In a renewed move to strengthen confidence, the Securities and Exchange Commission (SEC) has reaffirmed that only individuals and entities deemed ‘fit and proper’ will be allowed to operate in the nation’s capital market.
The commission’s Director-General, Dr Emomotimi Agama, who made this declaration at the weekend, stressed that market operators engaging in unethical and fraudulent activities would be swiftly sanctioned. Agama underscored that the SEC’s foremost priority is investor protection, stating that transparency and accountability will be strictly enforced.
According to him, the days of regulatory loopholes and weak enforcement are over, as the commission is committed to ensuring that all operators strictly adhere to the provisions of the Investments and Securities Act (ISA) 2007 and other relevant regulations. The SEC boss categorically stated that market operators who fail to meet ethical and legal standards will not be shielded from the consequences of their actions. He emphasised that the commission will actively expose and penalise offenders to deter any forms of misconduct.
According to him, operators must understand that the SEC will not hesitate to act against those who engage in unscrupulous activities. Agama pointed out that the very essence of regulating the capital market is to ensure that only those who meet the ‘fit and proper’ test both in character and compliance are allowed to operate.
He warned that any market participant attempting to manipulate investors or operate outside the regulatory framework will be held accountable. He added that there will be no hiding place for anyone trying to defraud investors, as the SEC will bring such individuals to the public eye and ensure they face the full wrath of the law.
A core aspect of the SEC’s renewed strategy is enhancing corporate disclosures to ensure that investors have access to accurate and timely information for decision-making.
Agama explained that transparency is a fundamental requirement in a well-functioning capital market, and failure to provide adequate disclosures will be considered a violation of SEC regulations. He stressed that disclosures by public companies will be critically monitored because investors need complete and truthful information to make sound investment decisions, adding that any attempt to mislead the public or withhold critical information will not be tolerated.
He also reaffirmed SEC’s commitment to its dual mandate of investor protection and market development, emphasising that without strict compliance and trust in the system, Nigeria’s capital market cannot achieve its full potential.
As part of its crackdown on illicit financial activities, the SEC has intensified efforts to eradicate Ponzi schemes and other fraudulent investment platforms that prey on unsuspecting Nigerians.
Agama revealed that the new Investment and Securities Act (ISA), recently passed by the National Assembly and awaiting presidential assent contains stiffer penalties for operators of Ponzi schemes.
In addition, he stated that the SEC is eagerly awaiting the President’s assent to the new ISA, which introduces harsher punishments for fraudulent investment schemes while assuring that Ponzi scheme operators will no longer find a haven in Nigeria’s financial system.
He further urged investors to be cautious and verify the legitimacy of investment opportunities before committing funds, emphasizing that the SEC is intensifying efforts to shut down illegal operators.
With 2025 marking a turning point in market regulation, Agama reiterated SEC’s zero-tolerance stance on fraud, unregistered operators, and non-compliant firms.
He noted that the commission has already started taking decisive action, including license revocations, operator suspensions, and intensified monitoring of unregistered market participants.
He stressed that what has been seen so far: the revocation of licenses, the suspension of erring operators, and the clampdown on illegal firms is just the beginning, noting that the SEC is entering a new era where compliance and transparency are non-negotiable.
He assured investors that the SEC will do everything within its power to protect them and ensure that Nigeria’s capital market remains a safe and credible environment for investment.
