Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama has said the capital market has the depth to finance the country’s huge infrastructure deficit.
According to him, considering the contribution of the capital market in mobilising funds for other sectors of the economy in achieving their objectives, the capital market is capable, if adequate awareness is created, to finance Nigeria’s infrastructure deficit.
Agama spoke during a stakeholders programme with the theme: Financing the future in Nigeria, organised by the International Financing Corporation (IFC) and Milken Institute in Lagos.
He noted that there is need for more investors in education from operators in the market.
He said the regulator and the operators need to further strengthen the base, which is the capital market, where fund is raised, noting that market-creative initiatives must be encouraged.
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“We have the capacity. Debt with regards to capital market in Nigeria has not been explored. It is because people do not know and that is why we are out there letting them know about the capital market. The capital market is the barometer of any economy.
“Nigeria has the capacity to be able to fund the capital market. To be able to achieve this goal of the capital market, and actually mainstreaming the capital market to the national economy. Our infrastructure needs is huge, in every aspect. Considering that we have 36 states in the country and the FCT. And requires funds for roads, health services, airport, education, agriculture, it’s all encompassing, so we are looking beyond $50 billion dollars to be able to deal with this infrastructure deficits,” Agama said.
Speaking on the programme, Mr. Tom Ceusters, Director, Treasury Capital Market & Investments at IFC, said Nigeria being a critical partner, there was need to educate mid-level regulators and market infrastructure participants.
“To upscale the level of the capital market in respective countries. So far, we have educated 224 Alumni from 56 countries, including 22 in Nigeria,” Ceusters said.
According to him, the IFC is satisfied after eight years of its partnership with the domestic economy.
Said he: “I think the results of the programme are very tangible. As we can see with the Director General of the SEC. He is an Alumni of the programme six to seven years ago. And we see it in many places, where participants in the programme make the best of career, and have impact on respective regulation in the countries they operate in.
“We assess changes in regulation. How many proposals are being made, that’s how we assess the impact of the programme, and that has been very impactful in terms of advancement in introduction of new products into the market; and regulation in terms of capital market development”.
Chief Operating Officer, Milken Institute, Mr. John Hunter, said the programme is a good start.
On what the regulator needs to do to drive finance to fund infrastructure deficits, he advised that, “they must make the market attractive, look at all the basic elements of ease of doing business and examine what makes you attractive and less attractive.
“Africa has the bargaining power. The huge population is an asset. They have a good story to tell, unlike the perception out there”.