The Securities and Exchange Commission (SEC), on Tuesday in Lagos, spoke of the need for a vibrant capital market if the country must achieve the Federal Government’s $1tr economy target.

The Director-General of SEC, Dr Emomotimi Agama, who spoke at the 2024 SEC Journalists Academy on the theme: “The Role of the Capital Market in Driving Nigeria’s $1tr Economy,” said the journey demands collective effort—from policymakers ensuring an enabling environment, to businesses leveraging market opportunities and, importantly, to journalists who communicate the market’s value to the broader public.

According to him, achieving a N1tr 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, however, said that limited investor participation, regulatory bottlenecks and macroeconomic uncertainties was constraining the capital market full potential to achieve one trillion economy.

He said the challenges must be addressed to achieve the full potential of the capital market in the one trillion dollar economy, stressing that the capital market in spite of these challenges had helped in the development of the nation’s economy.

He noted that the Federal Government had raised significant capital by issuing six Sukuk to find road projects across the six geo-political zones.

Agama explained that a significant pathway to economic transformation lies in financing critical national projects, especially in infrastructure.

“Nigeria has already demonstrated how the capital market can fund these needs through innovative instruments like sovereign bonds and a number of Sukuk,” he said.

The SEC DG said this innovative funding approach reduced the reliance on external borrowing while driving job creation, improved logistics, and regional integration.

“The issuance of green bonds has 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.

He added that the listing of firms such as Dangote Cement and BUA Group underscores how the capital market supports industrial growth and job creation.

“The total market capitalisation of the Nigerian Exchange Limited stood at N60 trillion by December 13, 2024, a testament to the growing role of the private sector in driving national economic outcomes.

“One of the most remarkable opportunities within the capital market is its ability to democratise wealth creation. Through vehicles like collective investment schemes, retail bonds, and exchange-traded funds, the market provides access to financial products for Nigerians across income levels.

“Beyond government financing, the capital market is a vital enabler of private sector growth,” he said.

He added that companies in Nigeria had utilised the market to raise capital, expand operations, and compete globally.

“A prime example is MTN Nigeria, whose public offering in 2021 attracted significant local investor participation, broadening its shareholder base while showcasing the strength of our market.

“As we navigate the complexities of Nigeria’s economic landscape, the capital market emerges as a cornerstone in the pursuit of sustainable growth and development.

“The capital market is the engine that drives economic progress by channeling resources from savers to those who need capital for productive use.

“Globally, countries that have achieved economic milestones—whether in industrialisation, infrastructure, or innovation—have relied heavily on the capital market to mobilise and allocate resources efficiently.

“However, through concerted efforts by stakeholders—including the Securities and Exchange Commission, market operators, and policymakers—we are laying the foundation for an inclusive, efficient, and globally competitive capital market,” Agama said.

He noted that the rise of the retail bond market had enabled ordinary Nigerians to participate in the nation’s economic growth.

“The Federal Government introduced the Savings Bond in a bid to expand the retail investor base in the bond markets and this has been well received by investors in recent times.

“The introduction of fintech platforms has further simplified access to investment opportunities, driving financial literacy and inclusion. Today, numerous retail investors actively participate in the Nigerian capital market—and we are committed to growing this participation.

“The role of the capital market also extends to state governments, offering a sustainable avenue for financing projects. Sub-nationals like Lagos, and Ogun states among others have leveraged bond issuances to fund infrastructure, education, and healthcare projects.

“These bonds not only enable states to execute developmental projects but also foster accountability and transparency, as market discipline demands robust reporting and monitoring mechanisms. Expanding this model across more states could unlock development at unprecedented scales, especially when paired with public-private partnerships.

“However, through concerted efforts by stakeholders—including the Securities and Exchange Commission, market operators, and policymakers—we are laying the foundation for an inclusive, efficient, and globally competitive capital market.

He said initiatives like improving market liquidity, simplifying listing requirements, and fostering innovation through fintech solutions are vital to building confidence and attracting both local and foreign investors.

Agama urged journalists, as custodians of public knowledge to amplify the capital market’s impact by shaping narratives that would inspire trust and participation.

“Moreover, as journalists, your ability to present accurate, insightful, and engaging narratives about these developments is crucial in educating the public and removing any misconceptions.

“Together, we can move toward a more inclusive, dynamic, and prosperous Nigeria,” he said.