SEC announces reforms to accelerate market processes in Nigerian capital market

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By Our Reporter

The Securities and Exchange Commission (SEC) has introduced a series of reforms designed to expedite the process for companies listing their shares on the Nigerian stock exchange.

In a statement released on Sunday, September 1, the SEC highlighted that these changes are part of a comprehensive strategy to enhance the efficiency, appeal, and development of the Nigerian capital market.

Dr. Emomotimi Agama, SEC Director General, detailed the commission’s efforts to streamline registration procedures, implement an electronic filing system, and refine regulatory frameworks to reduce time to market. He emphasized that faster market entry can boost liquidity, investor confidence, and economic growth.

A notable reform is the 2019 launch of the electronic Public Offering (e-PO) system, which automates many steps in the securities issuance process, minimizing manual paperwork and speeding up application processing.

Additionally, the SEC has digitized its operations, allowing for electronic submission and processing of securities registration.

Dr. Agama also mentioned the SEC’s regulatory reforms, including updated rules and international best practices. For example, a new checklist review for fixed-income securities has shortened approval times.

In June 2024, the SEC introduced a framework for banking sector recapitalization, requiring banks to use an e-offering platform for capital-raising activities to ensure transparency and efficiency.

Dr. Agama expressed confidence in the progress achieved and reaffirmed the SEC’s commitment to reducing time to market and maximizing the Nigerian capital market’s potential. Through process streamlining, digitization, and regulatory updates, the SEC aims to create a more efficient and attractive environment for both companies and investors.