SEC to Educate State Governments on Capital Market Opportunities for Wealth Creation
By Patience Ikpeme
The Securities and Exchange Commission (SEC) is launching a nationwide investor education initiative targeting state governments.
This programme aims to unlock the wealth creation potential within each state by increasing their understanding and participation in the capital market.
SEC Director General, Dr. Emomotimi Agama, revealed this plan during a meeting with a delegation from the World Bank Group and the International Finance Corporation (IFC) in Abuja.
He emphasized the Commission’s commitment to educating state governments on the diverse opportunities available in the capital market.
Dr. Agama stressed the importance of financial literacy for state governments, explaining that the SEC will approach state governments to help them understand the many opportunities in the capital market and strive to enhance their understanding of financial markets, investment strategies, and regulatory frameworks.
He painted a picture of the potential benefits, stating that setting up factories that produce goods for export, earning foreign exchange, employing Nigerians, and leading to wealth creation and economic development are all possibilities.
Dr. Agama acknowledged that a lack of knowledge, rather than a lack of will, often hinders state governments’ engagement with the capital market. He stated that sometimes it is not because they don’t want to do it, it is just because they don’t know, and it is the SEC’s responsibility to give this vital knowledge for wealth creation. He cited the example of resource-rich states where significant potential remains untapped, noting that there are some states in the country that are so rich but nothing is happening there, and all of their wealth is in the ground.
The SEC’s strategy involves a multi-pronged approach, beginning soon with the Executive Council of a state in northern Nigeria, where SEC officials will directly engage with state leaders about capital market opportunities. The SEC will also create guides, reports, and policy briefs explaining capital market opportunities for state governments, translate complex financial concepts into simple, actionable insights, and showcase successful examples from Nigerian states that have effectively raised capital through bonds or attracted investments.
Dr. Agama expressed confidence that education will be transformative, stating that the SEC believes strongly that if they go out and speak to these people, get them into understanding exactly the benefits and how it is important, get them to manage their own assets meaningfully well, and harness them for greater economic growth for the states, things will begin to change. He emphasized that it is the SEC’s responsibility to change the narratives, and they will keep at it.
Mr. Tom Ceusters, Director of Treasury Market Operation at the IFC, explained that the World Bank Group and IFC delegation’s two-week mission to Nigeria involves in-depth discussions with financial sector regulators and organizations. The goal is to develop plans to support their efforts and promote economic development in Nigeria.
