The Securities and Exchange Commission (SEC) has announced a major policy shift, drastically reducing the approval time for Public Offers (POs) from over a year to just two weeks. This development is aimed at improving capital market efficiency and facilitating faster access to funding for businesses.
In a statement issued on Monday, SEC Nigeria emphasized that companies seeking to issue public offerings will now experience faster approval processes, provided they meet all required documentation.
“The capital market is the lifeblood of any economy and is regulated by time. One of the first things we tackled was to reduce the time to market. I can proudly say that we have reduced the time to market from over a year to fourteen days,” SEC stated.
Impact on Banking Recapitalization and Capital Market Growth
The recent banking recapitalization exercise has highlighted the capital market’s effectiveness, with Nigerian banks raising nearly N2.2 trillion through electronic public offerings (e-IPO). The SEC praised the use of digital platforms, stating that the e-offering system has eliminated paper-based applications and accelerated fundraising efforts.
“All of these transactions have been fully subscribed, and we have encouraged the use of technology. The e-offering platform means you do not have to use paper anymore to apply in this market. We hope to get better by the day,” the commission added.
The SEC Nigeria reaffirmed its commitment to technology-driven processes, ensuring a faster and more transparent market. The commission noted that the NGX e-IPO system has already proven effective, with all public offers in recent months receiving approval within 14 days.
Looking ahead, the SEC plans to expand the use of digital tools in market regulation and investment processes, aligning with global financial trends.
In a bold move towards financial inclusion, SEC Nigeria has granted two cryptocurrency exchanges a license in principle. This initiative is aimed at integrating Nigeria’s growing youth interest in digital assets into the regulated capital market.
SEC Director General, Dr. Emomotimi Agama, emphasized that embracing digital assets is essential for expanding market participation among young Nigerians and keeping pace with global investment trends.
“The decision to allow cryptocurrency exchanges is driven by our goal to establish an inclusive financial ecosystem that capitalizes on the rising interest in digital assets among Nigeria’s younger population,” Agama stated.
With reduced approval timelines for Public Offers, embracing digital investment platforms, and incorporating cryptocurrency exchanges, SEC Nigeria is positioning the capital market for rapid growth and broader participation. These changes are set to enhance investor confidence, attract foreign investment, and solidify Nigeria’s capital market as a key driver of economic development.
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