Nigerian regulator lifts capital market ban on Ecobank

(Reuters) – Nigeria’s stock market regulator said on Thursday it had lifted a suspension on Ecobank from capital market activities, imposed last month because of irregularities surrounding a margin loan.

“The suspension on Ecobank has been lifted … they can now participate in capital market activities,” Securities and Exchange Commission spokesman, Yakubu Olaleye, said.

Last month, the Securities and Exchange Commission said an Ecobank client Arian Capital Management had used capital from another company as collateral for a margin loan from Ecobank. After suspending Arian, the regulator also suspended Ecobank pending an explanation.

Ecobank said at the time the ban would not affect it because its Nigeria arm no longer deals in secondary markets. The sum of the loan was just US$69,400, the bank said.