The Securities and Exchange Commission has issued its Framework on Banking Sector Capitalisation Programme, 2024. The framework, released on the commission’s website on Friday, follows the Central Bank of Nigeria’s March announcement of new minimum capital requirements for all banks in Nigeria to achieve a $1 trillion economy.
The SEC’s framework is a comprehensive guide for Banks/Holding Companies and market participants to navigate the recapitalisation program effectively. It outlines the guidelines and procedures banks must follow to raise capital through rights issuance, private placements, or other approved methods during the 2024-2026 recapitalisation period.
The SEC also stated that it would charge banks N1,000,000 as a penalty for an application returned for being incomplete, along with a re-filing fee of N100,000. This fee is payable by the Issuing House without recourse to the Issuer or the Issue proceeds.
