Caption: Coordinating Minister of the Economy, Wale Edun (right), making a point, during the budget defence by executive management of the Securities & Exchange Commission (SEC) in Abuja, Tuesday. With him are: Head Finance and Account at the commission, Abubakar Gaya (left), and Director-General of the SEC, Dr. Emomotimi Agama.
As part of its desire to raise awareness and ensure better understanding of the workings of the capital market, the Nigerian Senate is proposing a N10 billion special fund for investor education in the 2025 federal budget.
The move, which is expected to also significantly grow community of retail investors, boost savings and enhance the stability of the market and economy, was announced by Senator Osita Izunaso, Chairman of the Senate Committee on Capital Market, in a statement during the Securities and Exchange Commission’s budget defense session in Abuja on Tuesday.
Izunaso who was addressing the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, noted that such an amount is necessary, if the capital market must successfully play the significant role expected if the country would attain the $1tr economy by 2030 target set by President Bola Tinubu.
According to him, more people need to be attracted to participate in the capital market, which he noted is doing well, even as there is “need to do better to attract more investors.
“At present, participation is low and I don’t think it is right. Also, the number of companies listed in the exchange is low compared to the companies that operate in this country.
“I believe we require special funds to finance literacy in the capital market. We need to do more to take our capital market to where it is supposed to be.
“You are going to get our letter to include a N10 billion special funding of capital market literacy in the 2025 budget. This will aid investor education and make our capital market blossom,” he stressed.
Izunaso commended the Minster for all the support he has provided to the SEC in its determination to reposition the capital market, which he said needs encouragement to adequately support economic development.
The Chairman assured that the Senate will continue to support the capital market to ensure that it attains its full potential, adding that investor confidence is key to a vibrant market.
“On our part, we are doing what we can to provide support to ensure that this market performs its role efficiently in the economy. It is based on that desire that we have now repealed the ISA (Investment & Securities Act) which is currently awaiting Presidential assent. That Bill was passed in record time due to the importance of the capital market to the economy,” he recalled.
Responding, the Minister said the country now has a more stable and conducive environment for investments due to President Ahmed Timubu’s key and timely decisive steps aimed at growing the economy rapidly and lifting millions out of poverty.
The stock market, he noted, has started the year on a good note already, a reflection of its resilience and the confidence investors have in it.
“There are ways in which the government can encourage more participation and savings through the stock market, and the Nigerian economy has savings that can be invested.
One of such, he said is the “pension accounts where salary earners and civil servants are saving every month and the government is also contributing.”
The Minister commended the National Assembly, regulators, participants and other stakeholders for supporting the Nigerian capital market, admitting: “We have a lot of basis for optimism, a lot to be encouraged about and a lot to build on. The capital market will be a major driver of economic growth and development.”
