The Securities and Exchange Commission (SEC) has introduced a series of new initiatives aimed at boosting activity in Nigeria’s capital market and aligning with the Federal Government’s goal of reaching a $1 trillion economy.
At his first post-Capital Market Committee (CMC) press briefing in Lagos, Dr. Emomotimi Agama, the Director-General of SEC, outlined the commission’s strategy to encourage more companies to list on the exchange and enhance market liquidity.
Key initiatives include:
- Codification of Rules: Streamlining and consolidating the SEC’s rules into a comprehensive rule book to expedite the regulatory process.
- Digital Assets Guidelines: Updating existing regulations and establishing new guidelines for digital assets, as well as onboarding Virtual Assets Service Providers to foster innovation in the market.
- Support for New Listings: Encouraging companies to list and improving market-making to enhance liquidity and market depth.
- Technological Upgrades: Investing in modern technology to advance trading platforms and data dissemination, aiming to attract a younger demographic and increase market participation.
- New Financial Products: Introducing products such as derivatives, Real Estate Investment Trusts (REITs), and Exchange-Traded Funds (ETFs) to diversify investment opportunities.
- Cybersecurity Measures: Implementing robust cybersecurity policies and establishing a dedicated committee to protect the integrity of the capital market.
Dr. Agama emphasized the SEC’s commitment to fostering a secure and efficient capital market environment, highlighting the need for strengthening regulatory bodies, enhancing enforcement, and adopting international best practices. He also pointed out the importance of promoting good corporate governance, encouraging private sector investment, and developing alternative assets.
In 2024, the SEC approved nine new issuances totaling ₦1.228 trillion, reflecting growing confidence in the market. Additionally, the Net Asset Value (NAV) of registered mutual funds surged by 111.08% to ₦3.335 trillion, demonstrating strong and sustainable growth in the fund management sector.
Dr. Agama expressed optimism about unlocking the full potential of the Nigerian capital market and aligning with the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration. The SEC’s initiatives are designed to drive market growth, attract new listings, and support the country’s economic goals.
