The director general of Securities and Exchange Commission (SEC) Emomotimi Agama has disclosed that so far about N1.682 trillion has been raised by banks through e-offering in the bank recapitalisation exercise.
Dr Agama made the disclosure on the sidelines of the recently held Chartered Institute of Stockbrokers Conference held in Ibadan, Oyo State, the commission said in a statement on Wednesday.
He explained that the launch of its e-offering platform was instrumental to the success of the recent banks recapitalisation exercise.
He noted that the amount was raised in 12 applications by nine banks while some applications are still open pending.
He pointed out that technology is an enabler in the capital market and a prime tool for growth, adding that the Commission would continue to employ technology in different angles to aid its work and ensure a deeper capital market.
“What you have seen so far is the use of technology to drive the market with more investors coming into the market. As you are aware, we just launched the e-offering platform that ensured the offering processes for banks for which over 1.7 trillion naira was raised.
”That tells you what technology can do, we are also exploring technology for other activities, for monitoring and surveillance and other processes that will bring about a cohesion of all the policies that the SEC has applied to make the market grow bigger than it is today”.
Agama stressed that the Commission has implemented various initiatives to reduce time to market, including streamlined registration processes: Introduction of an electronic filing system and Enhanced regulatory frameworks among others.
The efforts, he stated, are aimed at improving the efficiency and attractiveness of the Nigerian capital market, promoting economic growth and development.
According to him, “A shorter time to market can benefit capital market development in several ways: Increased liquidity: Faster listing allows companies to access capital more quickly, increasing liquidity in the market: Improved investor confidence: Efficient listing processes can enhance investor trust and confidence in the market: Enhanced competitiveness: A shorter time to market can make a jurisdiction more attractive to companies and investors, promoting competition and growth and better allocation of resources: Faster capital raising enables companies to allocate resources more efficiently, driving economic growth”.
He insisted that the one trillion dollar economy is feasible especially with the drive and commitment of President Bola Tinubu in ensuring that other sectors of the economy are in full swing adding that the capital market is available to provide long term funding to boost the economy.
According to the DG, the nation needs to diversify the economy beyond oil exports, invest in infrastructure, human capital and innovation, enhance the business environment and reduce regulatory hurdles as well as promote financial inclusion and access to credit for SMEs and individuals.
“The Nigerian economy is a very vibrant economy full of promise in view of the natural resources in this country and the ability to harness these natural resources comes from seeking long term financing. The only place you can get long term financing is enduring the capital market.
“Total commitment, more education, to build trust and confidence, integrity and an inclusive market that will bring everybody together to achieve the objectives of Mr. President.
Agama had recently stated that the guidelines issued by the commission before the banking recapitalisation exercise increased transparency of the process, making it easier for Nigerians to participate.
He also explained that the recapitalisation exercise was a crucial measure by the government to strengthen the banks.
In March, the Central Bank of Nigeria announced new capital requirements for the country’s banks, which were aimed at strengthening the financial institutions and achieving President Bola Tinubu’s $1tn economic target.
