In an effort to enforce capital adequacy standards and protect investors, the Securities and Exchange Commission (SEC) announced a N1.1 million fine on banks and firms with incomplete capital-raising processes.
This move aligns with the Central Bank of Nigeria (CBN)’s directive for banks to increase their capital base, supporting the government’s goal of achieving a $1 trillion economy by 2030.
The SEC revealed this in a document titled ‘2024 Framework on Banking Sector Recapitalisation Programme,’ published on its website on Friday.
The framework provides comprehensive guidance for banks, holding companies, and market participants to navigate the recapitalisation process successfully.
As a regulatory body, the SEC’s mandate includes assisting the CBN in ensuring a smooth, transparent, and efficient capital-raising process for banks.
The framework details the guidelines and procedures banks must follow to raise capital through rights issuances, private placements, or other approved methods during the 2024-2026 recapitalisation period.
