Newscenter Media News Following a recent directive by the Central Bank of Nigeria (CBN) to commercial banks in the country to increase their capital in support of the nation’s $1 trillion target, the Securities and Exchange Commission (SEC) has released a comprehensive framework for the 2024 recapitalisation programme.
The CBN had in a memo directed banks with international standing to raise their capital base to N500 billion, national banks to N200 billion, and regional banks to N50 billion.
SEC said the framework posted on its website on Friday would ensure that the capital-raising process is conducted efficiently, transparently, and in a manner that protects the interests of all stakeholders.
It is also expected to serve as a guide to the Banks/Holding Companies issuers and Capital Market Operators in filing applications for capital raise and/or mergers and acquisitions.
The framework will also provide detailed guidance for banks, holding companies, and market participants to successfully navigate the recapitalisation process.
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Other objectives of the framework are full disclosure of material facts in compliance with the Investments and Securities Act 2007, Rules and Regulations of the Commission, and other relevant laws to ensure proper and timely review of the transactions.
“As the regulatory institution mandated to regulate and develop the Nigerian capital market, the Securities and Exchange Commission (SEC), has the responsibility to ensure a smooth, transparent, and efficient capital raise process by the banks.
“This framework outlines the guidelines and procedures banks are required to follow to raise capital through rights issuance, private placements, or other approved methods during the 2024-2026 recapitalisation period,” it noted.
By: Babajide Okeowo
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