Capital Market Experts Chart Path for Nigeria’s Economic Growth
A resilient economy relies on transforming domestic savings into investments that drive sustainable growth, as emphasized by Dr. Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC), at the Institute of Capital Market Registrars (ICMR) 13th Annual Conference held over the weekend. He highlighted that investing in Nigerian enterprises reduces dependence on foreign capital and fosters economic independence, particularly in uncertain global times.
“By channelling our resources into Nigerian enterprises, we lay the groundwork for a sustainable, resilient growth model,” Agama stated. “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,” he explained, noting that this foundation would draw both local and international capital into the economy.
Agama also stressed the need for commitment to a capital market that drives wealth creation, economic stability, and opportunities for all Nigerians. “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,” he noted.
The conference, themed “Enhancing Financial Stability in the Nigerian Economy: Strategic Role of the Capital Market in Wealth Creation,” gathered insights from various stakeholders. Mr. Oluseyi Owoturo, President and Chairman of ICMR, underscored the capital market’s role in driving wealth creation and shared a success story about the company Aradi, which sought funding through the capital market and now contributes over ₦3 trillion to the NGX.
“The capital market is fundamentally about wealth creation,” Owoturo stated, highlighting the benefits of patient capital for economic growth. “Every economy that has grown has relied on the capital market… The dividend for the year after [Aramco] was listed was $20 billion, more than Nigeria’s budget for that year. That’s the power of the capital market,” he explained, citing international examples to show the potential economic benefits of a robust capital market.
Jude Chiemeka, Managing Director & CEO of Nigerian Exchange Limited, spoke on the resilience of the Nigerian capital market amid macroeconomic pressures. Despite challenges, the NGX All-Share Index recorded a 30.04% increase year-to-date, with an equities market capitalization of ₦58.92 trillion. “This performance highlights the underlying strength and growth potential of our capital market,” he stated. “The ongoing bank recapitalization exercise showcases the market’s role as a reliable funding source, enhancing banking sector stability and signaling market maturity.”
This gathering of experts reiterated the capital market’s strategic importance in fostering economic stability, building investor confidence, and creating pathways for sustainable economic growth in Nigeria.
