The Securities and Exchange Commission (SEC) of Nigeria has issued a clarion call to the nation, urging its citizens to leverage the country’s burgeoning demographic dividend to propel financial inclusion and stimulate economic growth by 2030. This demographic dividend, representing the economic boost derived from a shift in the age structure of a population, presents a unique window of opportunity for Nigeria. The SEC emphasizes the crucial role of knowledge and wealth investment in bridging the widening inequality gap, positioning financial inclusion not as a mere aspiration but as a fundamental prerequisite for national prosperity. The SEC’s Director-General, Emomotimi Agama, underscores the urgency of this call, asserting that Nigeria stands at a critical juncture where it must either capitalize on its demographic dividend or face the consequences of deepening inequality by 2030. He frames the knowledge-wealth divide not solely as an economic hurdle but also as a moral imperative, emphasizing the interconnectedness of economic prosperity and social equity.
Agama defines true financial inclusion as going beyond mere access to financial services and encompassing active participation in the capital market. This involves empowering individuals to utilize capital as a transformative tool, enabling them to generate wealth and contribute to economic growth. He stresses the importance of closing the gender gap in financial inclusion, highlighting the potential of such a move to lift a significant portion of the Nigerian population out of poverty. He points to the vast untapped potential within Nigeria’s population, noting that a relatively small fraction currently participates in the capital market, contributing to persistent poverty. Agama views this as a paradox where the nation is effectively “running from money,” while its substantial market capitalization presents a significant opportunity to reverse this trend and unlock widespread economic prosperity.
The SEC Director-General cites the successful share offering by MTN Nigeria as a compelling example of the potential impact of inclusive financial strategies. This offering attracted a large number of new investors, with a significant proportion being women and young people, demonstrating the appetite for capital market participation among these demographics. Agama advocates for a multi-pronged approach to accelerate progress towards financial inclusion, outlining a four-pillar strategy that prioritizes the democratization of financial knowledge. This involves empowering individuals with the necessary understanding and skills to navigate the financial landscape and make informed investment decisions. Furthermore, he emphasizes the importance of catalyzing investment channels for Micro, Small, and Medium Enterprises (MSMEs), recognizing their vital role in economic growth and job creation.
In addition to promoting financial literacy and MSME investment, Agama emphasizes the importance of strategic partnerships to facilitate access to capital for underserved segments of the population. He specifically highlights the potential of collaborating with institutions like the Bank of Industry to de-risk loans for women-led SMEs, empowering female entrepreneurs and fostering gender equality in the business landscape. This approach recognizes the unique challenges faced by women entrepreneurs in accessing finance and aims to create a more level playing field. He believes that by addressing these systemic barriers, Nigeria can unlock the full potential of its female entrepreneurs, further driving economic growth and social progress.
Agama further elaborates on the SEC’s commitment to empowering individuals to become both “disciples and apostles” of financial inclusion, urging widespread participation in the movement to transform Nigeria’s financial landscape. This echoes the SEC’s vision of creating a more inclusive and dynamic capital market, where all citizens can benefit from the opportunities it offers. The SEC’s call to action emphasizes the importance of concerted efforts from all stakeholders, including government agencies, financial institutions, and individuals, to create an enabling environment for financial inclusion to flourish. This involves not only providing access to financial services but also empowering individuals with the knowledge and skills to effectively manage their finances and participate actively in the capital market.
In conclusion, the SEC’s call for leveraging Nigeria’s demographic dividend through financial inclusion represents a crucial step towards unlocking the nation’s economic potential. By addressing the knowledge-wealth gap, promoting active participation in the capital market, and empowering underserved demographics, Nigeria can create a more inclusive and prosperous future for all its citizens. The SEC’s emphasis on the moral imperative of this endeavor highlights the intertwined nature of economic and social development, highlighting the importance of financial inclusion as a catalyst for sustainable and equitable growth. This vision requires a collaborative approach, with all stakeholders working together to create an ecosystem that fosters financial literacy, encourages investment, and empowers individuals to participate fully in the transformative potential of the capital market.
