Nigeria: Capital Market Key to Financing Nigeria’s Infrastructure Deficit – SEC

Dr. Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC), has highlighted the underutilized potential of Nigeria’s capital market in addressing the country’s significant infrastructural deficit. He noted that the capital market, which has already demonstrated its capacity to mobilize funds for various sectors of the economy, could play a pivotal role in financing infrastructure projects if there is sufficient awareness and engagement.

Speaking at a panel session during the second day of a stakeholders’ programme themed Financing the Future in Nigeria, co-hosted by the International Finance Corporation (IFC) and Milken Institute in Lagos, Agama stressed the importance of investor education to unlock the capital market’s potential. He also urged both regulators and operators to develop more market-driven initiatives that can strengthen the capital market’s foundation and help raise the necessary funds for infrastructure development.

“The capacity is there,” Agama emphasized. “Debt instruments within Nigeria’s capital market have not been fully explored, largely due to a lack of awareness. This is why we are making efforts to promote the market as the barometer of economic health. The capital market is capable of helping Nigeria meet its infrastructure needs, which span across the 36 states and the Federal Capital Territory (FCT), covering critical areas such as roads, healthcare, airports, education, and agriculture. To address these infrastructure deficits, we are looking beyond $50 billion.”

Agama added that President Bola Tinubu has set a target to grow Nigeria into a $1 trillion economy, which he believes is achievable through the capital market, alongside contributions from key sectors like mining, oil and gas, construction, and housing. “The capital market is central to this goal. It’s not a question of whether it’s possible – it is. ‘No’ is not an answer for us,” he affirmed.

Also speaking at the event, Tom Ceusters, Director of Treasury Capital Markets & Investments at IFC, emphasized the importance of continued education for mid-level regulators and participants in the market infrastructure. He praised the eight-year partnership between the IFC and Nigeria’s domestic economy, highlighting the tangible results of their collaboration. “The success of the programme is evident. Many alumni, including the SEC Director General, have used this platform to advance their careers and positively influence regulatory frameworks in their respective countries,” Ceusters noted.

The ongoing partnership between local and international stakeholders reinforces the belief that Nigeria’s capital market can be a powerful vehicle for financing the country’s vast infrastructure needs.