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  • Strengthening the bedrock: Why increased capital requirements are essential for a resilient economy

    Strengthening the bedrock: Why increased capital requirements are essential for a resilient economy

    By Bode Olusola

    The global financial landscape is undergoing a profound transformation.

    From the rapid integration of Artificial Intelligence (AI) in trading to the increasing complexity of cross-border financial flows, the risks facing our markets have evolved.

    As the apex regulator of the capital market, the primary mandate of the Securities and Exchange Commission (SEC), Nigeria, is to ensure stability, protect investors, and facilitate capital formation.

    To achieve these goals in an era of heightened volatility, the Commission has recently revised the Minimum Capital Requirements (MCR) for all Capital Market Operators (CMOs).

    This decision is not merely a technical adjustment; it is a strategic imperative designed to build a formidable, resilient market capable of anchoring a strong and sustainable economy.

    1. Enhancing risk absorption and financial soundness

    At its core, capital serves as a ‘safety buffer’ in times of economic distress or sudden market corrections. Well-capitalised firms can absorb losses without collapsing or defaulting on their obligations to clients.

    The previous capital thresholds, many of which had remained unchanged for a decade, were no longer commensurate with the current volume of transactions and the sophisticated risk profiles of modern market activities.

    By raising requirements—for instance, increasing the capital for Issuing Houses (Underwriting) from N200 million to N7 billion—we are ensuring that firms have the “deep pockets” necessary to survive systemic shocks.

    2. Safeguarding investor protection and public trust

    Public confidence is the “oxygen” of any capital market.

    When a market operator fails due to insolvency, it doesn’t just affect one firm; it erodes the trust of thousands of retail and institutional investors.

    Higher capital requirements act as a natural filter, ensuring that only serious, well-resourced entities operate in the market.

    This protects investors in two ways:

    * Operational Resilience: Firms with more capital can invest in robust technology and cybersecurity, reducing the risk of fraud and system failures.

    * Accountability: Shareholders with significant capital at stake are more incentivized to demand rigorous internal controls and ethical governance, aligning the interests of the operator with those of the investing public.

    3. Scaling for global competitiveness

    A fragmented market with too many “fringe players” lacks the depth to attract large-scale international investments.

    The increase in MCR is expected to trigger a wave of voluntary mergers and acquisitions.

    Consolidation will create larger, more formidable entities with the capacity to:

    * Underwrite massive infrastructure projects and sovereign bonds.

    * Deploy cutting-edge fintech solutions to reach the unbanked.

    * Compete effectively with global investment banks in the regional and international space.

    4. Aligning with macroeconomic aspirations

    A strong economy requires a capital market that can efficiently mobilise long-term savings for productive investments. Whether it is financing the “Green Transition” or supporting the growth of Small and Medium Enterprises (SMEs), the market needs intermediaries who are financially sound.

    The new requirements ensure that CMOs are not just “surviving” but are active catalysts for economic growth. By ensuring that our intermediaries are strong, we ensure that the transmission mechanism of capital from savers to borrowers remains uninterrupted, even during global downturns.

    The path forward: A call for compliance

    The Commission has set a deadline of June 30, 2027, for all affected entities to meet these new standards.

    We understand that this transition requires significant effort, but the long-term benefits—a stable, liquid, and world-class market—far outweigh the short-term pains of recapitalisation.

    We remain committed to providing a supportive regulatory environment throughout this transition.

    Together, we are building a market that is not only larger but also safer, more efficient, and ready to power our nation’s economic future.

    *Olusola, a financial analyst and investment adviser, writes from Lagos.

  • SEC raises minimum capital requirements for market operators

    SEC raises minimum capital requirements for market operators

    The Securities and Exchange Commission (SEC) of Nigeria has unveiled a revised minimum capital requirements for all categories of regulated capital market entities.

    This marks one of the most significant regulatory shifts in the country’s financial sector in over a decade. 

    The move, contained in a circular issued by the Commission on January 15, 2026, is hinged on the need to strengthen the financial capacity of market operators and improve the resilience of the Nigerian capital market. 

    In an official statement accompanying the circular, the SEC said the revised framework aligns capital adequacy with the evolving risk profiles of market activities and enhances investor protection. 

    The Commission noted that the adjustments are designed to promote market stability, mitigate systemic risks and support the orderly development of emerging market segments such as digital assets and commodities markets. 

    Under the new regime, capital thresholds for core regulated functions have been substantially increased. 

    Brokerage firms that execute client trades are now required to maintain a minimum capital base of ₦600 million, up from ₦200 million under the 2015 regime. 

    Dealers focused on proprietary trading will need to hold at least ₦1 billion. Firms that combine brokerage, trading and advisory services, known as broker-dealers, must now maintain a capital base of ₦2 billion—nearly seven times the previous requirement. 

    The revisions also extend to fund and portfolio management businesses. Top-tier portfolio managers handling assets above ₦20 billion must now secure at least ₦5 billion in capital, a dramatic rise from ₦150 million. 

    Limited-scope managers are expected to meet a ₦2 billion threshold. Managers of private equity and venture capital funds will face new requirements of ₦500 million and ₦200 million respectively. 

    Issuing houses, registrars, rating agencies and trustees are among other market operators affected by the fresh capital rules. Issuing houses that provide full underwriting services now need a capital base of ₦7 billion, while those without underwriting must maintain at least ₦2 billion. Registrars must have ₦2.5 billion, rating agencies ₦500 million and trustees ₦2 billion. Meanwhile, underwriters are required to have ₦5 billion. 

    Market infrastructure institutions have also seen their requirements elevated. A central counterparty, which acts as an intermediary in settling trades, must now hold ₦10 billion in capital. Clearing and settlement companies are required to maintain ₦5 billion, while composite securities exchanges—those that trade and list all types of securities—must hold ₦10 billion. Non-composite exchanges, focusing on a single type of asset, have a minimum capital requirement of ₦5 billion. 

    The revised framework introduces significant expectations for financial technology (FinTech) operators and virtual asset service providers, which are emerging players in the market. 

    Robo-advisers must now maintain a capital base of ₦100 million, up from ₦10 million. Digital asset exchanges and custodians are each required to have ₦2 billion, while other digital asset platforms face thresholds ranging from ₦500 million to ₦1 billion. New categories such as ancillary virtual asset service providers and digital asset intermediaries have also been included under the revised structure. 

    Commodity market intermediaries and capital market consultants are not exempt from the overhaul. Warehousing operators must hold ₦500 million in capital, and collateral management firms operating at national or international levels require ₦500 million. Capital market consultants now face increased capital barriers, with corporate entities expected to meet ₦25 million, individual consultants ₦2 million and partnership consultants ₦10 million. 

    The SEC has set a compliance deadline of June 30, 2027, for all affected entities to meet the new minimum capital thresholds. 

    The Commission warned that failure to comply within the stipulated timeline could attract regulatory sanctions, including suspension or withdrawal of registration. Entities seeking transitional arrangements may apply for consideration on a case-by-case basis, and detailed guidance on compliance processes will be issued separately. 

    In the statement from the SEC, the Commission insisted that the revised capital regime is a necessary step to foster a more robust, competitive and globally aligned capital market in Nigeria. 

    By ensuring that market participants have the financial strength to withstand shocks and deliver on their obligations, the regulator said the changes would contribute to the long-term growth and sustainability of the financial market ecosystem. 

    The overhaul of capital requirements reflects broader efforts to modernise Nigeria’s regulatory environment under the Investments and Securities Act, 2025, and positions the capital market to meet the demands of increasingly complex financial activities. 

  • SEC targets long-term capital to drive infrastructure, key sectors

    SEC targets long-term capital to drive infrastructure, key sectors

    The Securities and Exchange Commission (SEC) has said it is prioritising the mobilisation of long-term capital to bridge Nigeria’s infrastructure and sectoral funding gaps.

    In addition the SEC plans to streamline regulatory frameworks while supporting the issuance of innovative financial instruments that will channel investment into productive areas of the economy.

    This was contained in a New Year message delivered in Abuja by the Director General of the Commission, Dr. Emomotimi Agama, who said the capital market will play a more strategic role in national development going forward.

    Agama stated that in 2026, the Commission will facilitate the issuance of infrastructure bonds, green bonds, municipal bonds and infrastructure-focused funds as part of efforts to deepen structured financing for critical national assets.

    According to him, “Our goal is to attract long-term domestic and international capital into roads, power, rail, housing, and digital infrastructure, while making it easier for state governments and infrastructure companies to access the market efficiently.”

    He added that the SEC will also promote increased participation of the agricultural sector in the capital market by encouraging the listing of agribusiness firms and creating tailored listing windows for agricultural cooperatives and value-chain companies.

    “We will promote the listing of agribusiness firms and create tailored listing windows for agricultural cooperatives and value-chain companies. Through commodity exchanges, agricultural investment trusts, and commodities-linked financial instruments, we will de-risk agriculture, ensure fair pricing for farmers, strengthen food security, and allow Nigerians to own a stake in the nation’s breadbasket,” he said.

    The Director General further disclosed that the Commission will drive the revitalisation of Real Estate Investment Trusts (REITs) and introduce innovative affordable housing bonds to improve access to capital for large-scale housing delivery.

    “These initiatives will unlock capital for mass housing delivery, create new asset classes for investors, and move millions of Nigerians closer to homeownership,” he stated.

    Agama explained that the Commission is also reviewing its rules to encourage more listings from small and medium-scale industries, especially in sectors such as manufacturing, automotive, pharmaceuticals and finished goods.

    According to him, “We are reviewing our rules to incentivize listings from small and medium-scale industries, with special focus on manufacturing, automotive, pharmaceuticals, and finished goods. By providing patient capital through the capital market, we will revitalize factories, reduce import dependency, create jobs, and position ‘Made in Nigeria’ as a global brand.”

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    He noted that the SEC will support Nigeria’s power sector by facilitating instruments such as infrastructure bonds, green energy bonds, project-backed securities and public–private investment vehicles.

    “The SEC will support Nigeria’s power sector through infrastructure bonds, green energy bonds, project-backed securities, and public–private investment vehicles. We will help unlock long-term capital for grid expansion, renewable energy projects, embedded power solutions, and energy transition initiatives. By improving bankability structures and attracting patient capital into the power value chain, the capital market will support energy security,” he said.

    Agama stated that the beginning of the new year presents the opportunity for the Commission to deepen the purpose and impact of the Nigerian capital market.

    He said, “We are not merely turning a page on the calendar; we are embracing a profound opportunity—an opportunity to redefine the very purpose and power of the Nigerian Capital Market.”

    The SEC boss noted that the past year marked a period of transformation for the market and expressed confidence that the coming period would further strengthen its role in driving sustainable economic growth.

    “We look back at a year of transformation and look forward to a future where our capital market becomes the definitive solution provider for Nigeria’s most pressing economic and developmental needs,” he added.

  • SEC sets January 2026 deadline for capital market operators’ registration renewal

    SEC sets January 2026 deadline for capital market operators’ registration renewal

    The Securities and Exchange Commission has directed all capital market operators to renew their registration between January 1 and January 31, 2026, as part of broader efforts to modernise regulatory processes and deepen confidence in Nigeria’s capital market.

    The Commission also disclosed that it will begin the electronic receipt and processing of applications for registration and updates to registration information in the first quarter of 2026, a move aimed at reducing delays, improving transparency and easing engagement between regulators and market participants.

    A statement from the Commission on Sunday said the Director General of the SEC, Dr. Emomotimi Agama, made this known when he spoke extensively on the Commission’s digital transformation agenda and its implications for operators and investors.

    According to Agama, the initiatives are designed to reposition the Commission as a technology-driven regulator capable of responding to the evolving needs of a fast-changing financial ecosystem.

     “These initiatives reflect our commitment to leveraging technology for faster, more transparent, and efficient regulatory processes. The Commission is taking deliberate steps to make regulatory processes faster, more transparent, and technology-driven. We are investing in automation, databased supervision, and secure infrastructure to improve how we interact with the market,” he said.

    He explained that the SEC’s Digital Transformation Portal has already changed the way registration and licensing are handled, with processes now fully automated from start to finish. Through the platform, operators are able to submit applications, upload required documents and track approvals online, significantly cutting down manual processing time and limiting the need for physical visits to the Commission.

    Agama also disclosed that the Commission has introduced a Commercial Paper issuance module that enables operators to file documents, monitor the status of applications and receive approvals electronically. He noted that feedback from early users of the platform has shown a clear improvement in turnaround time, signalling early gains from the digital shift.

    Beyond registration and issuance processes, the SEC is working to automate the submission of quarterly and annual returns by operators. Agama said structured templates and system checks are being developed to ensure accuracy and consistency, while a returns analytics dashboard is also in progress to support risk-based supervision and exception reporting.

    “To back these changes, we have started upgrading our IT infrastructure, servers, storage, networks, and security layers, to boost speed and reliability. Selective cloud migration is underway for platforms that need scalability and external access, while core internal systems remain on premise for now as we assess security and cost implications,” he said.

    He added that data protection and cybersecurity remain central to the Commission’s strategy, noting that vulnerability assessments are ongoing, with penetration testing planned once the automation and migration phases stabilise. According to him, the objective is to build a modern and resilient regulatory environment that supports operational efficiency, strengthens investor confidence and promotes overall market stability.

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    Agama said the Nigerian capital market is firmly on a path towards full digital transformation but warned that the journey requires deliberate policy choices and capacity building. He stressed the need for regulatory clarity around advanced technologies, targeted support for smaller firms and sustained initiatives to build skills across the market.

    “A phased and proportionate approach to regulating emerging technologies such as AI is essential, complemented by internal readiness through supervisory technology tools. Furthermore, investor education, particularly among younger demographics, will be critical to future-proof participation and drive fintech adoption,” he said.

    While encouraging innovation, the SEC boss cautioned that technology adoption must go hand in hand with responsibility. “Innovation is vital, but it must be accompanied by responsibility. As operators embrace automation, artificial intelligence, and data-driven tools, they bear a duty to ensure ethical, secure, and compliant deployment. Safeguarding investor data, preventing market abuse, and maintaining operational resilience are non-negotiable,” Agama stated.

    He noted that responsible use of technology ultimately serves a higher purpose in the market. “Responsible technology adoption is about building trust, the cornerstone of our markets. Trust thrives on fairness, transparency, accountability, and regulatory compliance,” he said.

    Agama therefore urged capital market operators to uphold these principles as the market becomes increasingly digital, noting that doing so would protect investors and systemic stability while strengthening the long-term credibility and competitiveness of the Nigerian capital market.

  • SEC warns against complacency after FATF grey list exit

    SEC warns against complacency after FATF grey list exit

    The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has called on financial sector stakeholders to sustain a compliance culture to protect Nigeria’s standing in the global financial system following the country’s exit from the Financial Action Task Force (FATF) Grey List.

    Speaking at the Nigerian Capital Market Institute (NCMI) Compliance Summit on Monday, Agama described Nigeria’s removal from the Grey List as a major national victory and a clear message to the international community about the country’s determination to strengthen its Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) regime.

    “This was not a mere administrative update; it was a resounding global affirmation of our collective and unwavering commitment,” he said.

    Agama credited the achievement to the collaboration between public and private sector institutions, praising operators, regulators, and compliance professionals for their contributions. He warned, however, that the achievement must not create a false sense of finality.

    “Exiting the grey list is not the finish line; it is the starting block for a new race. The world is watching,” he stated.

    According to him, global financial institutions and international investors will continue to scrutinize Nigeria’s progress to determine whether the reforms are durable and whether the country’s compliance culture is firmly rooted. He noted that the theme of the summit reinforced the need to shift from compliance driven by external pressure to one guided by long-term institutional commitment.

    “Robust compliance is no longer a regulatory burden; it is our single most powerful competitive advantage. A compliant market is a transparent market, and a trustworthy market is the destination for capital,” he said.

    Agama explained that Nigeria’s improved compliance regime sends a strong message that the country is “open for business, safe, secure, and sophisticated.” He urged institutions to embrace continuous improvement through the adoption of RegTech and SupTech tools, regular training of compliance personnel, and the promotion of ethical standards across the financial system.

    He assured that the SEC would continue to provide regulatory clarity, constructive supervision, and sustained engagement to ensure Nigeria remains consistent with global expectations. Agama encouraged participants at the summit to exchange knowledge and develop practical measures that will “future-proof” the Nigerian capital market.

    “Let us work together to ensure that Nigeria never again finds itself on that list,” he said, expressing hope that the country would instead stand among the world’s most resilient, compliant emerging markets.

    In her remarks, the SEC’s Executive Commissioner for Legal and Enforcement, Ms. Frana Chukwuogor, drew attention to the new Investment and Securities Act (ISA) 2025, signed into law by the President earlier in the year. She said that one of the biggest challenges facing compliance officers and market operators is the lack of sufficient information whenever new regulations are introduced.

    “How can you be compliant if you don’t know what has changed?” she asked. “So our focus here today is to bring attention to some of the new issues, some of the new areas that may pose risks to them and the market.”

    Chukwuogor noted that the changes in the new law touch on critical areas such as digital assets and the growing threat of Ponzi schemes, issues she said operators must fully understand. She reminded participants that Nigeria’s exit from the Grey List in October came with renewed responsibilities for all market participants, and CEOs must ensure that their compliance officers understand the new obligations under the ISA 2025.

    The Executive Commissioner disclosed that the SEC intends to measure compliance through strict monitoring of statutory returns, warning that operators who fail to file required reports should expect sanctions.

    The summit brought together regulators, operators, compliance experts, and other stakeholders as Nigeria works to consolidate its reforms and strengthen confidence in the capital market.

  • SEC, FMBN partner on non-interest mortgages

    SEC, FMBN partner on non-interest mortgages

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) and the Federal Mortgage Bank of Nigeria (FMBN) have reached agreement on a strategic collaboration that will see the development of a robust non-interest mortgage framework.

    The agreement, reached at the weekend in Abuja, seeks to create and regulate viable, Sharia-compliant financing structures that will enable millions of Nigerians, particularly those excluded from conventional interest-based loans, to access affordable homeownership.

    With Nigeria’s housing deficit estimated to be over 28 million units, the initiative is a potential game-changer. It directly addresses a key barrier to homeownership: the affordability and religious compliance of mortgage products for a significant segment of the population.

    Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama said the SEC would provide the necessary regulatory guidance and framework to facilitate the issuance of Sukuk and other non-interest capital market products to fund mortgages.

    He said: “Our collaboration with FMBN is pivotal to unlocking long-term financing for the housing sector. By creating a clear regulatory pathway for non-interest mortgage-backed securities, we can attract ethical investors, both domestic and international, to channel funds into this critical area. This will create a virtuous cycle of funding, construction, and ownership”.

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    Managing Director, Federal Mortgage Bank of Nigeria (FMBN), Mr. Shehu Osidi, said the collaboration marked a critical step in fulfilling the bank’s mandate to provide affordable housing for all Nigerians.

    “For a long time, a substantial number of our citizens have been unable to participate in the National Housing Fund (NHF) scheme due to the interest-based nature of conventional mortgages. This partnership with SEC is a strategic response to that gap.”

     We are committed to developing non-interest mortgage products that are not only ethical and inclusive but also financially sustainable,”Osidi said.

    Also commenting, housing and finance expert, Mr Ebilate McYoroki , welcomed the development describing it as “long overdue.”

    He said: “This is a masterstroke in financial inclusion. It taps into a vast pool of potential homeowners and investors who have previously been on the sidelines. If implemented transparently, it could significantly accelerate the pace of housing delivery in the country”.

    He said the successful implementation of this framework is expected to not only reduce the housing deficit but also stimulate the construction industry, create jobs, and foster greater financial inclusion, ultimately contributing to national economic growth.

    Unlike conventional mortgages that charge interest, non-interest financing is based on principles of risk-sharing, asset-backing, and equitable returns. The models under consideration include Musharakah or Diminishing Partnership, under which the bank and the customer jointly purchase a property. The customer gradually buys out the bank’s share through periodic payments, eventually becoming the sole owner. There is also Ijara or Lease-to-Own, where the bank buys the property and leases it to the customer for a fixed period. A portion of the rental payments goes towards the eventual ownership transfer and Murabaha or Cost-Plus Sale, through which the bank acquires the property and sells it to the customer at a pre-agreed markup, payable in installments.

  • SEC approves firm’s N235b public offer

    SEC approves firm’s N235b public offer

    The Securities and Exchange Commission (SEC) has approved Ellah Lakes Plc’s plan to launch a N235 billion public offer, marking a major milestone in the company’s ongoing expansion and growth drive.

    Announcing the approval at a press conference in Lagos, the company’s Managing Director, Chuka Mordi, described the development as a vote of confidence in Ellah Lakes’ vision to transform Nigeria’s agricultural sector through sustainable and integrated farming initiatives.

    Mordi explained that the capital raise would be used to strengthen the company’s balance sheet, expand its agribusiness operations, and enhance value creation for shareholders. “This N235 billion capital raise is a definitive statement of intent. It is our commitment to deliver economies of scale, market resilience, and long-term value creation,” he said.

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    Ellah Lakes, which is listed on the Nigerian Exchange, is Nigeria’s pioneer integrated agro-industrial company with operations across oil palm, cassava, and other value chain crops. The company boasts over thirty thousand hectares of land assets across Enugu, Edo, Ekiti, and Ondo States, positioning it advantageously within the country’s agricultural landscape.

    A key highlight of the company’s strategy is the commissioning of its six-ton-per-hour Crude Palm Oil (CPO) mill, designed to support vertical integration and reduce exposure to external supply chain disruptions. Ellah Lakes has also diversified its revenue base through cassava cultivation and piggery operations, combining short-, medium-, and long-term income streams.

  • Nigeria’s non-interest capital market hits N1.6trn – SEC

    Nigeria’s non-interest capital market hits N1.6trn – SEC

    The Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, said Nigeria’s non-interest capital market has reached a valuation of over N1.6 trillion, reflecting its increasing importance in promoting financial inclusion and driving infrastructure development.

    A statement from the SEC on Wednesday said Agama spoke at the 7th African International Conference on Islamic Finance (AICIF) 2025 held in Lagos. He noted the market’s rapid expansion was a testament to investor confidence and the impact of regulatory reforms under the Investments and Securities Act (ISA) 2025.

    “The remarkable growth of the non-interest segment in Nigeria — a market now valued at over N1.6 trillion — is clear evidence that when there is an enabling regulatory environment, the market responds with vigour,” he said.

    According to the SEC boss, the Federal Government’s sovereign Sukuk programme has so far raised over N1.4 trillion through seven issuances since 2017. 

    The funds, he noted, have been used to finance the construction and rehabilitation of 124 critical road projects covering more than 5,820 kilometres across the country.

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    Agama added that the recent approval of a $500 million international Sukuk would usher in the next phase of Nigeria’s strategy to attract ethical financing for infrastructure expansion and broader economic growth.

    He also observed that the growing adoption of Islamic finance across Africa demonstrates the continent’s readiness to embrace non-interest instruments as a sustainable funding alternative. “From Egypt to Kenya, Tanzania, Senegal, and Ghana, we are seeing governments strengthen legal and policy frameworks to attract Shariah-compliant investments,” he noted.

    The SEC Director-General commended Metropolitan Skills, the conference organizers, for their contribution to deepening Islamic finance knowledge in Africa. He disclosed that the outcomes of the 2025 AICIF would feed into the Second Nigerian Capital Market Masterplan (2026–2035), which will take effect after the current plan concludes this year.

     Agama urged stakeholders to continue leveraging Islamic finance to promote ethical investment, financial inclusion, and infrastructure renewal. “Prosperity without inclusion is not sustainable,” he said.

  • SEC deepens digital innovation drive to build investor confidence

    SEC deepens digital innovation drive to build investor confidence

    The Securities and Exchange Commission (SEC) has taken further steps to modernize Nigeria’s capital market by integrating digital innovation into its operations.

    This move is aimed at strengthening investor confidence and creating a more transparent, efficient, and accessible market environment.

    Director General of the Commission, Dr. Emomotimi Agama, disclosed this during the 2025 Customer Service Week celebration held in Abuja with the theme “Building the Market of the Future, One Interaction at a Time.”

    Dr. Agama said the Commission is committed to using technology as a tool to transform service delivery and ensure that the Nigerian capital market operates at global standards.

    According to him, the SEC’s ongoing digital transformation is central to its broader goal of improving regulatory processes and enhancing stakeholder experience.

    He explained that the Commission has made notable progress through initiatives such as the digitization of processes, deployment of new online service portals, and stronger engagement with market stakeholders via digital channels.

    “The digitization of our processes, the launch of new portals, and our enhanced engagement on social media are all steps in the right direction,” Dr. Agama said. “They are designed to make our market more accessible, transparent, and user-friendly.”

    The SEC chief stated that the reforms were introduced to simplify regulatory interactions, reduce bureaucracy, and foster a market system that is both responsive and accountable to investors and operators.

    While acknowledging the role of technology in driving reform, Dr. Agama maintained that human connection remains at the heart of effective customer service. “Technology is only an enabler,” he noted. “The heart of excellent service is the human connection—the ability to listen, understand, and provide solutions that make every stakeholder feel valued.”

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    He pledged that the Commission would sustain its investment in digital infrastructure, continuous staff training, and modern tools that enable frontline officers to deliver efficient and reliable service to investors.

    Describing customer-facing staff as the “true heroes” of the capital market, Dr. Agama said their work plays a crucial role in shaping investor perception and sustaining trust in the system.

    He also restated the SEC’s vision of building a deep, vibrant, and technology-driven capital market founded on efficiency, innovation, and confidence.

    “Let every day be Customer Service Day at the Nigerian SEC and across our capital market,” Dr. Agama stated. “Let us continue to build this market of the future, not with grand pronouncements alone, but with one successful interaction, one resolved complaint, and one satisfied stakeholder at a time.”

  • SEC warns Nigerians against AI-driven scams

    SEC warns Nigerians against AI-driven scams

    • …moves to Deploy Advanced Surveillance Systems

    The Securities and Exchange Commission (SEC) has raised concerns over the rising use of artificial intelligence (AI) by fraudsters to deceive unsuspecting investors, warning that Nigerians must be cautious of online platforms promising guaranteed profits and using fake celebrity endorsements.

    To counter the trend, the Commission announced that it is adopting advanced surveillance systems capable of detecting fraudulent activities in real time.

    It also disclosed that partnerships with the Central Bank of Nigeria (CBN) and the Nigerian Financial Intelligence Unit (NFIU) are being strengthened to enable data-sharing and joint enforcement actions.

    “These platforms are not registered or regulated by the SEC, yet they continue to mislead the public with false claims of AI-driven investments. They posed serious risks to investors, hence the Commission issued a series of disclaimers against their activities,” SEC stated, recalling the illegal operations of CBEX, Silverkuun, and TOFRO.

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    According to the regulator, scammers are increasingly deploying deepfake videos and AI-generated content to lure victims. The Commission explained that manipulated videos featuring politicians, celebrities, and TV hosts are being circulated on Facebook ads, Instagram reels, and Telegram groups to give fraudulent platforms an appearance of credibility.

    “Scammers are exploiting AI to fabricate endorsements and testimonials that appear genuine. This has made traditional fraud detection methods less effective, hence the need for tech-enabled regulation and greater public awareness,” the SEC said.

    The Commission noted that it is adopting a more proactive regulatory approach. “We are moving from reactive to predictive oversight. This is essential in combating fraud and systemic risks in our market,” it explained.

    As part of its broader crackdown, the SEC said it has engaged social media companies to clamp down on misleading advertisements and has issued a warning to influencers. “Any influencer or blogger found to be complicit in promoting illegal platforms will face regulatory sanctions or even prosecution,” the Commission cautioned.

    The regulator urged Nigerians to take extra precautions before committing their money to any investment, stressing that promises of daily profits, zero risk, or endorsements from celebrities should be treated with suspicion.

    “Any investment that guarantees unrealistic returns or uses manipulated videos of public figures should immediately raise a red flag,” the Commission advised.

    SEC also encouraged investors to verify the registration status of any investment platform on its official website, where a list of licensed Capital Market Operators is available. It advised that registration numbers displayed on company websites must match the details on the SEC portal and warned against patronizing platforms that only operate through Telegram or WhatsApp without a verifiable office address.

    Suspicious platforms or fraudulent advertisements can be reported directly to the SEC through its email at sec@sec.gov.ng, by phone on +234 9 462 1168, or via its online complaints portal.