The SEC Director General, Dr. Emomotimi Agama
The Securities and Exchange Commission (SEC) has revealed a major milestone in Nigeria’s financial markets, as Collective Investment Schemes (CIS) surged past the N3 trillion mark in 2024. Speaking at a media briefing in Abuja, the SEC Director General, Dr. Emomotimi Agama, highlighted the vital role CIS plays in mitigating investment risks and promoting financial inclusion.
Dr. Agama described CIS as an investment mechanism allowing individuals to diversify their portfolios without directly engaging in complex market dynamics. “With a collective investment scheme, you invest in a bucket of shares, diversifying your exposure across several companies. This reduces risk, stabilizes returns, and offers a professional approach to market uncertainties,” he explained.
He emphasized that CIS is particularly beneficial for Nigerians unfamiliar with the intricacies of the capital market, as fund managers make informed investment decisions on their behalf.
Beyond CIS, the capital market played a pivotal role in Nigeria’s economic development in 2024. Dr. Agama recalled the recapitalization directive issued by the Central Bank of Nigeria (CBN) for banks, a move that initially seemed daunting. However, the capital market rose to the challenge, raising over N2.2 trillion to support the financial sector. “The capital market is the backbone for long-term economic growth, enabling the recapitalization of banks and fostering stability,” he noted.
Dr. Agama also highlighted the market’s contribution to infrastructure development through government bond issuances, reiterating that no economy can thrive without robust infrastructure. “Long-term projects need long-term financing, and the capital market is the only place to secure such funds sustainably,” he stated.
Under his leadership, the SEC has introduced reforms to enhance efficiency and accessibility in the capital market. A significant achievement is the reduction of the time required for market approvals from up to two years to just 14 days. Leveraging technology, the SEC has launched e-offering platforms that enable Nigerians to invest seamlessly using their mobile phones, eliminating the need for physical visits to banks or brokers.
Reflecting on the progress made in just nine months, Dr. Agama expressed optimism about the future, particularly with the anticipated passage of the Investments and Securities Bill 2024. Once signed into law, this bill is expected to solidify the capital market’s role as a driver of national development.
“The Investments and Securities Bill 2024 is a comprehensive framework that addresses market regulation and development for the present and the future. Once it receives presidential assent, it will position the capital market as a critical tool for achieving Nigeria’s developmental goals,” he concluded.
Dr. Agama’s reflections underscore the transformative potential of the capital market in fostering economic growth and resilience, positioning it as a cornerstone of Nigeria’s financial system.
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