In a strategic move to enhance the efficiency and transparency of the bank recapitalisation process, the Nigeria Deposit Insurance Corporation (NDIC), the Central Bank of Nigeria (CBN), and the Securities and Exchange Commission (SEC), have announced a groundbreaking partnership.
The joint effort, revealed in a statement to The ECONOMIC TIMES on Sunday, aims to accelerate the capital-raising process, making the Nigerian capital market more appealing to investors and issuers. According to Emomotimi Agama, Director General of the SEC, this collaboration is a key component of a broader initiative to improve market liquidity and operational efficiency.
As part of this initiative, several significant measures have been implemented. These include the launch of an electronic filing system, streamlined registration processes, and an updated regulatory framework. Agama emphasized that these changes are designed to enable companies to access capital more quickly and efficiently, addressing one of the critical barriers to market liquidity.
The new framework, issued by the SEC in June 2024, provides clear guidelines and procedures for banks to follow during the recapitalisation process. This framework mandates the use of an e-offering platform, which is expected to significantly enhance the efficiency of the recapitalisation programme. The digital platform will streamline offering, subscription, and payment processes, reducing administrative burdens, minimizing unclaimed dividends, and expediting the overall process for both companies and investors.
A dedicated joint team from the NDIC, CBN, and SEC has been established to oversee the recapitalisation efforts, focusing particularly on capital verification—a crucial step for allotment clearance. Agama expressed confidence in the progress achieved so far and affirmed the SEC’s commitment to maximizing the Nigerian capital market’s potential.
The reforms align with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which seeks to drive economic growth and development. Agama concluded, “Our focus remains on reducing the time to market and ensuring that the capital market can swiftly and effectively support Nigeria’s economic advancement.”
This initiative marks a significant step forward in Nigeria’s financial sector, promising a more dynamic and transparent capital-raising environment.
