Senate Proposes N10bn for Capital Market Awareness to Boost Investor Participation
In a recent proposal, the Nigerian Senate suggested allocating N10bn to fund investor education in the capital market as part of the 2025 national budget. The move aims to address the critical issue of inadequate awareness, which has been identified as a significant barrier to increasing investor participation. The proposal was disclosed by Osita Izunaso, the Chairman of the Senate Committee on Capital Market, during the budget defense session held at the Securities and Exchange Commission (SEC) headquarters in Abuja.
Izunaso emphasized that while the Nigerian capital market is performing well, there is still a need to attract more investors. He pointed out that investor participation remains low, and the number of listed companies is well below the potential that Nigeria’s economy offers. To overcome this challenge, Izunaso proposed the establishment of a special fund dedicated to enhancing financial literacy and driving education efforts across the market, thereby encouraging wider participation.
The Senate’s push for increased investor awareness is aligned with the broader economic vision of President Bola Tinubu, who aims to grow Nigeria’s economy to $1 trillion. Izunaso urged the Federal Government to leverage the capital market as a key tool in realizing this goal. He believes that the N10bn fund would help raise awareness and encourage more people to invest, leading to an expanded and more diverse market.
Additionally, Izunaso commended the support of the Minister of Finance, Wale Edun, in repositioning the capital market. He mentioned that recent reforms, such as the repeal of the Investment and Securities Act, reflect the importance of the capital market to Nigeria’s economic development. The Senate’s commitment to ensuring sustained market growth and fostering a positive investment environment was reiterated during the session.
In response to the Senate’s proposal, Minister Wale Edun assured that the government remains dedicated to fostering a stable and investment-friendly environment. He noted that recent policy changes had bolstered market confidence, with the stock market already showing positive growth in the early months of 2025. Edun also highlighted that the capital market plays a pivotal role in mobilizing savings for investments, and efforts are being made to further encourage participation, such as leveraging pension contributions to increase investment flows.
Source: Punch