Nigeria Yet to Fully Harness Investment Potential, SEC DG Urges Stronger Market Collaboration

The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has urged stakeholders across Nigeria’s financial ecosystem to intensify collaboration in unlocking the country’s vast investment opportunities and driving sustainable economic growth.

Speaking at the Emerging Africa Capital Limited Investor Summit and Awards, Agama delivered a keynote address focused on capital mobilisation strategies within a rapidly evolving global economy. He emphasised that while recent reforms have strengthened Nigeria’s capital market, a more coordinated approach is required to fully realise its potential and enhance financial compliance and regulatory efficiency.

According to him, global economic uncertainty continues to influence investment flows, with investors increasingly seeking stable and high-growth markets. Despite short-term attractiveness in some regions, he noted that Nigeria offers long-term value due to its scale, demographics, and untapped opportunities.

“Some markets may appear more attractive in the short term, but countries like Nigeria present deeper value over time because of the opportunities yet to be fully explored,” he stated.

Agama highlighted that Nigeria’s capital market has demonstrated resilience amid economic pressures, supported by ongoing reforms such as electronic public offerings, bond market development, and the expansion of alternative investment platforms. These advancements are also strengthening regulatory reporting, compliance monitoring tools, and overall compliance management systems within the financial sector.

He added that increased focus on sustainable finance and digital innovation is gradually attracting investor confidence, reflecting broader RegTech industry trends and the adoption of compliance technology to enhance transparency and risk assessment.

However, the SEC DG acknowledged that structural gaps remain. He pointed out that the capital market’s size relative to Nigeria’s GDP is still below peer economies, while retail investor participation remains limited and the derivatives market is still in its early stages.

To address these challenges, Agama stressed the importance of collective action among regulators, financial institutions, and market participants. He noted that building a robust capital market requires strong governance, risk, and compliance (GRC) frameworks, effective internal controls, and sustained commitment from all stakeholders.

“The capital market cannot be built by regulators, exchanges, or investors alone. Its strength lies in collective responsibility, integrity, and a long-term vision,” he said.

He also encouraged Nigerian companies to leverage the capital market as a viable funding source, emphasising the need for improved corporate governance, transparency, and investor engagement. Strengthening these areas, he noted, will enhance regulatory compliance and position firms for better access to capital.

Agama further called on institutional investors—including pension fund administrators and insurance companies—to deepen their participation in the market. He urged them to expand their investment capabilities across asset classes and play a more active role in pricing financial instruments, describing Nigeria’s domestic savings pool as a critical driver of economic growth.

Reassuring foreign investors, he stated that Nigeria remains committed to maintaining a transparent, rules-based regulatory framework aligned with global standards. He added that the SEC continues to prioritise regulatory risk management, compliance audits, and regulatory monitoring to strengthen investor confidence.

The SEC DG also underscored the importance of inter-agency collaboration, calling for closer alignment between key institutions such as the Central Bank of Nigeria, Debt Management Office, National Insurance Commission, and National Pension Commission. According to him, coordinated policies and enhanced regulatory intelligence will improve market stability and efficiency.

He concluded by noting that the effective deployment of capital has historically been central to economic development, urging stakeholders to act decisively in leveraging Nigeria’s current position in the global economy.

“Nigeria stands at a critical juncture. The decisions made in the coming years will determine whether we fully harness emerging opportunities or fall short of our potential,” Agama said.