Capital Market Vital to Nigeria’s $1trn Economy Ambition

Samuel Mobolaji

The Minister of Finance and coordinating minister of the Economy, Mr. Wale Edun, has underscored the invaluable role of the capital market in realising Nigeria’s ambitious vision of establishing a $1 trillion economy.

He stated this at the Capital Market Committee (CMC) meeting held yesterday in Lagos. Edun, represented by the Minister of State for Finance, Dr. Doris Uzoka-Anite, outlined the market’s significant transformation since 2015.

He stated that key improvements include enhanced governance structures, the introduction of innovative products and platforms, a more robust regulatory environment, and increased investor participation.

According to him, the success of the Capital Market Master Plan (2015-2025) has been pivotal, boosting the market’s contribution to the national economy while fostering a sophisticated market structure and improving competitiveness.

Edun highlighted the updated plan’s focus on digitalisation, innovation, sustainability, inclusivity, and capital formation—all essential components of the broader economic reform agenda.

With the recent passage of a new act aimed at modernising the legal and regulatory framework, Edun expressed optimism about the potential for deeper market participation and robust regulatory coordination.

He emphasised the government’s dedication to fostering an environment conducive to private sector innovation, promoting a fair and transparent marketplace.

He noted that the capital market is poised to contribute significantly to the economy, not only by facilitating capital raising but also by acting as a vehicle for wealth creation, promoting economic inclusion, and enhancing long-term national resilience.

The minister pointed out that regulatory reforms by the Securities and Exchange Commission (SEC), including its membership in the GBMC Network of IOSCO to advance ISSB Standards, have contributed to the domestic economy’s impressive growth in 2024, driven by a strong performance in the fourth quarter and an enhanced fiscal position.

The Director-General of the SEC, Dr. Emomotimi Agama, reiterated the commission’s commitment to regulatory reforms and the advancement of the capital market, while welcoming the enactment of the Investment and Securities Act (ISA) 2025 as the dawn of a transformative phase for the sector.

Agama emphasised the importance of engaging stakeholders and ensuring a broad understanding of the new law, which aims to foster innovation and compliance. He also highlighted the need to restore investor confidence, provide timely support to aggrieved investors, and create an inclusive platform for Nigerians to participate in wealth creation.

SEC DG stressed the importance of fostering regulatory efficiency, promoting market integrity, and safeguarding investors.

He also highlighted initiatives aimed at enhancing financial inclusion and investor education, particularly for women, youth, and grassroots communities, saying that the SEC is committed to leveraging technology-driven solutions, including an e-survey to evaluate the adoption of emerging technologies in the market.

Agama reaffirmed the SEC’s dedication to promoting growth, transparency, and sustainability within the capital market. The unveiling of the ISA Act 2025 was a highlight of the CMC meeting, marking an important step forward for Nigeria’s financial landscape.