SEC Cuts Capital Raising Approval Time to Two Weeks
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has significantly reduced the time it takes companies to raise capital in the Nigerian market, streamlining the process to enhance efficiency and bolster economic development.
Director General of the SEC, Dr. Emomotimi Agama, revealed this development over the weekend in Abuja, emphasizing the commission’s commitment to expediting market access for issuers.
Agama stated that the SEC’s current management has successfully cut the approval time for capital raising to a mere two weeks. “Since we came on board, it is instructive to say that we have helped propel the economy,” Agama said. “One of the things that has been a challenge before we came to the saddle was time to market, issuers will come to the market and they will spend time before they get approval to be able to raise capital.”
He underscored the pivotal role of the capital market in driving economic growth, noting, “The Capital market is the life and blood of any economy and of course this is actually regulated by time. So one of the first things we have tackled since we came was to reduce the time to market. Therefore, I can proudly say that we have reduced the time to market from over a year to fourteen days.”
Agama cited the recent banking recapitalization exercise as a testament to the SEC’s efficiency, where banks successfully raised over N2.2 trillion from the Nigerian Capital Market using the e-offering platform. “With the banking recapitalization exercise, banks were able to raise over N2.2trn from the Nigerian Capital market using the e-offering platform,” he stated.
He affirmed that issuers experienced no delays due to the commission’s streamlined processes. “All of these transactions have been fully subscribed and we have encouraged the use of technology. They used the e-offering platform meaning you do not have to use paper anymore to apply in this market. We hope to get better by the day.”
He further stressed the SEC’s commitment to leveraging technology, stating, “Technology is the in-thing, the ISA 2007 has provided for that and we feel that to be able to achieve the milestone we want in the market we need to do better and we applied that in the bank recapitalization and the success is massive and overwhelming. The NGX has an e-IPO system and that has been proven to be very effective.”
Agama highlighted the impact of these changes on market participation, particularly among younger investors. “All of the offers that came within this period were approved within 14 days as promised. The next level was a subscription that happened through the NGX platform and we approved it. We saw many young people coming into the market because we have seen that technology has attracted more Nigerians to the market. In this year, we will make more use of technology in the work that we do,” he said.
The SEC DG reiterated the commission’s dedication to investor protection and market development. “What is new for us this year is efficiency, dedication and giving back to society by using the capital market as an engine of growth and propeller of wealth for all Nigerians. We must give back by ensuring that Nigerians are properly served. The SEC is committed to protecting investors and developing the market. We must do everything within our powers and the laws to provide that and ensure Nigerians are happy again in investing in the market and making wealth for Nigerians,” he concluded.
