Banks, Others Raise Over N2.7tn From Capital Market – SEC

The Securities and Exchange Commission (SEC) has disclosed that banks and other companies raised over N2.7 trillion from the capital market in recent times. This figure, which includes equity capital, excludes amounts raised by fund managers in the capital market.

Of the total amount, about N1.7 trillion was raised by banks through their recapitalization exercises, according to the SEC.

The SEC director-general, Dr. Emomotimi Agama, shared these insights during the commission’s 2024 journalists academy, themed “Fintech: Leveraging Technology to Drive Capital Market Participation.” He emphasized the importance of the event in promoting transparency, confidence, and awareness within the Nigerian capital market.

“In terms of equity rights and public issues within the capital market, the figure is closer to 2.3 trillion to 2.7 trillion. This excludes amounts raised or refinanced by fund managers and other funds generated during the year,” says the executive commissioner, operations at SEC Bola Ajomale, adding “So far, we have reached 2.7 trillion, and we are progressing steadily.”

Dr. Agama also emphasized the SEC’s collaboration with the Nigerian Financial Intelligence Unit (NFIU) to ensure Nigeria exits the Financial Action Task Force (FATF) grey list. This effort is critical to strengthening Nigeria’s financial sector and maintaining international financial credibility.

He noted that SEC was among 11 government agencies in Nigeria that achieved 100% implementation of recommended reforms under the Presidential Enabling Business Environment Council (PEBEC). The reforms aim to improve service delivery, enhance transparency, and attract both foreign and domestic investors.

Dr. Agama highlighted notable shifts in macroeconomic indicators and stated that since the current SEC management assumed office, significant steps have been taken to reposition its operations. Key initiatives include: creation of specialised departments, enhanced regulation, and registration of capital market operators that has seen the onboarding of FinTech companies under its Regulatory Incubation Programmes (RIP and ARIP).

He also highlighted the SEC’s approval of the Ministry of Finance Incorporated Real Estate Investment Fund as part of efforts to address Nigeria’s housing deficit. The fund supports affordable mortgage financing, aligning with the federal government’s One Million Homes Initiative.

He said SEC remains committed to implementing its Revised Capital Market Masterplan (2021-2025), focusing on stakeholder engagement, awareness creation, capacity building, and regulatory frameworks for innovative financial products.

Dr. Agama provided a glimpse into the Commission’s 2025 outlook, which will prioritize: Enhancing market transparency and investor confidence; leveraging financial technology for inclusion and innovation; and strengthening collaboration with domestic and international stakeholders to maintain financial stability.

By addressing key regulatory challenges and fostering innovation, the SEC aims to position the Nigerian capital market as a model of excellence and a driver of economic growth.