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The Securities and Exchange Commission (SEC) has announced that Nigerian banks and other corporates raised a total of ₦2.7 trillion from the capital market in the first 11 months of 2024. The funds were secured through various financial instruments to support business expansion, economic growth, and enhanced financial market activities.
Delivering the keynote address at the SEC’s 2024 Journalists Academy in Abuja, themed “Fintech: Leveraging Technology to Drive Capital Market Participation”, SEC Director-General Dr. Emomotimi Agama highlighted the milestone. He explained that ₦1.7 trillion of the total was raised by banks through recapitalization efforts, while the remaining ₦1 trillion came from equity markets via public and rights issues.
Strengthening Financial Stability Through Capital Raising
Dr. Agama stated that the banking sector’s recapitalization efforts have significantly bolstered financial stability and investor confidence, paving the way for stronger economic performance. “This ₦2.7 trillion raised reflects the resilience of Nigeria’s capital market and its pivotal role in supporting the economy. The figure excludes funds raised by fund managers and other market players during the period,” he said.
He further emphasized the Commission’s efforts to address longstanding challenges and seize emerging opportunities in the capital market. These initiatives include creating specialized departments such as the Fintech and Innovation Department, the Derivatives and Risk Management Department, and offices focused on municipal bonds, unclaimed dividends, and power supply.
Driving Innovation and Regulatory Excellence
The SEC DG highlighted the Commission’s proactive steps in fostering financial innovation while maintaining a robust regulatory framework. Among these efforts are:
- Regulating emerging markets like crypto-assets, derivatives, and forex CFDs.
- Collaborating with the Nigerian Financial Intelligence Unit (NFIU) to facilitate Nigeria’s exit from the Financial Action Task Force (FATF) grey list.
- Onboarding FinTech firms through the Regulatory Incubation Programme to promote inclusivity in the financial ecosystem.
Dr. Agama noted, “These efforts ensure Nigeria’s financial system remains internationally credible and resilient, avoiding potential economic sanctions and enhancing investor confidence.”
Pioneering Initiatives for Housing and Economic Growth
The SEC’s role in supporting the One Million Homes initiative by approving the Ministry of Finance Incorporated Real Estate Investment Fund was also emphasized. With a ₦250 billion program, the initiative seeks to address Nigeria’s housing deficit by enabling affordable mortgage financing. “This project demonstrates SEC’s commitment to nation-building and aligns with broader economic development goals,” he said.
Outlook for 2025: A Transparent and Inclusive Market
Unveiling the Commission’s 2025 outlook, Dr. Agama stressed the focus on enhancing market transparency, leveraging fintech to drive financial inclusion, and deepening collaboration with domestic and international stakeholders to ensure financial stability.
As part of its long-term strategy, the Commission is committed to implementing the Revised Capital Market Masterplan (2021–2025), prioritizing stakeholder engagement, capacity building, and the introduction of innovative financial products.
The Media’s Role in Market Confidence
Dr. Agama acknowledged the media’s critical role in shaping public perception of the capital market. Accurate reporting and constructive critique, he said, are vital in building trust and fostering confidence among investors.
The Journalists Academy underscored SEC’s shared responsibility in promoting transparency and accountability within the Nigerian capital market, ensuring that it remains a cornerstone of the country’s economic development.
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