The Securities and Exchange Commission has reaffirmed its commitment to strengthening Nigeria’s capital market, emphasizing its role in fostering economic stability and resilience.
Speaking at the annual conference of the Institute of Capital Market Registrars in Lagos, SEC’s Director General, Emomotimi Agama, underscored the need for an inclusive and innovative capital market to drive financial growth.
Delivering his keynote address titled “Enhancing Financial Stability in the Nigerian Economy: Strategic Role of the Capital Market in Wealth Creation,” Agama highlighted the significance of venture capital and private equity investments.
“Nigeria, as one of Africa’s largest economies, has faced significant challenges such as declining oil prices, inflation, and currency fluctuations, which have tested our resilience. The capital market serves as the backbone of economic health, playing a critical role in fostering wealth creation and stability,” he stated.
In order to encourage local investments, Agama emphasised the significance of tightening restrictions for private equity and venture capital firms.
“Nigeria’s entrepreneurial ecosystem will be strengthened and much-needed money will be drawn into the country by a strong venture capital and private equity industry.
“We can lessen our dependence on foreign funding and increase our level of self-sufficiency by investing domestically, which is crucial in these difficult times for the world economy,” he said.
He underlined how the capital market may translate domestic funds into profitable investments.
“Savings can be mobilised into investments that support infrastructure projects and corporate development in the capital markets structured environment,” he stressed.
Agama clarified that this is essential to establishing a stable and equitable economic environment.
Agama also emphasised the significance of using innovation and technology to modernise the capital market, pointing out the SEC’s initiatives to incorporate regulatory sandboxes and fintech solutions.
“Our young, tech-savvy populace is a huge strength. We can take advantage of this demographic dividend to promote financial inclusion by matching market innovations with regional demands,” he said.
He also disclosed that two fintech companies just received approval-in-principle from the SEC, with more on the horizon.
In order to create a capital market that promotes economic stability and sustainable growth, Agama urged stakeholders to work together.
“We are investing in the future of our country by directing our resources into Nigerian businesses. Let us pledge to establish a capital market that provides all Nigerians with opportunities and prosperity,” he said.
