By John Ikani
Nigeria’s apex capital market regulator – Securities and Exchange Commission (SEC) says the nation will soon introduce capital market studies in primary, secondary and tertiary institutions.
The move according to a statement issued by SEC, is part of efforts geared towards enhancing financial literacy and boosting savings and investments.
SEC stated that it has always collaborated with other stakeholders in the capital market in order to enhance the level and quality of financial literacy in Nigeria.
It went on to note that the ongoing 2021 World Investors Week (WIW) highlights firm commitment to financial education initiatives which enable retail investors to have the confidence to participate in financial markets on a properly informed basis.
“This is particularly important during these challenging times. In line with the above, the SEC is poised in this fifth edition of the WIW, to sustain the milestone that has been achieved in deepening investor education and increasing financial literacy among the investors,” SEC stated.
What you should know
Financial literacy refers to the set of skills, knowledge and capabilities that allows an individual to make informed and effective decisions with their financial resources.
Nigeria has not been able to achieve significant expansion in financial inclusion due to low financial literacy
A study carried out by the Nigeria Deposit Insurance Company (NDIC) with an aim to assessing the knowledge of Nigerians with respect to financial literacy identified many inadequacies. Over 50% of respondents actually admitted to not tracking their expenses at all.
Given the knowledge gap and lackadaisical attitude that exists towards money management and financial planning, there is a great need to develop the necessary skills and knowledge at an early age.
Against this background, it is important that schools start teaching financial literacy for the benefit of our economic future. This will prepare the youth to successfully transit from the safety of their parent’s homes to the real world economy.