The Director-General of the Securities and Exchange Commission noted that the recent capital-raising efforts by five Nigerian banks were oversubscribed. This development follows the Central Bank of Nigeria’s directive on fresh capital requirements for banks in the country. The banks involved in this fundraising initiative include Guaranty Trust Holdings Plc, Zenith Bank Plc, Access Holdings Plc, Fidelity Bank Plc, and FCMB Group Plc. They collectively raised around N1.26tn ($770m) within a two-month period to comply with the CBN’s regulations.
Dr. Eromomotimi Agama highlighted the increasing participation of young investors in the capital market, emphasizing the importance of domestic investors’ involvement. The SEC approved NGX Invest, a digital platform by the stock exchange, used by the banks to engage and attract younger investors to their share offers.
Agama also discussed the underutilization of the capital market in addressing Nigeria’s infrastructure deficit at a stakeholder program. He emphasized the market’s potential in mobilizing funds for various sectors and stressed the need for creating awareness to fully explore the debt market. Agama expressed optimism about Nigeria’s ability to fund its capital market and achieve significant economic growth through sectors like mining, oil and gas, construction, and others. He highlighted the goal of growing a one-trillion-dollar economy and underscored the capital market’s crucial role in achieving this objective.