The Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama, has highlighted the impact of newly issued guidelines in boosting transparency during the ongoing banking recapitalization process.
In a statement released on Sunday, Agama highlighted the importance of these guidelines in fostering increased participation from Nigerians and enhancing the overall clarity of the process.
The recapitalization effort, driven by the Central Bank of Nigeria, is part of a broader strategy to strengthen the country’s banks, aligning with President Bola Tinubu’s ambitious goal of creating a $1 trillion economy. In March, the CBN introduced revised capital requirements, urging Deposit Money Banks to swiftly enhance their capital bases to mitigate risks within the financial system.
Agama noted that the SEC’s framework was developed in direct response to the CBN’s directive, offering clear guidance for banks on raising the necessary capital through the capital market and other funding sources. He emphasized that the guidelines play a crucial role in maintaining transparency and integrity throughout the recapitalization exercise.
“The clarity that emerged from the SEC’s regulations is key to ensuring a smooth recapitalization process,” Agama stated. “This step by the government strengthens banks, empowering them to lend to the real sector and drive economic growth as envisioned by the Renewed Hope Agenda.”
Agama also highlighted the collaboration between key institutions, including the SEC, in making the recapitalization a success. Drawing from lessons learned during past exercises—such as the 2004 recapitalization led by then CBN Governor Charles Soludo—he expressed confidence in the SEC’s ability to manage the current process effectively.
“SEC has been tested before, and we performed well. This time, we have refined our processes, using technology and updated guidelines to ensure smooth operations,” he added.
The SEC’s measures have contributed to stability in the capital market, leading to an increase in public offerings and renewed investor interest. Agama expressed optimism about the progress made so far, stating, “We are on the right course, and the feedback we’ve received has been positive.”
In addition to supporting the recapitalization drive, the SEC is working closely with other institutions, including the Federal Inland Revenue Service and the Office of the National Security Adviser, to create a secure and sustainable investment environment. Agama emphasized that the SEC is particularly focused on engaging Nigeria’s youth, encouraging their participation in the capital market as part of efforts to build a more sustainable financial industry.
“The capital market is the barometer of the economy, and the SEC is committed to ensuring it remains robust and transparent,” Agama concluded.
