…Outlines Outlook For Capital Market In 2025
Over N2.7 trillion capital had been raised in the capital market by banks and other companies, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, disclosed on Monday.
Agama, who gave this figure while delivering his keynote address at the Commission’s 2024 Journalists Academy with the theme “Fintech: Leveraging Technology to Drive Capital Market Participation”, clarified that the figure, which included equity capital, excluded the amount raised by funds managers in the capital market.
According to him, out of the N2.7 trillion raised from the equities market, about N1.7 trillion was raised by banks through their recapitalisation exercise.
The capital market regulator harped on the importance of the workshop as it underscored the Commission’s shared responsibility in promoting transparency, confidence, and awareness within the Nigerian capital market.
Giving an update on the economy, he maintained that macroeconomic indicators had reflected notable shifts, noting that since the current management took over the leadership of the Commission it has taken significant steps at repositioning its operations.
The SEC boss listed some of the steps as including the creation of specialized departments to focus on some of the developments in the markets and ensure proper regulation, creation of a Fintech and Innovation Department and a Derivatives and Risk Management Department, creation of an office of Municipal Bond, Office of Business Advocacy and Capital Formation, as well as Office of Unclaimed Monies and Office of Power Supply.
The SEC DG highlighted the importance of these departments in regulating crypto-assets, derivatives, and forex CFDs, as well as tackling longstanding issues such as unclaimed dividends so as to address financial innovation, emerging risks and improve the service delivery of the Commission.
Agama noted the significant progress in registering Capital Market Operators (CMOs), including on-boarding FinTechs under the Commission’s Regulatory Incubation Programmes (RIP and ARIP).
He highlighted the efforts made by the SEC working with the Nigerian Financial Intelligence Unit (NFIU) to ensure Nigeria exits the FATF grey list adding that this is crucial for the development of the financial sector.
Also, Agama disclosed that SEC was among 11 MDAs across Nigeria that achieved 100 per cent implementation of recommended reforms, strengthening Nigeria’s business environment and ensuring it remains a model for regulatory excellence.
The Director-General further clarified: “We have made significant progress in registering Capital Market Operators (CMOs), including on-boarding FinTechs under our Regulatory Incubation Programmes (RIP and ARIP). This effort ensures that our regulatory framework is inclusive and forward-looking.
“As you are aware, we came on board with an important banking recapitalisation exercise which we can declare has been successful. About N1.7trn has been raised so far from the market. This exercise will enhance financial stability and bolster investor confidence and improve the Nigerian economy.
“The SEC is also actively working with the Nigerian Financial Intelligence Unit (NFIU) to ensure Nigeria exits the FATF grey list. This is crucial for the development of the financial sector. This collaborative effort when successful, will ensure the international financial credibility of the Nigerian financial system and avert economic sanctions.
“The Presidential Enabling Business Environment Council (PEBEC) set up a 90-day Regulatory Reform Accelerator Programme earlier in the year. The programme was meant to improve service delivery across MDAs and for us this speaks to attracting both foreign and domestic investors by improving disclosures and access to relevant information”, he added.
Agama also underscored the efforts of SEC to improving the capital markets in Nigeria by updating its enabling law, which is the Investment Securities Act 2007.
The Director-General highlighted the SEC’s approval of the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to tackle housing deficit in Nigeria by enabling affordable mortgage financing, which aligns with the federal government’s One Million Homes Initiative.
This is even as he reaffirmed the Commission’s commitment to implementing its Revised Capital Market Masterplan (2021-2025) by prioritising stakeholder engagement, awareness creation, capacity building, and developing regulatory frameworks that support innovative financial products.
Agama also used the opportunity to unveil a snapshot of the 2025 outlook of SEC. He said the emphasis for the Commission in 2025 is to enhance market transparency and confidence, leveraging financial technology to drive inclusion and innovation, and strengthening collaboration with domestic and international stakeholders to maintain financial stability.
The investment expert recognised the role of the media in shaping public perception and understanding of the capital market, stating that through accurate reporting and constructive critique, the media can build trust and confidence in Nigeria’s capital market.
