20th November, 2024
By Rukayat Adeyemi
Banks in Nigeria have raised N1.682 trillion through electronic offering platforms as part of the ongoing recapitalisation exercise, according to the Securities and Exchange Commission (SEC).
Dr Emomotimi Agama, Director-General of SEC, disclosed this in a statement on Wednesday in Lagos.
The News Agency of Nigeria (NAN) reports that the recapitalisation exercise follows new guidelines issued by the Central Bank of Nigeria (CBN) in March, mandating banks to meet minimum capital requirements ranging from N50 billion to N500 billion, based on their licences.
With a cumulative target of N4.14 trillion, the recapitalisation effort has a March 31, 2026, deadline. The initiative aims to bolster financial institutions and support President Bola Tinubu’s $1 trillion economic target.
Agama attributed the success of the exercise to the launch of an e-offering platform, which facilitated the fundraising process for banks.
“Nine banks have raised over N1.7 trillion across 12 applications through the e-offering platform, with some applications still pending. This demonstrates the transformative role of technology in the capital market,” Agama said.
He added that SEC is committed to leveraging technology for other activities, including monitoring, surveillance, and policy cohesion, to deepen the capital market.
The SEC chief highlighted several initiatives to enhance efficiency, such as introducing an electronic filing system, streamlining registration processes, and updating regulatory frameworks.
“A shorter time to market benefits the capital market by increasing liquidity, improving investor confidence, and enhancing competitiveness. These measures make Nigeria more attractive to companies and investors, facilitating faster capital raising and economic growth,” Agama explained.
Path to a $1 Trillion Economy
Agama expressed optimism about achieving the $1 trillion economic target, emphasising the need to diversify the economy beyond oil exports.
“Nigeria must invest in infrastructure, human capital, and innovation while improving the business environment and reducing regulatory hurdles. Financial inclusion and credit access for SMEs and individuals are also critical,” he added.
The SEC reaffirmed its commitment to supporting the recapitalisation exercise and broader efforts to strengthen Nigeria’s financial ecosystem. (NAN)
