By Chukwuma Umeorah
The Securities and Exchange Commission (SEC) has reiterated its zero tolerance for fraudulent activities in Nigeria’s capital market, warning that unscrupulous operators will face severe regulatory actions.
SEC Director-General, Emomotimi Agama, made this known in an interview over the weekend, emphasizing that the Commission will intensify its crackdown on non-compliant operators through license revocations, suspensions, and stricter enforcement measures.
“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,” Agama stated.
He stressed that only individuals who meet the ethical and regulatory requirements outlined in the Investments and Securities Act (ISA) 2007 would be allowed to operate in the market. He explained that the SEC applies a “fit and proper person’s test” to ensure that market operators adhere to industry standards.
“It is 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,” he said.
Agama also emphasized the importance of investor protection, noting that transparency and disclosure were critical to a well-functioning market. He warned that public companies must provide adequate information to investors, as failure to do so would violate SEC regulations.
This is even as he further disclosed that the Commission was eagerly awaiting President Bola Tinubu’s assent to the newly passed Investments and Securities Act, which will introduce stricter penalties for fraudulent activities, particularly Ponzi schemes.
“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,” stated Agama.