The Director-Normal of the Securities and Alternate Fee (SEC), Dr Emomotimi Agama, has warned {that a} scarcity of credible issuers in Nigeria’s capital marketplace may power up the costs of current property relatively than improve authentic marketplace building.
Agama gave the caution on Friday, October 9, 2026, whilst handing over the College of Ibadan Alumni Affiliation’s 2026 Annual Public Provider Lecture in Ibadan, Oyo State, themed “First and Very best — However Whose Capital Constructed It? Rethinking How Nigeria Budget Its Personal Long run.”
He argued that Nigeria has advanced a development of eating sources that might differently be invested in long-term, income-generating property, mentioning the College of Ibadan’s ancient dependence on exterior investment for example of the rustic’s broader capital mobilisation problem.
Agama warns in opposition to asset worth inflation
Agama cautioned that increasing Nigeria’s capital marketplace with out expanding the selection of credible establishments looking for funding may create over the top call for for a restricted pool of property, leading to worth inflation relatively than sustainable enlargement.
He defined that the capital marketplace faces a extra basic problem than attracting further buyers, stressing that the provision of establishments with robust governance, clear monetary data and credible funding buildings stays insufficient.
- “A deep marketplace without a provide of credible issuers merely bids up the cost of the few property that exist. That isn’t building; this is inflation with higher manners,” he stated.
- “The binding constraint on Nigeria’s capital marketplace these days isn’t the selection of buyers. It’s the selection of establishments able to being invested in — organisations disciplined sufficient to be rated, clear sufficient to be tested, and ruled neatly sufficient to stay a promise for fifteen years.”
The SEC DG additionally famous that retail investor participation is increasing at an exceptional tempo, with the capital marketplace focused on 30 million buyers by way of 2030.
His remarks highlighted the wish to build up the provision of credible funding alternatives along efforts to draw extra buyers into Nigeria’s capital marketplace.
Nigeria objectives N750 trillion capital marketplace
Nigeria’s Capital Marketplace Masterplan outlines an bold enlargement of the rustic’s capital marketplace from roughly N250 trillion to N750 trillion, as regulators pursue reforms geared toward making improvements to marketplace potency, attracting funding and lengthening participation.
- A number of projects had been offered to modernise marketplace infrastructure and enhance investor self belief, together with the transition to a quicker agreement cycle for securities transactions.
- In March 2026, Nairametrics reported that Nigeria’s capital market would transition to a T+1 settlement cycle from Would possibly 29, decreasing the time required to finish securities transactions from two trade days to 1.
- On the other hand, in steerage revealed on Would possibly 18, the SEC clarified that the brand new agreement framework for equities and commodities transactions would take impact on Monday, June 1, 2026.
The directive required marketplace operators and different stakeholders to align their programs and procedures with the revised agreement framework, which used to be supposed to beef up liquidity, cut back counterparty dangers and produce Nigeria’s capital marketplace nearer to global requirements.
The Central Securities Clearing Device (CSCS) therefore introduced the legit release of the T+1 agreement cycle on June 1, marking the of completion of the transition from the former two-day agreement framework.
SEC objectives wider retail investor participation
Past making improvements to transaction potency, the SEC is pursuing broader retail investor participation and leveraging know-how to make Nigeria’s capital marketplace extra out there to buyers throughout other revenue teams.
- The regulator may be getting ready to introduce further projects geared toward encouraging home financial savings and increasing funding alternatives out there.
- In September, Nairametrics reported that the SEC plans to launch the Capital Market Master Plan 2.0 on the 2026 Nationwide Capital Marketplace Convention, scheduled for October 19 in Abuja.
- The convention may even characteristic the release of a Nationwide Financial savings Scheme supposed to inspire higher home financial savings and funding participation.
- In the meantime, the Dangote Petroleum Refinery and Petrochemicals (DPRP) is endeavor an preliminary public providing valued at roughly N2.15 trillion ($1.6 billion), providing 4.1 billion stocks at N525 each and every, with subscriptions operating from September 14 to October 13, 2026.
The company is targeting participation from up to 10 million Nigerian investors via a technology-driven subscription procedure built-in with the Financial institution Verification Quantity (BVN) device, geared toward simplifying get right of entry to to fairness funding.
The providing illustrates efforts to enlarge the provision of investable property along rising retail participation, a subject matter central to Agama’s caution about expanding marketplace liquidity with no corresponding upward push in credible issuers.