Approximately N1.682 trillion has been raised by banks through the recently launched e-offering platform as part of their recapitalisation efforts.
Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama made this known yesterday at the Chartered Institute of Stockbrokers (CIS) Conference in Ibadan, Oyo State.
The sum, according to a statement by SEC, was achieved through 12 applications submitted by nine banks.
Agama, who noted that technology played a critical role in achieving the milestone, described it (technology) as a key enabler of the capital market’s growth.
He said: “The e-offering platform was pivotal in ensuring the success of the banks’ recapitalisation 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.”
The commission’s boss 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 stated that the measures were 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,” Agama 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.
He said: “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.
Dr. Agama added that diversifying the economy beyond oil, improving infrastructure, and fostering financial inclusion are critical to achieving this vision.
He praised government’s commitment to the recapitalization process, describing it as a strategic step to strengthen and make the banking sector capable of lending effectively to the real sector.
This, he said, aligns with the Renewed Hope Agenda and President Tinubu’s economic design.
Agama also praised the SEC’s guidelines for ensuring transparency and integrity throughout the recapitalisation process, making it easier for Nigerians to participate.
“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 bank recapitalisation 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.