The Securities and Exchange Commission (SEC) has revealed on Monday that banks and various corporate entities raised an impressive N2.7 trillion from the Nigerian capital market during the first eleven months of 2024. This robust figure underscores the heightened activity in investments, securities, and financial instruments as businesses strive to expand operations, contribute to economic growth, and enhance overall financial market dynamics.
The SEC’s report highlights that the significant sum includes equity capital while explicitly excluding funds raised by investment managers within the capital market framework. Notably, banks emerged as the front-runners in this fundraising exercise, generating approximately N1.7 trillion through various recapitalization initiatives. This development aligns with the ongoing efforts to fortify the financial sector and boost investor confidence.
Dr. Emomotimi Agama, the Director General of the SEC, delivered this pivotal information during his keynote address at the SEC’s 2024 Journalists Academy in Abuja. The conference, themed “Fintech: Leveraging Technology to Drive Capital Market Participation,” shed light on the critical role of technology in enhancing capital market engagement.
“We are excited to report that the banking recapitalization exercise has yielded substantial success, raising about N2.7 trillion from the market. This accomplishment promises to bolster financial stability, reinforce investor confidence, and ultimately enhance the Nigerian economy,” Dr. Agama stated, emphasizing the importance of robust capital markets.
He elaborated further, stating, “Of the N2.7 trillion total, N1.7 trillion was raised from the banking sector, while the remainder comprises equity rates and rights issues. It is essential to note that this figure excludes the additional amounts raised and refinanced by asset management companies during this period.”
Beyond this financial success, Dr. Agama highlighted the workshop’s significance in reinforcing the commission’s shared responsibilities to promote transparency, build confidence, and raise awareness about the capital market among stakeholders.
The SEC Director-General provided a broad economic overview, elaborating that macroeconomic indicators have shown notable shifts since the current management’s inception. The commission has undertaken pivotal steps to reposition its operations effectively, including the establishment of specialized departments targeting specific market developments to ensure more efficient regulation. Among the newly created units are the Fintech and Innovation Department, the Derivatives and Risk Management Department, and an office dedicated to managing municipal bonds and unclaimed dividends.
Dr. Agama emphasized the critical nature of these departments in regulating burgeoning areas such as crypto-assets, derivatives, and Foreign Exchange Contracts for Differences (CFDs). He noted that addressing longstanding issues like unclaimed dividends is vital for nurturing financial innovation and managing emerging risks, ultimately enhancing service delivery to market participants.
Moreover, the SEC has made significant strides in registering Capital Market Operators, with a focus on onboarding FinTech entities through its Regulatory Incubation Programmes. This initiative aims to foster an inclusive regulatory environment that meets the demands of a rapidly evolving financial landscape.
Dr Agama also pointed out the SEC’s collaboration with the Nigerian Financial Intelligence Unit in its quest to help Nigeria exit the Financial Action Task Force (FATF) grey list. Exiting this list is a crucial step for the advancement of the Nigerian financial sector, ensuring that the nation maintains its international financial credibility and avoids potential economic sanctions.
He commended the proactive initiatives of the Presidential Enabling Business Environment Council, which introduced a 90-day Regulatory Reform Accelerator Programme aimed at improving service delivery within ministries, departments, and agencies (MDAs). Such reforms are anticipated to attract both local and foreign investments by enhancing transparency and access to vital information.
Furthermore, Dr Agama reaffirmed the SEC’s commitment to updating its governing legislation, the Investment Securities Act of 2007, and highlighted the SEC’s endorsement of the Ministry of Finance Incorporated Real Estate Investment Fund, which aims to address Nigeria’s housing deficit through affordable mortgage financing—an initiative closely aligned with the government’s ambitious One Million Homes campaign.
Looking ahead, Dr. Agama outlined the SEC’s Revised Capital Market Masterplan (2021-2025), which emphasizes stakeholder engagement, awareness, capacity building, and developing regulatory frameworks that support innovative financial products.
In conclusion, Dr. Agama presented a snapshot of the SEC’s objectives for 2025, focusing on enhancing market transparency and confidence, leveraging technology for financial inclusion, and strengthening partnerships with domestic and international stakeholders to sustain financial stability. He acknowledged the pivotal role of the media in fostering public understanding and trust in the capital market, underscoring the necessity for accurate reporting and constructive dialogue in this vital sector of the Nigerian economy.
