…Seeks end to reliance on student fees
…Achievers varsity can become Africa’s best – Ayorinde

The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has urged private universities in the country to shun their heavy reliance on student fees and return to the capital market to finance long-term infrastructure and academic growth.

Delivering the 16th convocation lecture of Achievers University, Owo, titled “From Grants to Growth: Financing Nigeria’s Universities Through the Capital Market,” Agama warned that the current funding model is unsustainable, describing it as a “tuition trap” that stunts institutional development.

The SEC boss noted that while the federal government’s resources are limited and stretched across competing demands, the capital market holds untapped potential for universities willing to embrace structured long-term financing.

According to him, short-term financing is unsuitable for long-term projects like universities, adding that relying on annual fees to build 40-year assets is a recipe for stalled growth.

“A university financed only by tuition is not self-funding. It is hand-to-mouth. Everything required to fund this university properly already exists inside the Nigerian financial system. You raised capital when it was hard. Why are you living on fees now that it is easy?” he stated.

Agama noted that the introduction of the student loan scheme is a commendable initiative by the government, adding that there are considerations to include private university students in the scheme.

Drawing from the university’s own history, the SEC DG noted that Achievers University was founded through a private placement involving shareholders, making it a product of the capital market.

Agama stressed that the Nigerian financial system, with its pension funds valued at over N31.5 trillion and a modernized Investments and Securities Act 2025, is ripe for university bonds, sukuk, and real estate investment trusts.

He advised the university to leverage its student accommodation as a rent roll, noting that pension funds are hunting for long-dated assets that universities can provide through ring-fenced special purpose vehicles.

He, however, cautioned that the capital market demands transparency, timely audited accounts, and the separation of the institution from its promoters.

Earlier in his remarks, the Pro-Chancellor of Achievers University, Prof. Bode Ayorinde, expressed the institution’s ambition to become the best university in Africa, noting that financial constraints have been a major hurdle.

Ayorinde, however, expressed confidence that entering the capital market could lower the cost of funds and reduce school fees for students, as an increased number of students would naturally drop the unit cost.