Abiodun JIMOH
The Securities and Exchange Commission (SEC) has reported that Collective Investment Schemes (CIS) in Nigeria reached over ₦3 trillion in 2024. This was disclosed by SEC’s Director General, Dr. Emomotimi Agama, during an interaction with reporters in Abuja.
Dr. Agama highlighted CIS as an effective tool for risk diversification in investments. “Through a collective investment scheme, investors can pool resources to invest in multiple companies at once, reducing individual risks,” he explained. “Even for those with limited understanding of the market, these schemes are managed by professionals who navigate market dynamics on their behalf.”
Beyond the CIS, the capital market played a crucial role in the recapitalization of banks following the Central Bank of Nigeria’s directive to increase capital requirements in 2024. Dr. Agama revealed that the market facilitated the raising of over ₦2.2 trillion for banks, demonstrating its capacity to support economic growth.
“The capital market remains the primary source of long-term funding for institutions and infrastructure projects,” Agama said. He emphasized the futility of relying on short-term loans for long-term projects, noting that government bonds issued for infrastructure development underscored the market’s importance.
To enhance efficiency, SEC has streamlined approval processes. Dr. Agama announced that the timeline for securing approval to raise capital has been reduced to 14 days, compared to the years it previously took. This improvement is supported by the introduction of e-offering platforms, enabling Nigerians to invest using mobile devices without visiting banks.
Looking ahead, Dr. Agama expressed optimism about the pending Investments and Securities Bill 2024. “This bill, awaiting presidential assent, is a game-changer. It incorporates robust market regulations and is positioned to mainstream the capital market into Nigeria’s national development,” he stated.
Dr. Agama concluded by affirming SEC’s commitment to fostering a dynamic and accessible capital market, which he described as vital to Nigeria’s economic transformation.
