The Securities and Exchange Commission announced on Monday that Nigerian banks and other companies have raised a total of N2.7 trillion from the capital market in the first 11 months of 2024.
The funds were generated through various investments, securities, and financial instruments, aimed at expanding business operations, supporting economic growth, and enhancing market activities.
The SEC disclosed that of the N2.7 trillion, approximately N1.7 trillion was raised by banks as part of their recapitalisation efforts. This amount excludes funds raised by fund managers in the capital market, which were not included in the total.
Dr. Emomotimi Agama, Director-General of the SEC, revealed these figures while delivering the keynote address at the Commission’s 2024 Journalists Academy in Abuja. The event, themed “Fintech: Leveraging Technology to Drive Capital Market Participation,” highlighted the role of technology in boosting capital market engagement.
Agama explained that the capital raised through the market, particularly the banking sector’s recapitalisation exercise, is crucial for strengthening financial stability, enhancing investor confidence, and supporting Nigeria’s broader economic growth. “So far, about N2.7 trillion has been raised from the market, including N1.7 trillion from the banking sector. This will enhance financial stability and bolster investor confidence,” he stated.
The SEC chief also discussed the Commission’s ongoing efforts to improve market operations, including the establishment of specialized departments to address emerging market trends. These include a Fintech and Innovation Department, a Derivatives and Risk Management Department, and an Office for Municipal Bonds, among others.
He emphasized that these departments would help regulate new financial products such as crypto-assets and derivatives while tackling longstanding issues like unclaimed dividends.
Agama highlighted the progress made in registering Capital Market Operators, particularly the onboarding of FinTech companies through the SEC’s Regulatory Incubation Programmes. He also noted the SEC’s collaboration with the Nigerian Financial Intelligence Unit to help Nigeria exit the FATF grey list, a move critical to securing the country’s financial sector from international sanctions.
As part of the SEC’s commitment to fostering a more inclusive regulatory environment, Agama pointed to the approval of the Ministry of Finance Incorporated’s Real Estate Investment Fund, a N250 billion initiative aimed at addressing Nigeria’s housing deficit and promoting affordable mortgage financing. He described this initiative as a significant step toward nation-building and economic development.
Looking ahead, Agama outlined the SEC’s priorities for 2025, which include enhancing market transparency, leveraging financial technology to drive innovation, and strengthening collaboration with domestic and international stakeholders.
He also praised the media’s role in shaping public perception of the capital market, urging accurate reporting to build trust and confidence.
The SEC is also focused on updating the Investment Securities Act of 2007 to better support the evolving needs of Nigeria’s capital markets. Agama reaffirmed the Commission’s dedication to implementing its Revised Capital Market Masterplan (2021-2025), which prioritizes stakeholder engagement, capacity building, and the development of regulatory frameworks to support innovative financial products.
