “The statistics are available now and we believe that the capital market and the banking sector cannot but work together to guide the financial inclusion strategy of the federal government which is aimed at achieving sustainable development goal of the global economy since the entire world has become a global village.”

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