Economy

SEC unveils frame work for banks’ recapitalisation

Published

6 months ago

June 22, 2024

The Securities and Exchange Commission (SEC) has released a framework designed to support the Central Bank of Nigeria’s (CBN) bank recapitalization programme.

This framework, published on the SEC website yesterday, aims to ensure a smooth, transparent, and efficient capital raising process for banks and holding companies participating in the programme.

The framework serves as a roadmap for banks and market participants navigating the recapitalization programme. “This framework would help to ensure that the capital raising process is conducted efficiently, transparently, and in a manner that protects the interests of all stakeholders,” stated the SEC.

It outlines the specific guidelines and procedures that banks must adhere to when raising capital through various methods, including rights offerings, private placements, and other approved options during the 2024-2026 programme period.

The SEC acknowledged the rationale behind the CBN’s directive, highlighting the need to strengthen banks’ asset base and support economic growth in line with the government’s ambitious target of achieving a $1 trillion economy by 2030. The framework in turn recognizes the capital market’s crucial role in facilitating this program by enabling banks to access the necessary funds and explore various business combinations.

“As the regulatory institution mandated to regulate and develop the Nigerian capital market,” the SEC noted, “it has the responsibility to ensure a smooth, transparent, and efficient capital raise process by the banks.” The framework establishes clear guidelines for banks to follow, promoting transparency and protecting the interests of all involved parties.

The SEC has outlined a streamlined process for application submission. Applications and supporting documents must be filed electronically via the dedicated email address, [email protected]. The Commission will review the submitted materials and electronically communicate any identified deficiencies to the applicants.

Applicants are expected to address these deficiencies promptly to avoid delays in the approval process. Timely completion of the application process is crucial for banks seeking to raise capital within the designated timeframe.

The framework also outlines the consequences for incomplete applications. “Where an application is returned for being incomplete – a penalty of N1,000,000 and re-filing fee of N100,000 shall apply,” states the SEC. These penalties are designed to incentivize banks to submit complete and accurate information from the outset.

The SEC through the guidelines encourages banks and stakeholders to reach out for any clarifications or inquiries. A dedicated email address, [email protected], allows for open communication and ensures that banks can navigate the process efficiently.

The Capital Market regulator further clarified that the new framework builds upon existing rules and regulations. It should be “read in conjunction with the relevant provisions of the Investment and Securities Act, 2007 and the Commission’s Rules and Regulations.”

Furthermore, the SEC reserves the right to request additional information as deemed necessary. However, the framework also streamlines the process by allowing previously submitted documents (e.g., Memoranda and Articles of Association) to be referenced in subsequent transactions, provided no changes have been made.

The SEC framework is a direct response to the CBN’s recent directive for banks to bolster their capital base. The CBN has established new minimum capital requirements, with international banks needing to raise their capital base to N500 billion, national banks to N200 billion, and regional banks to N50 billion.

The framework provides a clear roadmap for banks and market participants navigating the CBN’s recapitalization program. With a focus on transparency, efficiency, and adherence to regulations, this framework aims to ensure the program’s success in strengthening Nigeria’s banking sector and supporting the nation’s economic growth aspirations.

Economy

SEE Black Market Dollar (USD) To Naira (NGN) Rate As Of December 18, 2024

Published

9 hours ago

December 18, 2024

Naijablitznews

Black Market Dollar (USD) To Naira (NGN) Rate As Of December 18, 2024Wondering about the current Dollar to Naira exchange rate at the black market, also known as the parallel market? Here’s the latest update for December 17, 2024, along with the rates for buying and selling US dollars in the Nigerian black market.

How Much is a Dollar to Naira Today in the Black Market?

As of Tuesday, December 17, 2024, the exchange rate at the Lagos parallel market (Black Market) stands as follows:

•Buying Rate: N1665

•Selling Rate: N1675

These rates reflect what buyers and sellers are willing to trade US dollars for in the black market. However, please keep in mind that these rates are subject to change and can fluctuate based on supply and demand.

Dollar to Naira Black Market Rate – December 17, 2024

•Buying Rate: N1665

•Selling Rate: N1675

Dollar to Naira CBN Rate Today

The official Central Bank of Nigeria (CBN) rates differ from those in the black market. For today, the CBN exchange rate for the Dollar to Naira is:

•Highest Rate: N1555

•Lowest Rate: N1520

It’s important to note that the Central Bank of Nigeria (CBN) does not endorse the black market exchange rate. The CBN encourages individuals to conduct their foreign exchange transactions through approved channels, such as commercial banks and licensed Bureau De Change (BDC) operators.

Please be aware that the exchange rates for buying or selling foreign currency may differ from the values listed here, as they can vary throughout the day. Always confirm rates with your local dealers before making any transactions.

Economy

SEE Today’s Black Market Dollar (USD) To Naira (NGN) Exchange Rate – 16th December 2024

Published

2 days ago

December 16, 2024

Naijablitznews

The exchange rate for the Dollar to Naira in the black market (parallel market), also known as the “Aboki FX” rate, is as follows for 15th December 2024:

•Buying Rate: ₦1,660

•Selling Rate: ₦1,670

This rate reflects the price at which traders in the Lagos parallel market (black market) are buying and selling dollars, as reported by sources at Bureau De Change (BDC).

It is important to note that the Central Bank of Nigeria (CBN) does not officially recognize the parallel market and encourages individuals to conduct foreign exchange transactions through authorized banks.

Central Bank of Nigeria (CBN) Rate for Dollar to Naira

•Highest Rate: ₦1,549

•Lowest Rate: ₦1,520

The rates you receive may vary slightly from those mentioned here, as forex prices fluctuate based on market conditions.

CBN Takes Tough Action on New Naira Notes

In another development, the Central Bank of Nigeria (CBN) has imposed a ₦150 million fine on commercial banks found guilty of supplying newly minted naira notes to currency hawkers. This move is part of the CBN’s ongoing efforts to prevent the illegal trade of naira notes and ensure proper circulation to the public.

The penalty comes as the CBN reaffirmed the continued validity of the old ₦1,000, ₦500, and ₦200 notes following a Supreme Court ruling on November 29, 2023. The CBN also warned against the hoarding of cash, which disrupts the smooth flow of money in the economy.

Economy

NNPCL Crashes Petrol Price, See New Petrol Price

Published

4 days ago

December 15, 2024

Kayode Sanni-Arewa

The Nigerian National Petroleum Company Limited, NNPCL, has reduced the price of Premium Motor Spirit (petrol) across its retail outlets in the Federal Capital Territory, Abuja.

According to a reporter from Dailypost who visited NNPCL retail outlets observed that the petrol pump price was reduced from N1,060 to N1,040 per litre. This represents a reduction of N20.

“The price was reduced to N1,040 per litre from N1,060 on Saturday morning,” a filling station attendant at the NNPCL retail outlet along Kubwa expressway said.

A motorist, Ezekiel Njoku, confirmed the development.

“The reduction of N20 is significant. We need further fuel price reductions in the coming days,” he said.

With the price cut, Nigerians will now buy petrol at N1,040 per litre at NNPCL filling stations, while prices remain within N1,115 per litre at other filling stations, depending on the location.

This development comes barely three weeks after the state-owned Port Harcourt refinery began producing petroleum products in November 2024.

The former Managing Director of NNPCL Retail, Prof. Billy Okoye, had earlier speculated that a fuel price reduction was imminent with the commencement of production at the Port Harcourt refinery.

Oil marketers, the Independent Petroleum Marketers Association of Nigeria, IPMAN, and the Petroleum Products Retail Outlets Owners Association, PETROAN, had also hinted that the deregulation of the sector—coupled with the operations of Dangote and Port Harcourt refineries—would lead to a drop in petrol prices.