The Securities and Exchange Commission on Monday disclosed that banks and other companies have so far raised over N2.7 trillion from the capital market this year.The figure, which includes equity capital, excludes the amount raised by funds managers in the capital market.
Of this amount, the Director General of SEC, Dr. Emomotimi Agama said banks alone raised about N1.7 trillion during the recapitalization exercise ordered by the Central Bank of Nigeria, CBN.
Dr Agama who disclosed this in a keynote paper at the SEC 2024 Journalists Academy in Abuja with the theme: “Fintech: Leveraging technology to drive capital market participation”, stressed the importance of the workshop as it underscored the Commission’s shared responsibility in promoting transparency, confidence, and awareness within the Nigerian capital market.
He noted that some of the innovations introduced by the Commission since the new management took over in April have started yielding results with time-to-market by companies reduced to just 14 days.
Checks by Vanguard indicated that time to market had in the past averaged about 90 days.
Agama listed some of the innovative steps taken by the commission to 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.
He stressed 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 CommissionAgama 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 pointed at 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.
Within this period also, we have been able to reduce time to market significantly to a period of 14 days. This is a milestone that was not achieved before in the history of the capital market.
“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 also underscored the efforts of SEC to improving the capital markets in Nigeria by updating its enabling law, which is the Investment Securities Act 2007.
He highlighted the SEC approval of the Ministry of Finance Incorporated 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 used the opportunity to unveil a snapshot of the 2025 outlook of SEC. He said 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.
Source :Vanguard
