Abuja: 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.
According to News Agency of Nigeria, 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 emphasized that the move was timely and healthy for the market, adding that it would send a strong signal to investors, both local and foreign, indicating that the country was serious about aligning with global standards.
Prof. Uwaleke stated, “I see this six-week ultimatum not as a sign of haste, but as a signal of seriousness.” He elaborated that by asking for board-approved implementation plans now, SEC is sending a clear message that the regulator is committed to strengthening the Nigerian capital market and will no longer tolerate weakly capitalised operators. By tightening the definition of what qualifies as regulatory capital, the SEC ensures that the capital base is genuine, loss-absorbing equity rather than mere paper figures.
Furthermore, Uwaleke highlighted that compelling firms to submit their roadmaps early forces them to confront their realities-whether they have the capacity to raise the required capital or need to strategically downgrade their licenses. He remarked that six weeks is adequate time for firms that are already well-run and forward-looking.
He emphasized that a healthy market is built on the foundation 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,” Uwaleke added.
Uwaleke called on Capital Market Operators (CMOs) to engage their boards promptly and develop clear, realistic recapitalisation plans backed by credible funding strategies. He noted that timing would be critical, as firms that move early would have more options and better negotiating power, whether raising capital, seeking investors, or considering partnerships.
He advised firms to be honest about their capacity, stating that 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,” he said.
Uwaleke urged capital market firms to embrace the reform, noting that CMOs that recapitalise successfully would be better positioned to expand, innovate, and compete. He concluded that successful CMOs would also inspire confidence among clients, investors, and counterparties.