Banks, Others Raised Over N2.7tn From Capital Market, Says SEC
By Oluwakemi Kindness
The Securities and Exchange Commission on Monday, revealed that over two point seven trillion naira has been raised in the capital market by banks and other companies so far in 2024
The figure, which includes equity capital, excludes the amount raised by funds managers in the capital market.
This is as the Commission revealed that out of the two point seven trillion naira, about one point seven trillion naira was raised by banks through their recapitalisation exercise.
The Director-General of SEC, Dr. Emomotimi Agama stated this while delivering the keynote paper at the Commission’s 2024 Journalists Academy with the theme, “Fintech: Leveraging Technology to Drive Capital Market Participation.”
He highlighted the importance of the workshop as it underscored the Commission’s shared responsibility in promoting transparency, confidence, and awareness within the Nigerian capital market.
Giving an update on the economy, Dr. Agama said macroeconomic indicators have reflected notable shifts, noting that since the current management took over the leadership of the Commission, it has taken significant stels at repositioning 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 so as 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 highlighted the efforts made by the SEC working with the Nigerian Financial Intelligence Unit (NFIU) to ensure Nigeria exits the FATF grey list adding that this is crucial for the development of the financial sector.
He revealed that SEC was among 11 MDAs across Nigeria that achieved 100 per cent implementation of recommended reforms, strengthening Nigeria’s business environment and ensuring it remains a model for regulatory excellence.
He said, “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 N1.7trn 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.”
Dr. Agama further underscored the efforts of SEC to improving the capital markets in Nigeria by updating its enabling law, which is the Investment Securities Act 2007.
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