SEC DG urges universities to explore capital market funding
Nigerian universities have been urged to move away from dependence on government allocations and embrace capital formation, investment and ownership through the capital market. The post SEC DG urges…
Nigerian public universities have long relied heavily on federal and state government subventions, a funding model that has been strained by budget shortfalls, strikes over inadequate infrastructure, and calls for greater institutional autonomy. The Securities and Exchange Commission (SEC), as the apex regulator of Nigeria's capital market, has in recent years pushed various sectors — including state governments and now academia — to tap into equities, bonds and other market instruments as alternative, more sustainable sources of funding beyond annual budgetary allocations.
The remarks, attributed to the SEC Director-General, position the capital market as a vehicle through which universities could raise funds for capital projects, research and infrastructure by building investment portfolios or exploring ownership structures tied to market participation. Both Vanguard and ThisDay report the same core message, with ThisDay noting the comments were made in Ibadan; neither report provides specifics on how such funding would work in practice, which universities might pioneer the approach, or what regulatory or structural changes would be needed to enable tertiary institutions to access the capital market.