Macroeconomic uncertainties stalling Nigeria’s capital market – SEC boss

The Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, has called for urgent action to address the challenges hindering the full potential of Nigeria’s capital market, which he believes is crucial to the country’s goal of achieving a $1tn economy.

Speaking at the 2024 SEC Journalists Academy in Lagos on Tuesday, Agama emphasised that the capital market is central to the economic transformation required to realise the Federal Government’s target of a $1tn economy.

According to a statement from the SEC on Tuesday, Agama said the journey towards this ambitious economic goal would require a concerted effort from all stakeholders, including policymakers, businesses, and the media.

Agama explained that a thriving capital market is essential not only for economic growth but also for ensuring Nigeria’s prosperity and resilience.

He was quoted as saying, “Achieving a $1tn 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.”

However, the SEC boss warned that the capital market’s potential is being constrained by several factors, particularly limited investor participation, regulatory bottlenecks, and macroeconomic uncertainties.

He noted that these challenges are preventing the market from fully contributing to Nigeria’s economic development and, by extension, the $1tn economy target.

The statement read, “He, however, said that limited investor participation, regulatory bottlenecks, and macroeconomic uncertainties were constraining the capital market’s full potential to achieve the $1tn economy.

“He said the challenges must be addressed to unlock the full potential of the capital market in achieving the $1tn economy target.

“Agama said the capital market, despite these challenges, had contributed significantly to the development of the nation’s economy.”

Despite these hurdles, Agama pointed out that the capital market had already played a significant role in financing national infrastructure projects.

He highlighted the Federal Government’s success in raising substantial funds through the issuance of Sukuk bonds to finance road projects across Nigeria’s six geopolitical zones.

According to Agama, this form of innovative funding has helped reduce the country’s reliance on external borrowing while driving job creation, improving logistics, and stimulating broader economic growth.

He urged policymakers to create a more conducive environment for capital market development, ensuring better access to financing for businesses and infrastructure projects.

Agama also called on businesses to leverage the opportunities available in the market to help boost investor confidence and market participation.

He noted that the media has a key role to play in educating the public about the value of the capital market and its potential to drive national growth.