The director-general of the Securities and Exchange Commission (SEC), Emomotimi Agama, has described the capital market as being underutilized in helping to finance the infrastructure deficit in the domestic economy.
Agama said, “Considering the manifold contribution of the capital market in mobilising funds for other sectors of the economy in achieving their objectives, the capital market is capable, if adequate awareness is created to finance Nigeria’s Infrastructure deficit exposure.
He stated this while moderating a panel session at the Day-2 of a stakeholder’s programme themed; ‘Financing the future in Nigeria’, organised by the International Financing Corporation (IFC) and Milken Institute in Lagos at the weekend.
He added that there is a need for more investor education from operators in the market, saying that the regulator and the operators need to further strengthen the base, which is the capital market, where funds are raised.
According to the SEC DG, we have the capacity. Debt with regards 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 state in the country and the FCT. And requires funds for roads, health services, Airport, education, Agriculture, it is all encompassing, so we are looking beyond $50 billion to be able to deal with these infrastructure deficits.”
Also speaking at the event, director of treasury capital market and investments at IFC, Tom Ceusters, said Nigeria is a critical partner and emphasised the need to educate mid-level regulators and market infrastructure participants.
“We have educated 224 alumni from 56 countries, including 22 in Nigeria. The results of the programme are tangible, with alumni like the SEC DG making significant contributions to regulation and market development,” Ceusters said.
On his part, Chief operating officer and chief financial officer, Milken Institute, John Hunter said the regulator needs to drive finance to fund infrastructure deficits, noting that the programme has facilitated important conversations but stressed that real progress will depend on actions taken.
Hunter advised regulators to focus on making the market attractive by addressing the ease of doing business.
