The Securities and Exchange Commission (SEC) had said that the capital market has the potential to propel Nigeria toward becoming a N1 trillion economy by 2030 in agreement with the plan of the Tinubu administration.
The Director General of SEC, Dr Emomotimi Agama, said this recently at its Lagos Office while declaring open the 2024 SEC Journalists Academy programme for capital market correspondents.
He said the capital market is the engine that drives economic progress by channeling resources from savers to those who need capital for productive use.
According to him “Achieving a N1 trillion economy is not merely an aspirational goal; it is a necessity for the prosperity and resilience of Nigeria and that the capital market, as the financial backbone of our economy, is poised to drive this transformation. However, the journey demands collective effort from policymakers ensuring an enabling environment, to businesses leveraging market opportunities, and, importantly, to journalists who communicate the market’s value to the broader public.
“Globally, countries that have achieved economic milestones, whether in industrialisation, infrastructure, or innovation, have relied heavily on the capital market to mobilise and allocate resources efficiently. “In Nigeria, this reality holds immense potential. With the right policies, frameworks, and investor confidence, the capital market can transform into a formidable force for financing the aspirations of our economy”.
He stated that a significant pathway to economic transformation lies in financing critical national projects, especially in infrastructure. Nigeria has already demonstrated how the capital market can fund these needs through innovative instruments like sovereign bonds and a number of Sukuk.
“For example, the federal government has raised significant capital by issuing six Sukuk to fund road projects across the six geopolitical zones. This innovative funding approach reduced the reliance on external borrowing while driving job creation, improved logistics, and regional integration.
“The issuance of green bonds has further cemented the role of the capital market in supporting Nigeria’s transition to a low-carbon economy, addressing both infrastructure and environmental sustainability”.
Agama, who was represented by the Head of Lagos Office of the commission, Mr John Abel Briggs, said beyond government financing, the capital market is a vital enabler of private sector growth as companies in Nigeria have utilised the market to raise capital, expand operations, and compete globally.
“A prime example is MTN Nigeria, whose public offering in 2021 attracted significant local investor participation, broadening its shareholder base while showcasing the strength of our market.
“Additionally, the listing of firms like Dangote Cement and BUA Group underscores how the capital market supports industrial growth and job creation.
