The Central Bank of Nigeria, the Securities and Exchange Commission, and the Nigeria Deposit Insurance Corporation have united to streamline the bank recapitalization process, aiming to boost efficiency and transparency in the financial sector.
This was revealed in a statement by the Director General of SEC, Emomotimi Agama, according to The Punch.
In the statement, Agama emphasized that this collaboration is part of a broader initiative to shorten the time required for capital-raising activities, enhancing the attractiveness of the Nigerian capital market for both investors and issuers.
He highlighted several new initiatives, including the implementation of an electronic filing system, simplified registration processes, and updated regulatory frameworks.
These measures are designed to improve market liquidity by enabling companies to access capital more rapidly and effectively.
He also noted that the CBN, SEC, and NDIC are working together to facilitate a smooth capital-raising process for banks during the recapitalization period, in accordance with the new framework introduced by the SEC in June 2024.
“The new framework outlines the guidelines and procedures banks must follow to raise capital, ensuring a smooth and transparent process,” Agama stated.
He added that the use of an e-offering platform, mandated by the framework, was designed to enhance the efficiency of the recapitalisation programme by providing an end-to-end solution for offering, subscription, and payment processes.
This digital approach, according to Agama, will eliminate multiple identities, reduce the potential for unclaimed dividends, and speed up the overall process, benefiting both companies and investors.
Agama added that a joint team of representatives from the CBN, SEC, and NDIC has been established to oversee the recapitalization program, focusing on critical areas such as capital verification, which is essential for clearance and allotment.
He expressed satisfaction with the progress achieved thus far and reaffirmed the SEC’s commitment to fully realizing the potential of the Nigerian capital market.
He emphasized that the ongoing reforms are aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which aims to drive economic growth and development.
“We are dedicated to ensuring that the capital market is well-positioned to contribute to Nigeria’s economic development. Time to market will be a key focus, and we will continue to improve our processes to ensure swift approvals for issuances,” Agama concluded.
