The Securities and Exchange Commission (SEC) has called on banks to fortify their corporate governance principles and enhance risk management frameworks as critical measures to boost investor confidence during the ongoing recapitalisation exercise.
Speaking at the annual Capital Market Correspondents Association of Nigeria (CAMCAN) workshop in Lagos, Director-General, SEC, Dr. Emomotimi Agama, represented by Divisional Head, Legal and Enforcement, Mr. John Achile, reaffirmed the Commission’s dedication to ensuring transparency and efficiency in the process.
Dr. Agama outlined SEC’s comprehensive framework for the 2024–2026 banking sector recapitalisation exercise, emphasising its dual focus on guiding issuers and protecting investors.
He highlighted that bridging the gap between issuers and investors required leveraging innovative technologies to foster inclusive growth.
In this regard, SEC is exploring the integration of blockchain technology to enhance transaction security and transparency, a move poised to redefine trust in Nigeria’s capital market. Agama noted that the oversubscription of most recapitalisation offers in 2024 underscored robust investor confidence in the banking sector.
However, to sustain this momentum, SEC has intensified efforts to elevate disclosure standards and corporate governance practices. Key initiatives include expanding financial literacy campaigns and collaborating with fintech companies to provide accessible, low-entry investment opportunities.
These measures aim to democratize participation in the capital market, fostering broader investor inclusion and deepening market liquidity.
“Our efforts focus on providing issuers with clear guidelines, maintaining open communication with stakeholders, streamlining bureaucratic processes through digitalisation, and enhancing regulatory oversight to safeguard investors while promoting market integrity,” Agama stated.
Despite progress, the recapitalisation exercise faces challenges such as market volatility, systemic risks, limited retail participation, and investor skepticism due to demands for greater transparency and accountability.
Agama underscored the importance of leveraging technology to overcome these hurdles, highlighting opportunities to develop innovative financial products like green bonds and sukuk to attract diverse investor segments. Agama stressed that the success of recapitalisation efforts hinges on robust collaboration among regulators, issuers, and investors.
