The Securities and Exchange Commission has reaffirmed its commitment to ensuring that only fit and proper individuals operate in Nigeria’s capital market, vowing to clamp down on fraudulent activities and protect investors.
A statement provided to our SEC correspondent on Sunday quoted the Director General of SEC, Emomotimi Agama, as saying that individuals involved in improper conduct within the marketplace will face consequences and won’t escape punishment.
He highlighted that the main focus of the Commission continues to be protecting investors, underlining that starting in 2025, there will be absolutely no leniency for those who do not comply.
It is crucial to emphasize that all investors in Nigeria operate under the protection of the SEC when they engage with the Nigerian capital market. Therefore, 2025 marks a year wherein we declare zero tolerance for activities outside the bounds set forth by the Investments and Securities Act of 2007.
The head of the SEC emphasized that adequate disclosure from publicly traded firms will be a major priority, since openness is crucial for maintaining investors’ trust.
As per his statement, businesses that do not furnish sufficient data to stakeholders will be subject to fines, since concealing important facts goes against SEC rules.
Public disclosures by corporations will be crucial in guaranteeing that investors receive sufficient information to make well-informed choices,” he said. “Failure to provide this information as mandated will be regarded as a breach of both the SEC regulations and the ISA.
It should be evident that there is nowhere left for people or organizations trying to deceive investors in Nigeria’s stock market to hide.
The Investment and Securities Act, which has been approved by the National Assembly, was also mentioned by Agama as an enhancement to the SEC’s regulatory structure. He remains hopeful that upon being enacted by President Bola Ahmed Tinubu, this legislation will grant additional authority for combating deceptive practices and improving overall market fairness.
“We are thrilled that the National Assembly has approved the new Investment and Securities Act, and we eagerly await the President’s endorsement. The legislation is presently going through various administrative procedures prior to being presented to the President for ratification,” he stated.
He noted that one of the provisions of the new Act is stricter penalties for fraudulent schemes, including Ponzi schemes that have exploited unsuspecting investors. The SEC chief warned that perpetrators of such schemes will face severe consequences under the new law.
Ponzi schemes will no longer serve as a means for scammers to dupe investors,” he asserted confidently. “The sanctions outlined in the new ISA are severe enough to discourage these practices, and we are dedicated to enforcing them thoroughly.
The statement indicates that the SEC has initiated significant actions to rectify the marketplace. According to Agama, the recent license cancellations, suspensions of market participants, and efforts against non-registered organizations mark only the start of an extensive enforcement approach.
What you’ve witnessed until now—the cancellation and suspension of licenses along with punitive measures taken against non-registered operators—only scratches the surface,” he said. “In 2025, we plan to escalate our initiatives aimed at safeguarding investors. An empowered investor stems from protection, and we’ll utilize all available regulatory tools to prevent dishonest people from exploiting Nigerian investors.
He encouraged current as well as future marketplace operators to adhere to SEC regulations, stressing that adherence and openness are crucial for establishing a robust and enduring capital market.
Agama informed investors that the SEC is dedicated to maintaining a thoroughly regulated marketplace, fully supported by President Bola Tinubu’s administration. He emphasized that all investors in Nigeria’s capital market receive SEC protection as long as they adhere to legal guidelines.
PUNCH disclosed that the Securities and Exchange Commission intends to publicly expose capital market operators who have been convicted of breaching market rules and regulations.
Provided by SyndiGate Media Inc.
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