•Sees new Investment Act as stimulant to economic growth

Ndubuisi Francis in Abuja

Nigerian banks have so far raised N2.4 trillion through the capital market in the ongoing recapitalisation of the banking sector directed by the Central Bank of Nigeria (CBN). Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, disclosed this in an interview in Abuja.

Agama stated that the capital market was strong enough to provide the much-needed finance for various sectors of the economy.

According to him, the Nigerian capital market is one of the strongest globally, with Return on Investment (RoI) being one of the best in the world last year.

Agama said, “The capital market is strong enough to provide the much-needed funding needs for various sectors of the economy.

“It is one of the strongest you can think about, our RoI was one of the best in the world for last year. When you look at what the capital market has already done with the bank recapitalisation, which is still ongoing, you can agree with me that our market is strong.

“Today, the Nigerian capital market has been able to facilitate the raising of capital by banks to the tune of N2.4 trillion, and still counting. This has never happened in the history of this country.

The SEC director-general added, “Our responsibility is to facilitate growth, facilitate exchanges, and to facilitate the movement of capital and that we have done successfully with this exercise.

“Other institutions are also coming to raise capital. The Ministry of Finance Incorporated recently raised N250 billion for housing facilitation in Nigeria.

“This tells you the capital market is resilient and it is showing in the activities that are happening in the capital market.

“In terms of market recapitalisation, it has moved to over N65 trillion and that tells you that the capital market in Nigeria is moving forward.”

Agama stated that the Investments and Securities Act (ISA) 2025 recently assented to by President Bola Tinubu was a game changer that had the strong potential of stimulating growth for the Nigerian capital market and the economy.

He said the new law was revolutionary in all respects, as it provided SEC the opportunity of retaining its signatory A status with  the International Organisation of Securities Commission.

Agama said that was significant because it allowed other countries to benchmark the Nigerian SEC and capital market with other jurisdictions, which will drive friendly investments and investors into the Nigerian capital market as well as expand the capital market reach in Nigeria.

The SEC director-gneral said another highlight of the new law was the increasing opportunities available for raising capital in the Nigerian capital market as well as the inclusion of the regulation of online forex in which a lot of Nigerians were involved, and introduction of legislation that spoke to digital assets regulation in Nigeria.

Agama stated, “This is huge because in the Nigerian population, the youths that are involved in this space are many, so providing clarity and providing legal framework and background to this is very essential for our growth.

“Beyond all of that, we also have the Legal Entity Identifier being introduced into the Nigerian law, which speaks to derivatives transactions.

“The commodities ecosystem is well featured in this law being able to provide regulation regarding the commodities ecosystem from the spot market onto the derivative market and the secondary market.

“We have also been able to remove, by this law, restrictions by states and local governments in their ability to raise capital and bring development to their states and, of course, municipal areas. So, this, for us, is very important.”

The SEC chief executive explained that the provisions of the ISA 2025 were huge and fundamental, stressing that they are critical in creating a dynamic, resilient and strong capital market that will help in the development of the country’s economy and facilitate Tinubu’s agenda for a one trillion-dollar economy.

Agama said the essence of the law was actually to create a dynamic, inclusive and resilient capital market for the economy, adding that the commission is committed to moving the capital market and the Nigerian economy forward.

He commended Tinubu for his unwavering support, and expressed appreciation to the National Assembly as well as Minister of Finance and Minister of State for Finance for their efforts.

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