The Securities and Exchange Commission (SEC) has significantly reduced the approval time for companies looking to raise funds in Nigeria’s capital market. As of yesterday, the approval process now takes just 14 days, down from over a year prior to the current SEC management’s efforts. Dr. Emomotimi Agama, the Director-General of the SEC, highlighted that this move is aimed at making the capital market more efficient and supporting the growth of the Nigerian economy.
Before the SEC’s recent changes, companies experienced lengthy delays in obtaining approval to raise capital. This inefficiency hindered business operations and slowed economic development. However, Agama pointed out that the current leadership has worked diligently to tackle this challenge, reducing the time to market from over a year to a mere two weeks.
The SEC’s efforts have already yielded positive results, with the recent banking recapitalization exercise enabling banks to raise over N2.2 trillion through the Nigerian Capital Market. This was made possible by utilizing the e-offering platform, which streamlines the process and eliminates the need for paper applications. Agama noted that the use of technology has played a key role in ensuring that transactions are completed smoothly and swiftly.
In addition to these technological advancements, Agama emphasized that the SEC has implemented various mechanisms to ensure the timely approval of applications. He expressed optimism that the commission will continue to improve its processes to better serve issuers and further boost the Nigerian economy.
SOURCE: VANGUARD