Strong, innovative market necessary for Nigeria’s future

Omeiza Bilal

The Securities and Exchange Commission (SEC) has emphasized that a strong, inclusive, and innovative market is not just a target but also a necessity for the future of Nigeria, stressing that the strength of the capital market will shape the nation’s ability to face global challenges and embrace new opportunities.

The Director-General of the SEC, Dr Emomotimi Agama, stated this in his keynote speech delivered at the annual conference of the Institute of Capital Market Registrars (ICMR) in Lagos.

Agama who spoke on the topic: “Enhancing Financial Stability in the Nigerian Economy: Strategic Role of the Capital Market in Wealth Creation” described it as both timely and essential given the current state of the economy and the substantial impact that capital markets can have on wealth generation in Nigeria.

According to him, “Nigeria is one of the largest economies in Africa and we have faced significant challenges in recent years. The decline in oil prices, inflationary pressures, and currency fluctuations have tested our economic resilience.

“The Capital market is the backbone and barometer of a healthy economy and it plays a critical role in fostering wealth creation. It is a powerful tool in achieving stability and fostering wealth for all Nigerians. As Nigeria develops its financial infrastructure, agencies such as the SEC and institutions such as the ICMR are instrumental in shaping a stable economic landscape.

“When we discuss stability for Nigeria, it encompasses more than merely maintaining steady financial systems. Stability is about creating a secure environment in which businesses, investors, and everyday Nigerians can confidently shape their futures”.

While stressing the need for a resilient economy anchored by ability to turn domestic savings into investments to stimulate economic growth, Agama said the SEC will bloster regulatory framework for venture capital and private equity firms by enhancing their operational efficiencies and attractiveness to investors to enhance financial stability.

Agama said that a robust venture capital and private equity sector would catalyse growth in emerging sectors and empower Nigeria’s entrepreneurial ecosystem adding that this foundation will also attract local and international investors, injecting much-needed capital into the Nigerian economy.

“By channelling our resources into Nigerian enterprises, we lay the groundwork for a sustainable, resilient growth model. When Nigerians invest locally, we are investing in the future of our nation. To further financial stability, we must bolster the regulatory framework for venture capital and private equity firms, enhancing their operational efficiencies and attractiveness to investors,” he stated.

Agama noted that a resilient economy is anchored by its ability to turn domestic savings into investments that stimulate growth explaining that investing in Nigerian companies minimises reliance on foreign capital and builds self-sufficiency, which is critical in times of global uncertainty.

“The capital market encourages domestic savings and channels them into productive investment by mobilising domestic savings and directing them into investments.

By providing a structured environment for individuals and institutions to invest their savings, the capital market transforms these idle funds into resources that build businesses, support infrastructure projects, and stimulate economic activities.

This process of channeling savings into productive investments helps create wealth and job opportunities while encouraging financial inclusion.

The SEC Boss, however, said that a robust capital market must embrace modernity through technology and innovation saying that by adopting tech advancements and integrating fintech solutions, the capital market can build a more accessible, efficient, and resilient market infrastructure.

“Additionally, our youthful and tech-savvy population presents a unique opportunity. We must align market innovations and product development with local needs to fully harness our demographic dividend and make financial inclusion a reality for all Nigerians.

”SEC has embraced these innovations by establishing regulatory sandboxes to review fintech companies and register them. Recently, we gave an approval in principle to two companies while we have others in the pipeline” he said.

Agama therefore urged stakeholders to commit to building a capital market that drives wealth creation, fosters economic stability, and serves as a source of opportunity and growth for all Nigerians.