The Securities and Exchange Commission (SEC) has called on banks to reinforce their corporate governance principles and risk management frameworks to boost investor confidence during the ongoing recapitalisation exercise.

Emomotimi Agama, the director-general of SEC, made the call at the yearly workshop of the Capital Market Correspondents Association of Nigeria (CAMCAN) held in Lagos.

The workshop theme is: “Recapitalisation: Bridging the Gap between Investors and Issuers in the Nigerian Capital Market.”

Mr Agama, represented by the divisional head of legal and enforcement at the SEC, John Achile, stated that the 2024–2026 banking sector recapitalisation framework offers clear guidance for issuers while prioritising the protection of investors’ interests.

He restated the commission’s commitment towards ensuring transparency and efficiency in the recapitalisation process.

The director-general stated that the key to bridging the gap between issuers and investors remained the harnessing of innovation for inclusive growth.

In view of this, Mr Agama said, “SEC, through the aid of digital platform, is exploring the integration of blockchain technology for secure and transparent transaction processing to redefine trust in the market.”

He added that the oversubscription of most recapitalisation offers in 2024 reflects strong investor confidence. The director-general said that to sustain this momentum, the SEC had intensified efforts to enhance disclosure standards and corporate governance practices.

He assured stakeholders of the commission’s steadfastness in achieving its mission of creating an enabling environment for seamless and transparent capital formation.

Mr Agama listed constraints to the exercise as addressing market volatility, systemic risks, limited retail participation, and combating scepticism among investors who demand greater transparency and accountability.

“The success of recapitalisation efforts depends on collaboration among regulators, issuers, and investors,” he added.

On the rising unclaimed dividend figure, Mr Achile blamed the inability of investors to comply with regulatory requirements and information gaps.

He noted that the SEC had done everything within its powers to ensure investors receive their dividends at the appropriate time.

In her welcome address, the chairman of CAMCAN, Chinyere Joel-Nwokeoma, said the recent recapitalisation in the banking sector had brought the need for a more robust and inclusive capital market to the fore.

She called for collaboration to bridge the gap between investors and issuers and create a more inclusive and vibrant Nigerian capital market.

(NAN)