The Nation Newspaper

Tag: SEC

  • SEC wants govt agencies to list on NGX

    SEC wants govt agencies to list on NGX

    The Securities and Exchange Commission (SEC) says it will encourage government agencies and state owned enterprises to list on the Nigerian Exchange Ltd. (NGX).

    Dr Emomotimi Agama, the Director-General (D-G) of SEC in an interview with newsmen in Abuja on Thursday, said the listing of the companies on the NGX would guarantee democratisation of their operations.

    Agama said the listing would also guarantee inclusiveness and wealth creation for citizens.

    He said the Commission would provide incentives that would encourage as much state owned enterprises to list.

    According to him, inclusivity is very critical, because in it, you have ownership and so we all build our industries and the country together.

    The D-G said the SEC was also working towards inclusion via technology, adding that the use of technology would make the capital market more attractive, especially to the younger generation.

    “That is why we encourage apps, we encourage fintech tools, and that is why we supported the inauguration of the electronic offering platform at the Nigerian exchange.

    Read Also: Lagos partners Fed Govt, private sector on tourism development

    ”We encourage everyone who wants to participate and is qualified to participate in this process, to turn around the way people see investing.

    “We want investors to have a beautiful experience, to make it so easy for them that each time they feel like investing, it brings happiness to them.

    ”We will continue to do that through encouragement of technology, through education,” Agama said.

    He said the Commission would ensure that bottlenecks usually experienced in process of investing in the market were removed to rejuvenate the country’s capital market.

    (NAN)

  • Digital assets: SEC seeks balance between growth, investors’ protection

    Digital assets: SEC seeks balance between growth, investors’ protection

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) will seek to balance its quest for growth of the digital assets market with its core mandate of investors’ protection.

    Director-General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama said the commission would be deliberate and focused as it seeks to unlock values within the digital assets industry.

    According to him, SEC is ready to provide the necessary guidance that will grow the industry, create wealth for Nigerians and lead to economic growth and development.

    He said the commission is willing to be patient in ensuring that majority of interested participants are carried along.

     “We need to be patient in getting everybody on board to be able to provide the guidance that is needed for us to grow this industry, we need to grow this industry together.

     “Over 80 per cent of our population are interested in this area and that is why the government is showing so much interest too.  And if the government is interested in it, the government has a responsibility to protect the investors that will come into it,” Agama said.

    He said due to the developmental role of the Commission, the SEC will develop the market while also ensuring that investors are protected, adding that the Commission is stepping up its investor education mechanism to ensure that investors get the information they require to make informed investment decisions.

     “We need to be able to educate people, to educate the citizens, to educate investors, to educate participants, because there’s something that we can take away in every investment, there’s a risk and that risk must be understood by the people.

     “The SEC has a responsibility to share that information with people that whatever you intend to do, you must be aware of these risks. So when you get into it, and if for any reason, things go the other way, you know exactly that you were aware you just decided to do it. Of course, investment is about risk reward, and that risk reward is, the higher the risk, the sweeter the reward, the lower the risk, the less the reward,” Agama said.

    Read Also: FAO warns of worsening food insecurity, says 31.8m at risk

    He said the SEC Nigeria’s approach to digital asset regulation recognises the potential of blockchain and digital assets to revolutionise the capital markets and that is why the commission has introduced several measures to ensure that these innovations are harnessed responsibly.

     “We introduced the Accelerated Regulatory Incubation Programme (ARIP) and Regulatory Incubation (RI) Programme: The ARIP and RI Programme were designed to on-board firms operating in the digital asset space and provide a controlled environment to test new models, products, and services.

    “These programmes foster innovation while ensuring that robust consumer safeguards are in place. The recent approval-in-principle granted to two digital asset exchanges and five firms participating in these programmes is a testament to our commitment to enabling innovation,” Agama said..

    He outlined that blockchain can drive significant social change, address difficult social issues, improving user experience and settlement speed and aid in financial inclusion and encourage creativity and innovation among others.

     “Blockchain can be used to solve complex social challenges, such as corruption and lack of transparency in public services. For example, using blockchain for transparent voting systems or government procurement processes can increase accountability and trust in public institutions.

     “The flexibility of blockchain technology allows for endless possibilities for new applications, from social impact bonds to decentralised applications that can address specific community needs. This opens up room for creativity and innovation, particularly among Africa’s youth, increasingly driving technological change on the continent.

     “Blockchain-based solutions can provide access to finance for millions of people currently excluded from the formal financial system. By reducing costs and eliminating intermediaries, blockchain can make micro-lending, remittances, and other financial services more accessible and affordable,” Agama said.

    He added that blockchain enables real-time transactions and settlements, reducing the time and costs associated with traditional financial services. This can lead to a more efficient and inclusive financial ecosystem, benefiting both individuals and businesses.

  • SEC embraces blockchain for economic transformation

    SEC embraces blockchain for economic transformation

    The Securities and Exchange Commission (SEC) says it is committed to leveraging blockchain technology and digital assets to revolutionize the capital markets and boost the economy.

    During the 2024 BusinessDay Blockchain Conference with the theme “Building Africa’s Future: Harnessing Blockchain for Economic and Social Transformation,” SEC Director-General Dr. Emomotimi Agama outlined the Commission’s approach to digital asset regulation.

    He emphasized blockchain’s potential to address critical challenges facing Africa, including financial exclusion, inefficiencies in governance, and lack of transparency.

    Dr. Agama noted that blockchain technology has evolved from a niche innovation into a foundational element of the global financial ecosystem. Its decentralized and transparent nature has enabled its application across various sectors such as finance, supply chains, healthcare, and public governance.

    “Blockchain technology has moved beyond being a mere buzzword; it is becoming an essential part of the global financial and economic ecosystem. In Africa, where there are significant issues such as financial exclusion, lack of transparency, and inefficiencies in both public and private sectors, blockchain presents an opportunity to build a future where these challenges are addressed,” Agama said.

    Blockchain technology is a decentralized digital ledger that securely records and verifies transactions across a network of computers. Its structure—where data is grouped into blocks and linked chronologically—ensures transparency and immutability, meaning information, once added, cannot be altered or deleted.

    Read Also: Fed govt to leverage technology to boost education sector

    Dr. Agama stressed that while blockchain holds transformative potential, effective regulation is essential to ensuring its responsible growth. “As the transformative potential of blockchain is being celebrated, it is important to address the role of regulation in enabling its growth. Regulation is often viewed as a barrier to innovation, but it is, in fact, essential to building a stable and trustworthy environment for innovation to flourish,” he noted.

    The SEC has developed several regulatory initiatives to support blockchain’s growth while ensuring robust consumer protections. These include the Accelerated Regulatory Incubation Program (ARIP) and the Regulatory Incubation (RI) Program. These initiatives are designed to onboard firms operating in the digital asset space and provide a controlled environment to test new models, products, and services.

    Agama highlighted that the SEC has recently granted approval-in-principle to two digital asset exchanges and five firms under these incubation programs. This, he said, demonstrates the Commission’s commitment to fostering innovation while maintaining a high standard of investor protection and market integrity.

    A key component of the SEC’s regulatory framework is the classification of digital assets such as cryptocurrencies. The SEC has made it clear that digital assets are regarded as securities unless proven otherwise. Issuers and sponsors of these assets must register with the Commission and demonstrate that their assets do not qualify as securities. This process ensures that investor protection remains paramount while allowing legitimate market participants to operate on a level playing field.

     “Our regulatory stance is clear: digital assets such as cryptocurrencies are classified as securities unless proven otherwise. We have established a registration framework that requires issuers and sponsors to prove their assets do not qualify as securities. This ensures that investor protection and market integrity are upheld while providing a level playing field for legitimate market participants,” Agama stated.

    To ensure that Nigeria’s regulatory framework for blockchain and digital assets remains adaptive and robust, the SEC is collaborating with international regulatory bodies such as the International Organization of Securities Commissions (IOSCO). According to Agama, this collaboration helps the Commission stay aligned with global best practices, fostering cross-border cooperation and strengthening investor confidence.

     “The Commission consistently aligns with international best practices by collaborating with global regulatory bodies such as IOSCO, ensuring that our regulatory framework remains robust, adaptive, and aligned with global standards,” Agama noted.

    Looking ahead, Dr. Agama called on all stakeholders—governments, regulators, innovators, businesses, and civil society—to embrace blockchain technology and work collaboratively to maximize its potential. “In this era of technological innovation, the question is not whether Africa will adopt blockchain, but how we will shape its adoption to maximize its benefits for all our people,” he said.

    Agama urged regulators to refine their frameworks to encourage responsible experimentation, innovators to develop solutions tailored to Africa’s unique challenges, and investors to support blockchain-based business models that enhance competitiveness. He also called on civil society and academia to engage in research and advocacy to demystify blockchain technology and promote its responsible use.

     “For regulators, let us continue to refine our regulatory frameworks to foster innovation while protecting investors. For innovators, seize the opportunity to develop blockchain solutions tailored to Africa’s unique needs. For our investors, invest in blockchain technology and partner with innovators to drive its adoption. For civil society and academia, we expect that you will engage in research, advocacy, and education to build a broad-based understanding of blockchain,” Agama added.

    The panel discussions at the BusinessDay Blockchain Conference explored the real-world applications of blockchain in various African business sectors. The speakers discussed how blockchain can streamline supply chains, improve transparency in governance, and facilitate cross-border payments, among other uses. Agama expressed excitement about these conversations, noting that they underscore blockchain’s potential to transform the Nigerian and African economies.

     “Blockchain technology offers an opportunity to transform the nation’s economy, and the SEC is committed to this journey with a shared vision, a spirit of collaboration, and an unwavering focus on building a prosperous and inclusive Africa,” Agama concluded.

  • Crypto: SEC sharpens focus on illegal funds, infractions

    Crypto: SEC sharpens focus on illegal funds, infractions

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has said that it would commence stringent reviews of activities in the digital assets segment of the capital market to protect investors and forestall the use of the segment for illegal inflows.

    Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, said the Commission is committed to protecting investors including those in the crypto space and therefore enjoined participants in the market to play by the rules.

    He warned that the regulator would deploy the full weight of the law against individuals and entities that engage in activities that are contrary to laid down regulations in the capital market.

     “We are certainly going to commence enforcement actions on anyone who wants to operate in this market and does not have the intention of being regulated. This also applies to those in the crypto space. We are sending this signal to all those that want to play by the books that they are welcome to our space. But for those that do not want to play by the books, of course we definitely will not allow them operate within our space,” Agama said.

    He explained that SEC decided to take the recent step of issuing Approval-in-Principle to two crypto exchanges because it observed that Nigerian youths were becoming increasingly interested in the digital space and so it was important to provide regulation, clarity and indeed the protection of investors which is its primary responsibility.

     “All this we seek to do without hindering innovation because part of our primary responsibility as the SEC is market development and we are aware that Mr. President is very interested in youths and the activities of youths. Clearly, the majority of persons involved in this space are the youth therefore, it is no gainsaying that providing a regulated space for these individuals is a primary responsibility of the SEC. So we had to provide a guide, clarity and the knowledge it requires to put all of these things in place and that is why we have done what we did.

     “It is important to understand that being the apex regulator of the capital market, we follow international guidelines and one of which is about disclosure. Full disclosure and making sure that they meet the Anti-Money Laundering and Combating the Financing of Terrorism reports and making sure that disclosures are made to investors and also education is important as well as a guided regulatory space,” Agama said.

    He said the Commission is taking various steps to ensure that the Nigerian population is safeguarded from any attempt to misinform them and fleece them of their hard earned resources, adding that the activities of crypto exchanges must be watched closely so that they do not impede the national economy.

     “It is our responsibility to ensure that whoever is operating in our environment must follow the rules and must not do anything that will cause harm to our economy. It is imperative that we bring clarity and understanding to the entire system and ensure everybody works by the books as provided” Agama said.

    Read Also: Senate panel postpones hearing on alleged sabotage in petroleum sector

    He pointed out that securities regulation is a knowledge-based phenomenon, saying that one of the things the SEC is doing is to ensure it provides the best of education to its staff that are going to be busy doing the job.

     “Training is important, education is important, exposure is important and of course a sense of responsibility is also important. We see this as a national task and speaks to mind-set of the young Nigerians and see it as a responsibility to guide against unscrupulous elements who want to destroy our economy. For various reasons, it is important that we are here to do what we have been asked to do and we will do our best to making sure that we operationalise what we are doing in line with global standards.

     “As I speak, International Organisation of Securities Commissions, IOSCO is organising a training programme for crypto regulations in Spain and the staff of the Commission will be represented there. We are also part of global discussions around regulation of crypto, regulation of digital assets and all forms of fintech that is associated with securities regulation,” Agama said.

    He said the Commission does not intend to flood the market with exchanges but will be guided by the qualifications and filings of these individuals.

    “We have a deluge of intending applicants into the system but we do not flood the market with exchanges. The number we are going to register in the future is dependent on the individuals and companies meeting the strict regulatory requirement that we have set in place in order to bring sanity into the market,” Agama said.

    He added that the SEC has a Regulatory Incubation Programme which speaks to initial applicants in the system, examines what they do, evaluates them to ensure they are fit and proper after which they are transferred to the Accelerated Incubation Programme which is for those that have crossed through.

     “It allows us to evaluate for risk management, fit and proper test, disclosure requirements, good market structure and an understanding of what they intend to achieve. We put them in a controlled environment that enables the SEC watch over what they are doing so that we are able to prescribe specifically regulations that are fit for purpose and would help in protection of would be investors,” Agama said.

  • SEC moves to reduce time for listing in capital market

    SEC moves to reduce time for listing in capital market

    The Securities and Exchange Commission (SEC) has said it had begun the implementation of a series of initiatives aimed at reducing the time it takes for companies to list their shares on the Nigerian stock exchange.

    In a statement yesterday in Abuja, the commission said the reforms are part of a broader effort to improve the efficiency, attractiveness, and overall development of the nation’s capital market.

    Read Also: Africa’s oil giants: Top 10 countries with largest oil reserves in 2024

    Its Director General, Dr. Emomotimi Agama, explained that the commission had streamlined the registration processes, introduced an electronic filing system, and enhanced regulatory frameworks to expedite the time to market.

    He said shorter time to market could lead to increased liquidity, investor confidence, and ultimately, economic growth.

    One significant step taken by the SEC is the introduction of the electronic Public Offering (e-PO) system in 2019, which automates various steps in the securities issuance process, reducing manual paperwork and facilitating faster processing of applications.

  • SEC announces reforms to speed up market processes in Nigerian capital market

    SEC announces reforms to speed up market processes in Nigerian capital market

    The Securities and Exchange Commission (SEC) says it has implemented a series of initiatives aimed at reducing the time it takes for companies to list their shares on the Nigerian stock exchange.

    A statement from the SEC on Sunday, September 1, said the reforms are part of a broader effort to improve the efficiency, attractiveness, and overall development of the Nigerian capital market.

    According to SEC director general, Dr. Emomotimi Agama, the commission has streamlined registration processes, introduced an electronic filing system, and enhanced regulatory frameworks to expedite the time to market.

    He stressed that a shorter time to market can lead to increased liquidity, investor confidence, and ultimately, economic growth.

    One significant step taken by the SEC is the introduction of the electronic Public Offering (e-PO) system in 2019. This system automates various steps in the securities issuance process, reducing manual paperwork and facilitating faster processing of applications.

    Read Also: Northern minorities call for restructuring of Nigeria into three regions

    Additionally, the commission has digitized its operations, allowing for electronic submission and processing of securities registration applications.

    To further streamline the approval processes, the SEC Agama disclosed has undertaken regulatory reforms, such as updating rules and regulations to reflect current market realities and adopting international best practices.

    For instance, the introduction of a checklist review for fixed-income securities has shortened review and approval timelines.

    In June 2024, the SEC issued a framework on banking sector recapitalization, which outlines the guidelines and procedures for banks to raise capital efficiently.

    A key feature of this framework is the requirement for banks to use an e-offering platform for their capital-raising exercises, ensuring a more transparent and efficient process.

    Dr. Agama expressed satisfaction with the progress made so far and assured that the SEC will continue to prioritize reducing time to market and unlocking the full potential of the Nigerian capital market.

    By streamlining processes, digitizing operations, and implementing regulatory reforms, the SEC aims to create a more attractive and efficient environment for companies and investors.

  • Recapitalised banks key to Nigeria’s trillion-dollar economy – SEC

    Recapitalised banks key to Nigeria’s trillion-dollar economy – SEC

    The Securities and Exchange Commission (SEC) has emphasised the critical role of a recapitalised banking sector in driving Nigeria’s economic growth and achieving the ambitious target of a trillion-dollar economy.

    Emomotimi Agama, Director-General of the SEC, highlighted the need for a diversified economy, robust infrastructure, human capital development, and a conducive business environment to unlock the nation’s full potential.

    Agama explained that bank recapitalization can significantly contribute to economic growth by increasing lending to key sectors such as agriculture, manufacturing, and infrastructure. Additionally, it empowers banks to underwrite large-scale projects, attract foreign investment, and deepen the capital market.

    The SEC he said has introduced a framework to streamline the capital-raising process for banks during the 2024-2026 recapitalization period. This includes options like rights issues, private placements, and other approved methods.

    Read Also: BREAKING: Tinubu postpones FEC meeting, hosts security chiefs

    The framework aligns with the Central Bank of Nigeria’s (CBN) directive to increase the capital base of deposit money banks to N500 billion for international banks, N200 billion for national banks, and N50 billion for regional banks.

    While acknowledging the potential challenges of recapitalization, such as share price dilution and increased debt servicing, the SEC is committed to ensuring a smooth and transparent process for banks.

    The regulator believes that a stronger banking sector will enhance financial stability, reduce systemic risks, and ultimately contribute to Nigeria’s economic prosperity.

  • SEC approves RT Briscoe Money Market Fund

    SEC approves RT Briscoe Money Market Fund

    RT Briscoe Nigeria Plc has announced the launch of its first-ever fund, the “R.T. Briscoe Savings and Investment Fund” and secured the Securities and Exchange Commission (SEC) approval for the fund.

    The move marks a significant step in RT Briscoe’s commitment to providing innovative opportunities to its existing and potential shareholders to invest in the Company.

    This approach ensures that investors can own a stake in R.T. Briscoe Nigeria Plc with very little initial capital, making it accessible to a broader range of investors and democratizing investment opportunities within the company.

    The R.T. Briscoe Savings and Investment Fund is an open-ended money market fund designed to offer unitholders a steady stream of income and capital preservation. By investing in a diversified portfolio of high-quality money market instruments, the fund ensures low risk and competitive returns. The primary objective is to earn a steady income and preserve capital, catering to both individual and institutional investors.

    The fund is professionally managed by DLM Asset Management Limited who recently won the best Asset Management company of the year at the African Industrial and Development Conference and Awards. This accolade underscores their commitment to ensuring expert oversight and strategic investment decisions. First City Monument Bank Limited serves as the custodian, while UTL Trust Management Services acts as the trustee, providing additional security and transparency.

    With a minimum subscription of 10 units at N1,000 per unit, the fund is accessible with a minimum investment of N10,000. The fund comprises 1,000,000 units available for subscription, providing many opportunities for investors. Additionally, the fund offers liquidity, allowing easy access to investments and the option to convert holdings into equity ownership in R.T. Briscoe Nigeria Plc.

    Read Also: Tinubu reels out ECOWAS’ achievements at AU mid-year meeting

    Group Managing Director and Chief Executive of RT Briscoe Nigeria Plc, Seyi Onajide, expressed his enthusiasm about the launch: “We are thrilled to introduce the R.T. Briscoe Savings and Investment Fund, demonstrating our dedication to providing reliable and accessible investment opportunities that empower investors to achieve their financial goals. This launch underscores our commitment to innovation and growth, offering clients an opportunity to save to own a part of R.T. Briscoe Nigeria PLC. We believe this fund will not only enhance our investment portfolio but also reinforce our leadership across our diverse businesses, including Automobile, Industrial Air Compressor, Material Handling, Industrial Equipment, Power, and Real Estate.

    Managing Director of DLM Asset Management, commented on the RT Briscoe Nigeria Plc fund, Ugonnaya Osi, emphasising, “With the expertise of DLM Asset Management Limited and the unwavering support of our trusted partners, we are confident that the RT Briscoe Fund will deliver significant value to our investors. As stewards of the RT Briscoe Fund, our commitment extends beyond mere management; we aim to maximise returns and foster sustained financial growth through meticulous oversight and strategic foresight. This dedication ensures that every investment decision is informed by a deep understanding of market dynamics and investor needs, reinforcing our pledge to deliver excellence in financial management.” She added.

    Investing in the R.T. Briscoe Savings and Investment Fund is straightforward. Interested individuals can fill out a subscription form and complete the Know Your Customer (KYC) requirements.

  • SEC, NPA, others score high on reforms

    SEC, NPA, others score high on reforms

    The Federal Government has rated six agencies high for their roles in facilitating ease of doing business in the country.

    The agencies included Securities and Exchange Commission (SEC), Nigerian Agricultural Quarantine Services (NAQs), Nigeria Maritime Safety and Administration Agency (NIMASA), Nigeria Export Import Bank (NEXIM), Nigeria Ports Authority (NPA) and the Nigeria Customs Service (NCS).

    The agencies scored 100 per cent in the Federal Government’s Regulatory Reform Action Plan, which is targeted at promoting ease of doing business.

    The plan, which is championed by the Presidential Enabling Business Environment Council (PEBEC) is targeted at equipping regulatory agencies that facilitate business environments to aid their efficiency.

    Vice President, Kashim Shettima, noted that the long-term success of PEBEC hinges on Nigeria’s ability to institutionalise reform capabilities, foster deep collaboration across government, and maintain a commitment to continuous improvements of businesses.

    He added that the country is currently facing peculiar times, which requires developing solutions to improve the Ease of Doing Business across all sectors.

    Special Adviser to the President on Ease of Doing business, Dr Jumoke Oduwole, said the reforms operationalise earlier codified provision in the Business Facilitation Act 2022, and directly impact productivity and competitiveness of Nigeria’s economy.

    Read Also: Rivers crisis: all eyes on the Appeal Court

    Speaking after the release of the Plan’s results in Abuja, Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama said out of the 36 MDAs assessed, the report released by PEBEC puts the SEC as one of the highest with 100 per cent.

    “We are excited at this achievement and it is a call to do more in ensuring that investors find it easier doing business in the Nigerian capital market.

    “We are committed to accelerating the development of the capital market in a manner that would boost wealth creation, attract investments and create jobs for Nigerians,” Agama said.

    He assured that the new SEC management would change the narrative of the capital market and reposition it to the path that would boost economic growth.

  • SEC unveils frame work for banks’ recapitalisation

    SEC unveils frame work for banks’ recapitalisation

    The Securities and Exchange Commission (SEC) has released a framework designed to support the Central Bank of Nigeria’s (CBN) bank recapitalization programme.

    This framework, published on the SEC website yesterday, aims to ensure a smooth, transparent, and efficient capital raising process for banks and holding companies participating in the programme.

    The framework serves as a roadmap for banks and market participants navigating the recapitalization programme.  “This framework would help to ensure that the capital raising process is conducted efficiently, transparently, and in a manner that protects the interests of all stakeholders,” stated the SEC.

    It outlines the specific guidelines and procedures that banks must adhere to when raising capital through various methods, including rights offerings, private placements, and other approved options during the 2024-2026 programme period.

    The SEC acknowledged the rationale behind the CBN’s directive, highlighting the need to strengthen banks’ asset base and support economic growth in line with the government’s ambitious target of achieving a $1 trillion economy by 2030.  The framework in turn recognizes the capital market’s crucial role in facilitating this program by enabling banks to access the necessary funds and explore various business combinations.

    “As the regulatory institution mandated to regulate and develop the Nigerian capital market,” the SEC noted, “it has the responsibility to ensure a smooth, transparent, and efficient capital raise process by the banks.”  The framework establishes clear guidelines for banks to follow, promoting transparency and protecting the interests of all involved parties.

    The SEC has outlined a streamlined process for application submission. Applications and supporting documents must be filed electronically via the dedicated email address, offerapplications@sec.gov.ng. The Commission will review the submitted materials and electronically communicate any identified deficiencies to the applicants.

    Read Also: SEC unveils framework to guide banks on CBN’s recapitalization push

    Applicants are expected to address these deficiencies promptly to avoid delays in the approval process. Timely completion of the application process is crucial for banks seeking to raise capital within the designated timeframe.

    The framework also outlines the consequences for incomplete applications. “Where an application is returned for being incomplete – a penalty of N1,000,000 and re-filing fee of N100,000 shall apply,” states the SEC.  These penalties are designed to incentivize banks to submit complete and accurate information from the outset.

    The SEC through the guidelines encourages banks and stakeholders to reach out for any clarifications or inquiries.  A dedicated email address, offerapplications@sec.gov.ng, allows for open communication and ensures that banks can navigate the process efficiently.

    The Capital Market regulator further clarified that the new framework builds upon existing rules and regulations.  It should be “read in conjunction with the relevant provisions of the Investment and Securities Act, 2007 and the Commission’s Rules and Regulations.”

    Furthermore, the SEC reserves the right to request additional information as deemed necessary. However, the framework also streamlines the process by allowing previously submitted documents (e.g., Memoranda and Articles of Association) to be referenced in subsequent transactions, provided no changes have been made.

    The SEC framework is a direct response to the CBN’s recent directive for banks to bolster their capital base.  The CBN has established new minimum capital requirements, with international banks needing to raise their capital base to N500 billion, national banks to N200 billion, and regional banks to N50 billion.

    The framework provides a clear roadmap for banks and market participants navigating the CBN’s recapitalization program.  With a focus on transparency, efficiency, and adherence to regulations, this framework aims to ensure the program’s success in strengthening Nigeria’s banking sector and supporting the nation’s economic growth aspirations.