The Securities and Exchange Commission (SEC) has announced the approval of all recapitalization offers it received from commercial banks as part of the ongoing efforts to meet the Central Bank of Nigeria’s (CBN) revised capital requirements.
Emomotimi Agama, SEC’s director-general, made this known during a news conference following the capital market committee (CMC) meeting on Thursday.
The CBN had raised the minimum capital requirements for commercial, merchant, and non-interest banks in March, citing the need to address macroeconomic challenges and external shocks.
In response, several banks have initiated rights issuances and public offers to comply with the new regulations.
Agama highlighted the importance of the capital market in facilitating the recapitalization process and expressed satisfaction with the progress made.
“We are proud to state that all offers submitted to the SEC have been approved promptly,” he said, adding that the banks are making significant strides towards meeting the CBN’s deadlines.
“You are all aware that the capital market has become a very important tool in the achievement of the recapitalisation effort of the Central Bank of Nigeria for banks,” he said.
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“We are also glad to note the progress that is being achieved. From the reports and feedback received thus far, the banks are doing well and we hope that they will all do well in all unforeseen circumstances.”
In addition to the recapitalization efforts, Agama revealed that the SEC has approved nine new issuances totaling N1.228 trillion, reflecting increased confidence in the market.
He also noted the growth in the net asset value (NAV) of registered mutual funds, which surged by 111.08 percent to N3.335 trillion.
Agama reiterated the SEC’s commitment to advancing the Nigerian capital market in alignment with President Bola Tinubu’s renewed hope agenda.
He emphasized the importance of public-private collaboration to sustain the economy and unlock the full potential of the capital market, reinforcing Nigeria’s position as Africa’s leading economy.
Looking ahead, Agama mentioned plans to restructure the CMC to enhance market efficiency, develop new products, and strengthen the regulatory framework.
also commended the continuous efforts of the CMC sub-committees in improving market standards and protecting investors.Another notable development, according to the director-general is the growth in the net asset value (NAV) of registered mutual funds by 111.08 percent to N3.335 trillion.
Agama further reiterated the SEC’s unwavering commitment to the advancement and prosperity of the Nigerian capital market and the economy in general “in line with President Bola Tinubu’s renewed hope agenda”.
He stressed the need for public and private sector collaboration to sustain the economy during these challenging times.
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Agama expressed optimism about unlocking the full potential of the capital market in line with the national agenda.
He said the capital market must mobilise financing and facilitate the transfer of purchasing power from surplus to deficit sectors to reinforce Nigeria’s position as Africa’s leading economy.
“I wish to acknowledge the tireless efforts of CMC sub-committees since 2002 to enhance market efficiency, create rules and standards and develop new products, strengthen the regulatory framework, prioritise investor protection as well as developing a master plan among others,” he said.