By Tony Obiechina Abuja
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 over the weekend, SEC Director-General Dr. Emomotimi Agama emphasized that market operators engaging in unscrupulous activities would not be allowed to go unpunished.
According to him, “It’s 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. 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.
“Disclosures by public companies will be very, very essential making sure that the investor has enough information to make decisions. If information is not provided, then that will be against the rules and regulations of the SEC and indeed, the ISA. So clearly for us, it is getting people to understand that there is no hiding place anymore for anybody that has an intention to defraud Nigerians and to defraud anybody that is investing in this market”.
The SEC Director-General 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.
He emphasized that for any market to thrive, investor protection must remain a top priority. He further asserted that the SEC is committed to ensuring that all market participants understand the Commission’s sacred responsibility, stressing that the SEC’s leadership, entrusted with this duty by President Bola Ahmed 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.
“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. That cover runs across so many lines, particularly, let me mention that Ponzi schemes will no longer be a place where people will be factoring, where people will be interested in, because the penalties in the new ISA you know, towards people that are engaged in Ponzi scheme is stiff enough to deter them.
Beyond that, the SEC Director-General emphasized the importance of compliance and disclosure, describing them as fundamental objectives of securities regulation. He urged both existing and prospective market participants to work closely with the Commission to foster the development of the market.
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“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 added.
