SEC emphasizes strong regulation’s role in boosting banks’ growth

The Securities and Exchange Commission (SEC) has said the remarkable growth witnessed in the Nigerian banking industry over the past decade is partly attributable to the capital market and SEC’s comprehensive regulatory approach. Mr. Lamido Yuguda, Director General of SEC said this at the 2023 Chartered Institute of Bankers (CIBN) graduates’ induction and prize award recently in Lagos. He said, “The harmonious relationship between the capital market and the banking sector is further exemplified by our role in facilitating capital raising, mergers and acquisitions for banks.  “By streamlining the listing process and ensuring adherence to high standards of transparency and corporate governance, we enable banks to tap into the securities market as a means to secure funds from a diverse range of investors “This synergy between the banking industry and the capital market is illuminated by the fact that only 4 out of the 25 banks that emerged from the Central Bank’s 2004 recapitalization exercise did not access the capital market before compliance.” Yuguda charged the graduates on professionalism and adapting to changes in the financial world.  “Distinguished graduates, as you embark on your banking careers, remember the importance of integrity, good moral conduct, and adaptability. “The financial world is evolving rapidly due to technology and global changes. Embrace these shifts as unique and timely opportunities to contribute positively to the banking industry”, he said.  He said the theme, “Navigating the Pathways of Banking Excellence,” aptly encapsulates the journey that each of them embarks upon. “I extend my sincere gratitude to the Chartered Institute of Bankers of Nigeria for its determined commitment to nurturing industry-ready professionals. Your dedication resonates with our shared vision of fostering a resilient, well-regulated financial ecosystem that can withstand challenges and foster sustainable growth. “The most renowned professionals are celebrated today for building business empires and nurturing thoroughbred professionalism, achieving success through proper conduct, steadfast dedication, and a meticulous approach that allowed them to refine their long-term visions and goals. He said the CIBN’s vision aligns with the Commission’s quest for transparent and fair conduct in securities business by ensuring that operators in the capital market play according to the rules. “The Commission also recognizes individual and corporate players whose conducts not only ensure compliance but do more to make investment an interesting endeavour. “As regulators and professional bodies, we must ensure that our onboarding processes for new entrants are robust enough so that only fit and proper persons find their way into the very exciting careers in the financial market.  “Similar to what obtains in the money market, the Commission’s engagement spans a spectrum of activities, including registration, surveillance, proactive regulation, and robust enforcement mechanisms, all aimed at nurturing a fair and transparent market environment.  “Even though the CBN is unrelenting in ensuring full compliance by banks and other financial institutions through relevant departments, the professional bodies, especially the CIBN must leverage continuous assessment to ensure that bankers demonstrate probity and ethical conduct at all times.     “As the financial market continues to evolve with the increasing need to embrace financial technology, we must keep fine-tuning the regulatory frameworks that guide our continued operation in the market,” he said.   He said the culture of transparency mandated by the Investments and Securities Act empowers investors to make informed decisions. 

SEC, FMMSD seek to raise capital for non-oil sector

The Securities and Exchange Commission (SEC) and the Capital Market Community are to partner with the Federal Ministry of Mines and Steel Development and other stakeholders to promote the use of alternative means of raising capital such as Non-Interest products, tokenization of assets, as well as adopting technologies such as FinTech. This among others was contained in a communiqué issued at the end of a two-day workshop on financing the Nigerian solid minerals sector through the capital market and the critical role of the commodities exchanges. The workshop also emphasised the need for the FMMSD and Federal Ministry of Education to re-prioritize the focus on STEM education at basic, secondary and tertiary institutions.  According to the communiqué, “There is a need for the Capital Market Community to ensure that the market infrastructure that supports the bringing to market of mining ventures is in place, while also protecting investors.  “All stakeholders should be involved in promoting sustainable practices and ESG standards within the mining industry while the FMMSD is to ensure the availability of geoscience data, given that it is essential alongside relevant market data in enabling intermediaries and commodities exchanges to structure products for the mining industry.  The participants also agreed that the FMMSD should collaborate with SEC and other stakeholders to develop capacity in the industry and address the issue of interference in mining activities by the State Government, which is identified as a major challenge faced by mining companies, the FMMSD is to take concrete steps to resolve the conflict in State and Federal laws as well as overlapping oversight. Earlier in a keynote address, the Executive Commissioner Operations of the SEC, Mr. Dayo Obisan said the solid minerals sector possesses immense transformative potential for sustainable economic growth in Nigeria and holds immense potential to contribute significantly to national economic diversification and sustainable development goals.  “With over 44 minerals discovered across the Federation, the mining industry can play a vital role in diversifying our economy away from crude oil dependency. The FMMSD has embarked on various initiatives to increase the sector’s contribution to Nigeria’s GDP from 0.5% to approximately 3% by 2025. To address the financing challenges faced by the mining industry, the SEC Commissioner said stakeholders must recognize the crucial role of the capital market in providing much-needed funding for large-scale mining projects as the capital market offers a wide array of financial instruments and products, attracting long-term investments and diversified sources of funding.  He said by tapping into this market, mining companies can strengthen their financial position and promote transparency, accountability, and good corporate governance practices to attract both domestic and foreign investors, stimulating investment inflows and fostering growth in the sector. He stated that to address these challenges, some practical solutions may include, but not limited to; attracting strategic investors who have established mining operations can bring expertise, technology, resources, and access to international markets. Such partnerships can be in the form of equity capital or debt financing, allowing miners to benefit from immediate cash injections and technology support.

Nigeria’s equity market gains N126bn

Trading activities on the floor of the Nigerian Exchange (NGX) on Tuesday returned to a positive trend appreciating by N126 billion. Market capitalization of listed equities increased by 0.41 percent to N30.513 trillion from N30.387 trillion reported the previous day. The NGX All Share Index also appreciated by 230.14 basis points to 56036.85 points from 55806.71 points traded on Monday. Investors traded 322.494 million shares worth N5.824 billion in 6165 deals against 369.77 million shares valued at N19.841 million in 7221 deals. A review of the investment during the day showed that ETranzact led gainers table in percentage terms, gaining 10 percent to close at N4.40 per share, Eterna Plc followed with a gain of 9.85 percent to close at N11.15 per share, Pharm Deko gained 9.52 percent to close at N2.07 per unit. Cornerstone Insurance added 9.52 percent to close at N0.92 per share, FTNCocoa increased by 9.23 percent to close at N0.71 per share. On the contrary, JohnHolt recorded the highest loss during the day with a drop of 9.88 percent to close at N1.55 per unit, Multiverse trailed with a loss of 9.54 percent to close at N3.70 per unit, Chellaram down by 9.52 percent to close at N1.33 per share, Omatex dipped by 9.09 percent to close at N0.20 per unit, SUNU Assurance declined by 8.33 percent to close at N0.40 per unit. Transactions in the shares of United Bank for Africa (UBA) led activity during the day with 47.126 million shares valued at N442.314 million, AccessCorp followed with an account of 39.910 million shares cost N501.775 million, GTCO Plc traded 30.224 million shares cost N846.874 million, Fidelity Bank exchanged 23.775 million shares cost N137.274 million, Japaul Gold exchanged 16.841 million shares valued at N6.732 million.

Equity market opens negative, sheds N7bn

Domestic equity on Monday returned to a negative trend, declining by N7 billion. Market capitalisation of listed equities depreciated by 0.02 per cent to N30.387 trillion from N30.394 trillion reported the previous day. The NGX All Share Index also declined by 13.79 basis points to 55806.71 points from. 55820.50 points traded on Friday. A review of the investment showed that Omotek, NEM Insurance led gainers table during the day in percentage terms, gaining 10 per cent each to close at N0.22 Kobo and N5.50 Kobo respectively. Conoil and MRS followed with a gain of 9.94 per cent each  to close at N76.85 and N54.20 per unit respectively while Eterna Plc fell by 9.73 per cent to close at N10.15 per share. On the contrary, JohnHolt recorded the highest loss in percentage terms, declining by 9.95 per cent to N1.72 per unit, Courtvellle Business Solutions trailed with a loss of 9.80 per cent  to close at N0.46 per unit, Chams Plc down by 9.76 per cent to close at N0.32 per share, Wapic Insurance fell by 9.76 per cent to close at N0.42 per unit, Academy Press down by 7.89 per cent to close at N1.75 per unit. Investors exchanged 369.779  million shares valued at N19.841 billion in 7221 deals against 455.760 million shares worth N6.117 billion exchanged hands the previous day in 7457 deals. Transactions in the shares of Geregu Power led activity during the day, with 52.491 million shares valued at N16.365 billion, NPF MicroFinance Bank followed with account of 50.023 million shares cost N90.041 million, Access Corp traded 46.234 million shares valued at N573.551 million, Zenith Bank traded 28.745 million shares cost N800.619 million, United Bank for Africa traded 16.246 million shares worth N151.743 million.