In light of the forthcoming bank recapitalisation in Nigeria, the Nigerian Exchange Group (NGX) has embarked on a proactive initiative to facilitate the raising of capital through rights issues and public offerings.
This move aims to support ongoing efforts in the banking sector and is complemented by the impending launch of an e-offering platform by the bourse.
During a press briefing held on Wednesday in Lagos, the Chairman of NGX, Alhaji Umaru Kwairanga, emphasised the group’s strategic direction as a publicly traded for-profit entity.
Kwairanga revealed that the e-offering platform is currently pending regulatory approval.
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Additionally, NGX is strategically focused on achieving its growth objectives within the capital market by introducing a digital platform for private market offerings, ensuring accessibility and efficiency for all stakeholders involved.
Also speaking on the innovation, the Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, expressed appreciation towards the NGX for its forward-thinking approach in enhancing the country’s capital market, supporting listed companies, and ultimately contributing to the growth of the Nigerian economy.
Dr Agama lauded the initiative for its potential to increase investor engagement in the ongoing banking recapitalisation drive.
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Furthermore, Dr Agama emphasised the importance of vigilance against any market infractions by stakeholders, asserting that the SEC stands ready to take necessary regulatory actions, including imposing sanctions on any company found to have flouted its regulatory responsibilities.
This call for compliance underscores the SEC’s commitment to maintaining integrity and transparency within the capital market.
The commendation from Dr Agama serves as a testament to the collaborative efforts between regulatory bodies and market entities in advancing the Nigerian financial landscape and fostering a conducive environment for sustainable growth and investment.
In March 2024, the Central Bank of Nigeria (CBN) emphasised the imperative of enhancing the capital base of Deposit Money Banks to boost efficiency. Consequently, the CBN introduced new directives regarding its bank recapitalisation policy. The apex bank mandated commercial banks with international authorisation to raise their capital base to N500 billion, and national banks to N200 billion.
In line with the CBN’s guidelines, commercial banks holding national licences must attain a minimum capital threshold of N200 billion, while those with regional authorisation are expected to achieve a N50 billion capital floor. Similarly, non-interest banks with national and regional authorisations are required to augment their capital to N20 billion and N10 billion, respectively.
