Nigerian digital lender, Sycamore, is making significant strides in the country’s investment landscape after securing a fund manager licence from the Securities and Exchange Commission (SEC). Known for its core lending business, which boasts ₦10 billion in assets under management, the company is now expanding its services to include asset and portfolio management.
This strategic shift aims to cater to the growing demand for accessible investment solutions in Nigeria’s booming retail and institutional investor markets. As Sycamore’s CEO, Babatunde Akin-Moses, explained, the decision responds to the desires of many of the company’s 300,000 users, including freelancers and small and medium-sized enterprises (SMEs), looking for easy-to-access investment opportunities.
“Securing our SEC licence is the culmination of years of building institutional-grade compliance systems,” said Akin-Moses. “We’re not pivoting from lending; this is a strategic expansion that complements our core business.”
Targeting a Diverse Market
While legacy firms like ARM, Stanbic IBTC, and FBNQuest have long dominated Nigeria’s investment market, newer fintech platforms like Bamboo and Rise have made significant inroads by offering accessible wealth management services. However, these platforms often target high-net-worth individuals or tech-savvy investors.
Sycamore intends to bridge this gap by offering diversified investment portfolios in stocks, bonds, and money-market instruments across local and foreign currencies. The company’s strategy focuses on freelancers, SMEs, and everyday Nigerians who have struggled to find straightforward investment pathways.
The company has appointed Oluwagbenga Magbagbeola, former Managing Director of ARM Securities, to lead its new division, Sycamore Investment and Asset Management Limited (SIAML). Magbagbeola, who brings 17 years of capital market experience from firms like ARM Securities, FBNQuest Securities, and Profund Securities, will be at the helm of this new venture.
New Products and Ambitious Goals
Sycamore plans to launch an upgraded mobile app featuring real-time investment analytics, AI-powered portfolio management, and a multi-currency wallet that supports USD, EUR, GBP, and NGN. This user-friendly app aims to make wealth management accessible to all, particularly young Nigerians looking for convenient investment options.
According to Onyinye Okonji, Sycamore’s co-founder and Chief Commercial Officer, “We’re addressing a major gap in Nigeria’s investment market. Traditional asset management has remained out of reach for many Nigerians. Our goal is to change that.”
Sycamore expects asset management to become a significant revenue driver, generating income through management fees and performance-based incentives. While the company has not disclosed specific growth targets, it plans to raise additional capital in late 2025 or early 2026 to support its expansion across Africa.
Additionally, the company plans to introduce alternative investment options, starting with Real Estate Investment Trusts (REITs) and a USD-denominated investment product, further widening its service offering.
“We’re democratising access to wealth management solutions that can help more people invest in their desired lifestyle and future financial security,” said Akin-Moses.
By expanding its services beyond lending, Sycamore aims to become a comprehensive financial solutions provider, offering Nigerians the tools to borrow, invest, and grow their wealth — one investment product at a time.
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