Ibadan:The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has called on Nigerian universities to reduce their reliance on government funding and instead explore opportunities in the capital market for financial sustainability.
According to News Agency of Nigeria, Dr Agama made these remarks during the University of Ibadan Alumni Association Annual Public Service Lecture, highlighting the necessity for universities to engage in capital formation and investment. He pointed out that, historically, the University of Ibadan has not leveraged the capital market, despite its distinguished alumni and contributions to the economy.
Dr Agama emphasized the unsustainable nature of continuous dependence on government appropriations, particularly given Nigeria’s current fiscal challenges. He noted the university’s infrastructure limitations, with its student population far exceeding available on-campus accommodation.
Pension assets in Nigeria were reported at N31.48 trillion, and the Nigerian Exchange’s total market capitalisation stood at N215.09 trillion. Dr Agama compared the substantial funds raised by banks through recapitalisation with the limited allocations universities receive from government sources, suggesting that long-term investment opportunities are available.
Proposing various financing instruments under the Investments and Securities Act 2025, Dr Agama identified potential avenues such as endowment funds, bonds, and Real Estate Investment Trusts (REITs) to address the university’s financial needs. He also suggested the establishment of a university innovation fund and a diaspora-targeted investment instrument.
The SEC director-general underscored the importance of financial discipline for accessing capital markets, outlining necessary requirements like audited accounts and credit ratings. He encouraged alumni to shift from donations to capital investments, proposing an Alumni Capital Fund to engage young graduates and the Nigerian diaspora.
Prof. Terrumun Gajir, Acting President of the association, supported the lecture’s theme, stressing the importance of mobilising domestic investment for sustainable national development. He urged a focus on capital formation and investment over dependency.
Bayo Oyero, chairman of the event, advocated for the University of Ibadan to invest directly in financial markets through an independent endowment fund, and he encouraged young Nigerians to plan for their financial futures through investments.