Nigerian banks have raised about N1.7 trillion from the capital market in pursuit of the new recapitalisation hurdle stipulated by the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) revealed on Monday.
The Director General, SEC, Dr. Emomotimi Agama, who made the disclosure in Abuja at the Commission’s 2024 Journalists’ Academy with the theme, “Fintech: Leveraging Technology to Drive Capital Market Participation,” put the total amount raised from the capital market by banks and other entities, since last year at N2.7 trillion.
The aggregate was made up of equity capital, excluding the amount raised by fund managers in the market.
Agama pointed out that of the total funds raised from the market, N1.7 trillion was by banks through their recapitalisation exercise.
He said: “As you are aware, we came on board with an important banking recapitalisation exercise which we can declare has been successful. About N1.7 trillion has been raised so far from the market.
“This exercise will enhance financial stability and bolster investor confidence and improve the Nigerian economy.”
Highlighting the importance of the workshop, the SEC chief executive underscored the Commission’s shared responsibility in promoting transparency, confidence, and awareness within the Nigerian capital market.
Agama argued strongly that short-term funds cannot develop the country, adding that the capital market remains the veritable source of long-term financing needed to develop the economy.
Providing an update on the economy, he stated that macroeconomic indicators had reflected notable shifts, noting that since the current management took over the leadership of the Commission, it had taken significant steps to reposition its operations.
Some of the steps include the creation of specialised departments to focus on some of the developments in the markets and ensure proper regulation, creation of a Fintech and Innovation Department and a Derivatives and Risk Management Department, creation of an office of Municipal Bond, Office of Business Advocacy and Capital Formation, as well as Office of Unclaimed Monies and Office of Power Supply.
The SEC DG highlighted the importance of these departments in regulating crypto-assets, derivatives, and forex CFDs, as well as tackling longstanding issues such as unclaimed dividends to address financial innovation, emerging risks and improve the service delivery of the Commission.
Agama noted the significant progress in registering Capital Market Operators (CMOs), including on-boarding FinTechs under the Commission’s Regulatory Incubation Programmes (RIP and ARIP).
He acknowledged Nigeria’s efforts to exit the Financial Action Task Force (FATF) grey list, noting that SEC was working with the Nigerian Financial Intelligence Unit (NFIU) to ensure the delisting of Nigeria from the global anti-money laundering watchdog’s grey list.
According to him, exiting the grey list was crucial for the development of the financial sector.
He revealed that SEC was among 11 ministries, departments and agencies (MDAs) across Nigeria which achieved 100 per cent implementation of recommended reforms, strengthening Nigeria’s business environment and ensuring it remains a model for regulatory excellence.
“We have made significant progress in registering Capital Market Operators (CMOs), including on-boarding FinTechs under our Regulatory Incubation Programmes (RIP and ARIP). This effort ensures that our regulatory framework is inclusive and forward-looking.
“As you are aware, we came on board with an important banking recapitalisation exercise which we can declare has been successful. About N1.7 trillion has been raised so far from the market.
“This exercise will enhance financial stability and bolster investor confidence and improve the Nigerian economy.
“The SEC is also actively working with the Nigerian Financial Intelligence Unit (NFIU) to ensure Nigeria exits the FATF grey list.
This is crucial for the development of the financial sector.
“This collaborative effort when successful, will ensure the international financial credibility of the Nigerian financial system and avert economic sanctions.
“The Presidential Enabling Business Environment Council (PEBEC) set up a 90-day Regulatory Reform Accelerator Programme earlier in the year. The programme was meant to improve service delivery across MDAs and for us this speaks to attracting both foreign and domestic investors by improving disclosures and access to relevant information.”
Agama, who also underscored efforts of SEC to improve the capital markets in Nigeria by updating its enabling law, which is the Investment Securities Act 2007, expressed concerns over the growing tendencies towards ponzi schemes in the country.
He urged journalists and other Nigerians with information on individuals or groups involved in ponzi activities to bring such to the notice of the SEC, assuring of the Commission’s readiness to maintain their confidentiality and dealing decisively with the perpetrators of such schemes.
Agama disclosed that the SEC had approved the N250 billion Ministry of Finance Incorporated’s Real Estate Investment Fund (MREIF) to tackle housing deficit in Nigeria by enabling affordable mortgage financing, which aligns with the federal government’s One Million Homes Initiative.
He also reaffirmed the Commission’s commitment to implementing its Revised Capital Market Masterplan (2021-2025) by prioritising stakeholder engagement, awareness creation, capacity building, and developing regulatory frameworks that support innovative financial products.
Agama also unveiled a snapshot of the 2025 outlook of SEC, adding that the emphasis for the Commission in 2025 is to enhance market transparency and confidence, leveraging financial technology to drive inclusion and innovation, and strengthening collaboration with domestic and international stakeholders to maintain financial stability.
He recognised the role of the media in shaping public perception and understanding of the capital market, stating that through accurate reporting and constructive critique, the media can build trust and confidence in Nigeria’s capital market.
Ndubuisi Francis
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