SEC Cracks Down On Capital Market Violators

The Securities and Exchange Commission (SEC) has reaffirmed its commitment to ensuring that only fit and proper individuals are permitted to operate in Nigeria’s capital market to enhance investor protection.
Speaking in an interview in Abuja at the weekend, the director-general of SEC, Dr. Emomotimi Agama emphasised that market operators engaging in unscrupulous activities would not be allowed to go unpunished.
According to him, “It is important that as a form of self-regulation, they are aware beforehand that if they do what is not right, the SEC will bring them out to the wall to say that they 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 2007 and in other regulations that the SEC has brought out to make sure that this happens.”
The SEC DG stated that investor protection is a fundamental principle for the Commission, as the Investments and Securities Act (ISA) 2007 clearly outlines the objectives of securities regulation in Nigeria, with investor protection and market development as its twin priorities.
Agama emphasised that for any market to thrive, investor protection must remain a top priority. “The SEC is committed to ensuring that all market participants understand the Commission’s sacred responsibility. The SEC’s leadership, entrusted with this duty by President Bola Tinubu, will carry it out effectively.
“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,” he said.
He further noted that, “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.”
He urged both existing and prospective market participants to work closely with the Commission to foster the development of the market.
“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,”he added.