The need to bridge the understanding gap between investors and issues, as Nigeria’s banking sector navigates regulatory pressures, economic uncertainties, and evolving market demands, has been emphasised.
This is what the Capital Market Correspondents Association of Nigeria aims to achieve at its forthcoming 2024 annual workshop, themed “Banks’ Recapitalisation: Bridging the Gap Between Investors and Issuers in the Nigerian Capital Market.”
The two days workshop scheduled for Dec. 7 and Dec. 8, 2024, in Lagos, Nigeria, is a pivotal gathering aimed at fostering dialogue and proffering solutions to challenges facing the Nigerian capital market and the broader economy.
Explaining the choice of theme for this year’s conference, the association explained that the theme reflects the strategic importance of banks in driving economic development and their significant role within the capital market.
“Recapitalisation has become a pressing issue as Nigerian banks face the need to bolster their capital base to meet regulatory requirements, withstand global financial shocks, and support the economy’s financing needs.”
The Central Bank of Nigeria (CBN) has implemented stringent capital adequacy standards to ensure financial stability.
These reforms require banks to raise significant capital, often through the capital market, making the relationship between investors and issuers more critical than ever. Effective recapitalisation strategies hinge on robust investor confidence.
“A clear understanding of how funds will be deployed, coupled with transparent communication, is essential to attract investment and drive successful capital raises,”the association said.
The association said that the banking sector’s capacity to support other sectors such as manufacturing and agriculture would depend on its financial strength.
“Recapitalisation efforts are integral to empowering banks to provide the long-term financing needed for Nigeria’s economic diversification agenda,”the association said.
The event, which promises to bring together regulators, financial experts, bank executives, capital market operators, and policy stakeholders, has the Director-General of the Securities and Exchange Commission, Dr Emomotimi Agama, as the special guest of honour.
The Chairman of the Nigerian Exchange Group Plc. Alhaji Umaru Kwairanga, will chair the workshop, while the Managing Director/Chief Executive Officer of Cowry Asset Management, Mr Johnson Chukwu, will be the guest speaker.
Other expected guests at the event are the Chief Executive Officer of the Nigerian Exchange (NGX) Group, Mr Temi Popoola, and the Chief Executive Officer of FMDQ Group Plc, Mr Bola Onadele.
Over the years, the Capital Market Correspondents Association of Nigeria has championed initiatives to advance the Nigerian capital market through research, advocacy and dialogue and the 2024 workshop, underscores its commitment to addressing pressing economic issues and fostering collaboration among key stakeholders.
The outcomes of this year’s gathering are expected to provide actionable insights, shape policies and strategies for a stronger financial system and a more vibrant capital market even as the Nigerian economy seeks pathways to stability and growth.
The CBN, had in a circular on March 28, 2024, issued a policy asking Nigerian Banks to increase their minimum paid-in common equity capital. With this new policy, the minimum capital requirement for banks varies based on the type of license they hold, ranging from NGN50 billion to NGN500 billion.
The recapitalisation policy is expected to have a number of effects, including driving activity in Nigeria’s capital market and helping banks support economic growth through investment funding.
Hauwa Abu
Comments are closed.