Yemisi Izuora
The Securities and Exchange Commission ( SEC) has advised banks to strengthen their corporate governance principles and risk management framework.
With this the Commission said investors confidence would be significantly enhanced in the ongoing recapitalisation exercise.
At the just concluded yearly workshop of the Capital Market Correspondents Association of Nigeria (CAMCAN) held in Lagos at the weekend, SEC Director-General, Dr Emomotimi Agama, restated the Commission’s commitment towards ensuring transparency and efficiency in the recapitalisation process.
Agama, who was represented by the Divisional Head, Legal and Enforcement of the SEC), Mr John Achile, noted that the framework on the banking sector recapitalisation (2024–2026) provided clear guidance for issuers while also safeguarding the interests of investors.
He noted that the key to bridging the gap between issuers and investors remained the harnessing of innovation for inclusive growth.
In view of this, he pointed out that SEC, through the aid of digital platforms, is exploring the integration of block chain technology for secure and transparent transaction processing, a step that will redefine trust in the market.
Agama noted that the oversubscription of most recapitalisation offers in 2024 reflects strong investor confidence.
To sustain this momentum, he said that SEC has intensified efforts to enhance disclosure standards and corporate governance practices.
According to him, expanding financial literacy campaigns and collaborating with fintech companies to provide low-entry investment options will democratize access to the capital market.
He assured stakeholders of the commission’s steadfastness in achieving its mission of creating an enabling environment for seamless and transparent capital formation.
“Our efforts are anchored on; providing issuers with clear guidelines and maintaining open lines of communication with all market stakeholders, reducing bureaucratic bottlenecks through digitalisation, ensuring timely review and approval of applications, and enhancing regulatory oversight to protect investors while promoting market integrity,” he said.
Agama listed the constraints to the exercise to include: addressing market volatility, systemic risks, limited retail participation as well as combating skepticism among investors who demand greater transparency and accountability.
“We are equally presented with opportunities which include leveraging technology to deepen financial inclusion and enhance market liquidity, as well as developing innovative financial products, such as green bonds and sukuk, to attract diverse investor segments.
He stressed that the success of recapitalisation efforts depends on collaboration among regulators, issuers, and investors.
Speaking on market infrastructure at the panel session, Achile said SEC provides oversight to every operations in the market, ranging from technology innovations to market infrastructure.
“We are committed to transparency because we are mindful of the benefits and risks associated with technology adoption. SEC does due diligence to all the innovative ideas that comes into the market to ensure adequate compliance with the requirements,” he said.
On the rising unclaimed dividend figure, he blamed the inability of investors to comply with regulatory requirements and information gap, noting that SEC has done everything within its powers to ensure that investors receive their dividend at the appropriate time.
However, he assured that the commission would continue to strengthen its dual role of market regulation and investor protection to boost confidence in the market.