Technology, improved guidelines facilitated transparent recapitalisation process, says SEC boss
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The Securities and Exchange Commission (SEC) says its guidelines on banking recapitalisation have made the process more transparent and easily accessible for citizens’ participation.
Emomotimi Agama, the director-general of SEC, spoke in a statement on Sunday, according to NAN.
On August 15, the commission said it has approved all the offers it received from commercial banks amid the ongoing recapitalisation exercise.
The development came after the Central Bank of Nigeria (CBN) announced an upward review of the minimum capital requirements for commercial, merchant, and non-interest banks.
The CBN said the increase was necessary due to prevailing macroeconomic challenges and headwinds occasioned by external and domestic shocks.
Since then, several banks have announced rights issuance and public offers in a race to meet the CBN capital requirement deadline.
Speaking on the recapitalisation exercise, Agama said the commission is interested in the integrity and transparency of processes, hence the provision of clear guidance before the recapitalisation commenced.
This, he said, was the major ingredient of a transparent capital market.
The director-general said lessons learnt from previous banks’ recapitalisation had led to the creation of a seamless environment for the process to thrive.
He said apart from the introduction of the guidelines, the commission also provided the needed technology to help.
“The banking capitalisation is a very important step by the government to strengthen the banks and indeed provide capacity for the banks to lend to the real sector for us to drive the economy,” Agama said.
“This is as provided for by the Renewed Hope Agenda and the design of President Bola Tinubu to turn out a one trillion dollar economy.
“So the guidelines have brought about stability, transparency to the recapitalisation process and public offerings have increased.
“You see the interest being galvanised by the actions of the SEC in trying to make sure that this is a success.”
Agama said the commission would continue to support the CBN and every institution that understands the value of the capital market.
“The capital market is indeed the barometer of the economy and the SEC is ready to live up to that bidding; I want a more sustainable industry,” he added.
The SEC boss said the commission is cooperating with the CBN, the Federal Inland Revenue Service (FIRS) and the office of the national security adviser (NSA) to ensure a safe environment for investments to thrive.
He said the move intends to attract the youth population to the market.
Agama said the SEC had embraced innovations to make the capital market attractive to youths.The director-general said the commission would continue to guide youths to unleash their potential in the area of financial technology (fintech).
