SEC partners CBN for seamless banking sector recapitalisation

Fri, Apr 19, 2024
By editor
2 MIN READ

Economy

THE Securities and Exchange Commission (SEC) says it is collaborating with the Central Bank of Nigeria (CBN) and other relevant agencies to ensure seamless banking sector recapitalisation.

The Director-General of the Commission, Mr Lamido Yuguda, said this while briefing newsmen at the post Capital Market Committee (CMC) meeting in Abuja on Friday.

Yuguda said the commission would soon issue appropriate guidelines to facilitate an efficient capital raising process in the exercise.

According to him, the commission is committed to a process that will ensure speed, fairness, and good market conduct.

Yuguda said the capital market is strong, efficient and resilient.

”Over the past few quarters some large companies have raised significant financing from the market signifying the depth and ability of the market to provide such financing.

”We are confident of the ability of the market to provide the needed funds in the banking recapitalisation,” he said.

He said the meeting expressed support for CBN’s efforts at strengthening the naira and combating inflation.

Yuguda said that trading activities in equities and bonds have increased, with the Nigerian Exchange (NGX) All Share Index reaching 45.90 per cent and the FMDQ Sovereign Bond Index generating 8.79 per cent return.

The director-general added that activities on the NASD exchange also rose significantly, with volume and value rising by 34.08 per cent and 24.18 per cent, respectively.

On market supervision, Yuguda said that the commission had intensified supervision, focusing on fund managers and conducting inspections to address vulnerabilities and enhance stability.

He said the development had helped in the implementation of a number of corrective measures to strengthen and stabilise the fund management industry.

Yuguda, however, said the commission has been battling with illegal operators, including Ponzi schemes promoters.

”Over the past few quarters, the SEC recovered hundreds of millions of Naira for investors, closed several such schemes and is prosecuting their promoters.”

He said that the meeting also highlighted initiatives to promote investor education, particularly among young Nigerians, and leverage digital platforms for broader market participation. (NAN)

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April 19, 2024

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