Nigeria: SEC- Capital Market Key to Achieving $1 Trillion Economy by 2026

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The Securities and Exchange Commission (SEC) asserts that Nigeria’s goal of achieving a $1 trillion economy by 2026, as outlined by President Bola Tinubu, is attainable through the capital market. Lamido Yuguda, the Director-General of SEC, highlighted the Commission’s focus on channeling capital market funds into infrastructure projects to address the country’s infrastructural deficit.

Yuguda emphasized that funding critical infrastructure projects through the capital market would create a conducive operating environment for businesses, enhance the production capacity of Nigerians, and contribute to the nation’s economic growth and development.

Acknowledging the importance of market and investor literacy, Yuguda expressed optimism that the ongoing foreign exchange crisis limiting the influence of foreign investors on the capital market would soon be resolved. He mentioned that the recent Capital Market Committee (CMC) meeting mandated SEC to enhance public awareness of the capital market’s benefits.

Addressing concerns about the reclassification of Nigerian securities indices by FTSE-Russell and MSCI, Yuguda attributed these challenges to current foreign exchange liquidity issues and their impact on investor confidence. He also stressed the need for strategic measures to attract more investments into the capital market, considering the challenges posed by high-interest rates on government treasury securities.

Yuguda provided insights into ongoing initiatives, such as engagements with the Standards Organisation of Nigeria (SON) to secure approval of certain standards and the adoption of additional commodity standards sanctioned by the African Organisation for Standardisation (ARSO). The Technical Committee on the Commodities Trading Ecosystem is also working on introducing commodity derivatives and collaborating with the National Insurance Commission (NAICOM) to de-risk the ecosystem by introducing insurance products.

In conclusion, Yuguda reiterated the commitment of the Capital Market Committee to propel Nigeria’s economic growth, foster collaboration, and embrace innovation to deepen the market’s role as a tool for infrastructure financing. The meeting involved key figures, including the chairman and deputy chairman of the Senate Committee on Capital Market, the chairman and deputy chairman of the House Committee on Capital Market and Institutions, and other distinguished guests. The discussion covered key economic indicators, including Nigeria’s headline inflation rate, GDP growth rate, and market performance.

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