The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has introduced a comprehensive five-pillar reform agenda aimed at transforming Nigeria’s capital market into a key driver of national development.
Speaking at the Emerging Africa Capital Limited Investor Summit & Awards, Agama acknowledged the progress made in recent years but emphasized that significant structural gaps still hinder the full potential of the country’s capital market.
Agama highlighted that Nigeria’s infrastructure deficit, estimated at over $100 billion, necessitates a well-functioning capital market, not just as a luxury, but as an existential necessity for economic growth and development.
What he is saying
Agama pointed out that Nigeria’s market capitalization, when compared to GDP, is still below the benchmarks of peer economies.
Despite achieving milestones, such as increased market capitalization and attracting renewed investor interest, several challenges remain, particularly in broadening retail investor participation, expanding the derivatives market, and addressing the gap between the financing needed for infrastructure projects and what the market currently provides.
- “Our market capitalization, relative to GDP, remains below the benchmarks of our peer economies,” he said.
- “Retail investor participation is still too thin. Our derivatives market is nascent. And the gap between the volume of infrastructure financing that Nigeria needs and what our market currently delivers remains a significant structural challenge.”
Agama noted that while the Nigerian Exchange Group has made strides, the market has yet to unlock its full potential. He acknowledged the resilience shown through innovations like electronic offerings, a deepened bond market, and expanded alternative investment platforms, but emphasized the need for further measures to channel capital into critical sectors.
Get up to speed
To address these challenges, Agama outlined the SEC’s five-pillar reform agenda designed to transform Nigeria’s capital market into a fully functional, dynamic economic instrument:
- Market Infrastructure and Technology: This involves modernizing trading systems, accelerating dematerialization, and building robust data infrastructure to attract global investors.
- Product Innovation and Market Depth: Expanding the range of financial instruments such as infrastructure bonds, green bonds, sukuk, REITs, venture capital funds, and private equity frameworks.
- Investor Protection and Market Integrity: Strengthening enforcement, governance, investor education, and disclosure to build trust and confidence in the market.
- International Integration: Deepening Nigeria’s engagement with global regulators and institutions to ensure Nigeria is integrated into global capital flows.
- Inclusion and Domestic Capacity: Broadening retail participation and enhancing the capacity of domestic institutional investors, including pension funds and insurers.
- “This is not a counsel of despair,” Agama emphasized. “It is a diagnosis that informs strategy. And at the SEC Nigeria, we are prosecuting that strategy with clarity of purpose and urgency of execution.”
More insight
Capital markets, according to Agama, play a crucial role in economic development by acting as a bridge between capital holders and project developers. They facilitate the flow of funds into productive sectors, enabling economic growth, job creation, and prosperity.
Agama likened capital markets to the circulatory system of modern economies:
- “When they function well, oxygen flows freely to every productive corner of the economic body. When they malfunction, entire sectors suffer capital starvation, growth stalls, and opportunity is lost. The quality of a country’s capital market is not just a financial metric—it is a barometer of a nation’s development ambitions and institutional maturity.”
What you should know
The contribution of Nigeria’s capital market to GDP has seen a remarkable surge, reaching 33% in 2025.
- The market capitalization has risen sharply to over N123.93 trillion, marking a 125% increase from about N55 trillion in April 2024, as disclosed by the SEC. This growth reflects investor confidence and resilience under the current administration.
- However, Agama cautioned that maintaining this momentum will require deeper liquidity, improved trading efficiency, and a more stable market to ensure sustained growth and investor confidence.
Agama’s vision for Nigeria’s capital market is clear: It is about positioning the country’s financial systems for long-term growth, transforming the sector into a key instrument for driving national economic success.
