The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has stated that the guidelines issued by the Commission prior to the banking recapitalization exercise have improved transparency and accessibility for Nigerian participants.
In a statement released on Sunday, Dr. Agama said that the SEC aimed to ensure integrity and transparency throughout the recapitalization process.
He noted the government’s objective to strengthen banks, enabling them to better support the real sector and contribute to the goal of transforming Nigeria into a $1 trillion economy under the Renewed Hope Agenda Initiative.
Dr. Agama noted that this is the SEC’s second experience with such a significant recapitalisation effort, the first being during the 2004 Soludo recapitalisation exercise, which the SEC successfully navigated. He expressed confidence that this time would be no different.
“That clarity came out of the regulations that the SEC brought up to support the banking recapitalisation. The banking capitalisation is a very important step by the government to strengthen the banks and indeed provide capacity for the banks to lend to the real sector for us to drive the economy, as provided for by the Renewed Hope Agenda Initiative and the design of the President to turn out a $1 trillion economy.
“And so it was important that all institutions that are concerned with this activity, come together and provide a needed guidance for the banks to be able to run the programme. This is about the second time that the SEC will be tested in its capacity to be able to handle this. The first was in 2004, as you are aware, during the Soludo recapitalization exercise, the SEC was tested, and we came out of the test positive, this time around, it will not be different.”.
The Director General noted that the SEC has learned valuable lessons from past experiences, which have informed the creation of a more streamlined and effective environment for the current process.
He stated, “The guidelines have brought stability and transparency to the recapitalization process, leading to increased public offerings and heightened interest in the market.”
He assured that the SEC is committed to supporting the Central Bank of Nigeria and other relevant institutions to ensure a thriving investment environment, with a particular focus on attracting youth participation in the capital market.
Dr. Agama concluded, “The SEC is ready to live up to its role as a barometer of the economy, and we are dedicated to fostering a more sustainable industry.”