Securities and Exchange Commission (SEC) has identified limited Investor Participation, Regulatory hurdles and Macroeconomic Instability as key obstacles hindering the Capital Market’s contribution to the Nation’s One Trillion Dollar Economic Goal. 

The Director-General of SEC, Emomotimi Agama, said this at the 2024 SEC Journalists Academy held on Tuesday in Lagos.

Agama, represented by SEC’s Lagos Zonal Director, John Briggs, spoke on the Theme: “The Role of the Capital Market in Driving Nigeria’s One Trillion Dollar Economy”.

He said that these challenges must be addressed, to achieve the full potential of the Capital Market for the One Trillion Dollar Economy.

Agama, however, said the Capital Market, in spite of these challenges, had helped in developing the Nation’s Economy.

He noted that the Federal Government had raised significant Capital, by issuing six Sukuk to fund Road Projects across the Six Geo-Political Zones.

The Director-General emphasised the need for a vibrant Capital Market in achieving the Federal Government’s target.

Agama noted that the journey demands collective effort from Policymakers, ensuring an Enabling Environment and Businesses leveraging Market Opportunities.

According to him, more importantly, it involves Journalists who communicate the Market’s Value to the broader Public.

“Achieving a One Trillion Dollar 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,” he said.

He added that a significant pathway to Economic Transformation lies in financing Critical National Projects, especially in Infrastructure.

The Director-General stated that Nigeria had already demonstrated how the Capital Market could fund these Needs through Innovative Instruments like Sovereign Bonds and a number of Sukuk.

The SEC Boss said this Innovative Funding Approach reduced the reliance on External Borrowing while driving Job Creation, improved Logistics and Regional Integration.

He added that the issuance of Green Bonds had 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 that the Listing of Firms such as Dangote Cement and BUA Group underscores how the Capital Market supports Industrial Growth and Job Creation.

Agama said: “The Total Market Capitalisation of the Nigerian Exchange Limited stood at N60trn by December 13, a testament to the growing role of the Private Sector in driving National Economic Outcomes.

Credit NAN: Texts excluding Headline