DLM Securities has unveiled a new initiative dubbed “DLMSecuritiesGivesBack” to encourage retail participation in the capital market, where investor penetration remains low despite a surge in market activity.
Atanda Isiaka, managing director of DLM Securities, said the firm is betting that lower trading costs and cashback loyalty rewards can pull more Nigerians into the country’s stock market as the brokerage seeks to ride a rally that has pushed equities to record highs.
“People should be motivated and encouraged to come into the market and trade,” Isiaka said in an interview with BusinessDay.
“What DLM Securities is trying to do is indirectly support the effort being made by regulators to increase the number of people participating in the capital market.”
Nigeria’s equities market has rallied sharply over the past year, buoyed by the banking and insurance recapitalisation exercise, reforms under President Bola Tinubu, and renewed investor appetite for local assets.
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The benchmark index has posted strong gains, lifting market capitalisation above N160 trillion.
DLM Securities said it is trying to differentiate itself by slashing brokerage charges below industry averages and introducing cashback incentives for active traders.
Under the initiative, the brokerage rebates 10 percent of commissions generated by investors back into their trading accounts at the end of the year.
“If we generated N1 million as commission from you, you are still going to get back N100,000,” Isiaka said. “In reality, what we charge you is lower.”
The executive said the strategy is aimed at attracting smaller retail investors often excluded by larger brokerages that focus on high-net-worth clients.
“There are firms that will not open an account for you if you do not have N1 million or more”, he said. “We believe retail investors are the people who actually make the market.”
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Nigeria’s securities regulators, including the Securities and Exchange Commission and the Nigerian Exchange Group, have intensified financial literacy campaigns in recent years as they seek to deepen domestic participation in the capital market.
Isiaka said technology-driven trading platforms are also lowering barriers to entry by allowing investors to trade directly through mobile and online channels without relying solely on brokers.
“With DLM E-trade, wherever you find yourself, you can trade,” he said.
Beyond pricing incentives, Isiaka said trust remains central to attracting new clients in a market where retail participation has historically been hindered by concerns over transparency and account management practices.
“Investment is about trust and confidence,” he said. “If clients do not trust you, there is no way they will trade through your platform.”
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On the outlook for Nigerian equities, Isiaka said he expects the bull run to continue, supported by the government’s ambition to grow the economy to $1 trillion and ongoing banking sector recapitalisation.
“You cannot have a $1 trillion economy and stock prices remain where they are,” he said. “The stock market is the barometer for measuring the performance of the economy.”
Still, he warned investors to focus on fundamentally strong companies, noting that some stocks have risen sharply without earnings support.
“My advice is to buy stocks with fundamentals,” he said. “There are still undervalued companies in the market.”