SEC Maps Path to $1 Trillion Economy by 2030 Through Capital Market Growth

The Securities and Exchange Commission (SEC) has reiterated the pivotal role of Nigeria’s capital market in achieving a $1 trillion economy by 2030, aligning with President Bola Tinubu’s economic agenda. Dr. Emomotimi Agama, Director General of the SEC, emphasized this vision during the 2024 SEC Journalists Academy programme held in Lagos.

The event, themed “The Role of the Capital Market in Driving Nigeria’s $1 Trillion Economy,” focused on strategies to leverage the capital market for national economic transformation. Agama, represented by Mr. John Abel Briggs, Head of the SEC Lagos Office, highlighted the capital market as a key driver of economic progress by mobilizing resources for productive purposes.

Economic Backbone
Agama stated that achieving a $1 trillion economy requires harnessing the capital market’s potential to finance critical sectors, from infrastructure to industrial development. He noted that innovative financial instruments such as sovereign bonds and Sukuk have already demonstrated success in funding infrastructure projects across Nigeria’s six geopolitical zones.

“The issuance of green bonds has positioned the capital market as a critical tool for supporting Nigeria’s transition to a low-carbon economy, addressing infrastructure gaps, and promoting environmental sustainability,” he added.

Empowering the Private Sector
Highlighting private sector contributions, Agama pointed to companies like MTN Nigeria, Dangote Cement, and BUA Group, which have leveraged the capital market to expand operations, attract investment, and boost job creation. He also noted the rise of collective investment schemes (CIS), retail bonds, and fintech platforms that have democratized wealth creation and broadened market access for Nigerians.

Sub-National Impact
The SEC DG also underscored the importance of state governments in leveraging the capital market. States such as Lagos and Ogun have used bonds to fund education, healthcare, and infrastructure projects, fostering accountability and transparency. “Expanding this model across more states could unlock unprecedented development, particularly when paired with public-private partnerships,” he said.

Challenges and Opportunities
Despite its successes, Agama acknowledged challenges such as low investor participation, regulatory bottlenecks, and macroeconomic uncertainties. However, he expressed optimism, citing ongoing efforts to improve market liquidity, streamline listing requirements, and integrate fintech innovations to attract both local and foreign investors.

Technological Advancements
During the event, Dr. Akeem Oyewale, CEO of Marble Capital Limited, emphasized the need to attract youth to the capital market through technology. He identified strategies such as diversifying the economy, investing in digital infrastructure, and leveraging AI and blockchain technologies to spur growth and innovation.

Market Performance in 2024
Mr. Olatunde Amolegbe, Managing Director of Arthur Stephens Management Limited, presented a review of the Nigerian capital market’s 2024 performance. The NGX All-Share Index grew by 31.34% year-to-date, with market capitalization rising to ₦59.53 trillion. Notable developments included the listing of Transcorp Power Plc, which added ₦1.8 trillion to market value.

While economic challenges such as inflation and currency depreciation moderated mid-year gains, the insurance and industrial goods sectors outperformed, with the NGX Insurance Index achieving a remarkable 67.3% growth.

Future Outlook
Looking ahead, Amolegbe highlighted opportunities to deepen market access through initiatives like the NGX’s USSD platform (*5474#), which enhances real-time investor engagement and financial literacy.

The SEC affirmed its commitment to fostering an inclusive, efficient, and competitive capital market, capable of mobilizing resources and creating wealth for all Nigerians. By aligning policies and promoting innovation, the commission envisions a capital market that drives Nigeria toward its $1 trillion economy goal by 2030.