BY CHINYERE OBIORA, LAGOS – The Securities and Exchange Commission (SEC) says Nigerian banks must strengthen their corporate governance principles and risk management framework to enhance investors’ confidence in the ongoing recapitalisation exercise.
This is as the Commission also pledged to ensure transparency and efficiency in the planned recapitalisation process.
Speaking at the annual workshop of the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos, SEC Director-General, Dr Emomotimi Agama, said the banking sector recapitalisation framework (2024–2026) provided clear guidance for issuers while also safeguarding the interests of investors.
He said the key to bridging the gap between issuers and investors remained the harnessing of innovation for inclusive growth, adding that SEC, through the aid of digital platform, is exploring the integration of blockchain technology for secure and transparent transaction processing, a step meant to redefine trust in the market.
Agama, who was represented by SEC’s Divisional Head, Legal and Enforcement, Mr John Achile, noted the oversubscription of most recapitalisation offers in 2024 reflects strong investor confidence.
According to him, to sustain this momentum, SEC has intensified efforts at enhancing disclosure standards and corporate governance practices.
Furthermore, he said expanding financial literacy campaigns and collaborating with fintech companies to provide low-entry investment options will democratize access to the capital market.
While assuring stakeholders of SEC’s steadfastness in achieving its mission of creating an enabling environment for seamless and transparent capital formation, the Director General said; “Our efforts are anchored on; providing issuers with clear guidelines and maintaining open lines of communication with all market stakeholders, reducing bureaucratic bottlenecks through digitalisation, ensuring timely review and approval of applications, and enhancing regulatory oversight to protect investors while promoting market integrity”.
Agama listed the constraints to the exercise to include: addressing market volatility, systemic risks, limited retail participation as well as combating skepticism among investors who demand greater transparency and accountability.
“We are equally presented with opportunities which include leveraging technology to deepen financial inclusion and enhance market liquidity, as well as developing innovative financial products, such as green bonds and sukuk, to attract diverse investor segments.
He stressed that the success of recapitalisation efforts depends on collaboration among regulators, issuers, and investors.
Meanwhile, addressing issues around market infrastructure at the panel session, SEC’s Divisional Head, Legal and Enforcement, Mr John Achile explained that the Commission provides oversight to every operations in the market, ranging from technology innovations to market infrastructure.
Hear him; “We are committed to transparency because we are mindful of the benefits and risks associated with technology adoption. SEC does due diligence to all the innovative ideas that comes into the market to ensure adequate compliance with the requirements”.
On the rising figures of unclaimed dividend, Achile blamed the inability of investors to comply with regulatory requirements and information gap, noting that SEC has done everything within its powers to ensure that investors receive their dividend at the appropriate time.
He said despite the evident challenges, SEC would continue to strengthen its dual role of market regulation and investor protection to boost confidence in the market.
