Capital Market Set to Propel Nigeria Towards $1 Trillion Economy, Says SEC
The Nigerian capital market is strategically positioned to drive the Federal Government’s ambitious goal of achieving a $1 trillion economy, according to Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC).
Agama highlighted the capital market’s critical role as the financial backbone of the economy, capable of mobilizing resources to fund infrastructure, industrial growth, and sustainable development. He spoke during the 2024 SEC Journalists Academy in Lagos, themed: “The Role of the Capital Market in Driving Nigeria’s $1 Trillion Economy.”
Highlights from SEC’s Vision for Economic Growth:
1. Capital Market’s Pivotal Role:
• Channels resources from savers to productive sectors.
• Powers industrial growth, job creation, and infrastructure development.
2. Progress Despite Challenges:
• Issues like regulatory bottlenecks and macroeconomic uncertainties hinder full potential.
• Nevertheless, the market has contributed significantly, such as raising capital through Sukuk bonds for national road projects.
3. Innovative Funding for Infrastructure:
• Sovereign bonds, Sukuk, and green bonds have reduced Nigeria’s dependence on external borrowing.
• These tools also promote job creation, logistics improvements, and sustainability goals.
4. Promoting Inclusive Wealth Creation:
• Retail investment tools like collective investment schemes, retail bonds, and exchange-traded funds make the market accessible to all Nigerians.
• Recent fintech innovations have simplified investment access, driving financial literacy and inclusion.
Milestones and Opportunities:
• Total market capitalization of the Nigerian Exchange Limited: ₦60 trillion (as of December 13, 2024).
• Successful public offerings, such as MTN Nigeria, showcased the market’s strength in attracting local participation.
• Sub-national bonds issued by states like Lagos and Ogun have funded key projects in education, healthcare, and infrastructure.
️ Agama’s Call to Action:
• Policymakers: Create an enabling environment to boost confidence and attract investments.
• Journalists: Shape narratives that educate the public, inspire trust, and encourage participation in the market.
• Stakeholders: Work collectively to foster innovation, simplify processes, and improve market liquidity.
“Achieving a $1 trillion economy is not just an aspirational goal but a necessity for Nigeria’s prosperity,” Agama stated.
Driving Toward a Prosperous Future:
The SEC is committed to making the Nigerian capital market:
• Inclusive: Empowering retail and institutional investors alike.
• Efficient: Addressing regulatory challenges and improving operations.
• Globally Competitive: Leveraging technology and partnerships for sustainable growth.
Together, policymakers, market operators, and journalists can transform the capital market into the cornerstone of Nigeria’s $1 trillion economic vision.
The Nigerian capital market is strategically positioned to drive the Federal Government’s ambitious goal of achieving a $1 trillion economy, according to Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC).
Agama highlighted the capital market’s critical role as the financial backbone of the economy, capable of mobilizing resources to fund infrastructure, industrial growth, and sustainable development. He spoke during the 2024 SEC Journalists Academy in Lagos, themed: “The Role of the Capital Market in Driving Nigeria’s $1 Trillion Economy.”
Highlights from SEC’s Vision for Economic Growth:
1. Capital Market’s Pivotal Role:
• Channels resources from savers to productive sectors.
• Powers industrial growth, job creation, and infrastructure development.
2. Progress Despite Challenges:
• Issues like regulatory bottlenecks and macroeconomic uncertainties hinder full potential.
• Nevertheless, the market has contributed significantly, such as raising capital through Sukuk bonds for national road projects.
3. Innovative Funding for Infrastructure:
• Sovereign bonds, Sukuk, and green bonds have reduced Nigeria’s dependence on external borrowing.
• These tools also promote job creation, logistics improvements, and sustainability goals.
4. Promoting Inclusive Wealth Creation:
• Retail investment tools like collective investment schemes, retail bonds, and exchange-traded funds make the market accessible to all Nigerians.
• Recent fintech innovations have simplified investment access, driving financial literacy and inclusion.
Milestones and Opportunities:
• Total market capitalization of the Nigerian Exchange Limited: ₦60 trillion (as of December 13, 2024).
• Successful public offerings, such as MTN Nigeria, showcased the market’s strength in attracting local participation.
• Sub-national bonds issued by states like Lagos and Ogun have funded key projects in education, healthcare, and infrastructure.
️ Agama’s Call to Action:
• Policymakers: Create an enabling environment to boost confidence and attract investments.
• Journalists: Shape narratives that educate the public, inspire trust, and encourage participation in the market.
• Stakeholders: Work collectively to foster innovation, simplify processes, and improve market liquidity.
“Achieving a $1 trillion economy is not just an aspirational goal but a necessity for Nigeria’s prosperity,” Agama stated.
Driving Toward a Prosperous Future:
The SEC is committed to making the Nigerian capital market:
• Inclusive: Empowering retail and institutional investors alike.
• Efficient: Addressing regulatory challenges and improving operations.
• Globally Competitive: Leveraging technology and partnerships for sustainable growth.
Together, policymakers, market operators, and journalists can transform the capital market into the cornerstone of Nigeria’s $1 trillion economic vision.