By Tony Obiechina, Abuja
The Securities and Exchange Commission (SEC) says the process of raising funds from the capital market for the purpose of banking system recapitalisation will commence this quarter.
This was disclosed during a Webinar for journalists after the Capital Market Committee (CMC) meeting which outlined a series of measures designed to ensure a smooth, efficient, and investor-centric process to the upcoming banking sector recapitalisation exercise.
According to the statement, “we have also been working with some market participants, trying to make sure that this process (we expect to start within this quarter) is done very smoothly and making sure that the SEC and the market and the banks avoid all the mistakes we have had with past exercises.”
The SEC said the Commission is committed to avoiding past pitfalls and will “very shortly issue appropriate guidelines to facilitate an efficient capital raising process.” These guidelines, he said, will prioritise speed, fairness, and good market conduct.
It further stated that the SEC is fostering close collaboration with the Central Bank of Nigeria (CBN) and other relevant agencies to ensure a seamless recapitalisation process.
The statementbnoted that protecting investors remains a core priority for the SEC. As a result, “the guidelines will emphasise the benefits of past exercises while safeguarding those who participate in upcoming capital offerings”.
According to the statement, “recent successful examples in the market demonstrate the viability of this approach. A digital format would promote inclusivity, particularly for younger demographics accustomed to electronic transactions. While the last details are being finalized, the SEC’s intention to prioritize digital access is clear”.
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The SEC expresses confidence in the Nigerian capital market’s ability to support the recapitalization. He cited recent instances of large companies successfully raising significant capital, indicating the market’s depth and financing capabilities.
It also highlighted other developments within the Nigerian capital market. These include: the Non-Interest Capital Market Committee’s exploration of non-interest instruments for financing, potentially opening new avenues for asset securitisation and infrastructure projects.
