Digital Investment - Nigeria

Nigeria

Highlights

Total transaction value in the Digital Investment market is projected to reach US$9.13bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 10.02% resulting in a projected total amount of US$14.72bn by 2029.
Robo-Advisors dominates the market with a projected total transaction value of US$4.72bn in 2024.
The highest cumulated transaction value is reached United States (US$1.78tn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Digital Investment market in Nigeria is experiencing significant growth and development.

Customer preferences: Nigerian investors are increasingly turning to digital investment platforms to manage their portfolios. The convenience and accessibility of these platforms appeal to a wide range of investors, from tech-savvy millennials to more traditional investors looking for new opportunities. The ability to access real-time market data, research investment options, and execute trades from the comfort of their own homes or offices is highly attractive to Nigerian investors.

Trends in the market: One of the key trends in the Nigerian Digital Investment market is the rise of mobile investment apps. With the increasing penetration of smartphones and internet connectivity in the country, more and more investors are using mobile apps to manage their investments. These apps offer a user-friendly interface and provide access to a wide range of investment options, including stocks, bonds, mutual funds, and cryptocurrencies. Additionally, these apps often provide educational resources and tools to help investors make informed decisions. Another trend in the market is the growing popularity of robo-advisors. These automated investment platforms use algorithms to create and manage investment portfolios based on an investor's risk tolerance and financial goals. Robo-advisors are gaining traction in Nigeria due to their low fees and ease of use. They appeal to both novice investors who may not have the time or knowledge to manage their own portfolios, as well as experienced investors looking for a more hands-off approach.

Local special circumstances: Nigeria has a large and young population, with a growing middle class. This demographic shift is driving increased interest in investment opportunities, as individuals look to grow their wealth and secure their financial future. The digital investment market provides a convenient and accessible avenue for Nigerians to participate in the financial markets and potentially earn higher returns on their investments.

Underlying macroeconomic factors: Nigeria is one of the fastest-growing economies in Africa, with a strong focus on technology and innovation. The government has implemented policies to promote digital entrepreneurship and financial inclusion, which has created a conducive environment for the growth of the digital investment market. Additionally, the country has a well-developed financial sector, with a robust regulatory framework in place to protect investors and ensure market integrity. These factors contribute to the overall growth and development of the digital investment market in Nigeria. In conclusion, the Digital Investment market in Nigeria is experiencing significant growth and development, driven by customer preferences for convenience and accessibility. The rise of mobile investment apps and robo-advisors are key trends in the market, appealing to a wide range of investors. Nigeria's large and young population, coupled with its strong focus on technology and innovation, creates a favorable environment for the growth of the digital investment market. Overall, the future looks promising for the digital investment industry in Nigeria.

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.