Nigerian universities are being urged to diversify their funding sources by tapping into the capital market, moving away from their traditional reliance on government allocations. This call was made by Dr. Emomotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), during the University of Ibadan Alumni Association Annual Public Service Lecture held in Ibadan.

The lecture, themed "First and Best But Whose Capital Built It? Rethinking How Nigeria Funds Its Own Future," highlighted the need for universities to embrace capital formation, investment, and ownership. Dr. Agama pointed out that the University of Ibadan, despite its historical significance and the notable achievements of its alumni, has never utilized the capital market to raise long-term funds. He stated, "Not once. Not a bond. Not a fund. Not a listed vehicle. The premier university of Africa’s largest economy has been, financially speaking, a spectator at a market its own graduates built."

Agama emphasized that the current fiscal realities in Nigeria make it unsustainable for universities to depend solely on government funding. He noted that the University of Ibadan has approximately 41,700 students, while its halls of residence can only accommodate fewer than 10,000, resulting in many students living off-campus.

Highlighting the availability of capital in Nigeria, Agama mentioned that pension assets reached N31.48 trillion as of July 2026, and the total market capitalization of the Nigerian Exchange (NGX) stood at N215.09 trillion. He contrasted this with the N2.53 billion allocated to the university by the Tertiary Education Trust Fund (TETFund), illustrating a stark disparity in funding opportunities.

To address these challenges, Agama proposed several financing instruments that universities could explore under the Investments and Securities Act 2025. These include:

• Establishing an endowment fund registered with the SEC as a collective investment scheme, managed by a licensed fund manager.
• Issuing bonds and sukuk backed by revenue-generating university assets.
• Creating a Real Estate Investment Trust (REIT) to convert student housing into a revenue stream.
• Launching a university innovation fund to invest in spin-off companies from university research.
• Developing a diaspora-targeted investment instrument to channel remittances into university funding.

Agama cautioned that accessing the capital market requires financial discipline, including the publication of audited accounts and maintaining credit ratings. He encouraged alumni to shift from making one-time donations to providing capital that can grow over time, proposing an Alumni Capital Fund to facilitate this.

Prof. Terrumun Gajir, the Acting President of the University of Ibadan Alumni Association, echoed Agama's sentiments, stating that the theme of the lecture was timely as Nigeria seeks to mobilize capital for sustainable prosperity. He stressed the importance of deepening domestic investment and reducing reliance on external capital.

Bayo Oyero, the Chairman of the occasion, also called for the university to invest directly in financial markets, suggesting the establishment of an independent endowment fund to generate returns through investments in properties and other assets. He emphasized the need to engage young Nigerians in financial planning and investment early in their careers.

The discussions at this event reflect a growing recognition of the need for Nigerian universities to innovate in their funding strategies to ensure sustainable development and prosperity for future generations.