FMDQ Securities Exchange Limited has stated that the ongoing recapitalisation efforts in Nigeria’s banking sector will significantly enhance banks’ ability to raise funds, thereby contributing to the overall growth of the Nigerian capital market.
This was disclosed by the Divisional Head, Market Architecture, FMDQ Securities Exchange Limited, Mr. Oluwaseun Afolabi, during the 2024 annual workshop of the Capital Market Correspondents Association of Nigeria held in Lagos on December 7, 2024.
The workshop, themed ‘Banks’ Recapitalisation: Bridging the Gap Between Investors and Issuers in the Nigerian Capital Market,’ provided a platform for stakeholders to deliberate on the role of the capital market in strengthening the financial sector.
Speaking at the event, as contained in a statement made available to PUNCH Online by the organiser on Tuesday, Afolabi noted that banking sector recapitalisation is vital for the market’s development and the banking industry’s ability to undertake significant financial programmes.
“When banks capitalise, they can execute larger fund programmes. The Securities and Exchange Commission (SEC) can assess their financial capacities to ensure that the banks can raise N200 billion worth of funds, benefiting the market as a whole,” he said.
Afolabi also highlighted FMDQ’s commitment to adopting technology to simplify market operations, particularly in the area of Commercial Papers.
He explained that FMDQ has implemented a technology-driven system to streamline CP applications and post-listing compliance.
“Today, FMDQ has put in place technology solely for the processing of applications for commercial papers. So, you do not actually need to call someone. Just file an application on the portal, and it will immediately acknowledge that the application has been received,” he said.
He further noted that the seamless system, supported by SEC policies, has fast-tracked processes at the FMDQ Exchange, easing bond listings and enhancing operations across fixed-income instruments.
Addressing the issue of information imbalances in the capital market, Afolabi called on stakeholders to prioritise transparent communication to resolve shareholders’ concerns effectively.
“Stakeholders need to address information imbalances in the capital market. Information sharing would address key shareholders’ complaints,” he emphasised.
He also tasked journalists with playing a more central role in fostering understanding and awareness of capital market operations among the public.
“Journalists have to take a more central role in helping sharpen people’s minds in understanding more about what is happening in the capital market,” he said.
The CAMCAN workshop underscored the pivotal role of collaboration among regulators, stakeholders, and the media in driving innovation and growth in Nigeria’s financial sector.