The Securities and Exchange Commission (SEC) has reaffirmed its dedication to ensuring that only reputable individuals operate within Nigeria’s capital market, vowing to suppress fraudulent activities and safeguard investor interests.
In a statement provided to our SEC director correspondent this Sunday, the Director General of SEC, Emomotimi Agama, asserted that market operators engaging in unethical conduct would not be permitted to operate without facing consequences.
He emphasized that the Commission’s paramount objective remains investor protection, stressing that 2025 will mark a period of zero tolerance for regulatory non-compliance.
“It is crucial to state unequivocally that every investor in Nigeria falls under the purview of the SEC, provided they conduct their activities within the Nigerian capital market. Consequently, the year 2025 will be characterized by a stance of zero tolerance towards any activity that deviates from the provisions of the Investments and Securities Act 2007.”
The SEC chief underscored that accurate disclosure by publicly traded companies would be a primary focus, as transparency is indispensable for investor confidence.
According to him, entities that fail to furnish adequate information to investors will be subjected to penalties, as the concealment of essential details constitutes a violation of SEC regulations.
“Disclosures by publicly traded companies will be paramount in ensuring that investors are granted access to comprehensive information for informed decision-making,” he stated. “Failure to provide information as stipulated will be deemed a violation of the SEC’s rules and the ISA.
We aim to convey unequivocally that there is no sanctuary for individuals or entities seeking to defraud investors within the Nigerian capital market.”
Agama further disclosed that the recently approved Investment and Securities Act by the National Assembly will strengthen the SEC’s regulatory framework. He expressed optimism that upon the Act’s enactment by President Bola Ahmed Tinubu, it will confer enhanced powers to combat fraudulent activities and reinforce market integrity.
“We are gratified that the National Assembly has approved the new Investment and Securities Act, and we eagerly await the President’s assent. The bill is presently undergoing administrative procedures prior to reaching the president for approval,” he said.
He noted that one of the provisions of the new Act is more stringent penalties for fraudulent schemes, including Ponzi schemes that have exploited unsuspecting investors. The SEC chief cautioned that perpetrators of such schemes will face severe repercussions under the new law.
“Ponzi schemes will no longer serve as a conduit for fraudsters to deceive investors,” he assured. “The penalties outlined in the new ISA are sufficiently rigorous to deter such activities, and we are committed to their full implementation.”
According to the statement, the SEC has already commenced decisive measures to cleanse the market. Agama pointed out that the recent revocation of licenses, suspension of market operators, and crackdowns on unregistered entities represent merely the initial phase of a broader enforcement strategy.
“The actions you have witnessed thus far—license revocations, suspensions, and enforcement actions against unregistered operators—constitute only the preliminary stages of our efforts,” he stated. “In 2025, we will intensify our endeavors to protect investors. A safeguarded investor is a potent investor, and we will exhaust all regulatory avenues to deter unscrupulous individuals from defrauding Nigerian investors.”
He urged both current and prospective market operators to adhere to SEC regulations, emphasizing that adherence and transparency are fundamental to establishing a robust and sustainable capital market.
Agama assured investors that the SEC is committed to ensuring a well-regulated market, with full support from the administration of President Bola Tinubu. He reiterated that every investor in the Nigerian capital market is under the protection of the SEC, provided they operate within legal boundaries.
It was reported that the Securities and Exchange Commission has announced plans to publicly denounce capital market operators found guilty of violating market laws and regulations.
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