SEC GUIDELINES ENHANCED TRANSPARENCY IN BANK'S RECAPITALIZATION PROCESS
The Securities and Exchange Commission (SEC) has highlighted that its guidelines played a pivotal role in ensuring the transparency of Nigeria’s recent banking recapitalisation exercise. Dr. Emomotimi Agama, the Director-General of the SEC, stated that the commission’s regulations provided clarity before the process commenced, allowing for smoother participation from both institutions and the public.
The recapitalisation was initiated following the Central Bank of Nigeria's (CBN) March announcement, which outlined new capital requirements aimed at strengthening banks and supporting the government’s goal of achieving a $1 trillion economy. Banks were urged to expedite their efforts to raise capital and enhance the financial system’s resilience against potential risks.
According to Agama, the SEC’s framework complemented the CBN's directives, ensuring that the recapitalisation exercise was conducted with integrity and efficiency. He emphasized that the commission’s guidelines introduced stability and transparency to the process, leading to increased public offerings and renewed interest from investors.
Agama noted that this was the second major test of the SEC's ability to handle a banking recapitalisation, following the successful 2004 Soludo exercise. He assured that the commission had improved upon past experiences, implementing technology and lessons learned to streamline the process.
In collaboration with institutions like the CBN and the Federal Inland Revenue Service, the SEC aims to foster a secure investment environment, particularly focusing on attracting younger generations to the capital market.
Agama reiterated the SEC's commitment to supporting the banking sector and driving the economy through initiatives like the Renewed Hope Agenda, designed to fuel sustainable growth.
The Securities and Exchange Commission (SEC) has highlighted that its guidelines played a pivotal role in ensuring the transparency of Nigeria’s recent banking recapitalisation exercise. Dr. Emomotimi Agama, the Director-General of the SEC, stated that the commission’s regulations provided clarity before the process commenced, allowing for smoother participation from both institutions and the public.
The recapitalisation was initiated following the Central Bank of Nigeria's (CBN) March announcement, which outlined new capital requirements aimed at strengthening banks and supporting the government’s goal of achieving a $1 trillion economy. Banks were urged to expedite their efforts to raise capital and enhance the financial system’s resilience against potential risks.
According to Agama, the SEC’s framework complemented the CBN's directives, ensuring that the recapitalisation exercise was conducted with integrity and efficiency. He emphasized that the commission’s guidelines introduced stability and transparency to the process, leading to increased public offerings and renewed interest from investors.
Agama noted that this was the second major test of the SEC's ability to handle a banking recapitalisation, following the successful 2004 Soludo exercise. He assured that the commission had improved upon past experiences, implementing technology and lessons learned to streamline the process.
In collaboration with institutions like the CBN and the Federal Inland Revenue Service, the SEC aims to foster a secure investment environment, particularly focusing on attracting younger generations to the capital market.
Agama reiterated the SEC's commitment to supporting the banking sector and driving the economy through initiatives like the Renewed Hope Agenda, designed to fuel sustainable growth.