Kashim Shettima, Nigeria’s vice-president, says the National Economic Council (NEC) will work with the Securities and Exchange Commission (SEC) to use the capital market to finance development projects through well-structured bonds and credible project pipelines.
Shettima spoke on Monday at the launch of the Nigerian
Capital Market Masterplan 2.0 at the State House in Abuja.
He said the initiative would help states explore alternative
sources of financing as Nigeria faces an infrastructure deficit that cannot be
addressed through government budgets and foreign borrowing alone.
“I will ask the Council to work with the Commission so that
every state understands how to use the market responsibly: through
well-structured bonds, credible project pipelines, and the transparency that
investors demand,” he said.
Shettima, who chairs the NEC, said the capital market could
channel domestic savings into long-term investments needed to support
development across the country.
“Our infrastructure gap is measured in trillions of naira.
Our population is young and growing. The budget alone cannot close that gap,
and foreign borrowing cannot be our only answer,” he said.
The politician said states that raise funds through the
market would be subject to greater scrutiny from regulators and investors,
strengthening accountability in the management of public finances.
“When a state raises funds openly, under the eye of the
regulator and the investing public, it is held to a higher standard of
accountability,” he said.
“A deep capital market is therefore not only a source of
finance. It is a discipline for good governance.”
The vice-president said the 10-year masterplan, covering
2026 to 2036, would make the capital market a more significant source of
long-term financing for infrastructure, while expanding access to funding for
state governments and businesses.
The plan is also expected to broaden participation through
technology and investor education, create opportunities for companies in
agriculture and solid minerals to raise capital locally, and position Nigeria
as a hub for capital formation across Africa.
Shettima said the masterplan aims to grow the capital market
from about N250 trillion to N750 trillion by 2036.
He said the Nigerian Exchange (NGX) all-share index had
risen from above 55,000 points when President Bola Tinubu assumed office in May
2023 to more than 247,000 points.
The VP said the value of listed equities had also increased
from about N30 trillion to more than N160 trillion, while the combined value of
the equity and bond markets had exceeded N221 trillion.
Shettima attributed the market’s growth to the
administration’s economic reforms, including the removal of the petrol subsidy,
foreign exchange (FX) market unification, tax reforms, and bank
recapitalisation.
He also warned that reversing policies could undermine
investor confidence and threaten the gains recorded in the market.
“Capital has a long memory and a short temper. It remembers
every reversal of policy. It flees at the first sign of uncertainty,” he said.
Shettima said the NEC would treat the masterplan as a
national development agenda and work with the SEC to help states use the
capital market responsibly.
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