By Chukwuma Umeorah
The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has reaffirmed the Commission’s commitment to enhancing the efficiency and attractiveness of the Nigerian capital market by significantly reducing the time to market.
‘Time to market’ refers to the length of time it takes for a company to complete the capital-raising process and list its shares on a stock exchange.
Speaking during an interview at the weekend, Agama highlighted various initiatives undertaken by the SEC, including streamlined registration processes, the introduction of an electronic filing system, and enhanced regulatory frameworks. These measures, he said, are designed to make the capital market more efficient and attractive to both companies and investors.
HHeemphasized that these efforts were geared towards promoting economic growth and development.
“Shorter time to market will also improve investor confidence because when the listing processes are efficient, it can enhance investor trust and confidence in the market,” Agama noted. He added that this efficiency could lead to faster listings, enabling companies to access capital more quickly and allocate resources more effectively, which in turn drives economic growth.
Agama pointed to the Commission’s 2019 rule on the electronic Public Offering (e-PO) system as a pivotal reform. The e-PO system, according to him, streamlines the process of issuing new securities by automating various steps, reducing manual paperwork, and facilitating broader participation. “The implementation of e-PO is part of a broader effort to make the market more efficient and reduce time to market,” he explained.
In addition to digitizing operations, the SEC has also undertaken regulatory reforms to simplify and streamline approval processes. These reforms include updating rules and regulations to reflect current market realities and adopting international best practices. One such reform is the introduction of a checklist review for the registration of fixed-income securities, which shortens review and approval timelines.
Agama further disclosed that in June 2024, the SEC issued a framework on the banking sector recapitalization program. This framework outlines the guidelines and procedures that banks must follow to raise capital during the recapitalization period. It is designed to ensure a smooth, transparent, and efficient capital-raising process, serving as a comprehensive guide for banks, holding companies, and market participants.
“A major highlight of the framework is the requirement for an e-offering platform to be provided by a Securities Exchange for the capital-raising exercise,” he said. “This platform allows for an end-to-end offering, subscription, and payment process, enhancing time-to-market, efficiency, transparency, and the integrity of the recapitalization program.”
He further mentioned the formation of a joint team comprising the SEC, the Central Bank of Nigeria (CBN), and the Nigeria Deposit Insurance Corporation (NDIC) to facilitate the recapitalization program, particularly in the area of capital verification, a prerequisite for allotment clearance.
Agama expressed satisfaction with the progress made so far and assured that the SEC’s current management would continue to work towards unlocking the full potential of the capital market. “We will continue to do our utmost best to ensure that the capital market is well positioned to drive economic development,” he said.