SEC fines Stanbic IBTC Capital N50.1m for failing to obtain approval before using digital channels in GTCO Plc’s public share offer

SEC fines Stanbic IBTC Capital N50.145 million for regulatory breaches linked to Guaranty Trust Holding Company Plc’s (GTCO Plc) public offer of shares.

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The sanction, revealed in Stanbic IBTC’s half-year 2025 financial results, was imposed in its role as Lead Issuing House for the GTCO offer.

Earlier reports from another outlet had mistakenly quoted the fine as N50.1 billion. However, Stanbic IBTC’s published statement clarified the figure as N50.1 million.

According to the Securities and Exchange Commission, the company failed to obtain the mandatory “No Objection” or prior approval before deploying digital channels such as internet banking and mobile apps to collect applications during the public offer.

What the rules require

In Nigeria, SEC rules mandate that issuing houses must secure approval before using electronic channels, including mobile apps, internet banking or USSD, for public or rights offers.

The requirement ensures investor protection, proper disclosure, and regulatory oversight equivalent to traditional paper-based offers.

By proceeding without this approval, Stanbic IBTC Capital violated the framework and triggered the fine.

Rise of digital offerings

In recent years, SEC has promoted electronic public offerings, approving platforms like NGX Invest to allow retail investors to subscribe online.

The Commission has also shortened approval timelines for public offers to 14 days, aiming to make capital raising more efficient.

However, regulators continue to stress that compliance remains paramount. Digital processes must not undermine transparency, fairness or investor safeguards.

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This case highlights both the opportunities and risks of Nigeria’s fast-growing digital capital market space, underlining SEC’s determination to balance innovation with accountability.