Business News

Recapitlisation: SEC to issue guidelines to facilitate capital raising

The Securities and Exchange Commission (SEC) has said that it will soon issue appropriate guidelines to facilitate an efficient capital raising process in the present exercise.

Lamido Yuguda, outgoing SEC’s Director -General, stated this at a virtual press briefing on the 2024 first quarter Capital Market Committee (CMC) meeting.

Yuguda noted that the SEC is partnering with the Central Bank of Nigeria (CBN) and other relevant agencies to ensure a smooth process.

According to Yuguda, the capital market is strong, efficient and resilient, noting that 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.

Yuguda, who is also the Chairman of the committee, highlighted SEC’s commitment to embracing FinTech innovations while managing associated risks and establishing a regulatory framework for the digital asset space.

He noted that the commission will have the preference on whether the transactions for the recapitlisation will be largely paperless and technological driven.

He said the SEC, in order to bring the young people to participate in the recapitlisation process, will ensure that the transaction will be a less paperwork by including digital technology.

Yuguda disclosed that while aligning with and directly supporting the Federal Government ‘s infrastructure development goals, the SEC approved five infrastructure fund shelf programs totalling N1.5 trillion, which is a major step forward.

He noted that the commission actively supported the growth of the fund management industry in 2023 with approvals for new mutual funds (N18.20 billion) and discretionary/non-discretionary investment products (N17.60 billion).

He explained that the Lagos Commodities and Futures Exchange shed light on upcoming listings of gold, lithium, and oil and gas.

These products, according to him, are aimed at expanding opportunities for traders and investors in the commodities space.

He said the commission will continue to work with the exchange to overcome challenges on the path to building a strong commodities market in Nigeria.