The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has warned {that a} shortage of credible issuers in Nigeria’s capital market could drive up the prices of present property relatively than help real market improvement.
Agama gave the warning on Friday, October 9, 2026, whereas delivering the University of Ibadan Alumni Association’s 2026 Annual Public Service Lecture in Ibadan, Oyo State, themed “First and Best — But Whose Capital Built It? Rethinking How Nigeria Funds Its Own Future.”
He argued that Nigeria has developed a sample of consuming sources that could in any other case be invested in long-term, income-generating property, citing the University of Ibadan’s historic dependence on exterior funding for instance of the nation’s broader capital mobilisation problem.
Agama warns towards asset worth inflation
Agama cautioned that increasing Nigeria’s capital market with out growing the quantity of credible establishments looking for funding could create extreme demand for a restricted pool of property, leading to worth inflation relatively than sustainable development.
He defined that the capital market faces a extra basic problem than attracting extra buyers, stressing that the provision of establishments with sturdy governance, clear monetary data and credible funding buildings stays insufficient.
- “A deep market with no supply of credible issuers simply bids up the price of the few assets that exist. That is not development; that is inflation with better manners,” he stated.
- “The binding constraint on Nigeria’s capital market today is not the number of investors. It is the number of institutions capable of being invested in — organisations disciplined enough to be rated, transparent enough to be examined, and governed well enough to keep a promise for fifteen years.”
The SEC DG additionally famous that retail investor participation is increasing at an unprecedented tempo, with the capital market focusing on 30 million buyers by 2030.
His remarks highlighted the necessity to enhance the availability of credible funding alternatives alongside efforts to draw extra buyers into Nigeria’s capital market.
Nigeria targets N750 trillion capital market
Nigeria’s Capital Market Masterplan outlines an bold growth of the nation’s capital market from roughly N250 trillion to N750 trillion, as regulators pursue reforms aimed toward enhancing market effectivity, attracting funding and growing participation.
- Several initiatives have been launched to modernise market infrastructure and strengthen investor confidence, together with the transition to a quicker settlement cycle for securities transactions.
- In March 2026, Nairametrics reported that Nigeria’s capital market would transition to a T+1 settlement cycle from May 29, lowering the time required to finish securities transactions from two enterprise days to 1.
- However, in steering printed on May 18, the SEC clarified that the brand new settlement framework for equities and commodities transactions would take impact on Monday, June 1, 2026.
The directive required market operators and different stakeholders to align their methods and procedures with the revised settlement framework, which was supposed to enhance liquidity, scale back counterparty dangers and convey Nigeria’s capital market nearer to worldwide requirements.
The Central Securities Clearing System (CSCS) subsequently introduced the official launch of the T+1 settlement cycle on June 1, marking the completion of the transition from the earlier two-day settlement framework.
SEC targets wider retail investor participation
Beyond enhancing transaction effectivity, the SEC is pursuing broader retail investor participation and leveraging expertise to make Nigeria’s capital market extra accessible to buyers throughout totally different revenue teams.
- The regulator can be making ready to introduce extra initiatives aimed toward encouraging home financial savings and increasing funding alternatives available in the market.
- In September, Nairametrics reported that the SEC plans to launch the Capital Market Master Plan 2.0 on the 2026 National Capital Market Conference, scheduled for October 19 in Abuja.
- The convention will even function the launch of a National Savings Scheme supposed to encourage better home financial savings and funding participation.
- Meanwhile, 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 shares at N525 every, with subscriptions working from September 14 to October 13, 2026.
The firm is focusing on participation from as much as 10 million Nigerian buyers by means of a technology-driven subscription course of built-in with the Bank Verification Number (BVN) system, aimed toward simplifying entry to fairness funding.
The providing illustrates efforts to increase the availability of investable property alongside rising retail participation, a difficulty central to Agama’s warning about growing market liquidity with out a corresponding rise in credible issuers.
