Nigeria’s financial landscape is witnessing a remarkable paradox: while digital currencies thrive, traditional investment participation continues to shrink. The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, revealed that between July 2023 and June 2024, over $50 billion worth of cryptocurrency transactions were recorded in Nigeria — a figure that reflects the boldness, sophistication, and risk appetite of Nigerian investors.
However, this surge in crypto engagement sharply contrasts with the poor participation in the country’s formal capital market. Speaking at the annual conference of the Chartered Institute of Stockbrokers, where he presented a paper titled “Evaluating the Nigerian Capital Market Masterplan 2015–2025,” Agama lamented that less than four percent of Nigerian adults are active investors in traditional markets — a figure he described as dangerously low for a nation seeking sustainable growth.
A Risk-Driven Nation with Misplaced Focus
Agama highlighted a striking imbalance in how Nigerians approach risk. “While under three million citizens invest in the capital market, over sixty million engage in daily gambling, spending around $5.5 million every day,” he revealed.
According to him, this pattern demonstrates that Nigerians are not averse to risk — they simply lack the trust, access, or financial literacy to channel that appetite into productive investments.
He emphasized that this situation poses a serious barrier to capital formation and economic development, urging policymakers and financial institutions to rebuild public confidence in regulated investment platforms.
A Lagging Market in Global Comparison
The SEC boss expressed concern over Nigeria’s weak market capitalization-to-GDP ratio, which stands at about 30 percent — far below South Africa’s 320 percent, Malaysia’s 123 percent, and India’s 92 percent. This gap, he said, underscores the urgent need to strengthen financial inclusion and attract both local and foreign investors.
Reflecting on the Capital Market Master Plan (CMMP) launched in 2015, Agama explained that it was conceived as a ten-year roadmap to transform the capital market into a catalyst for economic growth by mobilizing long-term funds for infrastructure and private sector expansion.
“As we approach the end of that ten-year journey,” he noted, “this is not a ceremonial moment but a reflective one. We must assess what we achieved, what we missed, and how we can do better in the next decade.”
Lessons from a Decade of Implementation
Agama disclosed that less than half of the 108 initiatives outlined in the CMMP were fully implemented. He attributed the shortfall to poor alignment with national economic strategies, inadequate monitoring systems, and insufficient stakeholder engagement.
Still, he acknowledged notable progress in areas such as Green Bonds, Sukuk issuance, fintech integration, and non-interest finance. Yet, he pointed out that market liquidity remains highly concentrated in just a few dominant companies like Airtel Africa, Dangote Cement, and MTN Nigeria, leaving smaller players with limited room to grow.
Charting the Next Phase of Reform
Looking ahead, Agama identified six key challenges that must be addressed in the next phase of market reforms:
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Low retail investor participation
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Concentration of market liquidity
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Declining foreign investment inflows
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Underutilized pension funds
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Untapped diaspora capital
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Severe infrastructure financing gap
He noted that Nigeria’s estimated $150 billion annual infrastructure deficit dwarfs the market’s contribution so far, with only ₦1.5 trillion raised through Public-Private Partnership (PPP) bonds. “This reflects a serious disconnect between financial innovation and national development priorities,” he remarked.
A Call for a Reimagined SEC
Dr. Agama concluded by calling for a redefined role for the SEC—one that not only regulates but actively enables private-sector-driven growth. He urged a renewed focus on transparency, trust-building, and inclusive participation to position the capital market as a genuine driver of national prosperity.
“Vision without execution is inertia,” he warned. “And reform without measurement is aspiration without accountability.”
