Agama: Africa Must Harness Local Capital to Drive Continent’s Development Agenda

The Director-General, Securities and Exchange Commission, Dr.Emomotimi Agama in this interview on the sideline at the just concluded African Development Bank annual meeting in Abidjan, underscored the urgency of harnessing local capital to drive the continent’s development agenda. He spoke on the importance of retaining African wealth within the continent, ongoing efforts to mobilise diaspora remittances, and deepening regional capital market integration. Agama also highlighted Nigeria’s commitment to sustainability and the investment opportunities it presents for long-term growth. NumeEkeghe presents excerpts.

 A recurring theme at this gathering is the call for African capital to serve African priorities, ensuring that local funds are retained and efficiently deployed within the continent, even as efforts to attract external investment continue. How do you assess the quality of the conversations so far, and what concrete strategies are emerging to make this vision a reality?

It’s about the most important item on the agenda, making sure that we hold capital right in such a way that it remains in Africa. There couldn’t be a better opportunity and time to speak about this, especially when funding into Africa is beginning to waver.

And so, it is critical that, as Africans, we begin to look inward. In all sincerity, there’s actually capital in Africa. What has not happened is harnessing that capital and making good use of it—specifically, for infrastructure. Because for every development, if the pillars of development are not in existence, development cannot happen. And that pillar of development is infrastructure.

And what drives infrastructure development other than capital? That is exactly what we’re saying. We are saying we should look inwards. We should make sure that the capital within Africa is used for Africa, in order to re-energize Africa—to bring out the best out of Africa.

 Earlier in one of the panel sessions, there was considerable discussion around remittances—particularly the volume expected from countries like the United States, which hosts a significant Nigerian diaspora; is the SEC implementing any specific instruments or strategies to harness these inflows and channel them into productive investments within Nigeria?”

 Of course, there are instruments, there are a plethora of instruments already developed and in existence. As a point of reference, just recently, the Sukuk that was issued was 700 per cent oversubscribed. That tells you something, it tells you that the funding is there and available.

Even Nigerians abroad should now know that you can make more money investing in Nigeria and putting your money back into instruments in Nigeria than putting it elsewhere.

Beyond the Sukuk, most recently the SEC supported the Ministry of Finance Incorporated in issuing the MOFI Real Estate Investment Fund (MREIF), which is the housing bond. And there are several other opportunities that exist for Africans to invest in Africa and get the best out of what they are investing in.

Imagine knowing that you’re investing in your own country to make more money for yourself, what more could be a source of national pride other than doing that.

In my conversation with the Deputy Governor of PAPSS, he mentioned ongoing efforts to establish an investment corridor that facilitates cross-border investments within Africa. Are there any current discussions between Nigeria and other African exchanges aimed at enabling seamless capital flows and intra-African investment opportunities?

That has been a discussion for a while, and fortunately, I was one of those who initiated it. It comes from WACMIC, which is the West African Capital Market Integration Committee. Currently, I represent Nigeria as the Chair of the West African Securities Regulators Association. The essence of WACMIC, WASRA, and other initiatives is to ensure that particularly in West Africa we are able to passport ourselves in terms of investment. Meaning that if you’re in any West African country, you’re able to invest in another without any inhibition. That is the project we are working on, and we will certainly get through with it very soon.

How much do you foresee in investments coming into Nigeria from overseas?

If I give a figure, then I’d be betraying myself. However, I can clearly tell you that the interest has increased tremendously. So, we will not limit ourselves. Our goal is to create a $1 trillion economy, and that is actually going to be facilitated significantly by Nigerians living abroad.

Clearly, it is our desire that we will get there. So just consider that we are expectant, we are hopeful, and we know that it will happen.

What topical issues at these meetings are you looking forward too?

I’ll be speaking on sustainability which is key to Africa and key to Nigeria.As I always say, in the four quadrants of Nigeria, sustainability issues must be dealt with. In the North, we talk about desertification. In the West, we talk about pollution. In the South-South, it’s oil pollution and environmental degradation. In the East, there are also critical environmental concerns.

Even though our emissions are among the lowest globally, the future around sustainability and our environment cannot be overemphasised. We will be speaking about that and encouraging more investment in that area within Africa and specifically Nigeria in order for us to deal with those challenges; that is being futuristic, ensuring the future is safe, both for ourselves and for generations to come.