The Securities and Exchange Commission (SEC) has recently announced the implementation of new measures aimed at simplifying the process for companies to list their shares on the Nigerian Exchange.
This initiative is part of broader efforts to enhance the attractiveness and efficiency of the Nigerian capital market.
The move follows a call from the SEC’s Director-General, Dr. Emomotimi Agama, for more companies to list on the exchange.
This is in line with the Central Bank of Nigeria’s (CBN) $1 trillion economic goal, which seeks to bolster the nation’s capital market as a critical driver of economic growth.
In September 2024, Dr. Agama outlined the commission’s efforts, which include streamlining the registration process, introducing electronic filing systems, and updating regulatory frameworks.
Statement from Director-General, SEC
Dr. Agama emphasized that the faster listing process will boost market liquidity, promote economic growth, and strengthen investor confidence. He stated:
“The Commission has been actively digitizing its operations, including the submission and processing of applications for securities registration, to reduce delays caused by manual processes.”
He also highlighted the role of technology in automating certain procedures, which enhances transparency.
“This involves the use of electronic platforms for document submissions and approvals, which not only speeds up the process but also improves transparency,” he added.
Further, Dr. Agama noted that the SEC has undertaken significant regulatory reforms to simplify the approval process. These reforms include updating rules to reflect current market realities and adopting international best practices that promote efficiency.
What to know
- The SEC has developed frameworks for the ongoing banking recapitalization process, ensuring a smooth and transparent capital-raising process for banks.
- On August 15, the commission approved recapitalization offers received from commercial banks, marking a significant step in the recapitalization exercise.
- A digitalization drive is being implemented by the SEC, including electronic submission and processing of applications for securities to minimize delays.
- The commission introduced a checklist review for the registration of fixed-income securities, which has significantly shortened review and approval timelines.
Dr. Agama further noted that the SEC is committed to ensuring swift issuance processes for companies wishing to enter the market, with clear timelines for approvals.
He assured that the commission would guide applicants through the process, ensuring timely feedback and transparency throughout.
These reforms are expected to make the Nigerian capital market more competitive and efficient while positioning it as a key player in achieving Nigeria’s broader economic objectives.
