SEC seeks joint push for capital market growth

The Director-General of the Securities and Exchange Commission Nigeria, Dr. Emomotimi Agama, has called for stronger collaboration among stakeholders in Nigeria’s financial system to fully harness the country’s investment potential and drive sustainable economic development.

Speaking at the Emerging Africa Capital Limited Investor Summit & Awards, Agama said recent regulatory reforms introduced by the commission were beginning to yield results, but emphasized that a coordinated, system-wide approach was essential to position Nigeria as a leading global investment destination.

Addressing the theme, “Deploying and Mobilizing Capital and Investment Strategies in a Shifting Global Economy,” the SEC boss noted that while global macroeconomic uncertainties have redirected capital flows toward markets offering quick returns, Nigeria holds stronger long-term value due to its vast, untapped opportunities.

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He stated that the nation’s capital market has shown resilience amid global headwinds, supported by reforms such as electronic public offerings, expansion of the bond market, development of alternative investment platforms, and increased alignment with sustainable finance principles. These measures, he said, are already attracting renewed investor interest and signalling an evolving market landscape.

Despite the progress, Agama acknowledged that the capital market’s full potential remains largely unrealised. He pointed out that market capitalisation relative to GDP still lags peer economies, retail investor participation remains low, and the derivatives segment is still at an early stage.

To bridge these gaps, he stressed the need for collective responsibility, noting that building a robust capital market requires the active participation of regulators, issuers, investors, and other stakeholders. He urged corporate organisations to leverage the capital market for growth financing by strengthening corporate governance, improving disclosures, and enhancing investor relations.

“The market rewards quality, and companies that invest in quality today will access capital on terms that strengthen their competitive advantage,” he said.

Agama also charged institutional investors, including pension fund administrators and insurance firms, to increase their participation in domestic market instruments, deepen price discovery, and build capacity to invest across diverse asset classes.

Reassuring foreign investors, he maintained that Nigeria remains open to investment, with ongoing efforts to sustain a transparent, principles-based regulatory environment aligned with global best practices.

He further called for deeper collaboration among key regulatory bodies, including the Central Bank of Nigeria, Debt Management Office, National Insurance Commission, and National Pension Commission, stressing that policy alignment is critical to enhancing investor confidence and market sophistication.

Highlighting the broader economic implications, Agama said nations that achieve sustained growth are those that effectively mobilise and deploy capital toward productive uses, adding that Nigeria stands at a critical juncture.

“The decisions we make over the next three to five years will determine whether we seize emerging opportunities or miss them,” he warned.