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The Nigerian capital market is strategically positioned to support the Federal Government’s ambitious agenda of transforming the national economy into a $1 trillion powerhouse, according to Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC).
Speaking at the 2024 SEC Journalists Academy in Lagos, themed “The Role of the Capital Market in Driving Nigeria’s $1 Trillion Economy,” Agama emphasized the capital market’s pivotal role as the financial backbone of economic development.
Collaborative Efforts Required for Transformation
Agama noted that achieving this milestone will require collaborative efforts from policymakers, businesses, and journalists. “Attaining a $1 trillion economy is not just an aspiration; it is essential for Nigeria’s prosperity and resilience,” he stated. However, challenges such as limited investor participation, regulatory hurdles, and macroeconomic uncertainties must be addressed to unlock the market’s full potential.
Capital Market as a Development Catalyst
Despite these challenges, the capital market has demonstrated its capacity to drive economic development. The Federal Government has utilized innovative financial instruments like Sukuk bonds to fund critical infrastructure projects across Nigeria’s six geopolitical zones.
“The capital market offers a sustainable path to financing national projects, reducing reliance on external borrowing while fostering job creation, improved logistics, and regional integration,” Agama explained. He also highlighted the issuance of green bonds as instrumental in transitioning Nigeria to a low-carbon economy while addressing infrastructure needs sustainably.
Strengthening Private Sector Growth
The SEC DG cited the listing of major firms such as Dangote Cement and BUA Group as examples of how the capital market supports industrial growth and job creation. With a market capitalization of ₦60 trillion as of December 13, 2024, the Nigerian Exchange Limited continues to demonstrate the private sector’s critical role in national economic outcomes.
“The capital market democratizes wealth creation by providing access to financial products such as collective investment schemes, retail bonds, and exchange-traded funds,” he added.
Empowering Companies and States
The capital market has also enabled companies to raise capital, expand operations, and compete globally. Notable examples include MTN Nigeria’s public offering, which attracted significant local investor participation. Agama further underscored the importance of state governments leveraging bond issuances to fund infrastructure, education, and healthcare projects.
“This model fosters accountability and transparency, as market discipline demands robust reporting and monitoring mechanisms. Expanding this approach across more states could unlock unprecedented development,” Agama noted.
Enhancing Market Inclusivity and Efficiency
Agama highlighted initiatives to improve market liquidity, simplify listing requirements, and foster fintech-driven innovations. These measures are designed to attract local and foreign investors, enhance financial literacy, and promote inclusivity.
“The rise of retail bonds and fintech platforms has simplified investment access, enabling more Nigerians to participate in economic growth,” he stated.
The Role of Journalism in Market Development
Agama called on journalists to amplify the capital market’s impact by shaping narratives that build public trust and encourage participation. “Your ability to present accurate and engaging insights is crucial to educating the public and eliminating misconceptions,” he said.
By addressing existing challenges and leveraging the opportunities within the capital market, Nigeria is poised to achieve a more inclusive, dynamic, and prosperous economy. “Together, we can unlock the full potential of the capital market to drive sustainable growth,” Agama concluded.
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