Gbenga Magbagbeola, the new Managing Director of Sycamore Investment and Asset Management Limited, says his firm is taking a fresh approach to tackle problems that have made investing difficult for many Nigerians. Speaking during an interview with journalist Oluwakemi Abimbola, Magbagbeola explained that Sycamore is focusing on three major areas: access, education, and innovation.
According to him, one of the biggest challenges in Nigeria’s asset management space is that it mostly serves only the rich and big institutions. Many ordinary Nigerians don’t invest because the minimum amounts required are often too high. To solve this, Sycamore is now offering investment products that require little money to start, making it easier for more people to participate.
Another key area, he said, is financial literacy. “Many people see investing as complicated or risky,” he noted. That’s why Sycamore has built a technology platform that uses simple language and clear visuals to help customers understand their options.
The company is also introducing new products that directly respond to Nigeria’s current economic situation. One of them is a dollar-denominated investment product aimed at protecting customers from inflation and naira devaluation while still providing good returns.
Sycamore was founded in 2019 by Babatunde Akin-Moses, Onyinye Okonji, and Mayowa Adeosun to address the funding challenges facing small businesses in Nigeria. These founders believed that technology could connect investors with small businesses in need of loans, especially since many banks are often too strict or slow in giving out funds. The company started as a peer-to-peer lending platform and has now grown to serve nearly 300,000 users.
Magbagbeola said that this background in lending helped build trust and financial discipline among users, which made the move into asset management a natural next step.
He explained that moving into a tech-driven investment platform came with its own set of challenges. For example, ensuring the platform works well even in places with weak internet was a big issue. “We had to create light apps that don’t use much data,” he said. On the back end, the company invested in smart algorithms and artificial intelligence tools to help manage assets and predict market trends. Strong security systems were also put in place to protect user data and investments.
Magbagbeola noted that risk management is another area where Sycamore is doing things differently. Instead of using complex terms that may confuse new investors, the firm uses easy-to-understand tools to help people know their risk level and choose the right investment plan. Visual tools and real-life examples are used to help investors grasp possible outcomes.
On the issue of Ponzi schemes and why many Nigerians fall victim, Magbagbeola said economic hardship, lack of financial knowledge, and the desire to get rich quickly are major factors. “When people see their savings losing value due to inflation, they are more likely to believe promises of fast and high returns,” he said. He stressed that proper education, better regulation, and more accessible legitimate investment options are key to solving this problem.
He added that success stories from people who built wealth through real, slow, and steady investments can also help shift people’s thinking.
When asked about the economic challenges following the International Monetary Fund’s (IMF) cut in Nigeria’s growth forecast, Magbagbeola said businesses are facing tough times with high costs and low spending power. However, he believes the ongoing reforms could help build a stronger economy in the long run. He also advised investors to consider foreign exchange-based options that can guard against inflation and naira depreciation.
He revealed that Sycamore has adopted three key strategies to grow during these hard times. The first is using technology to cut costs and serve more people. Second is focusing on customers’ needs and using their feedback to improve. And the third is diversification—by adding asset management to its lending services, Sycamore is offering more choices to its users. These efforts have helped the company grow its assets under management to over N10 billion.
On the recent law that now recognises digital assets such as cryptocurrency in Nigeria, Magbagbeola said it’s a welcome development. “This brings more order and safety to an area where many Nigerians already participate informally,” he said. It could also attract more formal investors and give people more ways to invest their money safely.
Looking ahead, Magbagbeola believes Nigeria’s asset management sector will see big changes in the next five years. He predicted that investing will become easier for everyone, and products will become more personalised to suit individual goals. He also expects more Nigerians to invest in global markets and alternative assets like real estate and private equity. He believes Sycamore is well-prepared to lead these changes by using modern technology and putting customers first.
