Capital Market Central to Bridging Nigeria’s $100 Billion Infrastructure Gap-Agama

Nigeria is positioning its capital market as a key driver for economic growth and infrastructure financing, aiming to address an estimated $100 billion funding shortfall.

Director General of the Securities and Exchange Commission (SEC), Emomotimi Agama, revealed this during his keynote address at the Emerging Africa Capital Limited Investor Summit & Awards.

He explained that the initiative comes amid global economic turbulence, which triggered over $80 billion in portfolio outflows from emerging markets between 2022 and 2024, creating both risks and opportunities for economies like Nigeria.

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Agama emphasized that the move is designed to unlock long-term funding through the capital market, reduce reliance on traditional bank financing, and channel idle liquidity into productive sectors.

“The global economy is not simply adjusting — it is undergoing a fundamental structural reconfiguration,” Agama said. “The old certainties — of stable dollar flows, of predictable commodity cycles, of aligned Western institutional priorities — can no longer be assumed. For emerging markets, this is simultaneously a moment of acute vulnerability and extraordinary opportunity.”

He added, “For Nigeria — with a population of over 220 million people, the largest economy on the African continent by nominal GDP, and an enormous infrastructure deficit estimated at over $100 billion — the capital market is not a luxury. It is an existential necessity.”

Agama concluded that Nigeria must seize the evolving global landscape by strengthening its capital market, boosting investor confidence, and strategically deploying capital to unlock growth.

He also highlighted sectors and structural gaps that present significant investment potential. “Nigeria’s solid minerals sector remains largely underexploited and represents a multi-billion-dollar investment opportunity. About 350 million adults remain unbanked, presenting a major opportunity for capital market-driven financial inclusion. Our estimated $100 billion infrastructure deficit requires long-term financing solutions,” he said.

To meet these goals, the SEC is promoting innovative instruments such as infrastructure bonds, green bonds, sukuk, and private equity frameworks. Expanding these vehicles, Agama noted, will improve capital allocation and stimulate growth across vital sectors including energy, transportation, and housing.