The Director-General of the Securities and Exchange Commission, Dr. Emomotimi Agama, emphasized the significance of the guidelines issued by the commission in enhancing the transparency of the banking recapitalization exercise.
According to The PUNCH, this statement was made in a press release from the SEC on Sunday.
He stated that these measures have facilitated greater participation from Nigerians in the process.
Agama highlighted that the recapitalization initiative is a vital government strategy aimed at fortifying the country’s banks.
In March, the Central Bank of Nigeria announced revised capital requirements for the nation’s banks, a move designed to bolster these financial institutions in alignment with President Bola Tinubu’s ambitious goal of achieving a $1 trillion economy.
The CBN urged Deposit Money Banks to act swiftly in enhancing their capital bases to mitigate potential risks within the financial system.
The SEC’s framework directly responds to the CBN’s directive, guiding banks in raising the required capital through the capital market and other funding avenues.
Agama noted the importance of clarity in the guidelines established before the recapitalization process began, asserting the current management’s commitment to integrity and transparency.
He remarked, “That clarity came out of the regulations that the SEC brought up to support the banking recapitalization. It is a very important step by the government to strengthen the banks and indeed provide capacity for the banks to lend to the real sector for us to drive the economy, as provided for by the Renewed Hope Agenda Initiative and the design of the President to turn out a $1 trillion economy.”
He added that collaboration among institutions involved in this process was crucial. “This is about the second time that the SEC will be tested in its capacity to be able to handle this. The first was in 2004 as you are aware, during the Soludo recapitalization exercise, the SEC was tested, and we came out of the test positive; this time around, it will not be different.”
Agama pointed out that the current processes have improved, drawing from lessons learned during previous exercises.
He noted that the SEC has created an environment conducive to smooth operations, including the introduction of necessary guidelines and technology.
“So the guidelines, as it were, have brought about stability, transparency to the recapitalization process, and public offerings have increased. And of course, you see the interest being galvanized by the actions of the SEC in trying to make sure that this is a success,” he said. He expressed optimism about the progress being made, stating, “And I can tell you without doubt, the information we have received thus far shows that we are actually on the right course, and we are happy that that is happening.”
The SEC is committed to supporting the Central Bank of Nigeria and all institutions that recognize the significance of the capital market.
Agama emphasized, “The capital market is indeed the barometer of the economy. And the SEC at this juncture is ready to live up to that bidding. I want a more sustainable industry.”
Furthermore, he mentioned the SEC’s collaboration with various entities, including the CBN, the Federal Inland Revenue Service, and the Office of the National Security Adviser, to create a secure investment environment.
This initiative particularly aims to engage the youth demographic, encouraging their participation in the capital market.
