SEC DG seeks stronger collaboration to grow Nigeria’s capital market

Barbara Bako, Abuja.

The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has called for stronger collaboration among stakeholders in Nigeria’s financial system to unlock the full potential of the capital market and drive sustainable economic growth.

Agama made the appeal while delivering a keynote address at the Emerging Africa Capital Limited Investor Summit and Awards, themed “Deploying and Mobilizing Capital and Investment Strategies in a Shifting Global Economy.”

He noted that recent reforms introduced by the Commission were already yielding positive results, but stressed that a collective effort was required to position Nigeria as a competitive investment destination globally.

He explained that ongoing macroeconomic uncertainties have continued to shape global investment decisions, with some economies attracting short-term capital due to quick returns.

However, he maintained that Nigeria offers stronger long-term investment opportunities, given its vast untapped potential.

According to him, the nation’s capital market has remained resilient despite prevailing headwinds, supported by reforms such as electronic public offerings, expansion of the bond market, growth in alternative investment platforms, and increased alignment with sustainable finance principles.

These initiatives, he said, are beginning to attract renewed investor interest and reflect a market undergoing steady transformation.

The SEC boss, however, acknowledged that the market’s full potential is yet to be realised pointing out that Nigeria’s market capitalisation relative to Gross Domestic Product (GDP) still falls below that of its peers, while retail investor participation remains low and the derivatives segment is still developing.

Agama emphasised that building a strong capital market requires shared responsibility among regulators, operators, issuers, and investors.

He urged corporate organisations to leverage the capital market as a primary source of growth financing by strengthening corporate governance, improving disclosure standards, and enhancing investor relations.

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“The market rewards quality, and companies that invest in quality today will access capital on favourable terms that strengthen their competitive advantage,” he said.

He also encouraged domestic institutional investors, including pension fund administrators and insurance firms, to increase their participation in the market.

He noted that Nigeria’s savings pool remains a critical resource that must be effectively mobilised through deeper engagement with capital market instruments and improved investment capacity across asset classes.

Addressing foreign investors and development finance institutions, Agama reaffirmed Nigeria’s openness to investment, assuring that the SEC remains committed to maintaining a transparent, principles-based regulatory environment aligned with global best practices.

He further called for enhanced collaboration among key financial regulators, including the Central Bank of Nigeria, Debt Management Office, National Insurance Commission, and National Pension Commission, stressing the need for policy coordination to present a unified and investor friendly framework.

Highlighting the broader significance of capital deployment, Agama noted that economic progress depends on how effectively societies channel resources into productive uses.

He added that Nigeria stands at a critical juncture, where decisions taken in the next few years will determine whether the country fully harnesses emerging global opportunities or misses out on them.