May 26, 2024

We’re set to issue framework on banks’ recapitalization – SEC

By Obas Esiedesa, Abuja

Following the directive by the Central Bank of Nigeria, CBN, for banks to recapitalise by March 2026, the Securities and Exchange Commission, SEC has disclosed that the Commission would soon issue a framework that will guide the process.

The Ag. Director General, SEC, Dr. Emomotimi Agama made the disclosure during a meeting with the executives of the Institute of Capital Market Registrars in Abuja.

According to him, “We are on top of the issues around the recapitalisation exercise, very soon we will come up with a framework to guide the market”.

While expressing willingness to interact with various segments of the capital market to ensure that all pending issues are resolved in the interest of the market, Agama stated, “We will hold stakeholder’s meetings where we will speak to everyone and stakeholders will also have the opportunity of interfacing with us.

“The idea is to interact with you all. There may be things hanging and due to the transition, we do not want to miss anything. It will still be attended to in the interest of the market”.

Agama commended the Federal Government for the opportunity to serve before formally being cleared by the Senate in order for activities in the capital market.

“We see it as an opportunity to be asked to act before our confirmation, it is not normal. In this case, we needed to deal with challenges and that’s why the government thought it wise for us to come in and work in Acting capacity.

“It shows how important the capital market is to the administration of President Bola Tinubu, and we do not take this opportunity for granted.

“We will come up with a framework to move the market. We are in this together and we will continue to work and do our best. This is our constituency and we will do our best. We crave your co-operation to assist us deal with major challenges”.

Agama implored the Registrars to embrace technology as one of the ways of ensuring that the issue of unclaimed dividends in the capital market becomes a thing of the past.

“Unclaimed dividends are a monster that we must deal with now. Whatever it will take to deal with it we must do it. We must embrace technology as one of the ways to deal with it.

“Let us put our thoughts together and provide a workable solution, let us ensure that this becomes a thing of the past. We need to provide a solution and the time is now. As custodians, we implore you to provide practicable steps to address this issue” he said.

In his remarks, President of ICMR, Mr. Seyi Owoturo congratulated the new SEC Management on their appointment and pledged that the registrars would continue to work in the interest of the capital market.

Owoturo said registrars have a duty to ask questions when transactions happen so as to make the market safe for everyone adding that with the banking recapitalisation coming, registrars need to embrace technology as there is going to be serious demands on their capacity.