SEC’s recapitalisation plan deadline, responsible regulatory approach—Uwaleke

The President of the Capital Market Academics of Nigeria (CMAN), Prof. Uche Uwaleke, has described the recapitalisation plan deadline given by the Securities and Exchange Commission (SEC) to operators as a responsible regulatory approach.

The News Agency of Nigeria (NAN) reports that SEC issued a six-week deadline to capital market operators to submit board-approved recapitalisation or license downgrade plans.

Speaking to NAN in Abuja on Friday, Uwaleke said the move was a structured push toward discipline, transparency, and long-term stability.

He said the move was timely and healthy for the market adding that it would send a strong signal to investors, both local and foreign to know the country was serious about aligning with global standards.

“I see this six-week ultimatum not as a sign of haste, but as a signal of seriousness.

“Asking for board-approved implementation plans now, SEC is sending a very clear signal that the regulator is serious about strengthening the Nigerian capital market and is no longer willing to tolerate weakly capitalised operators.

“Tightening the definition of what qualifies as regulatory capital (excluding revaluation reserves, borrowed funds, and unrealised gains), the SEC is ensuring that the capital base is not just a paper figure but genuine, loss-absorbing equity.

“Compelling them to submit their roadmaps early, SEC is forcing firms to confront their realities- whether they have the capacity to raise the required capital or need to strategically downgrade their licenses.

“So, I think six weeks is adequate time for firms that are already well-run and forward-looking,” he said. The president said that a healthy market was built on the back of healthy institutions.

“If we want a capital market that can finance the massive infrastructure deficits in the country, we must have operators with the financial muscle to support that growth,” he said.

Uwaleke called on the Capital Market Operators (CMOs) to swing into actions by engaging their boards and immediately develop clear, realistic recapitalisation plans backed by credible funding strategies.

“Timing will be critical because firms that move early will have more options and better negotiating power, whether they are raising capital, seeking investors, or considering partnerships.

”Also, firms must be honest about their capacity. If meeting the new thresholds is not feasible in the near term, there is no stigma in opting for a licence downgrade.

“What matters is sustainability and compliance, not overstretching the organisation. This should be seen as an opportunity, not just a regulatory obligation,” the CMAN president said.

He urged capital market firms to embrace the reform, noting that CMOs that would recapitalise successfully would be better positioned to expand, innovate, and compete.

Uwaleke said the successful CMOs would also inspire confidence among clients, investors, and counterparties. (NAN)