Nigeria: Banks and Corporations Raise Over ₦2.7 Trillion from Capital Market – SEC

The Securities and Exchange Commission (SEC) has announced that banks and other corporations have raised over ₦2.7 trillion from the Nigerian capital market so far in 2024. This figure, excluding funds raised by fund managers, underscores the growing reliance on the capital market for business financing.

Key Contributions from Banks

Speaking at the 2024 SEC Journalists Academy in Abuja, SEC Director General Dr. Emomotimi Agama revealed that banks alone accounted for approximately ₦1.7 trillion of the total, largely attributed to the recapitalization exercise mandated by the Central Bank of Nigeria (CBN). Themed “Fintech: Leveraging Technology to Drive Capital Market Participation”, the event highlighted SEC’s commitment to transparency and fostering confidence in Nigeria’s financial markets.

Innovative Regulatory Reforms

Dr. Agama outlined several reforms introduced under SEC’s current management, including:

• Reducing time-to-market: Companies can now access the market within 14 days, a significant improvement from the previous average of 90 days.
• Establishment of specialized departments: These include the FinTech and Innovation Department, Derivatives and Risk Management Department, and offices dedicated to Municipal Bonds, Business Advocacy, Unclaimed Monies, and Power Supply.
• Regulation of emerging financial products: SEC has developed frameworks to address challenges related to crypto-assets, derivatives, and forex CFDs.

He emphasized that these initiatives aim to strengthen regulatory oversight, address unclaimed dividends, and foster financial innovation while mitigating risks.

Progress in Capital Market Operations

Dr. Agama noted significant progress in registering Capital Market Operators (CMOs) and onboarding FinTechs under SEC’s Regulatory Incubation Programmes (RIP and ARIP). This ensures an inclusive and adaptive regulatory environment to support emerging financial technologies.

Collaboration for Financial Stability

Highlighting the Commission’s collaboration with the Nigerian Financial Intelligence Unit (NFIU), Dr. Agama noted ongoing efforts to ensure Nigeria exits the FATF grey list, a move critical to enhancing the financial sector’s global credibility and avoiding economic sanctions.

He also praised SEC’s achievement as one of the 11 MDAs with a 100% implementation rate of recommended reforms under the Presidential Enabling Business Environment Council (PEBEC).

Addressing Housing Deficits

Dr. Agama announced SEC’s approval of the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to support the One Million Homes Initiative, aimed at addressing Nigeria’s housing deficit through affordable mortgage financing.

A Forward-Looking Vision

In his closing remarks, Dr. Agama reaffirmed SEC’s commitment to implementing its Revised Capital Market Masterplan (2021-2025). Key priorities include stakeholder engagement, capacity building, and developing frameworks for innovative financial products.

Looking ahead to 2025, SEC’s agenda focuses on:

• Enhancing market transparency and confidence.
• Leveraging financial technology for inclusion and innovation.
• Strengthening collaborations with domestic and international stakeholders to maintain financial stability.

These measures, Dr. Agama stressed, are crucial for driving sustainable growth and solidifying Nigeria’s position as a competitive player in the global financial landscape.