The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has emphasized the potential of the capital market to significantly contribute to financing Nigeria’s substantial infrastructure deficit.
He remarked that the capital market has been underutilized in mobilizing funds for various sectors of the economy and could play a crucial role in addressing the country’s infrastructure needs if awareness is raised among potential investors.
Speaking at a panel session during a stakeholders’ program titled “Financing the Future in Nigeria,” organized by the International Finance Corporation (IFC) and the Milken Institute in Lagos, Agama stressed the importance of investor education to strengthen the capital market.
He highlighted that many people are unaware of the capital market’s financing capabilities, which is essential for economic development.
Agama noted, “We have the capacity. Debt related to the capital market in Nigeria has not been fully explored. It is crucial to inform the public about the opportunities available in the capital market, which is a barometer for any economy.”
He outlined the significant funding required to meet the nation’s infrastructure needs, which include roads, healthcare, education, and agriculture. He estimated that Nigeria needs over $50 billion to address these deficits.
He also referenced President Bola Tinubu’s goal of transforming Nigeria into a one trillion-dollar economy, stating that this is achievable through various sectors, including mining, oil and gas, construction, and housing. Agama concluded by insisting that the capital market has the potential to mobilize the necessary funds to meet these ambitious targets.
Tom Ceusters, Director of Treasury Capital Market & Investments at IFC, echoed Agama’s sentiments, highlighting the importance of educating mid-level regulators and market participants.
He expressed satisfaction with the eight-year partnership between the IFC and Nigeria, noting tangible results and the positive impact on participants’ careers and regulatory frameworks in their respective countries.
