The Securities and Exchange Commission on Monday revealed that banks and other companies raised a total sum of N2.7tn from the capital market in the first 11 months of 2024.
It said the substantial sum was generated through various investments, securities, and financial instruments in an effort to expand business operations, support economic growth, and enhance financial market activities.
The figure, which includes equity capital, excludes the amount raised by fund managers in the capital market.
The commission stated that out of the N2.7trn, about N1.7trn was raised by banks through their recapitalisation exercise.
The SEC Director-General, Dr Emomotimi Agama, said this while delivering his keynote address at the Commission’s 2024 Journalists Academy themed, “Fintech: Leveraging Technology to Drive Capital Market Participation”, on Monday in Abuja.
He said, “As you are aware, we came on board with an important banking recapitalisation exercise which we can declare has been successful. About N2.7trn has been raised so far from the market. This exercise will enhance financial stability, bolster investor confidence, and improve the Nigerian economy.
“N1.7tn was raised from the banking side, on the rest of the capital market, but in terms of equity rates and rights issues, well, rights and public issues. It was a total of N2.7tn. And that, again, excludes the amount that has been raised and refinanced by the fund managers and the various funds that have been raised during the year. That’s a different number, again. So far, and we’re progressing, and we’re moving.”
He highlighted the importance of the workshop as it underscored the Commission’s shared responsibility in promoting transparency, confidence, and awareness within the Nigerian capital market.
Giving an update on the economy, he stated that macroeconomic indicators had reflected notable shifts, noting that since the current management took over the leadership of the Commission, it has taken significant steps at repositioning its operations.
Some of the steps include the creation of specialised departments to focus on some of the developments in the markets and ensure proper regulation, the creation of a Fintech and Innovation Department and a Derivatives and Risk Management Department, the creation of an office of Municipal Bond, Office of Business Advocacy and Capital Formation, as well as Office of Unclaimed Monies and Office of Power Supply.
The SEC DG highlighted the importance of these departments in regulating crypto-assets, derivatives, and forex CFDs, as well as tackling longstanding issues such as unclaimed dividends to address financial innovation and emerging risks and improve the service delivery of the Commission.
Agama noted the significant progress in registering Capital Market Operators, including onboarding FinTechs under the Commission’s Regulatory Incubation Programmes.
He highlighted the efforts made by the SEC working with the Nigerian Financial Intelligence Unit to ensure Nigeria exits the FATF grey list adding that this is crucial for the development of the financial sector.
He revealed that SEC was among 11 MDAs across Nigeria that achieved 100 per cent implementation of recommended reforms, strengthening Nigeria’s business environment and ensuring it remains a model for regulatory excellence.
He said, “We have made significant progress in registering Capital Market Operators, including on-boarding FinTechs under our Regulatory Incubation Programmes. This effort ensures that our regulatory framework is inclusive and forward-looking.
“The SEC is also actively working with the Nigerian Financial Intelligence Unit to ensure Nigeria exits the FATF grey list. This is crucial for the development of the financial sector. This collaborative effort, when successful, will ensure the international financial credibility of the Nigerian financial system and avert economic sanctions.
“The Presidential Enabling Business Environment Council set up a 90-day Regulatory Reform Accelerator Programme earlier in the year. The programme was meant to improve service delivery across MDAs, and for us, this speaks to attracting both foreign and domestic investors by improving disclosures and access to relevant information.”
Agama also underscored the efforts of the SEC to improve the capital markets in Nigeria by updating its enabling law, which is the Investment Securities Act 2007.
He highlighted the SEC approval of the Ministry of Finance Incorporated Real Estate Investment Fund to tackle the housing deficit in Nigeria by enabling affordable mortgage financing, which aligns with the government’s One Million Homes initiative.
“This initiative is a N250bn program. And the SEC was completely involved and invested in making sure that this happens with the Investment Management Services Department. For us, it is a testament to our commitment to nation-building and economic development.”
He also reaffirmed the Commission’s commitment to implementing its Revised Capital Market Masterplan (2021-2025) by prioritising stakeholder engagement, awareness creation, capacity building, and developing regulatory frameworks that support innovative financial products.
Agama also used the opportunity to unveil a snapshot of the 2025 outlook of SEC. He said the emphasis for the Commission in 2025 is to enhance market transparency and confidence, leverage financial technology to drive inclusion and innovation and strengthen collaboration with domestic and international stakeholders to maintain financial stability.
He recognised the role of the media in shaping public perception and understanding of the capital market, stating that through accurate reporting and constructive critique, the media can build trust and confidence in Nigeria’s capital market.
