The Securities and Exchange Commission (SEC) is set to release guidelines to facilitate the efficient recapitalization process for banks in Nigeria. This initiative aligns with the federal government’s infrastructure development goals, as SEC also approves five infrastructure fund shelf programs totaling N1.5 trillion.
Lamido Yuguda, the outgoing director-general of SEC, announced these developments during a virtual press briefing on the first-quarter Capital Market Committee (CMC) meeting. SEC is collaborating with the Central Bank of Nigeria (CBN) and other relevant agencies to ensure a smooth recapitalization process in the banking industry.
Yuguda commended the CBN for its recent policy on bank recapitalization and assured stakeholders that SEC would issue appropriate guidelines to facilitate an efficient capital-raising process. Emphasizing the importance of speed, fairness, and good market conduct, SEC is committed to ensuring a smooth and transparent recapitalization exercise.
The director-general expressed confidence in the market’s ability to provide the necessary funds for recapitalization, citing the capital market’s strength, efficiency, and resilience. He highlighted successful financing initiatives by large companies in recent quarters, demonstrating the market’s capacity to meet financing needs.
Furthermore, Yuguda emphasized SEC’s commitment to embracing FinTech innovations while managing associated risks and establishing a regulatory framework for the digital asset space. The upcoming listings of gold, lithium, and oil and gas on the Lagos Commodities and Futures Exchange aim to expand opportunities for traders and investors in the commodities market.
SEC continues to collaborate with international bodies such as the Islamic Financial Services Board (IFSB) and the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) to ensure market resilience and global competitiveness. Ongoing efforts, including inspection visits to capital market operators, are geared towards maintaining fairness and facilitating financing and wealth creation.
