SEC to Sensitize State Governments on Capital Market Investment Opportunities

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Olori Uwem

Well-Known Member
Mar 18, 2024
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SEC to Sensitize State Governments on Capital Market Investment Opportunities

In a bid to drive wealth creation and economic growth, the Securities and Exchange Commission (SEC) has unveiled plans to educate state governments on investment opportunities within the Nigerian capital market.

SEC’s Director-General, Emomotimi Agama, made this known during a meeting with representatives from the World Bank Group and the International Finance Corporation (IFC) in Abuja over the weekend. According to Agama, the initiative aims to equip state governments with knowledge on financial markets, investment strategies, and regulatory frameworks to help them leverage available opportunities for economic development.

Unlocking Untapped Wealth in States

Agama highlighted that several Nigerian states possess vast, untapped resources that could be harnessed for economic growth through capital market investments.

“There are some states in the country that are so rich, but nothing is happening there. All of their wealth is in the ground. Imagine setting up factories that will produce goods for export, earning foreign exchange, creating employment, and driving economic growth,” he stated.

As part of this initiative, SEC will engage with the Executive Council of a northern state as a pilot project. The commission plans to develop policy guides, reports, and case studies that simplify complex financial concepts, showcasing how states can successfully raise capital through bonds or attract investment.

World Bank and IFC’s Role in Market Development

Speaking at the meeting, IFC’s Director of Treasury Market Operation, Tom Ceusters, revealed that delegations from the World Bank Group and IFC are on a two-week mission to engage with Nigerian regulators and financial institutions. Their goal is to develop strategies for investment growth and financial market development.

SEC reiterated its commitment to collaborating with state governments to boost capital market participation and foster sustainable economic development.

This development aligns with SEC’s broader efforts to enhance regulations governing government and corporate borrowing, with a focus on sustainability and efficiency within Nigeria’s financial system.