The Nation Newspaper

Tag: Securities and Exchange Commission

  • SEC backs innovation, eyes quantum future for capital market

    SEC backs innovation, eyes quantum future for capital market

    The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has said the Commission is actively engaging with emerging technologies and digital innovators to craft regulatory frameworks that support capital market innovation without compromising investor protection.

    Delivering the keynote address at the Comercio Partners H2 2025 Outlook event, Dr. Agama said Nigeria, like many countries, stands at the crossroads of an economic transition driven by rapid advances in technology, shifting global dynamics, and the growing influence of fintech, blockchain, and quantum innovations.

    He told participants that the SEC is working closely with fintech startups, blockchain developers, and researchers in quantum computing to ensure that regulations keep pace with innovation. The goal, he explained, is to provide a secure environment for investors while encouraging the development of new financial technologies that can reshape the capital market.

    READ ALSO; Shippers’ Council commits to execution-driven reform framework

    According to him, the world is undergoing a deep transformation in how trade, finance, and investment are structured. “Traditional models of global trade have powered economic growth for decades, anchored on comparative advantage, efficient supply chains, and multilateral cooperation,” he said. “But recent shocks—ranging from the COVID-19 pandemic to geopolitical shifts—have exposed weaknesses in this system. As a result, nations are adjusting their economic strategies toward innovation-driven growth.”

    Dr. Agama identified digital economies, decentralized finance (DeFi), and quantum technology as the defining features of this new era. These developments, he said, are reshaping what constitutes competitive advantage in global markets, with intellectual property, data capacity, and technological agility taking centre stage.

    On the emerging role of quantum innovation, the SEC Director General described it as the “next frontier” in financial and technological evolution. He noted that quantum computing, cryptography, and secure communications will eventually transform core market functions. “Quantum computing, in particular, has the potential to change how we conduct risk modelling, price assets, and detect fraud—with far greater speed and precision than is possible today,” he said.

    Agama added that SEC Nigeria is focused on building a forward-looking regulatory environment that keeps markets open to innovation while preserving integrity and investor trust. “We are working to develop policies that welcome tokenized assets, digital securities, and green bonds—advancing a sustainable and technology-enabled future for our markets,” he stated.

    He argued that building a national innovation framework requires targeted investment in education, research, and cross-sector partnerships. “Nations that prioritise STEM education and digital skills will lead the way,” he said, noting that collaboration between government, academia, and industry is essential to equip the workforce for the quantum age.

    He urged private sector players to join hands with the government in establishing research hubs, funding pilot initiatives, and scaling new technologies, especially those with transformative potential for financial services.

    For Africa, and Nigeria in particular, Agama sees a clear opportunity to leap ahead by adopting new tools and models early. “Africa, with its youthful population and untapped potential, can leapfrog into the quantum economy by leveraging blockchain for transparency in capital markets, applying AI and big data to deepen financial inclusion, and creating innovation sandboxes to safely experiment with new technologies,” he said.

    He concluded by calling on Nigerian stakeholders to take the lead. “Nigeria, as Africa’s largest economy, must lead this charge. The SEC is committed to creating the right environment to support responsible innovation and ensure the capital market serves the future economy.”

  • SEC raises concerns over digital assets fraud

    SEC raises concerns over digital assets fraud

    The Securities and Exchange Commission (SEC) has raised concerns over the growing risk of digital asset fraud, describing it as a significant threat to market integrity and investor confidence in Nigeria and across Africa.

    Speaking in Abuja at an event to mark African Union Anti-Corruption Day, the Director General of the SEC, Dr. Emomotimi Agama, warned that as digital innovation transforms financial markets, it is also giving rise to increasingly sophisticated scams and virtual asset fraud. The event was themed “Understanding Virtual Assets and Investment Fraud.”

    Dr. Agama noted that corruption remains a major barrier to Africa’s economic progress, social development, and attractiveness to investors. He added that the misuse of digital assets, including cryptocurrencies and other blockchain-based products, is diverting resources that could otherwise support sustainable development.

    “As digital innovation transforms financial systems, we face new challenges, particularly the rise of virtual asset fraud and sophisticated investment scams targeting unsuspecting investors,” Dr. Agama said. “These threats undermine trust, weaken market integrity, and ultimately harm economic growth.”

    To address these challenges, Dr. Agama explained that the SEC is stepping up efforts in three major areas: educating investors to help them identify and avoid fraudulent schemes; updating regulatory frameworks to respond to the evolving risks in digital investments; and working closely with both domestic and international partners to curb corruption and illicit financial flows.

    READ ALSO; Russia offers to increase scholarships for Nigerian students 

    Dr. Agama also pointed to the new Investment and Securities Act (ISA) 2025 as a significant step forward. The Act gives the SEC a clearer mandate to regulate virtual assets that qualify as securities or investment products. Under this law, Virtual Asset Service Providers (VASPs), including exchanges, brokers, and custodians, are required to register with the SEC and meet strict requirements covering governance, capital adequacy, and cybersecurity.

    He explained that platforms offering digital assets must clearly warn investors about the risks of volatility, potential fraud, and changing regulatory environments. The new law also sets out stiff penalties for offences such as insider trading, Ponzi schemes, and market manipulation.

    “The ISA 2025 provides a comprehensive legal framework for virtual asset regulation, balancing innovation with investor protection and financial stability,” Dr. Agama said. “The SEC will continue to issue guidelines to ensure compliance while supporting a secure and transparent digital asset ecosystem.”

    Dr. Agama called on stakeholders—including governments, businesses, civil society, and ordinary citizens—to work together to promote transparency, accountability, and ethical practices in the financial sector. “Together, we can build resilient markets that drive Africa’s prosperity,” he said.

    Also speaking at the event, the Chairman of the Economic and Financial Crimes Commission (EFCC), Ola Olukoyede, described virtual asset fraud as a rapidly growing risk to national economic security. He warned that this form of crime could soon surpass traditional money laundering in scale and impact on the continent.

    “Another rising criminal engagement that has a potential to outpace, even money laundering, on the continent is virtual assets and investment scam,” Olukoyede said.

  • NGX Group, SEC to deepen Nigeria-China financial ties

    NGX Group, SEC to deepen Nigeria-China financial ties

    Nigeria’s leading capital market institutions have launched strategic initiatives to deepen cross-border investments, especially between Nigeria and China.

    Nigerian Exchange Group (NGX Group) and Securities and Exchange Commission (SEC) stated that their current engagements in China reflected a broader drive to strengthen Nigeria’s connectivity to global financial markets and attract new investment flows.

    This commitment was demonstrated at the China-Africa CEO Dialogue, organised by Choice International Group in strategic collaboration with NGX Group. The event took place on the sidelines of the 4th China–Africa Economic and Trade Expo in Changsha, where NGX Group, SEC, and other leading African institutions engaged Chinese corporates, regulators, and financial institutions to explore mutually beneficial partnerships.

    Group Managing Director, Nigerian Exchange Group (NGX Group) Plc, Temi Popoola, reaffirmed commitment to fostering cross-border capital market partnerships noting that deepening capital market partnerships is key to unlocking new investment corridors between Nigeria and China.

    READ ALSO; Tinubu’s 2027 landscape: Reform, resistance and the road ahead

    He highlighted NGX Group’s engagement with institutions such as the Shanghai Stock Exchange and Hong Kong Stock Exchange, aimed at creating pathways for Chinese corporates to raise capital locally, whether through bonds, commercial papers, or equity, to help mitigate currency and operational risks while driving growth in key sectors like manufacturing, ICT, and automotive.

    He said: “Financial flows are often the missing link in many China-Africa engagements. By opening these corridors, we are positioning Nigeria as a hub for cross-border investments and supporting the country’s economic diversification agenda”.

    Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, said Nigeria remains committed to providing a safe, transparent, and enabling investment environment.

    “Our job is not just to provide the framework, but to assure investors that if they come to Nigeria, they’ll find justice when they need it. Transparency and credibility are key to building investor confidence. While risk is inherent in every business, our role as regulators is to mitigate those risks and ensure a level playing field,” Agama said.

    Group Chairman, Nigerian Exchange Group (NGX Group) Plc, Alhaji Umaru Kwairanga said the strategic engagements in China were testament to NGX Group’s ambition to position Nigeria as Africa’s investment gateway.

    “At NGX Group, we believe the capital market is pivotal to unlocking Africa’s potential. Our engagement in China reflects our commitment to building bridges between Nigeria and key global markets to deliver long-term prosperity for our stakeholders,” Kwairanga said.

    He noted that the dialogue underscored the importance of capital markets in facilitating trade, technology transfer, and industrial development between China and Nigeria.

    According to him, both NGX Group and SEC remains committed to championing capital market diplomacy as a tool for sustainable economic growth.

  • SEC warns against investing in ‘Punisher Coin’

    SEC warns against investing in ‘Punisher Coin’

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has cautioned against investing in the cryptocurrency known as Punisher Coin or $PUN.

    In a statement yesterday, SEC said the promoters of the cryptocurrency are not registered to operate in any capacity within the Nigerian capital market.

    The Commission added that the promoters were engaging in unauthorized presale and acting without regulatory approval.

    SEC stated that it was disturbed several online publications blatantly advertising unauthorized presale of “Punisher Coin”, also known as “$PUN”, citing a newspaper’s report titled: “Cryptos to Buy: Why Punisher Coin Could Join Avalanche and Chainlink as a Top Investment Pick”

    “The Commission hereby informs the public that neither “PUNISHER COIN” aka“$PUN” nor its promoters have been vetted nor registered by the Commission to either promote, launch, sale, trade or solicit investments from the Nigerian public,” SEC stated.

    Read Also: Benue insecurity: A note of caution to ill-informed Alia critics

    According to the Commission’s preliminary investigations, Punisher Coin falls under the category of “meme coins,” digital assets typically characterized by the absence of tangible utility or underlying projects.

    “Further investigation has revealed that Punisher coin or $PUN is a Meme coin. Meme coins generally have no use case, intrinsic value or tangible projects backing them. Any attributed value to meme coin is usually linked to its promoters or the community effort which most often than not are susceptible to pump and dump schemes-a form of fraudulent activity that involves promoters spreading false or misleading information to create a buying frenzy that “pumps” up the price of a ‘coin’ and then “dumps” the coin by selling their own coins at the inflated price. Once the promoters dump their coins and stop hyping the coin, the coin price typically falls and investors lose money,” SEC  noted.

    The SEC highlighted that the value of such coins is often driven by hype and social media buzz, making them vulnerable to market manipulation through schemes commonly known as pump and dump.

    SEC explained that these schemes involve promoters inflating the price of the coin through misleading claims, only to sell their holdings at the peak, leaving other investors exposed to significant losses when the hype fade dump.

    “The public is therefore strongly warned to be wary about investing in the purported presale of punisher coin ($PUN) as any person who invest in such a scheme, does so at his or her own risk.

    “The Commission similarly reminds investing public of the need to always Verify the authenticity of crypto and virtual or digital assets, the registration status of its promoters and trading platform via the Commission’s dedicated portal,” SEC stated.

  • SEC challenges African capital markets on financing climate gap

    SEC challenges African capital markets on financing climate gap

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), has stressed the need for the mobilisation of capital markets to bridge the colossal financing gap for climate adaptation in Africa.

    Its Director-General, Dr. Emomotimi Agama, said project developers and private sector actors need to present bankable, pipeline-ready projects with robust environmental and social metrics in a bid to closing financing gaps for climate adaptation.

    He spoke on “The Role of Capital Markets in Closing Financing Gaps for Climate Adaptation” during the recent African Development Bank (AfDB) meeting.

    Agama said African capital markets could be achieved through market integration, aligning standards and adopting International Sustainability Standards Board (ISSB).

    “Closing the climate adaptation financing gap in Africa is not a distant aspiration but a development imperative, and one that demands our collective ingenuity and capital.”

    “By integrating our markets, aligning standards, adopting the ISSB framework, and mobilising institutional capital across borders, we can build a climate-resilient future for all Africans,” Agama said.

    He noted that Africa which contributes less than four per cent of global greenhouse gas emissions, bears over 25 per cent of climate-related losses.

    “Experts estimate our continent faces an annual climate adaptation financing shortfall of up to $100 billion by 2030.

    Read Also: How strategic reforms are energising the power sector

    “The 2022 Africa Economic Outlook by the AfDB estimated that the continent needs around $500 billion of climate finance by 2030.

    “Africa will also need to invest more than three  trillion dollars in mitigation and adaptation by 2030 in order to implement its Nationally Determined Contributions.

    “These figures are more than statistics, they translate into lost livelihoods in the Sahel, vanishing fish stocks in the Gulf of Guinea, and more frequent flooding in Lagos and Nairobi,” he said.

    According to him, these figures reflect a deepening divide between vulnerability and resilience.

    “The stark reality is undeniable. Africa, contributing minimally to historical emissions, faces severe impacts of a changing climate which includes devastating droughts threatening food security, rising sea levels, engulfing coastlines, and intensifying storms disrupting lives and economies,” he said.

    Agama added that the 2023 United Nations Environment Programme Adaptation Gap Report said Africa needs  between $212 and $387 billion annually for developing countries’ adaptation by 2030.

    “Meanwhile, our current flows and commitments are a mere fraction of this amount. For Africa specifically, the gap is immense, estimated to be up to 50 times current funding levels,” he said.

    Agama said in 2017, Nigeria launched its sovereign green bond, the first in sub-Saharan Africa. Within months, it was oversubscribed by 2.5 times, driven by Nigerian pension funds and diaspora investors seeking both yield and impact.

    This he said demonstrated that local institutional capital can be mobilised for climate projects when the right instruments and confidence-building frameworks are in place.

    The SEC Boss posited that the ISSB Standards serve as the game-changer as the experiences in Nigeria for example, are not only innovating climate finance products but also shaping global standards for sustainability disclosures.

    According to him, “The Securities and Exchange Commission (SEC) Nigeria represents the country on the International Sustainability Standards Board’s Adoption Readiness Working Group (ARWG), which was tasked with implementing the new IFRS S1 & S2 Sustainability Disclosure Standards.

     “The ARWG finalised its Roadmap for Adoption, publicly exposed by the Financial Reporting Council of Nigeria and SEC Nigeria between February 3 and March 14, 2024. Feedback was rigorously reviewed and integrated. The roadmap outlines early Adoption, Voluntary Adoption (January 1, 2024 through December 31, 2026) and Mandatory Adoption (beginning January 1, 2027) All entities, excluding government bodies, must comply with staggered timelines.

     “This leadership positions Nigeria at the forefront of transparent, comparable, and decision-useful sustainability reporting across Africa.

    Agama noted that adaptation finance was critically underserved due to three major reasons namely perception problem, data and measurement gaps and risk aversion.

    “This is where our capital markets must step in, and where the ISSB becomes vital,” he said.

    To scale adaptation finance, the SEC DG urged deeper regional market integration, harmonised ESG standards, and deployment of tools like credit enhancements to de-risk early-stage climate investments.

     “Closing the climate adaptation financing gap in Africa is not a distant aspiration but a development imperative, and one that demands our collective ingenuity and capital. The recent journey in Nigeria proves that it can be done. By integrating our markets, aligning standards, adopting the ISSB framework, and mobilising institutional capital across borders, we can build a climate-resilient future for all Africans.

     “Let us seize this moment, as regulators, investors, governments, standard-setters, and development partners, to deepen African capital markets and finance the resilience of our continent and our people” he added.

  • How to tame rising unclaimed dividends, by shareholders

    How to tame rising unclaimed dividends, by shareholders

    Shareholders have appealed to the Securities and Exchange Commission (SEC), registrars, stockbrokers to make the claiming processes of unclaimed dividends easy, seamless and less cumbersome.

    Shareholders who spoke yesterday in Abuja said that making the process easy would help reduce unclaimed dividends.

    The shareholders, who were reacting to the continuous rise in unclaimed dividend figures of banks and other companies, said the process of claiming dividends is  currently tedious and frustrating.

    National Coordinator, Pragmatic Shareholders Association,  Mrs Bisi Bakare, said the administrative cost, delays and bottlenecks encountered by probate were discouraging in dividend claims.

    Bakare listed some factors that had led to the rise in unclaimed dividends to include fictitious names in buying shares during privatisation, relocation, death and minority shareholders neglect due to the small amount of the dividend, among others.

    “Many shareholders purchased multiple shares that they cannot remember the names used and many of them have also relocated before the introduction of e-dividend, hence, no update on account to pay their dividend into.

    “Many shareholders are late now, and there is no proper estate planning, no will, no update on their records to transfer the shares.

    “In fact, many shareholders, their wives, husbands or children are not aware of their investment in the share.

    “How do you want them to claim what they are not aware of?

    READ ALSO; Making NELFUND work

    “Also, the issue of probate; its administrative cost, delays and bottleneck, the role of registrar and sometimes intentional frustration encountered by shareholders in claiming their money contribute to reasons why unclaimed dividends are growing,’’ she said.

    She said the association was encouraging their members through improved communication to key into the electronic dividend registration, to regularly update their account with Registrars to reduce unclaimed dividends.

    She said that the association also had a platform to disseminate information to members on companies that declare dividends.

    National Coordinator, Independent Shareholders Association of Nigeria, Mr Moses Igbrude, expressed regret that even some companies that were recently listed on the Nigerian Exchange Group (NGX) were still having unclaimed dividends.

    Igbrude suggested that Registrars should reach out to various shareholders through their contacts.

    He frowned at the dividend trust fund created by the SEC, noting that a multi-dimensional approach was needed to address the issue of unclaimed dividends in the country.

    He said that all stakeholders must come together to educate shareholders and probate on what to do to claim their dividends.

    “If people in Lagos can have unclaimed dividends, what will happen to all those people in the rural areas who do not know anything.

    “On unclaimed dividends in banks, the bank can generate money out of the system, to be calling these people, shareholders, to let them know they have unclaimed dividends with them.

    “So, if the stakeholders are really sincere, a multi-dimensional approach is what we need if we actually want to address the issue.

    “The company, the stockbroker, the registrar will get involved, and the association will get involved, so that education will continue,’’ he said.

    Igbrude called on all stakeholders responsible for the process of transferring shares from the deceased person to their children to be made easy and transparent.

    News Agency of Nigeria (NAN) reported that some banks’ unclaimed dividends for the 2024 financial year rose in spite of the inauguration of Nigeria Inter-Bank Settlement System (NIBSS) in collaboration with the SEC.

    United Bank for Africa (UBA) Plc recorded N45.99 billion as unclaimed dividends for the 2024 financial year (FY) ended Dec. 31 as against the N14.895 billion posted at the same period in 2023.

    Zenith Bank recorded N30.6 billion as unclaimed dividend in 2024 FY against the 30.1 billion declared in 2023.

    Access Holdings Plc recorded a decline in unclaimed dividends with N17.73 billion in 2024 against the N21.3 billion declared in 2023.

  • SEC seeks stronger cooperation among African capital markets

    SEC seeks stronger cooperation among African capital markets

    Securities and Exchange Commission (SEC) has called for deeper cooperation among African capital markets to strengthen integration across the continent and promote the development of new financial products.

    Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, made the call during a visit by the board of the Commission yesterday to the Autorité Marocaine du Marché des Capitaux (AMMC), the Moroccan Capital Market Authority, in Rabat.

    Agama stressed the importance of African countries investing in each other’s markets to stimulate economic growth and create stronger linkages across the region. He said the time had come for African regulators and stakeholders to look inward, build robust collaborations, and work towards a common vision for the continent’s capital markets.

    “We need to cooperate in Africa, invest in each other’s market and grow our continent.

    We want to build collaboration so that as Africans we can have a focus and build a strong interconnection. The time is now for us to look inwards,” Agama stated.

    Read Also: SEC seeks stronger cooperation among African capital markets

    He acknowledged Morocco’s expertise in Collective Investment Schemes (CIS), noting that Nigeria could learn valuable lessons from the Moroccan experience. With Nigeria’s large population, he said there is significant potential to expand the reach and impact of CIS, enabling more citizens to benefit from regulated investment opportunities.

    “We are aware of your strength in Collective Investment Schemes and we know we can learn a lot from you. The population of Nigeria is huge and we need people to understand the huge benefits in CIS and how they can key into it,” he said.

    Agama described the capital market as the nerve centre of any economy and urged citizens to leverage investment opportunities to create wealth and improve living standards. He pointed out that the capital market serves as an enabler of economic development, and learning from Morocco’s experience would help bolster Nigeria’s market and create better outcomes for both countries.

    “We are excited about what the future holds for us and how we can forge a common front. Our relationship and integration will go a long way in building both markets and making life better for our citizens. We encourage governments to use long-term capital for long-term projects,” he added.

    According to him, the capital market offers solutions for financing infrastructure and other long-term development needs, and African regulators must work together to position the continent as a preferred investment destination.

    In her remarks, the Chairperson and CEO of the Moroccan Capital Market Authority, Ms. Nezha Hayat, expressed satisfaction with the growing ties between the two regulatory bodies. She said that Morocco’s capital market has evolved significantly, with mutual funds playing a central role in broadening investment access for the population.

    “Capital market has now diversified so much, but for us everything goes through mutual funds. We think CIS is very important because people put their money in funds that are regulated and are controlled. People have more access through CIS. It is key to encourage the truth of any market,” she said.

    Ms. Hayat stated that the AMMC is keen on initiatives such as dual listings and the authorization of funds in foreign currencies, which would allow Moroccan mutual funds to invest abroad. Nigeria, she added, is among the countries targeted for these developments as part of broader efforts to deepen continental integration.

    “We need to deploy initiatives that will focus on developing our continent,” she said.

    Also speaking during the visit, Chairman of the SEC Nigeria Board, Mr. Mairiga Katuka, said the Commission is committed to learning from other jurisdictions in order to strengthen the Nigerian capital market and improve its performance.

  • Ponzi influencers, bloggers risk imprisonment in new tight regulation

    Ponzi influencers, bloggers risk imprisonment in new tight regulation

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has issued a stern warning to celebrities, social media influencers, and bloggers over the promotion of unregistered and fraudulent investment schemes.

    The Commission has also reminded the public that the recently signed Investments and Securities Act (ISA) 2025 prescribes stiff penalties for violations, including jail terms and heavy fines.

    In a statement yesterday, the Commission disclosed that it is collaborating with law enforcement agencies such as the Economic and Financial Crimes Commission (EFCC), the Nigerian Police Force, and other relevant government institutions to investigate and prosecute individuals and platforms involved in unlawful investment promotions.

    Director General of the SEC, Dr. Emomotimi Agama, noted that the ISA 2025 contains specific provisions targeting promoters of fraudulent and unregistered investment schemes.

    According to him, those who exploit their platforms to promote such ventures now face serious legal risks. “The law also targets influencers and bloggers who promote fraudulent schemes, with clear penalties including imprisonment,” he said, urging them to desist immediately.

    The Commission, he explained, remains focused on its core responsibilities of investor protection and capital market development. He advised Nigerians to exercise caution when approached with investment offers, particularly those promising unrealistically high returns. “People must be careful, ask questions, and consult professionals before investing their hard-earned money,” Dr. Agama stated.

    Read Also: CBEX: No free money anywhere, Cleric cautions Nigerians against ponzi scheme

    As part of measures to safeguard the market, the SEC has enhanced its internal surveillance capacity. The DG disclosed that dedicated departments have been created to monitor market activities and carry out onsite inspections, enabling the Commission to swiftly identify and respond to suspicious operations. “Once we hear anything, we do something,” he said, referring to the proactive strategy designed to prevent widespread investment frauds.

    Dr. Agama said these initiatives have become even more critical in the wake of the collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion. CBEX reportedly lured investors with promises to double their funds within a month and falsely claimed international affiliations. The SEC, he assured, is determined to shut down such operations and bring their promoters to justice.

    The ISA 2025, described as a landmark legislation signed into law by President Bola Ahmed Tinubu, has empowered the Commission with new legal tools to tackle fraudulent schemes. For the first time, Ponzi schemes are clearly defined under Nigerian law, with promoters now liable to face a minimum fine of ₦20 million and imprisonment of at least 10 years.

    Beyond the fight against Ponzi schemes, the law also brings digital assets under the regulatory oversight of the SEC. Dr. Agama explained that this development mandates all Virtual Asset Service Providers and Digital Asset Exchanges to register with the Commission and operate within established guidelines. This, he said, closes a long-standing legal gap that previously enabled scammers to exploit investors in the digital space without consequences.

     “The SEC is capable, has the capacity, has the knowhow, and of course will be able to deal with anyone caught in this mess,” Dr. Agama declared, reiterating the Commission’s readiness to act decisively against all fraudulent operators.

    Investor education remains central to the SEC’s broader reform agenda. To this end, the Commission has launched educational campaigns across multiple platforms, including podcasts and social media, while also integrating capital market education into school curricula nationwide. “We have launched a podcast where we educate and enlighten Nigerians on the dangers of investing in unregistered schemes,” he noted.

    The SEC is urging Nigerians to take personal responsibility by verifying all investment opportunities directly with the Commission before committing their funds. Dr. Agama warned, “Once it is too good to be true, it certainly is not true.”

    He reiterated that the Commission is working to democratize wealth creation by providing a transparent and secure capital market environment for all Nigerians. “The capital market helps you to democratize wealth for everybody,” he said, adding that ISA 2025 marks a crucial milestone in protecting investors and ensuring the resilience of Nigeria’s financial market.

    As fraudulent investment promoters increasingly target the public through social media and digital channels, the SEC says its message is clear: the era of unchecked exploitation of Nigerian investors is over.

  • SEC warns public against ponzi schemes

    SEC warns public against ponzi schemes

    The Securities and Exchange Commission (SEC) has warned the public that it is illegal to use unregistered digital investment platforms, as concerns mount over the rising popularity of such platforms

    This renewed stance by the Commission follows social media uproar surrounding the operations of CBEX, a digital asset platform currently under scrutiny for allegedly freezing customer withdrawals and offering returns “too good to be true”.

    Over the weekend, dozens of users flooded social media with complaints that they were unable to access their funds; prompting fears that the platform might be the latest in a long line of Ponzi-style operations disguised as fintech innovation.

    Checks by The Nation revealed the platform is not listed on the SEC’s official database, despite the company’s claims to provide investors with a 100 per cent return on their USD-denominated “investments” in as little as one month, along with referral bonuses. This alone, according to SEC Director-General Emomotimi Agama, is grounds for concern.

    While the Securities and Exchange Commission (SEC) of Nigeria has not mentioned CBEX by name, it has taken notice. Speaking yesterday at a virtual session on the newly enacted Investment and Securities Act (ISA 2025), Agama made it clear that platforms operating without regulatory oversight are illegal.

    Read Also: Full list of 24 qualified countries for AFCON 2025

    “Very recently, there has been a post that has gone viral around a particular platform and the activities of such platforms. And of course, the aftermath of it is further news of their closure and all of that.

    “In fact, I was tagged in one of those messages. I want to state it very clearly. If it is not registered, it is illegal,” Agama stated firmly.

    The SEC DG discussed the terms of the Investment and Securities Act (ISA 2025), which was recently approved by President Bola Tinubu. He noted that the Act has set clear guidelines for digital asset platforms, including the need for registration in order to foster confidence and transparency.

    Investors, he said, can feel safer because the SEC can now crack down on illegal practices including pump and dump tokens, Ponzi schemes, and unregistered exchanges.

    He explained that the SEC is now empowered to investigate and shut down unlicensed digital trading platforms, as well as prosecute influencers, celebrities, and promoters who lend legitimacy to suspicious schemes. Agama warned that the days of unaccountable promotions are over.

    “It is important that even for celebrities, we must be cautious around what we do. Becoming influencers or introducing meme coins, that does not mean well for the generality of Nigerians, are not going to be tolerated,” he warned.

    Experts warn that the country’s fintech boom has created a grey area, where innovation often outpaces regulation. The result is a playground for fraudsters who exploit trust and lack of oversight to run short-lived scams. CBEX, they opine, is just one of many platforms currently filling this void.

    “This is a wake-up call,” Chuka Obioha, a financial analyst stated.

    “When people hear 100 per cent returns in 30 days, that should raise immediate red flags. These schemes rely on a steady stream of new deposits to pay earlier investors, and once that flow dries up, they collapse.”

  • SEC begins implementation of new capital market law

    SEC begins implementation of new capital market law

    • Unregistered digital assets, forex platforms banned

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), yesterday indicated that it has started the implementation of the newly enacted Investments and Securities Act, 2025 (ISA 2025).

    President Bola Tinubu had earlier this month signed into law the new Investment and Securities Act (ISA) 2025, which repealed the Investments and Securities Act No. 29 of 2007.

    SEC yesterday stated that in line with the new ISA 2025, it is now illegal to operate digital asset exchanges or online foreign exchange trading platforms without formal registration with the Commission.

    SEC called on stakeholders in the financial and investment ecosystem to familiarise themselves with the new provisions and ensure full compliance with the new Act.

    “By virtue of this Act, it is an offence in Nigeria for any entity that is not registered by the Commission to carry out the business of online foreign exchange trading platforms or related services.

    Read Also: Stalled council autonomy

    “Any business entity with the plan of setting up a business in any of this area is advised to visit the HOD, DRM Department of the Commission for further directive on how to register with the Commission to avoid sanctions,” SEC stated.

    According to SEC, under the newly enacted legislation, the Commission is now empowered to regulate a broader scope of market activities as Section 3(3)(b) of the Act explicitly mandates the Commission to “register and regulate securities exchanges, commodity exchanges, virtual and digital asset exchanges, and other market venues”.

    Director-General, Securities and Exchange Commission, Dr. Emomotimi Agama, described the new law as a landmark step in positioning Nigeria’s capital market to be more inclusive, robust, and in tune with global best practices.

    “The ISA 2025 has given the Commission the legal backing to provide clarity, ensure investor protection, and enhance market confidence, especially in new and previously unregulated segments such as digital asset exchanges and online foreign exchange platforms,” Agama said.

    He reaffirmed his commitment to supporting innovation while maintaining strict oversight.

    “We welcome innovation, but it must occur within a regulated environment that protects investors and maintains the integrity of our market,” Agama said.

    The new Act introduced critical reforms to promote market integrity, transparency, and sustainable growth, while enhancing the authority of the SEC as the apex regulatory authority of the Nigerian capital market.

    With such enhanced powers and functions, Nigeria is now fully in conformity with the requirements of International Organisation of Securities Commission (IOSCO)’s Enhanced Multilateral Memorandum of Understanding (EMMoU). This EMMoU enables Nigeria to retain its “Signatory A” status, thus enhancing the overall attractiveness of the Nigerian capital market.

    There were several notable provisions that made ISA 2025 a landmark legislation. The Act expands the definition and understanding of securities by explicitly recognising virtual and digital assets as well as investment contracts as securities and brings Virtual Asset Service Providers (VASPs), Digital Asset Operators (DAOPs) and Digital Asset Exchanges under the SEC’s regulatory purview.

    There is also legal framework for commodities exchanges. The Act contains a new part which provides for the regulation of commodities exchanges and warehouse receipts. These provisions are essential to allow for the development of the entire gamut of the commodities ecosystem.

    In the area of issuance of securities by sub-nationals and their agencies, salient provisions of the Act address existing restrictions in respect of raising of funds from the capital market by sub-nationals to allow for greater flexibility in this regard.

    In terms of transparency in securities transactions, the new  Act introduces the mandatory use of Legal Entity Identifiers (LEIs) by participants in capital market transactions. This stipulation is designed to improve transparency in the conduct of securities transactions.

    In a major enhancement of investor protection, the Act expressly prohibits Ponzi Schemes and other unlawful investment schemes, while prescribing stringent jail terms and other sanctions for the promoters of such schemes.

    It also strengthens the Investments and Securities Tribunal (IST) by amending some key provisions in the repealed ISA 2007 pertaining to the composition of the tribunal, constitution of the tribunal, qualification and appointment of the chief registrar as well as the jurisdiction of the tribunal to enhance the ability of the tribunal to optimally discharge its mandate.

     ISA 2025 expands the category of issuers to the public, a key step towards the introduction of a wide range of innovative products and offerings as well as the facilitation of “commercial and investment business activities”, subject to the approval of SEC and other controls stipulated in the Act.

    In the area of classification of exchanges and inclusion of provisions on financial market infrastructures, the Act classifies securities exchanges into composite and non-composite exchanges. A composite exchange is one in which all categories of securities and products can be listed and traded, while a non-composite exchange focuses on a singular type of security or product. There are also new provisions on financial market infrastructures such as central counter parties, clearing houses and trade depositories.

    It also provides comprehensive insolvency provisions for financial market infrastructures by introducing provisions that exempt transactions facilitated through or otherwise involving financial market infrastructures from the application of general insolvency laws.

    In the area of management of systemic risk, the Act introduces provisions for the monitoring, management and mitigation of systemic risk in the Nigerian capital market.

    Stakeholders and experts said the new Act would usher in a new era of dramatic growth and development for the Nigerian capital market and the economy generally.