KEY POINTS
- The Federal Government has launched the Nigerian Capital Market Master Plan 2.0 and a National Savings Scheme to expand investment and financing.
- The SEC aims to grow the capital market from about ₦250 trillion to ₦750 trillion by 2036, while the government is targeting a $1 trillion market.
- Finance Minister Taiwo Oyedele says Nigeria is targeting an investment-grade credit rating within three years.
- The National Savings Scheme is designed to channel household savings into regulated investments, including funds and local businesses.
MAIN STORY
The Federal Government has launched the Nigerian Capital Market Master Plan 2.0 (NCMMP 2.0) and the National Savings Scheme as part of efforts to expand Nigeria’s capital market, mobilise domestic savings and increase financing for infrastructure and businesses.
Vice-President Kashim Shettima, represented by Deputy Chief of Staff to the President Ibrahim Hadejia, unveiled the initiatives in Abuja on Monday, describing the master plan as a framework for financing the country’s future.
Shettima said the capital market had become a critical instrument of national economic policy and urged the Securities and Exchange Commission (SEC) and other stakeholders to ensure the plan moved beyond inauguration to measurable implementation.
Finance Minister Taiwo Oyedele said the master plan would prioritise coordinated regulation, modern market infrastructure, new investment products, wider investor participation and stronger institutions.
The government is targeting an increase in equities market capitalisation from 33 per cent of gross domestic product to at least 60 per cent. It is also seeking an investment-grade credit rating within the next three years, an ambition Oyedele said would require sustained reforms, improved market liquidity and reliable repatriation of foreign investors’ funds.
The plan is expected to simplify investor onboarding, strengthen custody arrangements, improve settlement systems and reduce barriers to cross-border investment. These measures are intended to make Nigeria’s market more accessible to domestic and international investors.
Alongside the master plan, the government introduced the National Savings Scheme to provide regulated channels through which Nigerians can save and invest towards education, housing, business development and retirement.
Oyedele said the scheme would offer accessible investment options, transparent information, reasonable costs and a functional complaints process. Tax incentives would be provided within the law.
He expressed concern that some young Nigerians were directing their money towards betting platforms, unregulated cryptocurrency activities and Ponzi schemes instead of regulated investment products.
According to the minister, Nigeria has only about six million retail investors despite having a population exceeding 200 million. The savings scheme is intended to broaden participation by allowing more people to invest in regulated funds and local businesses, including through small contributions made by mobile phone.
SEC Director-General Emomotimi Agama said the master plan would run from 2026 to 2036 and build on the foundation established by the first capital-market master plan.
The commission is targeting market growth from a baseline of approximately ₦250 trillion to ₦750 trillion by 2036. This is below the Federal Government’s broader ambition of building a market worth at least $1 trillion within a decade.
Agama said the commission would establish implementation structures to monitor progress and ensure that the plan produced measurable results. The Project Steering Committee and Capital Market Master Plan Implementation Committee will oversee implementation.
He also warned that growth in market value would not be sufficient without wider participation by Nigerians.
“ A regulator who speaks only of records is not doing his job. So permit me to be candid. Our market is growing in value; it is not yet growing deep enough in people, too few Nigerians own a share, a bond or a unit in a collective investment scheme,” Agama said.
He added that much of the country’s savings remained outside the formal financial system, where inflation could erode its value, while businesses, infrastructure projects and state governments continued to rely heavily on foreign capital or bank lending.
“The strength of any capital market rests on the savings of its people. Ours must rest on the savings of all of us. That is why we are here,” he said.
The initiative received support from lawmakers and development partners. Osita Izunaso, Chairman of the House Committee on Capital Market and Institutions, urged the Federal Government to encourage more companies to list on the Nigerian Exchange Group (NGX). He said only about 151 companies were listed, despite the size of the Nigerian economy, and commended the proposed Dangote initial public offering for raising the market’s international profile.
Solomon Bob, Chairman of the House Committee on Capital Market, said the National Assembly would support the SEC and market operators in implementing the plan, adding that it could contribute to economic prosperity and global competitiveness.
Paul Healey, Head of Private Sector and Green Growth at the British High Commission, said the commission was proud to partner with the SEC. He said the plan could help attract domestic and international capital into the market and support investment in the real economy.
Victor Nkiri, Senior Specialist for Capital Markets at Financial Sector Deepening Africa (FSD Africa), said the organisation had supported the SEC in developing a master plan intended to be achievable and contribute to Nigeria’s economic development.
THE ISSUES
The master plan seeks to address two connected challenges: the limited participation of Nigerians in capital markets and the difficulty businesses and public institutions face in accessing long-term financing.
Mobilising more household savings could expand the pool of domestic funds available for companies, infrastructure and other investments. However, participation will depend on public confidence, clear information about investment risks, effective regulation and protection against fraud.
The proposed savings scheme’s emphasis on regulated products is particularly relevant given concerns about Ponzi schemes and unregulated investment activities. Its effectiveness will depend on whether Nigerians can access suitable products at affordable costs and understand the risks involved.
The government’s investment-grade target also presents a demanding objective. Improved market infrastructure and access may support investor confidence, but credit ratings depend on broader assessments of the government’s capacity to service debt and sustain economic and fiscal stability.
The different market-size targets also require careful distinction. The SEC’s plan aims for ₦750 trillion by 2036, while the government’s ambition is at least $1 trillion. Achieving either target will require more than rising share prices; sustained listings, new financial products and deeper participation will also matter.
WHAT’S BEING SAID
“Our ambition has to be bold.” – Taiwo Oyedele, Minister of Finance and Coordinating Minister of the Economy
“Our market is growing in value; it is not yet growing deep enough in people.” – Emomotimi Agama, SEC Director-General
“The strength of any capital market rests on the savings of its people. Ours must rest on the savings of all of us.” – Emomotimi Agama, SEC Director-General
WHAT’S NEXT
The immediate priority is implementation of the master plan and the National Savings Scheme. The SEC’s implementation committees will need to translate the targets into measurable actions, while the government will have to deliver the regulatory, market-access and investor-protection reforms underpinning its ambitions.
Progress will also depend on attracting more companies to list on the NGX, expanding regulated investment products and encouraging households to participate in formal savings and investment channels.
BOTTOM LINE
The Federal Government is seeking to build a larger and more inclusive capital market through a 10-year development plan and a national savings initiative. The targets are ambitious, but their success will depend on stronger market institutions, credible investor protections, more listed companies and the ability to turn domestic savings into productive investment.
Source: NAN
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