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SEC, CBN Fine 5 Banks for Market Violations



sec capital market

By Leadership

Five commercial banks operating in Nigeria have been sanctions by the apex financial sector regulating bodies in Nigeria, Central Bank of Nigeria (CBN) and Securities and Exchange Commission (SEC), Leadership newspaper is reporting.

The banks were fined N213.7 million between January and June 2017 over 26 market infractions.

The sanctions vary from commercial banks failure to detect single Biometric Verification Number (BVN) wrongly linked to accounts owned by different individuals, late rendition of Returns to CBN, failure to comply with CBN’s Know-Your–Customers (KYC) requirement, among others.

Of the five commercial banks, two leading banks in the country were severely sanctioned by CBN with a total sum of N100 million for failing to detect single BVN wrongly linked to accounts owned by different individuals.

LEADERSHIP can exclusively report that commercial banks often contravene regulating bodies requirement, knowing that the sanctions imposed are minimal from profit generated.

Findings revealed that Stanbic IBTC Holdings Plc incurred the highest market infractions, a total of 10 while Access Bank Plc has two market infractions.

Between January to June of 2017, Stanbic IBTC Holdings was sanctioned N40.7 million in 10 market infractions by CBN and SEC.

According to information obtained by LEADERSHIP, CBN imposed a penalty of N14 million on Stanbic IBTC Holdings over the bank’s failure to notify the CBN within 30 days of the re-deployment of staff.

Also, “SEC imposed a penalty of N4.51 million for the failure to obtain the approval of SEC to utilize the custodian function of the Bank and to hold securities owned by its clients in a nominee account and accept payment on behalf of its clients from individual issuers of securities in contravention of Rule 61(2a) of SEC Rules and Regulations.

“SEC observed violations of the Section 135 (1) & (2) of the Investment and Securities Act 2007 and imposed a penalty of N100,000.

“CBN imposed a penalty of N75,000 on the bank for the late rendition of its daily FINA returns for  February 01, 2017, February 03, 2017 and  February 13, 2017

“CBN imposed a penalty of N10 million on the Bank for the following breaches: (a) Deployment of an offsite Automated Teller  Machines (ATM) without CBN approval- E-business; (b) The returns for ATM cards sent to CBN on FINA were different from the returns provided for the examiners review at the bank- E-business; (c) Not fully complying with Section 3.8 of the Prudential Guidelines as it relates to the information requirement of the Credit print out-Credit; (d) CBN declined the clearance of a staff member who had been blacklisted, the staff member was still in the employment of the bank as at the time of the examination.

“CBN imposed a penalty of N2 million for contravening the CBN circular which is in respect to the repatriation of exports proceeds.

“CBN imposed a penalty of N4 million for the following breaches: (a) Late reporting of 29 suspicious transactions in a timely manner to the relevant authorities; (b) Untimely reporting of Currency Transaction Reports (CTRs) to the relevant authorities.

“A penalty was imposed by CBN for the untimely rendition of the daily returns (FINA) for the period of 17 – 31 March, 17 – 31 May, 2017 – N50,000.

“CBN imposed a penalty of N4million for consummating a transaction of N16.35 billion without obtaining CBN approval and for contravening CBN circular.”

Fidelity Bank Plc was sanctioned N57.9 million for six market infractions.

The bank was sanctioned N40 million by CBN for multiple Account to a BVN and N10million for untimely & Non rendition of STRS.

Also, CBN imposed a fine of N4 million and N2 million in respect of KYC Non-Compliance  while SEC imposed a fine of N1.2 million for Late Submission of Annual Financial Report.

In addition, Fidelity bank paid N700, 000 for Late Payment and Account default Of Bank A/Acct 2016 financial year.

However, United Bank for Africa Plc was penalized N40 million for failing to detect single BVN wrongly linked to accounts owned by different individuals and N1 million for late rendering of returns on international cards.

The leading pan-African bank, was penalized N2 million for failing to promptly refund excess charges against the accounts of a customer and introduction of unauthorised monthly maintenance charges respectively.

Lately, Guaranty Trust Bank Plc (GTBank) contravention four market infraction of the CBN, totalling N10.05 million in six months of 2017.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via


Nigerian Exchange Attracts N11.841bn in Pre-Guber Poll Trades



Nigerian Exchange 1

By Dipo Olowookere

The Nigerian Exchange (NGX) Limited recorded the sale of 853.745 million shares worth N11.841 billion in 18,543 deals last week compared with the 1.023 billion shares worth N20.221 billion transacted in 18,650 deals a week earlier.

It was observed that Nigerian stock investors trimmed down their investments in local equities ahead of the governorship and state parliamentary elections over the weekend.

Analysis of the trades showed that financial shares led the activity chart in the week, with a turnover of 547.566 million units valued at N7.100 billion in 9,419 deals, contributing 64.14 per cent and 59.97 per cent to the total trading volume and value, respectively.

Equities in the conglomerates industry recorded the sale of 85.145 million shares worth N134.734 million in 717 deals, while stocks in the consumer goods sectors posted a turnover of 52.981 million shares worth N1.584 billion in 2,865 deals.

Business Post reports that Transcorp, Zenith Bank and Sterling Bank were the most active stocks as they sold 226.004 million units worth N2.041 billion in 2,613 deals, accounting for 26.47 per cent and 17.24 per cent of the total trading volume and value, respectively.

In the week, the All-Share Index (ASI) and the market capitalisation depreciated by 1.58 per cent to close at 54,915.39 points and N29.916 trillion apiece.

Similarly, all other indices finished lower except the consumer goods and the Growth indices, which appreciated by 1.11 per cent and 2.90 per cent each, while the ASeM, energy, and the sovereign bond index closed flat.

A total of 19 stocks appreciated in price during the week compared with the 22 stocks in the previous week, while 47 equities depreciated in price, higher than 41 equities in the previous week, with 91 shares closing flat, in contrast to the 94 shares in the previous week.

United Capital was the worst-performing stock last week after it shed 16.72 per cent to finish at N12.20, Linkage Assurance lost 10.87 per cent to close at 41 Kobo, Ecobank depreciated by 10.00 per cent to N10.80, Industrial and Medical Gases fell by 9.32 per cent to N7.30, NPF Microfinance Bank depleted by 8.47 per cent to N1.73.

On the flip side, Prestige Assurance gained 9.76 per cent to trade at 45 Kobo, Nigerian Enamelware grew by 9.57 per cent to N17.75, University Press expanded by 9.34 per cent to N1.99, CWG chalked up 8.79 per cent to close at 99 Kobo, and FTN Cocoa increased by 7.69 per cent to 28 Kobo.

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NASD OTC Exchange Closes 0.36% Higher as Trading Volume Surges



NASD OTC exchange

By Adedapo Adesanya

The NASD Over-the-Counter (OTC) Securities Exchange closed the Friday session on March 17 in the positive territory as three stocks pushed the market up by 0.36 per cent.

The three price gainers were led by Niger Delta Exploration and Production (NDEP) Plc, which added N15.00 to move up to N205.00 per unit from N190.00 per unit.

FrieslandCampina Wamco Nigeria Plc appreciated during the trading day by N1.11 to close at N75.11 per share compared with the previous day’s value of N74.00 per share, while Afriland Properties Plc went up by 2 Kobo to settle at N2.09 per unit versus Thursday’s value of N2.07 per unit.

The trio pushed down the N4.00 lost by 11 Plc yesterday, as the stock price of the energy firm ended at N150.00 per share, in contrast to the preceding day’s N154.00 per share.

At the close of business, the market capitalisation of the NASD OTC exchange rose by N3.48 billion to close the day at N961.12 billion compared with the preceding day’s N957.64 billion.

In the same vein, the NASD Unlisted Securities Index (NSI) appreciated by 2.65 points to wrap the session at 731.44 points compared with 728.79 points of the previous session.

Yesterday, there was a jump in the volume of securities traded by 2,115.1 per cent to 739,755 units from 33,396 million units, the value of transactions increased by 15,683.7 per cent to N30.6 million from N193,846, and the number of deals jumped by 150 per cent to 10 deals from the four deals carried out a day earlier.

Geo-Fluids Plc remained the most traded stock by volume (year-to-date) by trading 425.2 million units valued at N448.5 million, UBN Property Plc was in second place for selling 365.8 units worth N309.5 million, and NRMC Plc was in third place for exchanging 25.0 million units valued at N137.5 million.

On a year-to-date basis by value, VFD Group Plc was on top of the chart after trading 7.3 million units worth N1.7 billion, trailed by Geo-Fluids Plc with 425.2 million units worth N448.5 million, and UBN Property Plc with 365.8 million units valued at N309.5 million.

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Naira Appreciates at Black Market, Peer-to-Peer, I&E



Peer-to-Peer lending

By Adedapo Adesanya

The Naira appreciated against the United States currency in the Peer-to-Peer (P2P), the black market and the Investors and Exporters (I&E) windows of the foreign exchange (FX) window on Friday, March 17.

The Naira gained N2 against the US Dollar during the session as it closed at N754/$1, in contrast to the previous session’s value of N756/$1.

In the parallel market, the domestic currency improved its value by N1 against the American Dollar on Friday to quote at N747/$1 compared with Thursday’s exchange rate of N748/$1.

It was a similar outcome for the Nigerian currency at the I&E segment of the market as it closed stronger against the greenback by 17 Kobo or 0.04 per cent to sell at N461.83/$1 versus the N462.00/$1 it was quoted at the previous session.

This happened as there was a 10.2 per cent or $9.97 million in the value of forex transactions recorded during the session to $87.81 million from the $97.78 million reported a day earlier.

In the interbank segment of the market, the Naira witnessed no movement against the Pound Sterling and the Euro, closing at N556.45/£1 and N487.99/€1, respectively.

In the cryptocurrency market, Bitcoin (BTC) moved to a fresh nine-month high on Friday at above the $27,000 level. The surge followed the US Federal Reserve’s decision to backstop embattled banks to a record of $152.9 billion.

BTC recorded a 6.0 per cent rise to trade at $27,546.42, Ethereum (ETH) improved by 5.8 per cent to sell at $1,813.37, Solana (SOL) chalked up 11.9 per cent to quote at $22.48, Litecoin (LTC) went up by 6.4 per cent to trade at $86.62, and  Cardano (ADA) rose by 6.2 per cent to trade at $0.3523.

Further, Dogecoin (DOGE) made a 4.8 per cent appreciation to quote at $0.0776, Ripple (XRP) recorded a 3.9 per cent gain to settle at $0.3843, and Binance Coin (BNB) added 3.8 per cent to sell for $344.22, while the US Dollar Tether (USDT) and Binance USD (BUSD) traded at $1.00 each.

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