Dr. Emomotimi Agama, Director General of the Securities and Exchange Commission (SEC), emphasized the importance of bank recapitalization and economic diversification in Nigeria’s pursuit of becoming a trillion-dollar economy. Speaking at a forum in Abuja on ongoing bank recapitalization, Dr. Agama highlighted that Nigeria must invest in infrastructure, human capital, and innovation while improving the business environment and reducing regulatory barriers.
Dr. Agama explained that bank recapitalization involves increasing a bank’s capital to meet regulatory standards, enhance financial stability, and boost lending capacity. This process can significantly contribute to Nigeria’s economic growth by providing banks with various financing options through the capital market, including equity financing, debt financing, and rights issues.
A recapitalized banking sector can lead to increased lending in key sectors such as agriculture, manufacturing, and infrastructure, supporting major projects and attracting foreign investment. This, in turn, could bolster the Nigerian capital market and foster economic stability.
Dr. Agama also noted that while recapitalization offers many benefits, it presents challenges such as share price dilution and increased debt servicing. The SEC has recently introduced a framework designed to streamline the capital-raising process for banks and holding companies involved in the recapitalization effort, aiming to ensure transparency and efficiency.
The framework outlines the procedures for capital raising through rights issuance, private placements, or other approved methods during the 2024-2026 recapitalization period, reinforcing the SEC’s commitment to facilitating a stable and robust financial system.
News Editor 
Hyelsinta Hassan