Stanbic IBTC Fined for Unapproved Digital Offering

Stanbic IBTC's fine highlights the importance of regulatory compliance in digital public offerings. The NGX's approved platform, NGX Invest, offers a compliant alternative.

, and Administrator

2025 October 21 . 12:01 PM

1 min read

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Stanbic IBTC Fined for Unapproved Digital Offering

Stanbic IBTC Capital Limited, the lead issuing house for Guaranty Trust Holding Company Plc's recent public offer, has been fined ₦50.145 million ($34,490) by the Securities and Exchange Commission (SEC). The penalty stems from using digital distribution channels without prior regulatory approval.

The fine, imposed in the first half of 2025, marks a decrease from the previous year's penalty of ₦159 million ($109,260.33). The capital raise in question totalled ₦392.49 billion ($269.71 million).

In 2024, a total of $10.7 million in fines was levied against seven banks by the Central Bank of Nigeria (CBN), SEC, and the Nigerian Exchange (NGX). This underscores the importance of adherence to regulatory guidelines, particularly in the use of digital platforms for public offerings.

The NGX launched NGX Invest in 2024, a platform designed to streamline public offerings and rights issues. Its launch followed approval from the SEC, demonstrating the commission's support for digital innovation within regulatory boundaries.

The recent fine serves as a reminder that while digital platforms can enhance efficiency and attract retail investors, they must be used in compliance with regulatory approval. As Nigeria's financial sector continues to embrace technological advancements, maintaining this balance will be crucial.