Market News

BY Joseph Inokotong

The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has revealed that over $50 billion worth of cryptocurrency transactions passed through Nigeria between July 2023 and June 2024, highlighting a fast-evolving digital finance ecosystem that continues to outpace the traditional capital market in investor engagement.

Speaking at the annual conference of the Chartered Institute of Stockbrokers in Lagos, Agama, in a lead paper titled “Evaluating the Nigerian Capital Market Masterplan 2015–2025,” lamented that despite the high level of financial activity in alternative assets, participation in Nigeria’s regulated capital market remains critically low.

According to him, less than four per cent of Nigeria’s adult population are active investors, a figure that poses serious concerns for capital formation and long-term economic growth.

“Fewer than three million Nigerians invest in the capital market, yet over 60 million engage in gambling activities daily, spending an estimated $5.5 million each day,” he stated.

Agama described the disparity as “a paradox,” saying it reveals that while Nigerians clearly possess an appetite for risk, they lack either the trust or access to channel that energy into productive investments.

He further noted that Nigeria’s market capitalisation-to-GDP ratio stands at about 30 per cent, significantly trailing countries such as South Africa (320%), Malaysia (123%), and India (92%).

The SEC boss said the figures reflect the urgent need to deepen financial inclusion, restore investor confidence, and strengthen capital mobilisation mechanisms.

Reflecting on the ten-year Capital Market Masterplan (CMMP) launched in 2015, Agama reminded stakeholders that the initiative was designed to reposition Nigeria’s capital market as the primary engine of economic transformation by mobilising long-term finance for infrastructure and enterprise development.

“Today, as we stand at the sunset of that ten-year plan, our task is not ceremonial but reflective and diagnostic. We must ask: what did we achieve, where did we fall short, and what lessons must anchor our next decade of reforms?” he said.

Agama disclosed that less than half of the 108 initiatives outlined in the CMMP were fully executed.

He attributed the shortfall to poor alignment with national development priorities, lack of measurable tracking frameworks, and weak stakeholder ownership.

He observed that market liquidity remains highly concentrated in a handful of large-cap stocks, including Airtel Africa, Dangote Cement, and MTN Nigeria, despite progress in segments such as Green Bonds, Sukuk issuance, fintech integration, and non-interest finance.

Outlining the six major challenges confronting the market, Agama listed low retail participation, market concentration, declining foreign inflows, underutilised pension assets, untapped diaspora capital, and a widening infrastructure financing gap.

“Nigeria’s $150 billion annual infrastructure deficit far exceeds the capital market’s contribution, with only N1.5 trillion approved in PPP bonds. This demonstrates a misalignment between financial innovation and national priorities,” he said.

The SEC DG called for a “reimagined SEC,” one that functions not only as a regulator but as an enabler of private sector-led economic growth.

He emphasised that the next phase of reforms must prioritise trust-building, transparency, and inclusiveness.

“Vision without execution is inertia, and reform without measurement is aspiration without accountability,” Agama declared.