SEC Fines Stanbic IBTC Capital ₦50.1 Billion Over GTCO Public Offer Process

The Securities and Exchange Commission (SEC) has imposed a ₦50.145 billion fine on Stanbic IBTC Capital Limited for regulatory breaches linked to Guaranty Trust Holding Company Plc’s (GTCO) recent public offer. The sanction, which was disclosed in Stanbic IBTC’s half-year 2025 financial report, has been described as one of the largest penalties issued against a Nigerian issuing house in recent years. According to the disclosure, the SEC faulted Stanbic IBTC for failing to obtain the mandatory “No Objection” or prior approval before deploying its digital distribution channels during the GTCO offer. The firm had used internet banking and mobile app platforms to receive applications from retail investors — an approach the commission insisted required formal clearance before implementation. The GTCO public offer, which attracted wide investor participation and raised substantial funds to strengthen its capital base amid the Central Bank of Nigeria’s recapitalisation directive, was managed by Stanbic IBTC as lead issuing house. Market observers noted that while the digital approach helped increase access and broaden participation, the regulator maintained that compliance with existing rules cannot be compromised for innovation. In the financial report, Stanbic IBTC stated that the fine was specifically imposed “for failing to obtain ‘No Objection’ or approval from the Commission prior to utilising its digital distribution channels (internet banking and mobile apps) to accept applications under its Public Offer of shares.” The magnitude of the sanction has sparked reactions across the financial industry, with analysts warning that it could significantly impact Stanbic IBTC’s earnings while also setting a precedent for stricter regulatory enforcement on capital market operations. They added that the development underscores the need for issuing houses and financial institutions to integrate more robust compliance checks into their processes, particularly as the sector shifts further towards digitalisation. While Stanbic IBTC and GTCO have yet to release detailed public comments beyond the statutory disclosure, the penalty has raised broader questions on how regulators and operators can balance innovation with compliance in Nigeria’s evolving capital market.