Banks Raise N1.7 trillion Through E-Offerings in Recapitalization Effort says SEC DG
The Securities and Exchange Commission (SEC) has announced that Nigerian banks have raised over N1.7 trillion through electronic offerings (e-offering) as part of the ongoing recapitalization process.
The e-offering platform, which uses the internet and electronic platforms such as mobile and USSD for subscribing to securities, has played a critical role in enabling banks to meet the new capital requirements set by the Central Bank of Nigeria (CBN). As of now, 12 applications have been processed by nine banks, with some still pending.
In March, the CBN introduced new capital requirements for banks operating in Nigeria, increasing the minimum capital for commercial banks with international licenses to N500 billion. National and regional banks were required to raise N200 billion and N50 billion, respectively, while merchant banks had their minimum capital raised to N50 billion. Non-interest banks also saw adjustments in their capital base, with national and regional institutions now required to raise N20 billion and N10 billion, respectively. The deadline for banks to meet these new requirements is set for March 31, 2026, with a total of N4.14 trillion expected to be raised.
Emomotimi Agama, the director-general of SEC, emphasized the importance of technology in facilitating this recapitalisation process and driving growth in Nigeria’s capital market. He stated that the e-offering platform has been instrumental in raising significant funds, and the commission plans to continue leveraging technology for monitoring, surveillance, and other regulatory activities to support market expansion.
Agama also highlighted that technology has enabled greater market participation, bringing more investors into the fold and contributing to the overall success of the recapitalization exercise. In addition to the e-offering platform, SEC has introduced several initiatives aimed at improving the efficiency of the capital market. These include streamlining registration processes, implementing electronic filing systems, and enhancing regulatory frameworks to reduce the time it takes for companies to list and raise capital.
Agama expressed confidence that these reforms will not only boost liquidity and investor confidence but also help Nigeria achieve its $1 trillion economic growth target by diversifying beyond oil exports and fostering investment in infrastructure, human capital, and innovation. He also emphasized the need for reducing regulatory barriers and promoting financial inclusion to support small and medium enterprises (SMEs).
