A Review of the Nigerian Energy Industry

Capital Market: Why SEC extended capitalisation deadline to September

14 January 2015, Sweetcrude, Lagos – The Securities and Exchange Commission, SEC, may have acted due to pressure in its recent decision to extended the deadline for minimum requirement for all capital market operators to September 30, 2015.

Floor of the Nigerian Stock Exchange.
Floor of the Nigerian Stock Exchange.

The extension came on the heels of pressure by capital market operators that the deadline be shifted due to the current uncertainties in the country that hampered market growth and development.
As part of the pressure, the commission had been battling with the Chartered Institute of Stockbrokers and the Association of Stockbrokers Houses of Nigeria, ASHON, over the the matter.
SEC recently announced the extension in a statement pasted at its web site.
It stated that the approval was given on December 22 at the commission’s board meeting following a review of the status report on the level of compliance by capital market operators.
“The board expressed satisfaction with the efforts made by all operators, particularly those who have complied with the new requirements.
“The board, however, took cognisance of the effect of the global economic situation and approved an extension of the deadline for compliance with the new minimum capital requirements by nine months, to 30th September 2015, ” the statement stated.
The commission also commended “the commitment of all stakeholders to building a world class capital market that enables Nigeria to realise its aspiration of a prosperous and peaceful nation”.
SEC had on December 19, 2013 issued a new requirement for capital market operators with December 31 as deadline for operators to recapitalise.

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