The Securities and Exchange Commission (SEC) has reaffirmed the integrity of the recently concluded First Bank Holding Company Plc (First Holdco) transaction, dispelling widespread speculations about regulatory breaches. The commission stated categorically that the transaction was conducted in full compliance with existing laws and market regulations, reinforcing investor confidence in Nigeria’s capital market.
In an official statement issued on Thursday by the SEC’s Head of External Relations, Efe Ebelo, the regulator emphasized that the commission had granted a “no objection” to the transaction after rigorous review and due process.
According to Ebelo, the transaction underwent proper scrutiny before receiving regulatory approval.
“In line with extant laws and SEC regulations, the commission granted a ‘no objection’ to the transaction after due consideration and in full compliance with applicable requirements. There was no subsequent request for additional information from the Central Bank of Nigeria following the conclusion of the transaction,” she clarified.
The SEC further debunked reports suggesting that a regulatory query had been issued to the parties involved. Ebelo explained that the communication between the SEC and market operators was a standard automated compliance process designed to ensure transparency and proper documentation of significant market activities, not an indication of irregularities.
The commission reiterated its commitment to maintaining a transparent and efficient capital market.
“The SEC remains firmly committed to its mandate of regulating a fair, orderly, and efficient market; protecting investors; and fostering capital formation in Nigeria,” Ebelo added.
Market watchers believe the SEC’s statement is crucial in calming investor concerns following the high-profile divestments in First Holdco, which had sparked speculation about regulatory oversight.
First Holdco shares surged to a 52-week high of N36.45 per unit on the Nigerian Exchange Limited (NGX) last week. The rally was triggered by major off-market divestments, including the high-profile exit of billionaire businessman Oba Otudeko and former FirstBank chairman Tunde Hassan-Odukale.
Otudeko, previously one of the largest shareholders in Nigeria’s oldest banking institution, reportedly sold his stake through a N323.33 billion block transaction on the NGX, marking a significant shift in ownership structure within the bank.
Analysts believe the SEC’s swift clarification is likely to strengthen investor confidence, particularly at a time when Nigeria’s capital market is seeking to attract more foreign and institutional investors.
Financial analyst Kunle Adedayo noted, “The SEC’s prompt response is a welcome development. It reassures investors that major transactions undergo strict regulatory scrutiny, which is vital for sustaining market stability.”
Meanwhile, some stakeholders have called on the SEC to continue enhancing its monitoring mechanisms to prevent misinformation that could trigger panic in the market.
With the SEC’s clean bill of health on the First Holdco transaction, analysts expect investor interest in the financial services sector to remain strong, especially as FirstBank continues to expand its retail and digital banking operations across Africa.