The Securities and Exchange Commission (SEC) has reaffirmed its commitment to safeguarding Nigeria’s capital market by ensuring that only fit and proper individuals are permitted to operate within the financial ecosystem. This move is aimed at enhancing investor protection and maintaining market integrity.
Speaking in an interview in Abuja over the weekend, SEC Director-General, Dr. Emomotimi Agama, emphasized that market operators engaging in fraudulent or unethical activities would face strict penalties. He warned that the Commission would not tolerate individuals who fail to meet the required ethical and professional standards.
“As a form of self-regulation, market operators must recognize that if they engage in misconduct, the SEC will hold them accountable. The very foundation of market regulation is the ‘fit and proper person’s test,’ which ensures that operators meet all criteria outlined in the Investments and Securities Act (ISA) 2007 and other regulatory frameworks,” Agama stated.
He stressed that transparency and proper disclosures by public companies are crucial in empowering investors to make informed decisions. Any failure to provide accurate information, he warned, would be treated as a violation of SEC regulations and the ISA.
“For us, there is no hiding place for anyone attempting to defraud Nigerian investors. The SEC will take decisive action against such individuals,” he added.
Agama reiterated that investor protection remains a core mandate of the Commission, as enshrined in the ISA 2007. He assured market participants that the SEC’s leadership, under the directives of President Bola Ahmed Tinubu, is dedicated to strengthening regulatory oversight.
“It is important to make it clear that every investor within the Nigerian capital market is under the protection of the SEC. As we approach Q2, 2025, we are enforcing a zero-tolerance policy for any activity that violates the provisions of the Investments and Securities Act,” he declared.
The SEC Director-General also expressed optimism about the anticipated presidential assent to the newly passed Investment and Securities Act, which is undergoing final administrative procedures. He noted that the updated legislation would introduce stricter penalties for Ponzi scheme operators, effectively deterring fraudulent schemes that exploit unsuspecting investors.
Furthermore, Agama underscored the importance of compliance and transparency, urging market participants to collaborate with the SEC in fostering a robust and investor-friendly environment.
“The recent revocation of licenses, suspension of operators, and crackdowns on unregistered entities are only the beginning. In 2025, the SEC will intensify its regulatory actions to eliminate unethical practices. A well-protected investor is a powerful investor, and we will leverage all legal and regulatory tools to prevent fraudulent activities in the market,” he concluded.
With these measures, the SEC is reinforcing its commitment to a transparent, accountable, and investor-centric capital market, ensuring that only credible and ethical players are allowed to operate.
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