The Securities and Exchange Commission (SEC) has reaffirmed its commitment to fostering a vibrant capital market to support Nigeria’s ambition of achieving a $1 trillion economy, as set by President Bola Tinubu’s administration. This pledge aligns with the president’s recent statement at the Nigerian Economic Summit (NES), where he declared that Nigeria’s economy could grow to $1 trillion by 2026 and reach $3 trillion within the next decade.

Lamido Yuguda, Director-General of SEC, confirmed the viability of this target if the capital market is strategically harnessed. Speaking at the third-quarter post-Capital Market Committee (CMC) press briefing in Lagos, Yuguda announced that the commission had formed a task force within the capital market to focus on the steps needed to achieve this ambitious goal. He emphasized the importance of addressing Nigeria’s infrastructure deficit and stated that the capital market will play a key role in financing critical infrastructure, which would promote economic growth and development.

According to Yuguda, financing infrastructure through the capital market will create a conducive environment for businesses and enhance the country’s production capacity, which will ultimately drive economic growth. He also highlighted SEC’s plan to intensify investor education and public awareness in 2024, recognizing that increasing investor literacy is crucial for attracting more companies and investors to the capital market.

Yuguda underscored that a well-informed market with knowledgeable participants is essential for fostering trust and boosting investor confidence. SEC’s strategy will involve comprehensive investor education campaigns aimed at improving public understanding of the market’s potential and risks, which will help in further mobilizing capital for growth.

In his address, Yuguda also discussed the outcomes of the recent CMC meeting, where stakeholders committed to deepening the capital market’s role in infrastructure financing. The meeting also emphasized the need for collaboration and innovation to unlock the full potential of the market in supporting Nigeria’s economic goals.

To address the issue of unclaimed dividends, SEC announced the launch of a revamped e-dividend portal by November 30, 2023. This effort, part of a collaborative project involving the E-Dividend Mandate Technical Committee, ICMR, and NIBSS, aims to enhance the efficiency of dividend collection for investors.

Additionally, the Non-Interest Technical Committee reported on the successful issuance of the sixth Federal Government Sukuk by the Debt Management Office (DMO), which achieved a 435% subscription rate. The committee also revealed plans to explore the development of Shariah-compliant liquidity instruments for the commodities market, as well as the creation of short-term Sukuk in partnership with the DMO. These initiatives are designed to further enhance the capital market’s role in driving sustainable economic growth in Nigeria.