Dr. Emomotimi Agama, the Director-General of the Securities and Exchange Commission (SEC), said that approximately N1.682 trillion has been raised by banks through the recently launched e-offering platform as part of their recapitalization efforts.
He made this revelation at the Chartered Institute of Stockbrokers (CIS) Conference in Ibadan, Oyo State.
According to a statement by the SEC on Wednesday, the funds were raised through 12 applications submitted by nine banks, with additional applications still pending.
Agama noted the critical role technology played in achieving this milestone, describing it as a key enabler for growth in the Nigerian capital market.
“The e-offering platform was pivotal in ensuring the success of the banks’ recapitalization exercise, enabling over N1.7 trillion to be raised.
“This demonstrates the power of technology, which we are also leveraging for monitoring, surveillance, and other market activities to strengthen the cohesion of our policies and drive market growth,” he said.
Agama acknowledged several initiatives implemented by the SEC to improve efficiency and reduce time to market for capital offerings. These include streamlined registration processes, an electronic filing system, and enhanced regulatory frameworks.
He noted that these measures are aimed at bolstering investor confidence, improving liquidity, and promoting the Nigerian capital market’s competitiveness.
“A shorter time to market benefits the capital market by allowing companies to access capital more quickly, which increases liquidity, boosts investor confidence, and enhances competitiveness. This ultimately leads to better resource allocation and drives economic growth,” he explained.
The SEC DG expressed optimism about achieving President Bola Tinubu’s $1 trillion economic target, stating that the capital market is uniquely positioned to provide the long-term funding necessary to fuel economic diversification and growth.
“The Nigerian economy is vibrant and full of potential. To harness its resources effectively, we need long-term financing, which only the capital market can provide,” he said.
Agama added that diversifying the economy beyond oil, improving infrastructure, and fostering financial inclusion are critical to achieving this vision.
He further praised the government’s commitment to the recapitalization exercise, describing it as a strategic step to strengthen the banking sector and enable it to lend effectively to the real sector. This, he said, aligns with the Renewed Hope Agenda and President Tinubu’s economic design.
He also praised the SEC’s guidelines for ensuring transparency and integrity throughout the recapitalization process, making it easier for Nigerians to participate.
The commission’s framework, introduced in response to the Central Bank of Nigeria’s (CBN) directive to strengthen banks’ capital bases, provided clarity and fostered trust in the system.
“The SEC’s clarity and regulations ensured a transparent process, underscoring the importance of integrity in achieving our economic goals. Strengthened banks will have greater capacity to lend to the real sector, driving the economy toward the $1 trillion target,” he said.
The banking recapitalization initiative follows the CBN’s March 2024 announcement of new capital requirements for banks. The move aims to solidify the financial sector and position it as a cornerstone of the country’s economic transformation.
Agama assured of the SEC’s commitment to leveraging technology, enhancing investor education, and building trust to create a more inclusive and vibrant capital market that aligns with national economic objectives.
