Nigerian banks raise N1.68trn through e-offering–SEC

Nigerian banks have raised N1.682 trillion through e-offering in the bid to meet the new bank recapitalisation requirement. Dr Emomotimi Agama, the Director General of the Securities and Exchange Commission (SEC), said this on the sideline of the just concluded conference of the Chartered Institute of Stockbrokers in Ibadan, Oyo State. According to a statement issued By SEC, Agama said the amount was raised in 12 applications by nine banks, while some applications were still pending. Agama said e-offering was instrumental to the success of some of the banks’ recapitalisation exercise. “What you have seen so far is the use of technology to drive the market with more investors coming into the market.
“As you are aware, we just launched the e-offering platform that ensured the offering processes for banks for which over 1.7 trillion naira was raised. That tells you what technology can do, we are also exploring technology for other activities, for monitoring and surveillance and other processes that will bring about a cohesion of all the policies that the SEC has applied to make the market grow bigger than it is today,” he said. Agama said the Commission had introduced many initiatives to reduce the time wasted in the market and improve the efficiency and attractiveness of the Nigerian capital market as well as promote economic growth and development. He said these initiatives included streamlined registration processes, an electronic filing system and enhanced regulatory frameworks, among others.
“A shorter time to market can benefit capital market development in several ways: Increased liquidity: Faster listing allows companies to access capital more quickly, increasing liquidity in the market: Improved investor confidence: Efficient listing processes can enhance investor trust and confidence in the market: Enhanced competitiveness: A shorter time to market can make a jurisdiction more attractive to companies and investors, promoting competition and growth and better allocation of resources: Faster capital raising enables companies to allocate resources more efficiently, driving economic growth”. Agama said one trillion-dollar economy was feasible in Nigeria with the drive and commitment of President Bola Tinubu in ensuring that other sectors of the economy are in full swing adding that the capital market is available to provide long term funding to boost the economy. The Nigerian economy is a very vibrant economy full of promise in view of the natural resources in this country and the ability to harness these natural resources comes from seeking long term financing.
“The only place you can get long term financing is enduring the capital market. Total commitment, more education, to build trust and confidence, integrity and an inclusive market that will bring everybody together to achieve the objectives of Mr. President,” he said. The Central Bank of Nigeria (CBN) announced new capital requirements for Nigerian banks in March to strengthen them to facilitate achievement of $1 trillion economy in Nigeria.