Over N2.7trn Raised from Capital Market
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has disclosed that over N2.7 trillion has been successfully raised in the capital market by banks and other corporate entities, with approximately N1.7 trillion of that amount attributed to the banking sector’s recapitalization efforts.
Dr. Emomotimi Agama, the Director-General of SEC, made the disclosure during the Commission’s 2024 Journalists Academy, which focused on the theme “Fintech: Leveraging Technology to Drive Capital Market Participation.”
He emphasized the workshop’s significance in promoting transparency, confidence, and awareness within the Nigerian capital market.
Highlighting the recent developments in the economy, Dr. Agama acknowledged notable shifts in macroeconomic indicators and detailed the SEC’s strides towards enhancing its operations since the current leadership took office.
Key initiatives included the creation of specialized departments to bolster regulatory oversight, such as the Fintech and Innovation Department and the Derivatives and Risk Management Department, as well as offices dedicated to Municipal Bonds, Business Advocacy, Unclaimed Monies, and Power Supply.
These new departments aim to effectively regulate emerging financial innovations such as crypto-assets, derivatives, and forex CFDs, while also addressing longstanding challenges like unclaimed dividends. “We have made significant progress in registering Capital Market Operators (CMOs), including on-boarding FinTechs under our Regulatory Incubation Programmes,” Agama stated.
The SEC is also collaborating with the Nigerian Financial Intelligence Unit (NFIU) in an effort to ensure Nigeria exits the Financial Action Task Force (FATF) grey list—an essential move for enhancing the financial sector’s credibility and avoiding potential economic sanctions. Dr. Agama noted that SEC was one of just 11 ministries, departments, and agencies (MDAs) in Nigeria to implement all recommended reforms fully, thereby improving the nation’s business environment.
“We came on board with an important banking recapitalization exercise, which has proven to be successful,” Agama remarked, adding that the raised capital would help boost financial stability and bolster investor confidence. He reiterated the importance of SEC’s initiatives to engage with international financial institutions like the World Bank and International Monetary Fund to further strengthen Nigeria’s capital market.
Looking ahead, the SEC’s outlook for 2025 prioritizes enhanced market transparency, leveraging financial technology for inclusion, and fostering collaboration with local and international stakeholders to maintain financial stability. The Commission aims to update its enabling law, the Investment Securities Act of 2007, and has approved the Ministry of Finance Incorporated Real Estate Investment Fund to combat Nigeria’s housing deficit, aligning with the government’s One Million Homes Initiative.
Dr. Agama urged the media to play a pivotal role in educating the public about the capital market’s dynamism. “Through accurate reporting and constructive critique, the media can help build trust and confidence in Nigeria’s capital market,” he asserted.
The Director-General reiterated the SEC’s belief that the capital market is vital to sourcing the significant funds required for the country’s development, emphasizing the need for further integration of the capital market into every sector of the economy.
