Nigeria’s securities exchange urges founders to list on local bourse
Nigeria’s securities regulator has urged local founders to look closer to home for capital, arguing that crowdfunding and debt markets can offer a route to an eventual stock market listing. Emomotimi Agama, director-general of the Securities and Exchange Commission, told Moonshot by TechCabal in Lagos on Wednesday that founders could start by raising money from […]
The Nigerian Securities and Exchange Commission (SEC) has been encouraging local founders to pursue local capital sources for their startups, rather than seeking funding abroad. Emomotimi Agama, the SEC's director-general, explained that this can be achieved through crowdfunding, debt markets, or commercial paper. Agama advised against relying on short-term bank loans for long-term growth, as this could lead to financial difficulties.
He emphasized the importance of speaking with the regulator or financial advisers to understand the best path to raising capital. The SEC aims to increase the local market's share of funds that founders seek overseas. The Nigerian Capital Market Master Plan 2.0, unveiled in October 2024, targets a market capitalization of ₦750 trillion ($549 billion) by 2036.
The market has already expanded from ₦55 trillion ($40.3 billion) in 2024 to over ₦162 trillion ($118.6 billion). Dangote Petroleum Refinery successfully completed its IPO on October 27, attracting investors from 54 African countries. However, digital asset firms received stricter guidance from the SEC. In January, the regulator raised the minimum capital requirement for crypto exchanges and custodians to ₦2 billion ($1.46 million) from ₦500 million ($366,000), with a compliance deadline of June 30, 2027.
Agama highlighted that capital requirements test a company's ability to operate, and encouraged founders to collaborate with partners. Slow licensing processes were also highlighted, with some crypto platforms still awaiting full approval more than two years after the SEC's Accelerated Regulatory Incubation Programme (ARIP) began in June 2024.
Agama warned that anyone investing in unregulated businesses is a victim, as the SEC cannot act alone due to other regulators sharing the space. For digital asset firms, it is crucial to engage with the SEC early on. The SEC oversees digital assets outside of payments, while the Central Bank of Nigeria handles payments. Firms under SEC regulations must comply; ignorance of the law is not an excuse.
Written by urgent.news from TechCabal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
