The Securities and Exchange Commission (SEC) is working to streamline regulatory processes to facilitate capital raising for infrastructure projects while ensuring robust investor protection, according to its Director- General, Dr. Emomotimi Agama.
This is coming as Nigeria faces a significant infrastructure deficit, estimated at $3 trillion by the World Bank.
Speaking on a Sub-Theme: Nigeria: Funding Economic Transformation Through The Nigerian Capital Market at the WorldStage Economic Summit (WES) 2014 on Wednesday, September 25, 2024 in Lagos, Agama said bridging the infrastructure gap will require a coordinated effort between the public and private sectors.
“Our goal is to establish Nigeria’s capital market as the premier destination for infrastructure financing in Africa,” he said.
Represented at the WES 2024 with the Theme: Nigeria: Setting A Stage For Business And Economic Recovery by Mr. Tunde Kamali, Director, Office of of the Director General, Agama said financing of critical infrastructure was a top priority for Nigeria’s economic recovery as the capital market offers an ideal mechanism for funding large-scale projects, as demonstrated by successful infrastructure bonds and public-private partnerships (PPPs).
“Through the activities of foreign investors, the market is increasingly becoming more efficient and the foreign capital inflows have been used to augment the country’s external reserve with attendant benefits on the exchange rate, all these are geared towards the development of the Nigerian economy,” he said.
At the WES 2024 which also attracted top executives and academicians including Dr. Aminu Maida, Executive Vice Chairman, Nigerian Communications Commission (NCC); Khalil Suleiman Halilu, Executive Vice Chairman/Chief Executive, National Agency for Science and Engineering Infrastructure (NASENI); Prof Diran Akinleye, Head of Department of Economics, University of Lagos (UNILAG); Prof Yaqub Jameelah Omolara, Head of Department of Economics, Lagos State University (LASU), the SEC boss noted that government patronage of the capital market can significantly benefit both the market and the broader economy.
“By issuing bonds or long-term securities, the government enhances market depth and liquidity, attracting institutional investors seeking stable returns,” Agama said.
“This establishes a benchmark for pricing private-sector debt, boosting investor confidence and making the capital market more predictable.
“Increased government involvement signals stability, encouraging foreign direct and portfolio investment while promoting innovation and improved regulatory frameworks. Over time, government participation can lower borrowing costs for both the public and private sectors, fostering economic growth by channelling funds into key infrastructure and development projects. This stimulates the broader economy, creating jobs and enhancing productivity, which in turn benefits the capital market.
