For decades, Nigeria’s asset management industry rewarded stability, tradition, and staying in line. But the rules are changing. The space has long been dominated by large, traditional players operating within tightly regulated boundaries.
Innovation has often taken a back seat to compliance, and many firms prefer to play it safe rather than take bold bets on product design or underserved market segments.
But a relatively young entrant is hoping to challenge that status quo. Sycamore Investment and Asset Management, a spinoff from fintech company Sycamore, recently secured its Securities and Exchange Commission (SEC) licence and is now eyeing a tech-led disruption of the industry.
To lead that charge, it hired Oluwagbenga Magbagbeola, former Managing Director of ARM Securities, to serve as MD. Finance in Africa spent an afternoon with Magbagbeola to talk risk, regulation, trust—and what it really takes to build an investment firm from the ground up.
Q: You’ve spent nearly two decades in the investment and securities space. What’s your journey been like up to this point?
Yes, my name is Oluwagbenga Magbagbeola, and I’m the Managing Director of Sycamore Investment and Asset Management. My career has spanned over 17 years, primarily in investment and securities. Before joining Sycamore, I was the Managing Director at ARM Securities, where I led both the institutional and retail business arms. We did a lot of interesting work using fintech to scale access and improve offerings.
Prior to that, I was at FBN Quest Securities, where I focused on securities trading and sales, servicing institutional clients and high-net-worth individuals. I also have a background in science—biochemistry, to be exact—but I pivoted early. I’m a chartered stockbroker and also certified in corporate governance and administration. So this move to Sycamore, a fintech-first asset manager, is both a natural evolution and a dream opportunity for me.
Q: What’s your take on the current state of Nigeria’s asset management industry?
It’s a heavily regulated space—and for good reason. The SEC, CBN, PenCom and others play vital roles in investor protection. But over time, what’s happened is that many traditional players, in trying to stay compliant, have gone overboard with self-imposed restrictions. Instead of exploring new market segments or designing innovative products, they just try not to get into trouble.
This leads to a culture of box-ticking. Everyone wants to play safe. Ironically, the SEC encourages innovation—so long as it’s within regulatory frameworks. But people aren’t pushing hard enough. There’s a wide open field of underserved market segments and product categories we’re just not covering.
Q: So what makes Sycamore different? What’s the bet you’re making?
What Sycamore is doing differently is using its deep capital markets expertise—our team is made up of veterans—and combining that with our tech DNA to actually build for today’s investor. We’re not just trying to replicate what others have done. We’re leveraging our experience, our regulatory knowledge, and our tech capabilities to build products that make sense for a new generation of Nigerian investors.
We’re also focused on carrying the regulator along. That’s important. Our goal isn’t to break the rules—it’s to push the envelope while staying aligned with them. If we succeed, the market gets deeper, investors win, and the regulator gets more visibility into how innovation can work within compliance boundaries.
Q: Some people think the asset management space is crowded. How do you compete in a market with so many big players?
It’s a fair question. People often ask, “How do you expect to compete when the big names have been around for so long?” But we don’t see it as a competition in the conventional sense. This is a road that’s still largely under-travelled.
The market has grown year after year, which tells us there’s still room—especially for new players targeting underserved segments. There’s rising financial literacy, increasing participation in formal investment channels, and growing demand from both individuals and businesses. We see that as an opportunity, not saturation.
Sycamore already has over 200,000 customers on our fintech side, and we’ve consistently seen calls for investment products that existing players aren’t offering. That gives us a strong foundation to build on. Our focus is on being customer-centric—really understanding what people want and building tailored products around those needs.
Q. What about digital transformation? Where do traditional asset managers stand in that shift?
Traditional players have struggled for a while to digitise their processes. Compared to fintechs, they have clearly lagged—and that’s where fintechs have the edge. Right now, fintechs are leveraging technology to scale more efficiently, serve customers better, and move faster.
Going forward, I expect more fintechs to push even further ahead, possibly surpassing traditional asset managers in both reach and innovation. But there’s a window: traditional firms that recognise this shift and act on it have an opportunity to catch up by adopting modern technologies.
Eventually, we might stop using the term “traditional” altogether. It will come down to who embraced technology and who didn’t. And that’s ultimately a win for investors—they get faster, smarter, more efficient services.
Q: What are some of the biggest challenges you think new asset managers face in Nigeria today?
Trust. Full stop. Nigerians have been burned before—MMM, failed schemes, unlicensed operators. So when you’re dealing with people’s money, trust becomes the number one issue. People want to know their data is protected. They want to know they can get their money back. They want to know they’re not being taken for a ride.
That’s why we went after our ISO 27001 certification for data protection. It’s why we got our SEC licence—to show we’re fully regulated. Our goal is to build a high-integrity system where customers feel safe. That’s how we rebuild trust in this space.
Q: Let’s talk about risk. How do you see Nigerians approaching risk today?
The average Nigerian wants double returns with zero risk. And that’s not even about education—some of the smartest people still fall for get-rich-quick schemes. The understanding of risk is generally very low. That’s why we take profiling seriously at Sycamore. We assess risk appetite, we guide our customers, and we try to match them with products that make sense for their age, their goals, their realities.
It’s not just about pushing products. It’s about helping people understand what they’re getting into. Most firms skip that step because they just want to grow AUM. But we see it as a duty—to protect our customers and build long-term relationships.
Q: What kinds of products is Sycamore offering that others aren’t?
We’re offering traditional products, of course—stocks, bonds, T-bills—but also alternative asset classes that many overlook. One of those is our foreign currency-denominated investment product, which helps hedge against naira fluctuations. In an economy like ours, that’s a real need.
We’re also looking at commodities—gold, ETFs—as well as digital assets. The SEC has started approving some digital exchanges, which opens a whole new frontier. We’ll play there too, but always within the regulatory framework. We’re not trying to be flashy—we’re trying to be smart, safe, and tailored.
Q: If you could change one thing about the asset management space in Nigeria, what would it be?
I’d create an initiative—between regulators and asset managers—to actually co-create investment products. Not just allow them, but actively build them together. Right now, innovators feel like they’re guessing what’s allowed, instead of building in full view of the regulator. That limits creativity.
If we could change that, we’d get products that serve real market needs while still being safe and compliant. And that would be a win for everybody—the investor, the firm, and the regulator.
Q: Final question: What does success look like for you in this new role?
Success for us at Sycamore is seeing how many customers who asked for innovative products are actually able to access them. Products that improve their lifestyles, enhance their businesses, or help them achieve financial goals.
By extension, we want to deliver these solutions to the wider public, enabling more Nigerians to subscribe to investment tools that make a difference. Naturally, we aim to grow our asset and subscriber base. But more importantly, we want to equip individuals and businesses to weather economic highs and lows and meet their financial milestones with confidence.
