The Securities and Exchange Commission (SEC) has stated that it will shortly provide guidelines to promote an effective capital-raising procedure in the current exercise.
This was said during a virtual press briefing on the Capital Market Committee (CMC) meeting for the first quarter of 2024 by Lamido Yuguda, the departing Director-General of the SEC.
To guarantee a seamless procedure, Yuguda mentioned that the SEC is collaborating with the Central Bank of Nigeria (CBN) and other pertinent organisations.
“The Commission has learned valuable lessons from the previous bank recapitalization exercise and will very shortly issue appropriate guidelines to facilitate an efficient capital raising process in the present exercise,” the SEC said, praising the CBN for its recently announced policy on bank recapitalization.
“The Commission committed to a process that will ensure speed, fairness, and good market conduct.”
“To guarantee a seamless process, the SEC is working with the Central Bank of Nigeria (CBN) and other pertinent agencies,” he stated.
Yuguda asserts that the capital market is robust, effective, and resilient, pointing out that certain prominent corporations have raised a sizable amount of money from the market in recent quarters, demonstrating the market’s depth and capacity to provide this kind of funding.
He went on toad, saying, “We are confident in the market’s ability to provide the needed funds in the banking recapitalization.”
The committee’s chairman, Yuguda, emphasized the SEC’s dedication to adopting FinTech developments while controlling related risks and creating a legal framework for the digital asset market.
He pointed out that the commission will decide whether or not the recapitalization transactions are primarily digital and paperless.
He stated that the SEC will use digital technology to ensure that there is less paperwork involved in the transaction in order to encourage young people to engage in the recapitulation process.
“We can’t say for sure right now, but I’m very optimistic that we’ll use digital technology in the process,” he remarked.
Yuguda revealed that the SEC approved five infrastructure fund shelf programs totaling N1.5 trillion, which is a significant advancement and directly supports the Federal Government’s infrastructure development plans.
He mentioned that the commission approved N18.20 billion worth of new mutual funds and N17.60 billion worth of discretionary and non-discretionary investment products in 2023, actively promoting the expansion of the fund management sector.
He clarified that information about impending listings of gold, lithium, and oil and gas was provided by the Lagos Commodities and Futures Exchange.
He claims that the purpose of these goods is to give traders and investors more options in the commodities market.
He declared that in order to overcome obstacles in the way of creating a robust commodities market in Nigeria, the commission will keep collaborating with the exchange.
