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Tag: Securities and Exchange Commission

  • No pending offer applications by banks, says SEC

    No pending offer applications by banks, says SEC

    • New moves to tame N215b unclaimed dividends

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), yesterday said there were no pending applications for new capital raising by banks.

    Five banks have so far launched new offers under the ongoing banking sector recapitalisation, announced by the Central Bank of Nigeria (CBN) in March 2024. The deadline for the recapitalisation exercise is March 2026.

    Banks that have launched offers included Fidelity Bank, Guaranty Trust Holdings Company (GTCO), Access Holdings, Zenith Bank and FCMB Group. Two banks-Fidelity Bank and GTCO, have concluded their offers.

    Director General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama, at a press briefing after the Capital Market Committee (CMC) meeting yesterday in Lagos,  said the capital market regulator has approved all applications received so far in demonstration of its commitments to supporting the recapitalisation exercise.

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    He underscored the importance of the capital market as a very important tool in the achievement of the banking sector recapitalisation.

    “We are proud and happy to state clearly that for all of the offers that we have received at the SEC, we have approved within record time. We are also glad to note the progress that is being achieved. From the reports and feedback received thus far, the banks are doing well and we hope that they will all do well in all unforeseen circumstances,” Agama said.

    According to him, SEC has approved nine new issuances totalling N1.23 trillion so far this year, which reflected increased market confidence.

    He said SEC remains committed to the advancement and prosperity of the Nigerian capital market and the economy in general in line with President Bola Tinubu’s Renewed Hope Agenda.

    He stressed the need for public and private sector collaboration to sustain the economy during these challenging times.

    According to him, the capital market must mobilize financing and facilitate the transfer of purchasing power from surplus to deficit sectors to reinforce Nigeria’s position as Africa’s leading economy adding that the meeting also provided an opportunity for stakeholders to discuss the challenges and opportunities facing the capital market and to share ideas on how to improve the regulatory framework.

    He said SEC was setting up a special unit and developing a mobile application to address the pressing issue of unclaimed dividends in Nigeria’s capital market, which stood at a N215 billion as at March 2024.

    He noted that while it was impossible to reduce unclaimed dividends to zero, the SEC is committed to ensuring that eligible investors can reclaim their funds with ease.

    “We are going to set up a special unit at the SEC that speaks directly to the issues of unclaimed dividends. We discovered that a lot of investors are having some minor challenges in trying to get access to those unclaimed dividends,” Agama said.

    He said the new unit would operate both at the SEC headquarters and at branch offices, providing a streamlined process for investors to recover their unclaimed dividends.

    He added that the Commission is leveraging technology by developing a mobile app “that will be available on the Google Playstore and will grant investors real-time access to the amount of unclaimed dividends accrued to them and further simplify the process of reclaiming those funds.”

    Agama said the Commission has demonstrated its commitment to protecting investors, as evidenced by the recent conviction of a Ponzi scheme operator, reinforcing its stance against market offenders.

    He outlined that in order to manage systemic risks, SEC had mandated capital market operators to prepare and submit their enterprise risk management frameworks and annual risk profiles to the Commission while also collaborating with other financial sector regulators and agencies in efforts to assist Nigeria in exiting the FATF grey list.

    He urged operators to ensure compliance with the Nigerian Sanctions Alert System and to enhance reporting on Politically Exposed Persons (PEPs) and Suspicious Transaction Reports (STRs), the SEC DG also informed members of initiatives aimed at ensuring that the rulemaking process of the Commission becomes faster and more efficient.

    “These include defragmenting the rules with a view of codifying the rules into a comprehensive rule book. Also, the Commission is presently updating rules on digital assets, has put in place guidelines for the banking recapitalisation exercise, as well as come up with guidelines for on boarding Virtual Assets Service Providers.

    “We are also embarking on other initiatives to safeguard investors in private bonds, noting that the Commission is reviewing its relevant rules and will soon release rules on private markets,” Agama said.

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

    Recapitalised banks key to Nigeria’s trillion-dollar economy, says 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.

    The Director-General, SEC, Dr. Emomotimi Agama, 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.

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    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.

    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.

  • SEC urges firms to adopt sustainable business models

    SEC urges firms to adopt sustainable business models

    Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama has called on capital market operators to adopt sustainable principles and practices in all their dealings.

    He said the principles of sustainable finance open a new vista for all market intermediaries to take their businesses and client relationships to a new and higher level.

    He therefore urged businesses to move  towards more sustainable and climate-friendly solutions.

    Agama spoke at the 2024 Business luncheon of the Association of Corporate Trustee (ACT) held in Lagos, with the theme, ‘Sustainable finance: The role of corporate trustees’.

    Represented by the Director, Market Development, SEC, Tunde Kamali, Agama said that the theme of this year’s luncheon wass quite pertinent.

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    “Our planet faces daunting challenges. Climate change, resource scarcity, social inequality, and economic instability demand a collective effort towards a more sustainable future.

    “While we cannot over emphasise the pivotal role required of corporate trustees in facilitating sustainable financing, acting as intermediaries between investors and issuers, corporate trustees oversee assets and ensure compliance with legal and fiduciary obligations.

    “As market professionals, trustees play a critical role of aligning investors’ interests with sustainable objectives, and by incorporating ESG criteria into investment strategies, they can guide capital towards projects and initiatives that promote sustainability,” Agama said.

    He said all market operators have a collective responsibility of addressing the demands of the sustainability market, positioning the market ahead of the green supply curve while adhering to global standards and frameworks.

    “As intermediaries, issuers, investors or regulators, we all have a role to play in facilitating the transition of economies towards sustainable and low-carbon growth.

    “We can support this transition through our business activities by directing financial flows towards more sustainable and climate-friendly solutions, divesting from unsustainable practices, setting standards and frameworks, and integrating ESG into investment decisions and practices,” Agama said.

    Agama pointed out that “so many opportunities lie in this new field with capacity to grow to a staggering $2.6 trillion market. As much as it is for the betterment of our planet, so much wealth can be made along the way.”

    SEC DG cited that “according to a 2023 report by Deloitte, the demand for sustainable investing is not yet fully met by investment advisors. Based on multiple surveys, investors have a strong interest in sustainable investing but want more support from their advisors.

    “According to the report, the demand for sustainable investing remains largely unfulfilled by investment advisors. By implication, this is a clear indication that there are lots of untapped opportunities that financial intermediaries can leverage. It is also an indication of the gap required to be filled by intermediaries and the opportunities being thrown away.”

    Agama therefore urged stakeholders to move beyond the traditional role of intermediaries, especially in this area of sustainable finance adding that as responsible stewards, they  have significant influence in shaping a landscape conducive to positive change.

    “Embrace your role as trustees by acting as guardians and gatekeepers of sustainability. Implement robust mechanisms to monitor the social and environmental impacts of investments, ensuring that deployed capital genuinely drives positive global change. Combat greenwashing, where investments falsely claim sustainability without real impact.

    “The Association of Corporate Trustees should take the lead in fostering expertise in sustainable finance, fostering an investment environment that is both knowledgeable and accountable”.

    He assured that the SEC stands firm in its commitment to champion sustainable financing as the Rules on Green Bonds have already facilitated several issuances, providing essential funding for green projects in sectors such as power, water, and agriculture.

    “Moreover, we have developed comprehensive sustainable finance guidelines and disclosure requirements for capital market operators, aligning them with the Nigerian Sustainable Finance Principles,” he added.

    Speaking at the event, the director-general, Debt Management Office (DMO), Ms. Patience Oniha said trustees stand in the position where they really protect the interest of investors.

    “As we expect these securities to come in large scale, not just from the government but from the private sector, we expect that the trustees should be able to provide the required services so that investors can be comfortable about them. As an association, you need to have that capacity to be able to deliver as those securities hit the market,” Oniha said.

    The president of ACT, Omolola Iyinolakan, noted that “over the last couple of decades, one of the trends which has involved is the concept of sustainability. And sustainability is not just imposed, it is the environmental, social, governance considerations into policy foundations across sectors, striving for the harmony between the planning, advancement, environmental preservation and social fairness.”

  • SEC to crack down on illegal virtual trading

    SEC to crack down on illegal virtual trading

    In a virtual meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), the Securities and Exchange Commission (SEC) said it is taking steps to eliminate illegal trading activities in the virtual assets space.

    Acting Director-General SEC Dr. Emomotimi Agama, at a meeting with the Blockchain Industry Coordinating Committee of Nigeria (BICCoN), the umbrella body for Nigerian blockchain and cryptocurrency associations announced the Commission’s commitment to upholding the integrity of the capital market and safeguarding the interests of all investors.

    Agama stated that, “The Commission has come as a partner to seek collaboration in making sure that the capital market community is one that is respected globally for decency and fair play.”

    He indicated that recent concerns regarding crypto peer-to-peer (P2P) traders and their perceived impact on the exchange rate of the Naira has called for collective action and dialogue within the financial market ecosystem.

    Commenting on the regulatory framework for digital assets, Agama reassured stakeholders that the SEC is working to establish guidelines that will accommodate the industry. He mentioned that these guidelines, which are currently being refined with input from various stakeholders, will cover activities within the cryptocurrency ecosystem, such as wallet providers, digital asset custodians, fund managers, and cryptocurrency exchange platform providers.

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    Agama expressed his desire for an innovative digital asset regulatory regime that will position Nigeria as Africa’s Digital Asset Powerhouse. He emphasized the importance of striking the right balance between encouraging innovation and safeguarding national economic interests. Agama added, “Manipulations and all forms of activities that undermine our national interest would not be acceptable.”

    Additionally, Agama thanked the leadership of the BICCoN and assured them of the SEC’s readiness to work closely with all stakeholders in the cryptocurrency ecosystem to create a better country for everyone. He emphasized the importance of collaboration and cooperation in addressing the challenges faced by the industry, stating, “Your insights and suggestions are invaluable as we seek to navigate these complexities together.”

    Agama also urged participants in the crypto space to be “patriotic enough to name and shame those that are involved in disrupting the markets negatively,” and called for the delisting of the Naira from P2P platforms to prevent manipulation.

    Dr. Babatunde Oghenobruche Obrimah, Chairman of the Fintech Association of Nigeria, praised the SEC Director General for his bold steps and expressed his organization’s commitment to supporting the SEC’s efforts to clean up the virtual ecosystem. Meanwhile, BICCoN requested the establishment of a working group to address the challenges facing the crypto space and propel the market forward.

  • SEC union seeks exemption from 50% operating surplus deductions

    SEC union seeks exemption from 50% operating surplus deductions

    • Lauds Appointment of New Management

    The Association of Senior Civil Servants of Nigeria, Securities and Exchange Commission (SEC) Unit is requesting an exemption from a 50 percent deduction on operating surpluses mandated by the Finance Act 2024.

    Chairman of the Union, Abba Mamman Ali, while addressing journalists in Abuja yesterday, highlighted the Commission’s unique role.

    “The SEC is a development institution. These deductions have almost incapacitated the Commission, making it difficult to fulfill its dual functions of regulating and developing the capital market,” Ali said.

    Mr. Ali stressed the need for the SEC’s management to engage the federal government on this issue, advocating for an exemption due to the Commission’s critical development role.

    Beyond the financial concerns, Mr. Ali outlined other priorities for the new SEC leadership. “We want the new management to address issues of staff promotion, vacancies, and gratuity,” he said. “These directly affect staff morale, which was at its lowest point under the previous administration.”

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    Looking towards the future of the capital market, Mr. Ali urged the new leadership to prioritize solutions. “We urge them to constitute a market-wide committee to address the various challenges currently impacting the market,” he stated.

    The Union Chairman applauded President Bola Tinubu’s recent decision to reconstitute the SEC Board and appoint Dr. Emomotimi Agama as the new Director-General.

    He praised the move, stating, “President Tinubu has lived up to his reputation as a listening President.”

    Mr. Ali criticized the previous management led by Lamido Yuguda, claiming it “failed to effectively regulate and develop the capital market” and displayed “insensitivity” towards staff welfare.

    Mr. Ali pledged the Union’s support for the new leadership. “The SEC Staff Union is committed to collaborating with the new board and Director-General to deliver a vibrant capital market, aligning with President Tinubu’s Renewed Hope Agenda,” he declared.

    This move signifies a potential shift in the relationship between the Union and the SEC management, with a focus on improved staff morale and a more robust capital market.

  • SEC initiates banking system Recapitalization fundraising

    SEC initiates banking system Recapitalization fundraising

    The Securities and Exchange Commission (SEC) has disclosed that the process of raising funds from the capital market for the purpose of banking system recapitalisation will commence this quarter.

    Director-General of the SEC, Lamido A. Yuguda, while addressing journalists via webinar yesterday after the Capital Market Committee (CMC) meeting outlined a series of measures designed to ensure a smooth, efficient, and investor-centric process to the upcoming banking sector recapitalisation exercise.  

    According to Yuguda, “we have also been working with some market participants, trying to make sure that this process (we expect to start within this quarter) is done very smoothly and making sure that the SEC and the market and the banks avoid all the mistakes we have had with past exercises.”

    The SEC boss said the Commission is committed to avoiding past pitfalls and will “very shortly issue appropriate guidelines to facilitate an efficient capital raising process.”  These guidelines, he said, will prioritise speed, fairness, and good market conduct.

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    Yuguda stated that the SEC is fostering close collaboration with the Central Bank of Nigeria (CBN) and other relevant agencies to ensure a seamless recapitalisation process.  

    The SEC DG noted that protecting investors remains a core priority for the SEC. As a result, “the guidelines will emphasise the benefits of past exercises while safeguarding those who participate in upcoming capital offerings”.

    The SEC, Yuguda revealed, has a strong preference for a paperless, digital recapitalisation process.  

    According to him, “recent successful examples in the market demonstrate the viability of this approach.  A digital format would promote inclusivity, particularly for younger demographics accustomed to electronic transactions.  While the last details are being finalized, the SEC’s intention to prioritize digital access is clear”.

    The Director-General expressed confidence in the Nigerian capital market’s ability to support the recapitalization. He cited recent instances of large companies successfully raising significant capital, indicating the market’s depth and financing capabilities.

    Yuguda also highlighted other developments within the Nigerian capital market.  These include: the Non-Interest Capital Market Committee’s exploration of non-interest instruments for financing, potentially opening new avenues for asset securitisation and infrastructure projects.

    Collaboration between the Committee and the Islamic Banking and Finance Institute of Malaysia to provide training and collaboration opportunities for Nigerian Islamic finance institutions.

    He equally disclosed that the Lagos Commodities and Futures Exchange’s upcoming listings of Gold, Lithium, and Oil and Gas futures contracts, will expand opportunities for traders and investors in the commodities space.

    The SEC has granted approval for five infrastructure fund shelf programmes totaling N1.5 trillion. This is considered a significant step forward in supporting the Federal Government’s infrastructure development goals.

    Yuguda spoke about the continued growth in the Fund Management industry with approvals for new mutual funds and discretionary/non-discretionary investment products as well as the enhanced investor protection through a requirement for all Collective Investment Scheme (CIS) funds to be held in custody.  This measure, he said, safeguards investor assets and promotes market stability.

  • SEC turns down core investor’s bid to buy out PZ Cussons’ minority shareholders

    SEC turns down core investor’s bid to buy out PZ Cussons’ minority shareholders

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), has declined to approve proposal by PZ Cussons (Holdings) Limited, the foreign majority core investor in PZ Cussons Nigeria Plc, to acquire entire shareholdings of Nigerian minority shareholders in the Nigerian subsidiary.

    In a regulatory filing yesterday, the board of PZ Cussons Nigeria, said SEC declined the company’s request for its ‘No Objection’ to PZ Cussons (Holdings) Limited’s intention to acquire the shares held by all the other shareholders of PZ Cussons Nigeria. The proposed transaction was priced at N23 per share.

    “The board will communicate further developments to shareholders in due course,” PZ Cussons Nigeria stated.

    At the extraordinary general meeting held earlier this week in Abuja, the board of PZ Cussons Nigeria explained the financial positions of the company to shareholders, who offered advices to the directors on the way out for the company.

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    PZ Cussons had informed the board of directors of PZ Cussons Nigeria of its intention to acquire 26.73 per cent shares held by all the other shareholders, subject to prevailing market conditions.

    The acquisition of minority shareholdings will turn PZ Cussons Nigeria into a private limited liability subsidiary of PZ Cussons (Holdings), with delisting of its shares at the NGX.

    In its proposal, PZ Cussons Group explained that the transaction is necessary in order to enable it to significantly simplify and strengthen operations in Nigeria, thus creating the foundations for the Nigerian business to deliver against its strategy.

    The core investor stated that it seeks to build a more agile and innovative business, noting that it has been present in Nigeria since 1899 and expects Nigeria to remain an important market for the group for many years to come.

    The proposed transaction will be implemented under a Scheme of Arrangement in line with section 715 of the Companies and Allied Matters Act, No.3 of 2020 and other applicable rules and regulations.

    This will require the company to convene a general meeting of its shareholders by an order by the Federal High Court, otherwise known as court-ordered-meeting.

  • SEC urges defunct Skye bank investors to claim dividends

    The Securities and Exchange Commission, SEC, has again reiterated its earlier directives to shareholders of defunct Skye bank to claim their dividend payment.

    This the SEC said is part of its investor protection programme and as well as ensure that shareholders get the benefits of investing in the capital market.

    According to Acting DG, Ms. Mary Uduk in Abuja, the SEC recently released a circular to shareholders of defunct Skye bank to claim all outstanding dividends.

    She said, “we have informed shareholders of the defunct Skye Bank that unclaimed dividends declared by the bank are being held in trust on their behalf. This will further help reduce the volume of unclaimed dividends in the market and boost investor confidence.

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    “Investors that have unclaimed dividends are therefore advised to contact Cardinalstone Registrars to process their dividend payments”.

    Uduk said the Commission has also directed Cardinalstone Registrars and STL Trustees to ensure that all genuine claims of beneficiary shareholders are addressed forthwith.

    The Acting DG said since the company is no longer in operation, these unclaimed dividends have to be made available to the rightful owners that are the shareholders, as that will go a long way in boosting investor confidence in the market. 

    “They invested in a company and since the company has gone under, there is no reason why they should not have access to their unclaimed dividends. That is why we are calling on them to take advantage of this opportunity and claim their dividends,” Uduk said.

     

  • FG to inaugurate SEC board Monday

    The Federal Government will, on Monday, inaugurate the board of the Securities and Exchange Commission (SEC) to be chaired by Mr. Olufemi Lijadu.

    The board’s constitution is coming four years after President Muhammadu Buhari sacked the former SEC board headed by Mr. Peter Obi.

    The inauguration, according to the News Agency of Nigeria (NAN) will take place at the Ministry of Finance Headquarters, Abuja.

    Other  members of the  board  include Mr. Lamido Yuguda from Gombe State (Non-executive Commissioner); Mrs. Rekiya Ladi (Kaduna), Non-executive Commissioner; and Mr. Okokon Ekanem, representing the Ministry of Finance.

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    The rest are: Dr Alvan Ikoku, representing the Central Bank of Nigeria; Ms Mary Uduk, SEC’s Acting Director-General; and Mr. Henry Rowlands, SEC’s Acting Executive Commissioner, Corporate Services; Mr Isyaku Tilde, Acting Executive Commissioner (Operations); and Mr. Reginald Karawusa, SEC’s Acting Executive Commissioner (Legal and Enforcement).

    The board will have a four-year tenure, according to the source.

    Buhari dissolved the previous board on July 16, 2015, and set up an eight-man panel headed by a former Secretary to the Government of the Federation, Mr Babachir Lawal, two months later, to reconstitute it.

    Market operators had been calling for the  reconstitution of the board to strengthen SEC’s operations.

  • SEC trains judges, others on commodity trading ecosystem

    The Securities and Exchange Commission (SEC) has moved a step forward to ensuring that stakeholders are sufficiently enlightened on the commodity trading ecosystem.

    The Acting Director-General of SEC, Ms Mary Uduk, noted that there exists knowledge gap within the ecosystem, hence, the need for capacity building on the Commodities Trading ecosystem.

    Represented by the Acting Executive Commissioner Operations, Mr. Isyaku Tilde, the SEC boss explained that, “The Technical Committee set up to develop a roadmap for reviving the Commodities Trading Ecosystem came up with over forty (40) recommendations to be implemented in 4 phases between 2018 and 2025; the report also observed the knowledge gap that exists within the ecosystem and recommended the need for capacity building on the Commodities Trading ecosystem to stakeholders and to the general public.”

    Uduk made this known in her address during a capacity building workshop for Judges and top management of the Investments and Securities Tribunal (IST) on the implementation of the Commodities Trading Ecosystem, at the Nigerian Capital Market Institute (NCMI) in Abuja on Monday.

    According to her, “The Securities and Exchange Commission (SEC) as part of its implementation of the 10-year Capital Market Master Plan, constituted a Technical Committee on Commodities Trading Ecosystem.

    “The mandate of the Committee was to identify challenges of the existing framework/infrastructure and develop a roadmap for a vibrant ecosystem.

    “The IST statutorily has jurisdiction over securities related matters and this includes the commodity trading market.

    “The successful implementation of the Technical Committee’s report will undoubtedly lead to more activities in the market and this will result to disputes.

    “Therefore, to effectively make informed decisions on commodities market related disputes, the judicial and non-judicial staff of the Tribunal requires the basic knowledge on the Commodities Trading Ecosystem.”

    She further added that: “The Ecosystem is an organized commodities market consisting of multiple players that interact to form the agricultural value chain.

    “They include commodity exchanges, farmers, merchants, aggregators, processors/producers, commodity market operators, warehouse operators, collateral managers, banks, insurance companies, clearing houses, and logistic companies.

    “It is important to organize this market to enhance its efficiency, growth and competitiveness which will better position it to play a strong enabling role in food security, employment generation and economic diversification which is the main trust of this government.

    “The Commodity Trading ecosystem provides a sophisticated human interaction of which the inevitable disputes will call upon the IST.”

    The Chairman, IST, Mr. Isiaka Isaiah Idoko, commended the SEC for this timely and laudable intervention to bridge the lacunae in knowledge that exists amongst his members, and to ensure that they continue to improve in the performance of their statutory functions.