The Securities and Exchange Commission (SEC) has issued a stern warning to fraudulent operators within Nigeria’s capital market, promising an intensified crackdown in 2025.
SEC Director-General, Emomotimi Agama, emphasized that the Commission has zero tolerance for fraudulent activities and will take severe regulatory actions against non-compliant market participants.
In an exclusive interview over the weekend, Agama made it clear that SEC’s recent actions—such as revoking licenses, suspending operators, and pursuing non-registered entities—are just the beginning of what is to come.
“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,” Agama said.
Agama underlined that the SEC is committed to protecting investors in the Nigerian capital market and will take every measure within its regulatory power to deter fraudulent practices.
This includes rigorous enforcement of the Investments and Securities Act (ISA) 2007, which outlines the ethical and regulatory requirements for all operators in the market.
The SEC’s focus on protecting investors is part of its broader strategy to create a safer, more transparent market where trust and compliance are prioritized.
Agama stated, “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.”
As part of the SEC’s continued effort to improve the integrity of Nigeria’s financial markets, the Commission plans to step up its oversight activities.
This includes a closer examination of market operators, stricter licensing processes, and the pursuit of individuals who violate the ISA 2007.
The SEC is also focusing on enhancing the regulatory framework to better prevent fraudulent activities, particularly in the wake of rising concerns about Ponzi schemes and illegal investment programs that threaten the trust of retail investors.
Agama emphasized that the Commission will not hesitate to revoke licenses or suspend operators found to be engaging in illicit activities.
By holding individuals accountable and reinforcing market standards, the SEC is working to ensure that only those who meet the required ethical and legal standards will be allowed to operate in Nigeria’s capital market.
The Commission’s resolve is aimed at creating a more robust financial system where investors can feel secure and confident in their investments.
The SEC’s tough stance comes at a crucial time for Nigeria’s capital market, as it seeks to regain the trust of local and international investors.
The Commission is determined to foster an environment where transparency and integrity are paramount, and fraudulent activities will not be tolerated.
With these strong regulatory measures in place, SEC is sending a clear message that it will continue to tighten its grip on non-compliant market operators throughout 2025 and beyond.
Investors can expect stronger protections and a more secure market landscape as the Commission works to root out fraud and safeguard Nigeria’s capital market from harmful practices.
