Bank recapitalisation underscores capital market’s strength – SEC

The Securities and Exchange Commission has said that the ongoing banking sector recapitalisation exercise is a testament to the strength and resilience of Nigeria’s capital market.

SEC Director-General Dr Emomotimi Agama disclosed this in Abuja while highlighting key provisions of the newly enacted Investments and Securities Act 2025, describing it as a transformative law that will further deepen market activities and drive economic growth.

Agama said that thus far, banks have been able to raise about N2.4tn from the capital market since the recapitalisation exercise commenced in 2024.

He said, “The capital market is strong enough to provide the much-needed funding for various sectors of the economy. It is one of the strongest you can think about; our ROI was one of the best in the world for last year. When you look at what the capital market has already done with the bank recapitalisation, which is still ongoing, you can agree with me that our market is strong.

“Today, the Nigerian capital market has been able to facilitate the raising of capital by banks to the tune of N2.4tn and still counting. This has never happened in the history of this country. Our responsibility is to facilitate growth, facilitate exchanges and the movement of capital, and we have done this successfully with this exercise. Other institutions are also coming to raise capital. The Ministry of Finance Incorporated recently raised N250bn for housing facilitation in Nigeria.

This tells you the capital market is resilient, and it is showing in the activities that are happening in the capital market. In terms of market recapitalisation, it has moved to over N65tn, and that tells you that the capital market in Nigeria is moving forward.”

Agama affirmed that the new law is revolutionary in all respects, as it provides the SEC with the opportunity to retain its signatory A status with the International Organisation of Securities Commissions.

Agama said this is significant because it allows other countries to benchmark the Nigerian SEC and capital market with other jurisdictions, a move which he said will drive investments and investors into the Nigerian capital market and also expand the capital market reach in Nigeria.

The SEC DG said another highlight of the new law is the increasing opportunities available for raising capital in the Nigerian capital market as well as the inclusion of the regulation of online forex for which a lot of Nigerians are involved and the introduction of legislation that speaks to digital assets regulation in Nigeria.

He said, “This is huge because, in the Nigerian population, the youths that are involved in this space are many, so providing clarity and providing legal framework and background to this is very essential for our growth. Beyond all of that, we also have the Legal Entity Identifier being introduced into Nigerian law, which speaks to derivatives transactions.

“The commodities ecosystem is well featured in this law, being able to provide regulation regarding the commodities ecosystem from the spot market onto the derivative market and the secondary market. We have also been able to remove, by this law, restrictions by states and local governments on their ability to raise capital and bring development to their states and, of course, municipal areas. So, this for us is very important.”

Meanwhile, the Senate Committee on Capital Market, on Wednesday, called on sub-nationals to approach the capital market for long-term finance for their projects.

The call was given by the Chairman of the Senate Committee and sponsor of the original bill that was signed into an Act, Senator Osita Izunaso, in an interview with journalists in Abuja.

He said, “Today, Mr. President is talking about a $1 tn economy. By signing this Act into law, it means that Nigeria is set for that $1tn economy. So, today, the capital market has been reset for that purpose. I would also like to make it clear that the days of Ponzi insider trading and market manipulations are over in Nigeria.

“With the new law, states and local governments can approach the capital market for long-term funding. Instead of relying on federation accounts and commercial borrowing, states and the 774 LGAs can now go to the capital market for long-term funding for the projects.”