SEC Intensifies Measures Against Fraud, Promises Stricter Oversight of Nigeria’s Capital Market
The Securities and Exchange Commission (SEC) has reaffirmed its commitment to protecting investors in Nigeria’s capital market by cracking down on fraudulent activities. SEC Director-General Dr. Emomotimi Agama emphasized that operators engaging in unethical practices will face severe penalties as the Commission seeks to safeguard the interests of investors. He stated that fraudulent activities will no longer be tolerated, signaling a strict approach in enforcing market integrity.
Dr. Agama highlighted the importance of adhering to the Investments and Securities Act (ISA) 2007, which serves as the regulatory framework for Nigeria’s securities market. He emphasized the “fit and proper person’s test” that ensures operators meet specific criteria to maintain their licenses, and mentioned that the SEC has recently revoked licenses and suspended operators as part of its enforcement efforts.
To further combat fraud, the SEC introduced additional enforcement measures, including a “name and shame” journal to publicly identify Capital Market Operators who violate regulations. This initiative aligns with the Commission’s zero-tolerance policy and aims to deter infractions within the market. Dr. Agama stated that this is just the beginning of more robust actions to ensure market transparency.
As part of its strategy for 2025, the SEC is calling on market participants to collaborate in fostering a transparent capital market. Dr. Agama emphasized the importance of compliance, ethics, and information disclosure, encouraging all stakeholders to align with the Commission’s efforts to develop a trustworthy and robust capital market.
source: naira metrics