A tripartite committee consisting of the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the Nigeria Deposit Insurance Corporation (NDIC) has been formed to verify the new capital being raised by banks as part of the ongoing recapitalization in the banking sector.
The committee will review the funds raised by Fidelity Bank Plc, Guaranty Trust Holding Company (GTCO) Plc, and Access Holdings Plc, which have already concluded their offer periods, to ensure compliance with regulatory requirements.
The committee’s verification process will involve scrutinizing the capital raised against several key parameters, including know-your-customer (KYC) requirements, anti-money laundering protocols, and anti-terrorism rules. The goal is to ensure that the funds do not come from illicit sources or criminal activities. The review will also include a fit-and-proper assessment of major investors and a check for compliance with existing rules, including the fairness and inclusivity of the allotments.
Investment banking sources indicate that the recapitalization process is off to a strong start, with the three banks potentially raising more than N1 trillion in new capital. Fidelity Bank, GTCO, and Access Holdings have raised significant amounts through rights issues and public offers, reflecting strong investor interest in banking shares. The funds raised will undergo a thorough verification process before being added to the banks’ capital bases.
The SEC has taken steps to ensure a smooth and efficient recapitalization process. The commission introduced a framework for the banking sector’s recapitalization in June 2024, outlining guidelines and procedures for banks to follow. Key initiatives, such as the implementation of an e-offering platform, aim to enhance transparency, efficiency, and investor confidence by streamlining the capital-raising process.
