Tag: SEC

The Securities and Exchange Commission (SEC) has announced that over N2.7 trillion has been raised in Nigeria’s capital market by banks and other companies, with approximately N1.7 trillion raised by banks through their recapitalisation exercises.

The figure includes equity capital but excludes the amount raised by funds managers in the capital market.

This was disclosed by the Director-General of SEC, Dr. Emomotimi Agama, during the 2024 SEC Journalists Academy held under the theme, “Fintech: Leveraging Technology to Drive Capital Market Participation.”

Dr. Agama also noted the critical role of the capital market in addressing Nigeria’s development financing needs.

Speaking to the success of the the recapitalisation exercise, Dr. Agama stated that, “About N1.7 trillion has been raised so far from the market. This exercise will enhance financial stability, bolster investor confidence, and improve the Nigerian economy.”

He further noted SEC’s collaboration with the Nigerian Financial Intelligence Unit (NFIU) to ensure Nigeria exits the Financial Action Task Force (FATF) grey list.

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According to him, this is crucial for maintaining the international financial credibility of Nigeria’s financial system and averting potential economic sanctions.

Dr. Agama detailed various steps taken by SEC to reposition its operations and regulate emerging financial products.

These include: creation of specialised departments such as the Fintech and Innovation Department, Derivatives and Risk Management Department, and Office of Municipal Bonds; establishment of the Office of Business Advocacy and Capital Formation, alongside initiatives to address longstanding issues such as unclaimed dividends and the approval of the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to tackle housing deficits through affordable mortgage financing under the Federal Government’s ‘One Million Homes Initiative’.

Agama said SEC’s revised Capital Market Masterplan (2021–2025) entails prioritising stakeholder engagement, regulatory frameworks for innovative financial products, and capacity building.

The SEC DG unveiled plans for 2025 to enhance market transparency, leverage fintech for inclusion and innovation, and strengthen domestic and international collaboration.

Dr. Agama revealed that SEC has partnered with the African Development Bank (AfDB) to acquire a market surveillance system and engaged the Toronto Centre of Canada to build staff capacity in response to market dynamism.

He said there was the need to mainstream the capital market into every sector of the economy to meet Nigeria’s massive development funding requirements.

The SEC boss called on journalists to educate the public about the capital market’s dynamism, stating, “Through accurate reporting and constructive critique, the media can build trust and confidence in Nigeria’s capital market.”

He reiterated the Commission’s commitment to fostering innovation, improving market confidence, and attracting foreign and domestic investors to ensure Nigeria’s capital market remains a model of regulatory excellence.

Director General, Securities and Exchange Commission, Dr. Emomotimi Agama has said that the commission is dedicated to playing its part in creating a secure, resilient digital environment that will protect investor confidence, foster economic growth, and safeguard the integrity of the nation’s financial markets.

Agama stated this yesterday in Abuja at Central Securities Clearing System Cybersecurity conference with the theme: Cybersecurity: Synergizing Artificial Intelligence, AI and Infrastructure.

According to him,  in today’s interconnected world, cybersecurity is no longer an isolated concern, it is foundational to the very fabric of our economic and social systems as many activities, both personal and organizational, are now conducted digitally more than ever before.

This shift,  he said, has brought immense efficiencies but has also introduced a new set of risks—cyber risks—that stakeholders must not only recognise but also actively guard against.

Said he: “This became more apparent during the recent COVID-19 pandemic, which accelerated our reliance on technology, remote work, and digital platforms. The pandemic underscored the need to enhance cybersecurity measures to protect individuals, organizations, and sectors from threats lurking in cyberspace.

“At the SEC Nigeria, we understand the vital importance of cybersecurity, particularly in the financial sector. People’s hard-earned savings and investments depend on the integrity of our capital markets, which deserve robust strategies to mitigate cyber risks. Cyber-attacks targeting financial institutions are often aimed at gaining access to sensitive and confidential information, which can have systemic implications not just for a single institution but for the broader economy. Therefore, cybersecurity must be viewed as a critical component of financial stability and national security”.

Agama said AI has emerged as a powerful tool in the fight against cyber threats as AI-driven intelligence systems now offer the capability to monitor vast datasets in real-time, detect anomalies, and predict potential threats with remarkable speed and accuracy.

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The SEC Boss said for Nigeria, where digitalisation is steadily advancing across sectors such as finance, healthcare, and telecommunications, AI holds the promise of not only improving efficiencies but also securing the digital economy adding that in the capital markets, AI-driven systems can enhance surveillance, detect fraud, and manage risk.

“At the SEC Nigeria, we are actively exploring ways to leverage AI technologies to safeguard investor interests and maintain market integrity.

“In addition to AI, automated response mechanisms can significantly reduce the time between the detection of a threat and the implementation of countermeasures. Automation in areas such as patch management, access control, and incident response is crucial to addressing the growing volume of threats that human teams alone cannot manage.

“As the Apex Regulator of the capital market in Nigeria, we are committed to ensuring that the capital markets are protected by robust cybersecurity frameworks that balance innovation with accountability.

“While AI offers great promise, it must be complemented by resilient infrastructure. Without a secure and adaptable digital infrastructure, even the most sophisticated AI systems can become vulnerable to cyber threats,”  Agama said.

He pointed that in Nigeria, where digital infrastructure is still developing, security must be integrated at every layer—from communication networks to data centres adding that the SEC is committed to working with government bodies and industry players to strengthen the cybersecurity infrastructure of the capital markets, ensuring they are equipped to withstand emerging threats.

“As we deliberate today on the intersection of AI and infrastructure security, I urge us all to recognise that cybersecurity is not merely a technological issue—it is a strategic imperative. It requires collaboration, innovation, and continuous improvement in our defences” he added.

In his remarks, CSCS Managing Director Mr. Haruna Jalo-Waziri said as the nation navigates deeper into the 21st century, the evolution from the information age to the digital age presents both remarkable advancements and formidable risks.

“The emergence of new technologies reshapes how we operate, but it also brings new vulnerabilities, including sophisticated cyber threats.  collaboration is key to addressing these multifaceted challenges. By bringing together diverse expertise and perspectives, we can foster a more resilient cybersecurity framework. The ONSA’s role as Nigeria’s custodian of cybersecurity laws is crucial in guiding our collective efforts.

“As we explore these themes, let us not forget the intrinsic value of human intelligence. The more I delve into artificial intelligence, the more I appreciate our own capacity for judgment, creativity, and empathy. As we acknowledge our position, particularly in Africa, we must work to improve our understanding of these threats. We must learn, decide and act quickly and decisively. Cybersecurity is no longer just an IT issue; it is a national priority that affects our economic stability and public trust” he stated.

In his speech, Vice President Kashim Shettima emphasised the critical role that robust cyber security plays in the nation’s economy and

reshaping industries and infrastructure, saying that shielding the nation’s system from increasing sophisticated cyber threats has not been more

He said, “Cyber security is not just a technical issue it is a fundamental ingredient of our economic stability and growth.

“I commend the National Security Adviser, Mallam Nuhu Ribadu and his team for their efforts in fostering a digital environment that encourages investments and innovation.

“Together, we can build a resilient framework that infrastructure and a thriving digital economy”.

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has called on capital market operators to review the proclivity of issuance of debt instruments by both state and local government agencies.

Director General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama, at the 2024 International Credit Rating Webinar organised digitally by DataPro Limited, said the tendency for some state governments to issue private bonds must be assessed for proof of secondary market as well as delivery of the stated project objectives.

“Irrevocable Standing Payment Orders (ISPOs)  from the state government cannot be the only measure of assurance and risk mitigation, credit rating agencies (CRAs) must alter their measurement metrics to accommodate rising risk levels and increasing requirements for sustainability for any instrument raised by a  state or quasi government body,” Agama, who was represented by Executive Commissioner, Operations, SEC, Mr Bola Ajomale said.

He therefore urged participants at the webinar to explore how to leverage the role of CRAs in driving sustainable economic development in Nigeria.

The fourth in the series, the International Credit Rating Webinar was attended by over 500 participants drawn from Nigeria, USA, Canada, South Africa, Ghana, Gambia, Namibia, Kenya and Rwanda.

In his welcome address the DataPro’s Founder Abimbola Adeseyoju reiterated the  purpose of the Webinar as a veritable vehicle to propagate the value propositions of  the credit rating institution in Nigeria and the rest of Africa.

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According to him, apart from the established role of providing opinion on quality of  asset and capital, credit rating agencies also serve as a complement to risk  management procedure.

He went further to canvass that CRAs should serve the common goal of catalyzing the economy, promoting the real sector and creating wealth for a sustainable society.

In his speech, the Keynote Speaker at the event, Christian Ruehmer, an accomplished international Banking Entrepreneur urged banks to support businesses in the real economy.

Ruehmer believes rating agencies and Banks share a common goal in ensuring that  businesses succeed. Said he: “Rating Agencies embody the need for robust financial  expertise and a deep understanding of a company’s financial standing. At the same time, they provide a product that is trusted and reliable. Banks rely on CRAs to  facilitate their work and collaborating with the wider financial sector to offer  credible insights into a company’s long-term potential”.

He went further by saying “a developing country like Nigeria can only grow if it finds  a better way to finance domestic companies. And to do this, banks and investors must become more comfortable assessing these companies and that is when Credit  Rating Agencies come in”.

Continuing he said ratings should help evaluate Credit Risk before a loan is approved, but they are equally important in monitoring how that risk evolves over time.

 He mentioned that approving and disbursing a loan is the easy part but getting repaid  is where the real work begins and that is where monitoring and ongoing Ratings play a crucial role.

The panel discussion moderated by the Chief Rating Officer of DataPro Limited

Prince Oladele Adeoye had Mr. Sam Amukoko, the Managing Director of Kenya’s  Metropol Rating Agency, Dr. Sonnie Ayere, Group Managing Director of DLM Capital Group and Mrs. Kemi Awodein, Managing Director of Chapel Hill Denham in attendance.

The panelists acknowledged the resilience of Nigerians amidst the present economic uncertain and went further to highlight the need to adapt quickly to new government

policies as a survival tactics.

They argued that despite the challenging situation, opportunity for investment

abound in Nigeria and the CRAs must provide a clear, realistic outlook for the benefit  of investors.

The panelists also emphasized on the importance of developing robust capital

markets, pointing out the role that the absence of capital markets in the past played  in deepening economic crisis. A well-functioning capital market could help African economies, like Nigeria, withstand external shocks and reduce dependency on foreign

debt. The recent moves by the African Union to establish homegrown Sovereign  Rating was appraised by the panelists, viewing this as a positive development for both the continent and its economies.

In addressing the critical question of how macroeconomic conditions influence credit  ratings, the panelists highlighted the challenges CRAs face in evaluating entities’ ability to meet debt obligations amidst fluctuating economic factors. It was noted that CRAs consider multiple variables, including the cost of borrowing and economic  policies, to determine default probabilities and ultimately assign ratings that reflect the economic reality.

The Securities and Exchange Commission (SEC) has urged State-Owned Enterprises (SOEs) to list their securities on the Nigerian Exchange (NGX).

This move the Commission said aligns with President Bola Tinubu’s “Renewed Hope” agenda, which emphasizes economic inclusiveness, democratization of businesses, and wealth creation for Nigerians.

In a statement issued on Thursday, the Director General of the SEC, Dr. Emomotimi Agama, noted the importance of SOEs listing their securities, emphasizing that it would lead to a more inclusive and democratized business environment.

Dr. Agama explained that such a development would not only spread ownership of these enterprises but also foster collective responsibility for the growth of Nigeria’s industries.

According to Dr. Agama, listing State-Owned Enterprises on the NGX would facilitate wealth distribution among Nigerians and democratize the operations of these companies, allowing more individuals to take ownership stakes in them. “Inclusivity is very critical,” Dr. Agama said. “Because in inclusivity, you have ownership, and so we all build our industries and the country together.”

This approach is seen as a step towards deepening public participation in the capital markets while simultaneously advancing the country’s broader economic agenda. The SEC’s Director General made it clear that the Commission is ready to provide incentives and create an enabling environment to encourage these enterprises to list. The idea is to make the listing process attractive by offering favorable conditions that drive the decision-making process within SOEs.

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One key concern often raised by managers of SOEs is the fear that listing their enterprises might lead to a loss of control. However, Dr. Agama dispelled this notion, emphasizing that the listing of companies on the exchange does not strip managers of their power. On the contrary, it strengthens the organization by promoting unity and collective growth. “Listing of those institutions does not remove power from them. It rather provides bigger power, because united we stand, divided we fall,” Agama said.

By inviting public participation through the stock exchange, companies stand to gain access to more capital, improve their corporate governance, and enhance transparency. These benefits can, in turn, boost their long-term growth prospects and competitiveness.

Another critical aspect of the SEC’s strategy is to streamline the listing process. Dr. Agama disclosed that the Commission is working on reducing the time to market for companies planning to list. This would provide a clear and predictable timeline for SOEs and other firms to follow, ensuring they have the certainty and confidence needed to go public. “Providing that certainty, getting them the assurance, knowing fully well that when you want to come to the market, you are able to follow a calendar, and that calendar is supported by the SEC,” he said.

The SEC’s commitment to reducing bureaucratic bottlenecks and creating a seamless listing process is aimed at attracting more SOEs and private companies to the NGX, thereby expanding the Nigerian capital market’s scope and depth.

Dr. Agama also emphasized the SEC’s dedication to leveraging technology to make the capital market more accessible, particularly for younger generations. The Director General explained that the use of financial technology (FinTech) tools and digital platforms would simplify the investment process and make it more attractive to a broader audience.

“That is why we encourage apps, we encourage FinTech tools, and that is why we supported the launch of the e-offering platform at the Nigerian Exchange,” Dr. Agama said. He encouraged other stakeholders to embrace innovative technological solutions that can transform how people perceive and engage with investments. The e-offering platform, launched by the Nigerian Exchange, allows for easier and more efficient participation in public offerings, enabling a wider pool of investors to participate in the capital market.

Dr. Agama’s vision for the future of Nigeria’s capital market includes creating an enjoyable and seamless experience for investors. “We want investors to have a beautiful experience,” he stated. “We want them to feel at ease, to make it so easy for them that each time they feel like investing, it brings happiness to them.” By fostering a positive investment environment, the SEC hopes to encourage more people to invest in Nigerian businesses, thus driving economic growth.

The Commission’s strategy involves a combination of education, technology, and incentives to rejuvenate the Nigerian capital market. Through targeted education programs, the SEC aims to demystify investment processes and promote financial literacy, ensuring that a broader segment of the population understands the opportunities available in the capital markets.

In its broader efforts to rejuvenate the capital market, the SEC is focused on removing barriers to entry for companies and industries that may be considering listing. By streamlining processes and offering incentives, the Commission seeks to make the Nigerian capital market more competitive and attractive to both domestic and international investors.

In addition to promoting the listing of SOEs, the SEC is also encouraging other sectors of the economy to participate in the capital markets, particularly through innovative approaches such as FinTech. By doing so, the Commission aims to create a more dynamic and diversified market that supports the growth and development of Nigeria’s economy.