Lamido Yuguda, the Director-General of the Securities & Exchange Commission (SEC), stated that the target of a $1 trillion economy set by President Bola Tinubu’s federal government is achievable through the capital market. Yuguda emphasized that SEC is focusing on leveraging capital market funds for infrastructure development, addressing the country’s infrastructural deficit, creating a conducive business environment, and enhancing the production capacity of Nigerians to spur economic growth.
Yuguda believes that improving market and investor literacy, coupled with public awareness, is crucial to mobilising more companies and investors to capitalize on opportunities in the capital market. He expressed optimism that the ongoing foreign exchange crisis limiting the influence of foreign investors on the capital market would be resolved soon.
During the recently concluded Capital Market Committee (CMC) meeting, SEC was mandated to enhance public awareness of the capital market’s benefits. Yuguda is confident that the envisioned one trillion-dollar economy could be realised with collaborative efforts and productive actions in the capital market. He addressed concerns about the reclassifications of Nigerian securities indices by FTSE-Russell and MSCI, attributing them to foreign exchange liquidity challenges and their impact on investor confidence.
Yuguda also highlighted challenges posed by high interest rates on government treasury securities and emphasized the need for strategic measures to attract more investments into the capital market. He mentioned ongoing engagements, including efforts to work with the Standards Organisation of Nigeria (SON) and the National Insurance Commission (NAICOM) to introduce insurance products that suit the needs of commodities producers and traders.
In conclusion, Yuguda underscored the CMC’s dedication to propelling Nigeria’s economic growth, fostering collaboration, and embracing innovation to deepen the market and serve as a tool for infrastructure financing in the country. The meeting brought together key stakeholders, including Senate and House Committees on Capital Market members, to discuss critical economic indicators and market performance.
