SEC DG warns shortage of credible issuers could inflate asset prices

The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has warned that a shortage of credible issuers in Nigeria’s capital market could drive up the prices of existing assets rather than support genuine market development.

Agama gave the warning on Friday, October 9, 2026, while delivering the University of Ibadan Alumni Association’s 2026 Annual Public Service Lecture in Ibadan, Oyo State, themed “First and Best — But Whose Capital Built It? Rethinking How Nigeria Funds Its Own Future.”

He argued that Nigeria has developed a pattern of consuming resources that could otherwise be invested in long-term, income-generating assets, citing the University of Ibadan’s historical dependence on external funding as an example of the country’s broader capital mobilisation challenge.

Agama warns against asset price inflation

Agama cautioned that expanding Nigeria’s capital market without increasing the number of credible institutions seeking investment could create excessive demand for a limited pool of assets, resulting in price inflation rather than sustainable growth.

He explained that the capital market faces a more fundamental challenge than attracting additional investors, stressing that the availability of institutions with strong governance, transparent financial records and credible investment structures remains inadequate.

• “A deep market with no supply of credible issuers simply bids up the price of the few assets that exist. That is not development; that is inflation with better manners,” he said.
• “The binding constraint on Nigeria’s capital market today is not the number of investors. It is the number of institutions capable of being invested in — organisations disciplined enough to be rated, transparent enough to be examined, and governed well enough to keep a promise for fifteen years.”

The SEC DG also noted that retail investor participation is expanding at an unprecedented pace, with the capital market targeting 30 million investors by 2030.

His remarks highlighted the need to increase the supply of credible investment opportunities alongside efforts to attract more investors into Nigeria’s capital market.

Nigeria targets N750 trillion capital market

Nigeria’s Capital Market Masterplan outlines an ambitious expansion of the country’s capital market from approximately N250 trillion to N750 trillion, as regulators pursue reforms aimed at improving market efficiency, attracting investment and increasing participation.

• Several initiatives have been introduced to modernise market infrastructure and strengthen investor confidence, including the transition to a faster settlement cycle for securities transactions.
• In March 2026, Nairametrics reported that Nigeria’s capital market would transition to a T+1 settlement cycle from May 29, reducing the time required to complete securities transactions from two business days to one.
• However, in guidance published on May 18, the SEC clarified that the new settlement framework for equities and commodities transactions would take effect on Monday, June 1, 2026.

The directive required market operators and other stakeholders to align their systems and procedures with the revised settlement framework, which was intended to improve liquidity, reduce counterparty risks and bring Nigeria’s capital market closer to international standards.

The Central Securities Clearing System (CSCS) subsequently announced the official launch of the T+1 settlement cycle on June 1, marking the completion of the transition from the previous two-day settlement framework.

SEC targets wider retail investor participation

Beyond improving transaction efficiency, the SEC is pursuing broader retail investor participation and leveraging technology to make Nigeria’s capital market more accessible to investors across different income groups.

• The regulator is also preparing to introduce additional initiatives aimed at encouraging domestic savings and expanding investment opportunities in the market.
• In September, Nairametrics reported that the SEC plans to launch the Capital Market Master Plan 2.0 at the 2026 National Capital Market Conference, scheduled for October 19 in Abuja.
• The conference will also feature the launch of a National Savings Scheme intended to encourage greater domestic savings and investment participation.
• Meanwhile, the Dangote Petroleum Refinery and Petrochemicals (DPRP) is undertaking an initial public offering valued at approximately N2.15 trillion ($1.6 billion), offering 4.1 billion shares at N525 each, with subscriptions running from September 14 to October 13, 2026.

The company is targeting participation from up to 10 million Nigerian investors through a technology-driven subscription process integrated with the Bank Verification Number (BVN) system, aimed at simplifying access to equity investment.

The offering illustrates efforts to expand the supply of investable assets alongside growing retail participation, an issue central to Agama’s warning about increasing market liquidity without a corresponding rise in credible issuers.