Recapitalisation: Banks doing well, all offers received from them approved in record time – SEC

The Securities and Exchange Commission (SEC) says it has approved all the offers it received from commercial banks amid the ongoing recapitalisation exercise.

The Commission’s Director-General, Emomotimi Agama revealed this at a news conference held after the capital market committee (CMC) meeting on Thursday.

On March 29, the Central Bank of Nigeria (CBN) announced an upward review of the minimum capital requirements for commercial, merchant, and non-interest banks.

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 at the briefing, Agama highlighted significant developments in the Nigerian capital market for 2024, particularly in the primary market.

“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.

“We are proud and happy to state clearly that for all of the offers that we have received at the SEC, we have approved within record time.

“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.”

Agama also said the commission has approved nine new issuances totalling N1.228 trillion, “which reflects increased market confidence”.

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.

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, strengthening the regulatory framework, prioritising investor protection as well as developing a master plan among others,” he said.

Agama said the commission plans to restructure the CMC to optimise its role in driving market growth and development and unlocking its full potential “to better serve the needs of our industry.”