A resilient economy is anchored by its ability to turn domestic savings into investments that stimulate growth.
Director General of Securities and Exchange Commission, SEC, Dr. Emomotimi Agama gave this stance while speaking at the Institute of Capital Market Registrars, ICMR’s 13th Annual Conference, Investiture of Fellows, Induction of Associates and Annual General Meeting at the weekend.
He said investing in Nigerian companies minimizes reliance on foreign capital and builds self-sufficiency, which is critical in times of global uncertainty.
Agama said, “By channelling our resources into Nigerian enterprises, we lay the groundwork for a sustainable, resilient growth model. When Nigerians invest locally, we are investing in the future of our nation. To further financial stability, we must bolster the regulatory framework for venture capital and private equity firms, enhancing their operational efficiencies and attractiveness to investors.
“A robust VC and PE sector will catalyse growth in emerging sectors and empower Nigeria’s entrepreneurial ecosystem. This foundation will also attract local and international investors, injecting much-needed capital into the Nigerian economy.”
He emphasized on more commitment to building a capital market that drives wealth creation, fosters economic stability, and serves as a source of opportunity and growth for all Nigerians.
“Moreover, a well-regulated market enhances investor confidence, encouraging both local and international participation. When investors trust that our market operates with integrity, they are more likely to commit long-term capital, which stabilises the economy and drives a shared vision of prosperity.
“Our rules and regulations improve market transparency and investor protection. Thus, the capital market is both an engine of growth and a cornerstone of stability, crucial to Nigeria’s journey toward economic independence and resilience”, he said.
President and Chairman of Council, ICMR, Mr. Oluseyi Owoturo speaking on the theme of this year’s conference, “Enhancing Financial Stability in the Nigerian Economy: Strategic Role of the Capital Market in Wealth Creation”, said the key objectives of the conference are to assess the current national economic landscape; identify key challenges facing financial stability, propose policy recommendations, suggestion, actionable policy measures to enhance financial stability.
“The capital market is basically here for wealth creation. A company called Aradi. That company came to seek money from the Capital Market around 2001 and was listed recently on the NGX and added over 3 trillion to the capitalization of the NGX.
“So, for us to grow as an economy, we need to find a pathway for companies seeking to expand, to raise capital. The easiest way, I mean, the most sustainable way to actually raise capital is through the capital market because that’s the only place to get patient capital.
“So, imagine a young entrepreneur wishing to build a skill or having a startup. It’s not practical for the entrepreneur to go to a bank to go and take a loan because as soon as you take that loan, you start paying the bills. When you’re starting a business, when you’re trying to scale, oftentimes, the money you need, you need people who are patient capital.
“So, every economy that has grown has relied on the capital market. So, even the government itself. One of our presenters spoken about Saudi Arabia, and when they Listed Aramco, less than five per cent of Aramco was listed and it added $2 trillion to the Saudi market capitalization. So, that is the power of the capital market.
“The dividend for the year after they were listed was $20 billion. That money was more than Nigeria’s budget for that year. So, that gives you an idea of what the capital market can do to jumpstart or create that stability that we need in the economy”, he explained.
Speaking on “Restoring Confidence in the Capital Market: The Strategic Role of Registrars”, the Managing Director and Chief Executive Officer of Nigerian Exchange Limited, Jude Chiemeka said despite macroeconomic pressures, the Nigerian capital market has demonstrated resilience, evidenced by the impressive gains in the NGX All-Share Index (30.04% YTD) with an equities market capitalization of ₦58.92 Trillion.
He said, “This performance highlights the underlying strength and growth potential of our capital market. Attractive yields in the bond market provide alternatives to equities, broadening the appeal of the capital market for investors seeking diversified and secure returns.
“The ongoing bank recapitalization exercise showcase the market’s role as a reliable funding source, enhancing banking sector stability and signaling market maturity. These achievements further reinforce the importance of a high-trust environment, underscoring why it is crucial to protect and promote investor confidence.”
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