Capital Market Can Fund Nigeria’s Infrastructural Deficit – SEC

The director-general of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has described the capital market as being underutilised 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 noted 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.

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“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.”

Speaking on the programme, director, Treasury Capital Market & Investments at IFC, Tom Ceusters said “the purpose of today’s program is to educate mid-level regulators and market infrastructure participants to upskill the level of the capital markets in the respective countries. So far, we have educated 224 alumni from 56 countries, including 22 in Nigeria.”

“Nigeria being a critical partner, there was a need to educate mid-level regulators and market infrastructure participants.”

Chief operating officer and chief financial officer, Milken Institute, John Hunter said the regulator needs to drive finance to fund infrastructure deficits, saying “they must make the market attractive, look at all the basic elements of ease of doing business and examine what makes the country attractive and less attractive. Africa has the bargaining power. The huge population is an asset.”