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The Director General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has described the capital market as grossly undersold in helping to finance the humongous infrastructure deficit in the domestic economy.
Dr Agama said considering the manifold contributions of the capital market in mobilising funds for other sectors of the economy to achieve their objectives, the capital market is capable, if adequately harnessed, of being created to finance Nigeria’s infrastructure deficit exposure.
The SEC boss, who made these remarks while moderating a panel session at the Day-two stakeholders program themed “Financing the Future in Nigeria,” organised by the duo of the International Financing Corporation (IFC) and Milken Institute, further noted that there is a need for more investor education from operators in the market.
According to him, the regulator and the operators need to further strengthen the base, which is the capital market, where funds are raised, noting that market-creative initiatives must be encouraged.
According to the SEC DG, “We have the capacity. Debt with regard to the capital market in Nigeria has not been explored. It is because people do not know, and that is why we are out there letting them know about the capital market. The capital market is the barometer of any economy.
“Nigeria has the capacity to be able to fund the capital market, to be able to achieve this goal of the capital market, and actually mainstreaming the capital market to the national economy. Our infrastructure needs are huge in every aspect considering that we have 36 states in the country and the FCT requires funds for roads, health services, airports, education, and agriculture; it’s all-encompassing, so we are looking beyond $50 billion to be able to deal with these infrastructure deficits.
“President of the Federal Republic of Nigeria, President Bola Tinubu, has asked us to grow a one trillion dollar economy. That is possible in the capital market, via the mining sector, the oil & gas industry, and via construction. It is possible via housing and development. It is possible in every way. If you imagine the amount of money we need to galvanise that, then you know it is possible. No is not an answer to us in the capital market because it is possible.”.
Speaking on the programme, Mr. Tom Ceusters, Director, Treasury Capital Market & Investments at IFC, said Nigeria being a critical partner, there was a need to educate mid-level regulators and market infrastructure participants.
“To upscale the level of the capital market in respective countries. So far, we have educated 224 alumni from 56 countries, including 22 in Nigeria,” he stated.
According to him, the IFC is satisfied after 8 years of its partnership with the domestic economy, saying, “I think the results of the programme are very tangible. As we can see with the Director General of the SEC. He was an Alumni of the programme 6-7 years ago. And we see it in many places, where participants in the programme make the best of their careers and have an impact on respective regulations in the countries they operate in.
“We assess changes in regulation. How many proposals are being made? That’s how we assess the impact of the programme, and that has been very impactful in terms of advancement in the introduction of new products into the market and regulation in terms of capital market development.
In his comment, Mr John Hunter, Chief Operating Officer and Chief Financial Officer, Milken Institute, said the programme is a good start. “I think good conversation has taken place. But it depends on the action taken on the conversation.”
On what the regulator needs to do to drive finance to fund infrastructure deficits, he advised that, “They must make the market attractive, look at all the basic elements of ease of doing business and examine what makes you attractive and less attractive.
Africa has the bargaining power. The huge population is an asset. They have a good story to tell, unlike the perception out there.”
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