SEC Highlights Technology and Governance in Banking Recapitalisation Efforts

Our reporter

The Securities and Exchange Commission (SEC) has underscored the critical role of corporate governance and technology in the ongoing banking sector recapitalisation initiative.

Speaking at the annual workshop organized by the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos, SEC called for robust frameworks to enhance market confidence and inclusivity. 

 

The workshop, themed “Recapitalisation: Bridging the Gap between Investors and Issuers in the Nigerian Capital Market,” brought together stakeholders to discuss opportunities and challenges in Nigeria’s evolving financial landscape. 

 

Dr. Emomotimi Agama, SEC’s Director-General, represented by Mr. John Achile, Divisional Head of Legal and Enforcement, emphasized that the commission is leveraging innovative solutions like blockchain technology to ensure transparency and security in transactions. "Blockchain integration will redefine trust in the capital market," Agama stated. 

 

Agama highlighted the oversubscription of recapitalisation offers in 2024 as evidence of renewed investor confidence. To sustain this trend, SEC is focusing on enhancing disclosure standards, intensifying financial literacy campaigns, and fostering partnerships with fintech firms to democratize access to investment opportunities. 

 

“Our commitment remains anchored on reducing bureaucratic barriers through digitalisation while ensuring regulatory oversight that protects investors and promotes market integrity,” he added. 

 

Despite successes, the recapitalisation effort faces hurdles, including market volatility and limited retail investor participation. Agama stressed the need for transparency and innovative products, such as green bonds and sukuk, to attract diverse investors. 

 

Panel discussions also explored market infrastructure, with SEC reiterating its diligence in evaluating technological innovations to ensure compliance and mitigate risks. Addressing unclaimed dividends, Achile urged investors to comply with regulatory requirements, citing information gaps as a persistent issue. 

 

In her opening remarks, CAMCAN Chairman Mrs. Chinyere Joel-Nwokeoma called for greater collaboration among stakeholders. She noted that recapitalisation presents an opportunity to rebuild trust and create a more inclusive capital market. 

 

“As banks strengthen their balance sheets, it is imperative to foster trust and transparency between investors and issuers,” she said. 

 

The workshop concluded with a call to action for regulators, issuers, and investors to work together to overcome challenges, leverage technology, and drive sustainable growth in Nigeria’s capital market.