SEC To Ease Banks’ Recapitalisation, Approves N1.5trn Infrastructure Fund Programmes

The Securities and Exchange Commission (SEC) will soon issue appropriate guidelines to facilitate an efficient capital raising process for the proposed recapitalisation of banks in the country.

This is even as SEC approved five infrastructure fund shelf programmes totaling N1.5 trillion, in aligning with and directly supporting the federal government’s infrastructure development goals. The commission equally actively supported the growth of the Fund Management industry in 2023 with approvals for new mutual funds (N18.20 billion) and discretionary/non-discretionary investment products (N17.60 billion).

The outgoing director-general of SEC, Lamido Yuguda, who stated this at a virtual press briefing on the 2024 first quarter Capital Market Committee (CMC) meeting held at the weekend, noted that, the SEC is partnering the Central Bank of Nigeria (CBN) and other relevant agencies to ensure a smooth recapitalisation process in the banking industry.

While commending CBN for the recently announced policy on bank recapitalisation, he noted that the commission has drawn useful lessons from the previous bank recapitalisation exercise and will very shortly issue appropriate guidelines to facilitate an efficient capital raising process in the present exercise.

The commission, he said, is committed to a process that will ensure speed, fairness, and good market conduct, adding that, SEC is collaborating with the CBN and other relevant agencies to ensure a smooth process.

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He assured that the market will provide needed funds in recapitalisation, saying, the capital market is strong, efficient and resilient and over the past few quarters some large companies have raised significant financing from the market, signifying the depth and ability of the market to provide such financing.

We are confident of the ability of the market to provide the needed funds in the banking recapitalization, he said.

Yuguda, who is also the chairman of the committee, highlighted SEC’s commitment to embracing FinTech innovations while managing associated risks and establishing a regulatory framework for the digital asset space.

He explained that the Lagos Commodities and Futures Exchange shed light on upcoming listings of gold, lithium, and oil and gas, adding that these products are aimed at expanding opportunities for traders and investors in the commodities space.

He said the commission will continue to work with the exchange to overcome challenges on the path to building a strong commodities market in Nigeria.

SEC DG pointed out that, this year, ongoing efforts such as inspection visits to various capital market operators are aimed at ensuring that the market remains fair and continues to be a veritable platform for financing and wealth creation, saying, SEC collaboration with international bodies like the Islamic Financial Services Board (IFSB) and Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) further reflect the SEC’s dedication to ensuring market resilience and global competitiveness