The Director General, Securities and Exchange Commission, SEC, Dr Emomotimi Agama has disclosed that so far, about N1.682tn has been raised by banks through e-offering in the bank recapitalization exercise.
The Commission in a statement on Wednesday said Dr Agama made this disclosure on the sidelines of the recently held Chartered Institute of Stockbrokers Conference held in Ibadan, Oyo State.
He explained that the launch of its e-offering platform was instrumental to the success of the recent banks recapitalization exercise.
He noted that the amount was raised in 12 applications by nine banks while some applications are still open pending.
He pointed out that technology is an enabler in the capital market and a prime tool for growth, adding that the Commission would continue to employ technology in different angles to aid its work and ensure a deeper capital market.
“What you have seen so far is the use of technology to drive the market with more investors coming into the market. As you are aware, we just launched the e-offering platform that ensured the offering processes for banks for which over N1.7tn was raised.
”That tells you what technology can do, we are also exploring technology for other activities, for monitoring and surveillance and other processes that will bring about a cohesion of all the policies that the SEC has applied to make the market grow bigger than it is today”.
Agama stressed that the Commission has implemented various initiatives to reduce time to market, including streamlined registration processes, introduction of an electronic filing system and enhanced regulatory frameworks, among others.
The efforts, he stated, are aimed at improving the efficiency and attractiveness of the Nigerian capital market, promoting economic growth and development.
He insisted that the $1tn economy is feasible especially with the drive and commitment of President Bola Tinubu in ensuring that other sectors of the economy are in full swing adding that the capital market is available to provide long term funding to boost the economy.
According to the DG, the nation needs to diversify the economy beyond oil exports, invest in infrastructure, human capital and innovation, enhance the business environment and reduce regulatory hurdles as well as promote financial inclusion and access to credit for SMEs and individuals.
“The Nigerian economy is a very vibrant economy full of promise in view of the natural resources in this country and the ability to harness these natural resources comes from seeking long term financing. The only place you can get long term financing that is enduring the capital market.
“Total commitment, more education, to build trust and confidence, integrity and an inclusive market that will bring everybody together to achieve the objectives of Mr. President,” he added.
Agama had recently stated that the guidelines issued by the commission before the banking recapitalisation exercise increased transparency of the process, making it easier for Nigerians to participate.
He also explained that the recapitalisation exercise was a crucial measure by the government to strengthen the banks.
In March, the Central Bank of Nigeria announced new capital requirements for the country’s banks, which were aimed at strengthening the financial institutions and achieving President Bola Tinubu’s $1trn economic target.
The SEC framework was a direct response to the CBN’s recent directive for banks to bolster their capital base.
Highlighting the achievement, Agama explained that the commission provided clarity before the recapitalisation exercise commenced because the current management of the commission is interested in integrity and transparency of processes.
According to him, “That clarity came out of the regulations that the SEC brought up to support the banking recapitalisation.
“It 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, as provided for by the Renewed Hope Agenda Initiative and the design of the President to turn out a $1trn economy.”
ENDS