The Director General of Nigeria’s Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has emphasised the need for a vibrant capital market to achieve Nigeria’s $1 trillion economy target.
Dr. Agama, speaking on the theme: “The Role of the Capital Market in Driving Nigeria’s $1 Trillion Economy’’ at the 2024 SEC Journalists Academy in Lagos, said 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.
“Achieving a N1 trillion 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,” Agama said.
The SEC DG, however, said that limited investor participation, regulatory bottlenecks and macroeconomic uncertainties were constraining the capital market’s full potential to achieve the one trillion economy.
He said the challenges must be addressed to achieve the full potential of the capital market in the one trillion-dollar economy. Agama said the capital market, despite these challenges, had helped in the development of the nation’s economy.
He stated that the government had raised significant capital by issuing six Sukuk to fund road projects across the six geopolitical zones.
He said, “Nigeria has already demonstrated how the capital market can fund these needs through innovative instruments like sovereign bonds and several Sukuk.”
The SEC DG said this innovative funding approach reduced the reliance on external borrowing while driving job creation, improving 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,” he said.
He added that the listing of firms such as Dangote Cement and BUA Group underscores how the Nigerian capital market supports industrial growth and job creation.
“The total market capitalisation of the Nigerian Exchange Limited stood at N60 trillion by December 13, 2024, a testament to the growing role of the private sector in driving national economic outcomes.
“One of the most remarkable opportunities within the capital market is its ability to democratise wealth creation. Through vehicles like collective investment schemes, retail bonds, and exchange-traded funds, the market provides access to financial products for Nigerians across income levels.
“Beyond government financing, the capital market is a vital enabler of private sector growth,” he said.
While adding that companies in Nigeria had utilised the market to raise capital, expand operations, and compete globally, Agama urged journalists, as custodians of public knowledge, to amplify the capital market’s impact by shaping narratives that would inspire trust and participation.
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