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CBN,NDIC,SEC partner to streamline bank's recapitalisation process

POSTED ON September 3, 2024 •   Business      BY Abiodun Saheed Omodara •   VIEWS 104
CBN headquarters, Abuja l Credit: File photo

The Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC) and the Nigeria Deposit Insurance Corporation (NDIC) have joined forces to streamline the bank recapitalisation process, aiming to enhance efficiency and transparency within the financial sector.

A statement by the Director General of SEC, Emomotimi Agama, highlighted that the collaboration was part of a broader efforts to reduce the time to market capital-raising activities, making the Nigerian capital market more attractive to investors and issuers alike.

Agama explained that several initiatives had been implemented, including the introduction of an electronic filing system, streamlined registration processes, and updated regulatory frameworks.

“The new framework outlines the guidelines and procedures banks must follow to raise capital, ensuring a smooth and transparent process,” Agama said.H

He added that the use of an e-offering platform, mandated by the framework, was designed to enhance the efficiency of the recapitalisation programme by providing an end-to-end solution for offering, subscription, and payment processes.

This digital approach, according to Agama, will eliminate multiple identities, reduce the potential for unclaimed dividends, and speed up the overall process, benefiting both companies and investors.

He noted that a joint team comprising representatives from the CBN, SEC, and NDIC had been established to facilitate the recapitalisation programme, particularly in areas such as capital verification, which is a prerequisite for allotment clearance.

Agama expressed satisfaction with the progress made so far and pledged that the SEC was committed to unlocking the full potential of the Nigerian capital market.

He emphasised that the ongoing reforms were aligned with the Renewed Hope Agenda of President Bola Ahmed Tinubu’s administration, aimed at driving economic growth and development.

“We are dedicated to ensuring that the capital market is well-positioned to contribute to Nigeria’s economic development. Time to market will be a key focus, and we will continue to improve our processes to ensure swift approvals for issuances,” Agama concluded.

According to Agama, these measures are crucial for increasing liquidity in the market, as they allow companies to access capital more quickly and efficiently.

He noted that the CBN, SEC, and NDIC were working closely to ensure that banks could raise capital seamlessly during the recapitalisation period, in line with the new framework issued by the SEC in June 2024.

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