Market News

The Securities and Exchange Commission (SEC) has reduced the time required for companies to secure approval to raise capital in the Nigerian capital market, cutting the process from over a year to just 14 days.

This development aims to make the capital market more efficient and better positioned to support the growth and development of Nigeria’s economy.

In a statement issued by the SEC, its Director General, Dr. Emomotimi Agama, disclosed the initiative over the weekend in Abuja. He said that the current management of the SEC has streamlined approval processes to enable companies access funding more swiftly.

“Since we came on board, it is instructive to say that we have helped propel the economy. One of the things that has been a challenge before we came to the saddle was time to market. Issuers would come to the market and spend time before they got approval to raise capital.

 “The capital market is the life and blood of any economy, and of course, this is actually regulated by time. So one of the first things we tackled since we came was to reduce the time to market. Therefore, I can proudly say that we have reduced the time to market from over a year to fourteen days,” Agama said.

The SEC DG noted the success of the banking sector’s recapitalisation exercise, where banks raised over N2.2 trillion from the capital market using the e-offering platform.

 He stated that the Commission’s efficiency mechanisms ensured that issuers did not face delays in their applications, allowing approvals to be granted within record time.

“In addition, all of these transactions have been fully subscribed, and we have encouraged the use of technology. They used the e-offering platform, meaning you do not have to use paper anymore to apply in this market. We hope to get better by the day,” Agama explained.

He stressed the growing role of technology in modernizing the market, stating: “Technology is the in-thing. The ISA 2007 has provided for that, and we feel that to achieve the milestone we want in the market, we need to do better. We applied that in the bank recapitalization, and the success is massive and overwhelming. The NGX has an e-IPO system that has proven to be very effective.”

The SEC DG pointed out that all offers submitted during the recent period were approved within the promised 14 days. He also observed that the use of technology has attracted more young people to the market, contributing to its vibrancy.

“In this year, we will make more use of technology in the work that we do,” he stated.

Agama reiterated the Commission’s commitment to enhancing the capital market’s role in driving economic growth and providing solutions for the Nigerian economy.

“What is new for us this year is efficiency, dedication, and giving back to society by using the capital market as an engine of growth and a propeller of wealth for all Nigerians. We must give back by ensuring that Nigerians are properly served.

“The SEC is committed to protecting investors and developing the market. We must do everything within our powers and the laws to provide that and ensure Nigerians are happy again in investing in the market and making wealth for Nigerians,” he added.