Business
$1trn economy: SEC DG lists factor constraining capital market’s potential
Securities and Exchange Commission (SEC) has identified limited investor participation, regulatory hurdles and macroeconomic instability as key obstacles hindering the capital market’s contribution to the nation’s one trillion dollar economic goal.
The Director-General of SEC, Dr Emomotimi Agama, said this at the 2024 SEC Journalists Academy held in Tuesday in Lagos.
Agama, represented by SEC’s Lagos Zonal Director, Mr John Briggs, spoke on the theme: “The Role of the Capital Market in Driving Nigeria’s One Trillion Dollar Economy”.
He said that these challenges must be addressed, to achieve the full potential of the capital market for the one trillion dollar economy.
Agama, however, said the capital market, in spite of these challenges, had helped in developing the nation’s economy.
He noted that the Federal Government had raised significant capital, by issuing six Sukuk to fund road projects across the six geo-political zones.
The director-general emphasised the need for a vibrant capital market in achieving the federal government’s target.
Agama noted that the journey demands collective effort from policymakers, ensuring an enabling environment and businesses leveraging market opportunities.
According to him, more importantly, it involves journalists who communicate the market’s value to the broader public.
“Achieving a one trillion dollar economy is not merely an aspirational goal; it is a necessity for the prosperity and resilience of Nigeria.
“The capital market, as the financial backbone of our economy, is poised to drive this transformation,” he said.
He added that a significant pathway to economic transformation lies in financing critical national projects, especially in infrastructure.
The director-general stated that Nigeria had already demonstrated how the capital market could fund these needs through innovative instruments like sovereign bonds and a number of Sukuk.
The SEC boss said this innovative funding approach reduced the reliance on external borrowing while driving job creation, improved logistics and regional integration.
He added that the issuance of green bonds had further cemented the role of the capital market in supporting Nigeria’s transition to a low-carbon economy, addressing both infrastructure and environmental sustainability.
He said that the listing of firms such as Dangote Cement and BUA Group underscores how the capital market supports industrial growth and job creation.
Agama said: “The total market capitalisation of the Nigerian Exchange Limited stood at N60 trillion by December 13, a testament to the growing role of the private sector in driving national economic outcomes.
“One of the most remarkable opportunities within the capital market is its ability to democratise wealth creation.
“This is through vehicles like collective investment schemes, retail bonds, and exchange-traded funds; the market provides access to financial products for Nigerians across income levels.
“Beyond government financing, the capital market is a vital enabler of private sector growth.”
He added that companies in Nigeria had utilised the market to raise capital, expand operations, and compete globally.
“A prime example is MTN Nigeria, whose public offering in 2021 attracted significant local investor participation, broadening its shareholder base while showcasing the strength of our market.
“As we navigate the complexities of Nigeria’s economic landscape, the capital market emerges as a cornerstone in the pursuit of sustainable growth and development.
“The capital market is the engine that drives economic progress by channeling resources from savers to those who need capital for productive use.
“Globally, countries that have achieved economic milestones, whether in industrialisation, infrastructure, or innovation, have relied heavily on the capital market to mobilise and allocate resources efficiently.
“However, through concerted efforts by stakeholders, including the Securities and Exchange Commission, market operators, and policymakers, we are laying the foundation for an inclusive, efficient, and globally competitive capital market,” Agama said.
According to him, the rise of the retail bond market has enabled ordinary Nigerians to participate in the nation’s economic growth.
The director-general said that the federal government introduced the Savings Bond in a bid to expand the retail investor base in the market and was well received by investors in recent times.
He mentioned that the introduction of fintech platforms had further simplified access to investment opportunities, driving financial literacy and inclusion.
Agama said numerous retail investors actively participate in the Nigerian capital market, emphasising the government’s commitment to growing the participation.
He noted that the role of the capital market also extends to state governments, offering a sustainable avenue for financing projects.
The DG added that sub-nationals like Lagos, and Ogun states, among others, had leveraged bond issuances to fund infrastructure, education, and healthcare projects.
“These bonds not only enable states to execute developmental projects but also foster accountability and transparency, as market discipline demands robust reporting and monitoring mechanisms.
“Expanding this model across more states could unlock development at unprecedented scales, especially when paired with public-private partnerships.
“However, through concerted efforts by stakeholders, including the Securities and Exchange Commission, market operators, and policymakers, we are laying the foundation for an inclusive, efficient, and globally competitive capital market,”he said.
Agama urged journalists, as custodians of public knowledge, to amplify the capital market’s impact by shaping narratives that would inspire trust and participation.(NAN)
Aliko Dangote, chairman of Dangote Group, has alleged that his cement factory in Itori, Ogun state, was demolished twice during the tenure of Ibikunle Amosun, former governor of the state, forcing his company to abandon the investment in the area.
Dangote spoke on Monday while on a courtesy visit to Dapo Abiodun, governor of Ogun, at the government house in Abeokuta.
The billionaire announced the reconstruction of the factory and his renewed commitment to investing in Ogun State.
“Our factory at Itori was pulled down twice. When we started the second time, they did not only demolish the factory but also the fence, so we left,” Dangote said.
“But right now, because of His Excellency, our governor, Prince Dapo Abiodun, we are back. When you get to the factory, you will be surprised at what we have done.”
He attributed his return to Abiodun’s investor-friendly policies and support for the private sector, which he said had created a conducive environment for businesses to thrive.
Dangote also announced plans to revive the abandoned Olokola Free Trade Zone (OKFTZ) project and construct the largest port in Nigeria in collaboration with the state government.
He further said two new lines of a 6.0 million metric tonnes per annum cement plant had been constructed at Itori, adding to the existing 12 million metric tonnes per annum plant in Ibeshe.
He said it will position Ogun state as the largest cement-producing hub in Africa.
“With the contributions of other cement producers in the state, Ogun remains far ahead of other countries across Africa in terms of cement production,” he said.
Dangote also said investment in the manufacturing of the product had made the nation self-sufficient in cement, just as the country is now self-sufficient in fertilizer with the surplus going for the export market thus earning the nation the needed foreign exchange.
In his reaponse, Abiodun, appreciated Dangote for coming back to Ogun state and also for his belief and trust in the country, Nigeria.
“I want to thank you for all that you have done, the number of people that you have employed, the impact you continue to make not just in this state, but Nigeria as a whole,” the governor said.
“The way you selflessly continue to promote this country all over the world, we can’t thank you enough. Your life and story continue to be an inspiring narrative to all young men. You have excelled in everywhere you touch, you have the Midas touch.
“Not only have you chosen to complete Itori, you have chosen to come back and develop the biggest port in Nigeria. For this, I thank you.”
‘PROVIDE PROOF OF APPROVALS’
In a statement responding to Dangote, Lanre Akinwale, media office of the former governor, dismissed the claims, insisting that the business mogul should provide evidence of requisite approvals for the structures allegedly demolished.
The office questioned whether Dangote had obtained the necessary government permits before commencing construction and emphasised that no individual or business entity could operate outside the law.
“It is on this basis that we want to appeal to Alhaji Dangote to avail the public of the requisite approvals for the construction of the structures he alleged were demolished,” the statement reads.
“This will, at least, help the public to put the issue in proper context and for us to know what exactly his grouse is.”
Adewale also highlighted that during Amosun’s tenure, Ogun state became the “Industrial Capital of Nigeria,” attracting over 500 companies and accounting for about 75 percent of foreign direct investments (FDIs) in the country’s industrial sector.
He further said Dangote had previously praised the Amosun administration for facilitating the establishment of his Ibese cement factory, after years of frustration under past governments.
“We will not give vent to this obvious mischief, as it is deliberate,” Akinwale said.
“However, we will advise Alhaji Dangote to furnish the public with details of the land acquisition and relevant planning approvals so that we can engage in a constructive conversation.”
Akinwale also rejected any suggestion that the Amosun administration was anti-business, citing World Bank recognition of Ogun as one of the top three states in Nigeria for ease of doing business.
Nigeria’s inflation rate eased for the second consecutive month in February, raising hopes that price pressures may have peaked and could continue to moderate in the coming months.
The National Bureau of Statistics, in its latest report released on Monday, said the country’s headline inflation rate dropped to 23.18 per cent in February 2025 from 24.48 per cent recorded in January, reflecting a 1.30 per cent decrease within the month.
On a year-on-year basis, the inflation rate dropped by 8.52 percentage points from 31.70 per cent recorded in February 2024.
The NBS noted that while the inflation figures were calculated using a different base year, the decline suggests a significant slowdown in price increases compared to the same period last year.
The month-on-month inflation rate for February stood at 2.04 per cent, indicating the rate at which prices increased within the month.
The NBS noted, “In February 2025, the Headline inflation rate eased to 23.18% relative to the January 2025 headline inflation rate of 24.48 per cent.
“Looking at the movement, the February 2025 Headline inflation rate showed a decrease of 1.30 per cent compared to the January 2025 Headline inflation rate.
“On a year-on-year basis, the Headline inflation rate was 8.52 per cent lower than the rate recorded in February 2024 (31.70 per cent). This shows that the Headline inflation rate (year-on-year basis) decreased in February 2025 compared to the same month in the preceding year (i.e., February 2024), though with a different base year, November 2009 = 100.
“Furthermore, on a month-on-month basis, the Headline inflation rate in February 2025 stood at 2.04 per cent.”
While prices are still rising, the slowdown suggests a gradual easing of inflationary pressures in the economy.
The drop in inflation comes amid efforts by the Central Bank of Nigeria to rein in price surges through monetary tightening and forex stabilisation policies.
Rising costs of goods and services, driven by currency depreciation, high transportation costs, and supply chain disruptions, had pushed inflation to record highs in 2024.
One of Nigeria’s leading non-Interest banks, TAJBank, has said it is finalising arrangements to raise the sum of N20 billion Mudarabah Sukuk bond to beef up its Additional Tier 1 capital.
The Founder/Chief Executive Officer of TAJBank, Mr Hamid Joda, said this in a statement on Monday in Abuja.
According to him, the issuance is part of its N100 billion Sukuk programme with the aim of fueling its business expansion drive.
Joda said that the new investment initiative was coming two years after the issuance of the first-ever N10 billion Sukuk bond on the Nigerian Exchange in 2023.
He said that it presented a unique opportunity for individuals and institutions to invest in an ethical instrument with a competitive 20.5 per cent per annum return.
“Specifically, the new Mudarabah Sukuk bond, is designed to offer a stable and ethical investment option.
“It allows investors to participate in the bank’s profit-sharing ventures, and underscores TAJBank’s commitment to expanding access to innovative financial solutions and promoting financial inclusion in the country,” he said.
Joda said that the Mudarabah Sukuk was open to all investors, both individuals and corporates.
According to him, the goal is to provide a reliable source of extra income, accessible from the comfort of homes.
“We are excited to bring this Mudarabah Sukuk to the market, offering a compelling investment opportunity that aligns with ethical financial principles.
“This listing on the NGX will enable a wider range of investors to participate in our growth and benefit from our profit-sharing model,” he said.
He advised interested investors to contact their financial advisors or visit www.tajbank.com for more information on the Sukuk and the listing process.(NAN)