SEC Vows Stricter Oversight of Capital Market Operators
By Patience Ikpeme
The Securities and Exchange Commission (SEC) has pledged to maintain rigorous standards for those permitted to operate within Nigeria’s capital market, aiming to bolster investor protection.
In an interview conducted over the weekend in Abuja, SEC Director-General, Dr. Emomotimi Agama, revealed that market operators involved in illicit activities will face consequences.
“It’s important that, as a form of self-regulation, they are aware beforehand that if you do what is not right, the SEC will bring you out to the wall to say that you do not have character, because the very ethics of regulating or of registering a securities market operator is in the principle of the fit and proper person’s test.
“A fit and proper person’s test means that you satisfy all of the requirements that have been laid down in the Investments and Securities Act (ISA) 2007 and in other regulations that the SEC has brought out to make sure that this happens,” Dr. Agama stated.
“Disclosures by public companies will be very, very essential making sure that the investor has enough information to make decisions. If information is not provided, then that will be against the rules and regulations of the SEC and indeed, the ISA. So clearly for us, it is getting people to understand that there is no hiding place anymore for anybody that has an intention to defraud Nigerians and to defraud anybody that is investing in this market,” he added.
Dr. Agama stated that investor protection is a core principle for the Commission, as the Investments and Securities Act (ISA) 2007 outlines the objectives of securities regulation in Nigeria, placing investor protection and market development as key priorities.
He noted that market growth depends on prioritizing investor protection. He also said that the SEC aims to ensure all market participants understand the Commission’s responsibilities, and that the SEC’s leadership, as directed by President Bola Ahmed Tinubu, will uphold these duties.
“It is important to state clearly that every investor in Nigeria is under the cover of the SEC as long as the person operates within the Nigerian capital market. And so the year 2025 is a year where we say that there is zero tolerance for any activity that does not fall within the laws of the Investments and Securities Act 2007,” Dr. Agama said.
“We are excited that the National Assembly has passed the new Investment and Securities Act and we are earnestly waiting for the President’s assent as the Bill is going through an administrative process to get to the President, to get it assented to.
“And that alone also signifies our intention to make sure that everyone that is investing in this market, or intends to invest in this market has a cover. That cover runs across so many lines, particularly, let me mention that Ponzi schemes will no longer be a place where people will be factoring, where people will be interested in, because the penalties in the new ISA you know, towards people that are engaged in Ponzi scheme is stiff enough to deter them.”
Dr. Agama spoke of the importance of compliance and disclosure as fundamental objectives of securities regulation. He urged market participants, both current and future, to collaborate with the Commission to promote market development.
“And so what you have been seeing most recently by the revocation of licenses, by the suspension of operators, and, of course, by our follow up to operators that are not registered with the SEC is only a tip of the iceberg as to what we intend to do in the year 2025. We believe strongly that a protected investor is a powerful investor. And we will do everything within the powers of the SEC and the Nigerian law to make sure that we deter unscrupulous persons who are involved in trying to defraud Nigerian investors,” Dr. Agama concluded.
