Recapitalization: SEC Urges Banks to Enhance Corporate Governance
strengthening the relationship between issuers and investors lies in embracing innovation and inclusive growth. Emomotimi Agama, the SEC director-general, emphasized the importance of banks enhancing their corporate governance practices and risk management frameworks to build trust among investors. This message was conveyed at a workshop organized by the Capital Market Correspondents Association of Nigeria (CAMCAN) in Lagos. The workshop focused on the theme of “Recapitalisation: Bridging the Gap between Investors and Issuers in the Nigerian Capital Market.”
Agama highlighted that the 2024–2026 banking sector recapitalisation framework provides clear guidelines for issuers to follow while keeping investors’ interests at the forefront. He reassured stakeholders of the SEC’s unwavering commitment to transparency and efficiency throughout this process. Agama also mentioned the exploration of blockchain technology through a digital platform to ensure secure and transparent transactions in the market.
The director-general applauded the strong investor confidence shown through the oversubscription of recapitalisation offers in 2024. To maintain this momentum, the SEC is working diligently to elevate disclosure standards and corporate governance practices. By fostering collaboration among regulators, issuers, and investors, the SEC aims to address market volatility, systemic risks, and limited retail participation effectively.
On the issue of rising unclaimed dividends, John Achile from the SEC attributed it to investors’ non-compliance with regulatory requirements and information gaps. The SEC is dedicated to ensuring investors receive their dividends promptly and has implemented measures to facilitate this process.
In conclusion, the workshop participants stressed the necessity of a more robust and inclusive capital market in light of recent recapitalisation efforts in the banking sector. There was a call for increased collaboration to bridge the gap between investors and issuers, ultimately creating a more vibrant Nigerian capital market. The SEC remains resolute in its mission to foster an enabling environment for transparent and seamless capital formation.
