By Abigail Philip David
The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has stressed the urgent need to address challenges limiting the growth of Nigeria’s capital market, which he believes is pivotal to achieving the Federal Government’s $1tn economic target.
Speaking at the 2024 SEC Journalists Academy in Lagos on Tuesday, Agama underscored the critical role the capital market plays in driving the economic transformation needed to realize this ambitious goal.
A statement released by the SEC quoted Agama as saying, *“Achieving a $1tn economy is not merely an aspirational goal; it is a necessity for the prosperity and resilience of Nigeria. The capital market, as the financial backbone of our economy, is poised to drive this transformation.”*
However, Agama highlighted key challenges, including limited investor participation, regulatory bottlenecks, and macroeconomic uncertainties, as major barriers preventing the capital market from reaching its full potential.
According to him, overcoming these obstacles is crucial for the market to contribute meaningfully to Nigeria’s economic growth and the $1tn target. Despite these challenges, he noted that the capital market had already made significant contributions to national development, particularly in infrastructure financing.
Agama cited the Federal Government’s successful use of Sukuk bonds to fund road projects across Nigeria’s six geopolitical zones as an example of the capital market’s impact. He emphasized that such innovative funding mechanisms had reduced dependence on external borrowing, created jobs, improved logistics, and stimulated economic activities.
To unlock the market’s full potential, Agama urged policymakers to create a conducive environment that enhances financing opportunities for businesses and infrastructure projects. He also called on businesses to tap into the capital market’s resources and urged the media to play a critical role in educating the public on its value and opportunities.
He concluded that collaborative efforts among stakeholders—including policymakers, businesses, and the media—are essential to overcoming current challenges and positioning the capital market as a driver of Nigeria’s economic transformation.
