{
  "id": 13589305,
  "title": "SEC to Universities: Stop Dependence on Govt Allocations, Access Capital Market Funding",
  "url": "https://urgent.news/2026/10/11/sec-to-universities-stop-dependence-on-govt-allocations-access",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-11T00:12:34.000Z",
  "source": {
    "name": "This Day",
    "slug": "this-day",
    "url": "https://www.thisdaylive.com/2026/10/11/sec-to-universities-stop-dependence-on-govt-allocations-access-capital-market-funding/"
  },
  "original_language": "en",
  "account": "The Nigerian Securities and Exchange Commission (SEC) has urged universities to shift their dependence on government funding and instead explore capital market financing options. This call was made at the University of Ibadan Alumni Association Annual Public Service Lecture, held in Ibadan. The lecture's theme, 'First and Best But Whose Capital Built It? Rethinking How Nigeria Funds Its Own Future', prompted Director-General Dr. Emomotimi Agama to trace the university's history to a significant capital decision made in 1948.\n\nIn 1948, the chiefs and people of Ibadan donated 2,500 acres of land to the University of Ibadan on a 999-year lease. Despite producing notable figures like Nobel laureates, heads of state, and central bank governors, the university had never sought to raise long-term funds from the capital market. Dr. Agama emphasized that the university had failed to leverage its own graduates' achievements and the capital they generated for its own financial well-being.\n\nAgama argued that the university's current dependence on government allocations was unsustainable due to Nigeria's fiscal realities. With 41,700 students but only enough residence space for 10,000, many students live off-campus. The SEC director-general stressed that the issue lies not in a lack of capital in Nigeria but rather in the failure to convert available capital into productive investments. He highlighted that pension assets stood at N31.48 trillion, while the Nigerian Exchange's total market capitalization was N215.09 trillion.\n\nTo encourage universities to tap into the capital market, Agama proposed five financing instruments under the Investments and Securities Act 2025. These include establishing an endowment fund registered with the SEC as a collective investment scheme, issuing bonds and sukuk backed by university assets, creating a Real Estate Investment Trust (REIT) to convert student housing rent into a revenue stream, developing a university innovation fund to invest in spin-off companies, and targeting diaspora investments using the non-resident Bank Verification Number (BVN) framework for remittances.\n\nHowever, Agama cautioned that accessing the capital market requires financial discipline, including regular publication of audited accounts, credit ratings, ring-fenced revenue streams, and professional intermediation. He urged alumni to move from one-time donations to providing capital that can grow over time, proposing an Alumni Capital Fund with a low minimum investment threshold for young graduates and Nigerians in the diaspora.",
  "summary": "Kemi Olaitan in IbadanNigerian universities have been urged to move away from dependence on government allocations and embrace capital formation, investment and ownership through the capital market. The call came",
  "key_points": [],
  "editors_take": "The SEC's push for universities to access capital market funding marks a shift towards self-sustainability, leveraging alumni achievements and vast capital in Nigeria to address fiscal realities and growth needs.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}