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Tag: Securities and Exchange Commission

  • Ponzi operators risk 10-year jail term, N20m fine – SEC

    Ponzi operators risk 10-year jail term, N20m fine – SEC

    Promoters and operators of prohibited investment schemes are to face stricter penalties under the newly enacted Investments and Securities Act (ISA) 2025. 

    The law stipulates that individuals found guilty of running Ponzi schemes will be liable to a minimum fine of N20 million, a jail term of at least 10 years, or both.

    A statement from the Securities and Exchange Commission (SEC) on Tuesday in Abuja confirmed that the Act is designed to strengthen the legal framework governing yhe capital market, enhance investor protection, and implement reforms that will uphold market integrity, transparency, and long-term growth.

    SEC Director-General, Dr. Emomotimi Agama, explained that before the enactment and eventual signing of the ISA 2025, the Commission lacked the legal authority to prosecute Ponzi scheme operators effectively, making it difficult to hold offenders accountable. Under the new law, those convicted will face severe legal consequences, including extended jail terms beyond the minimum 10 years.

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    Agama further clarified that the N20 million fine is only one part of the penalties that may be imposed. 

    Additional sanctions, including financial restitution and other punitive measures, will be applied to ensure that perpetrators are held fully accountable.

    One of the critical provisions of the Act includes “disgorgement,” a legal measure that requires convicted individuals to return any illicit profits or gains acquired through fraudulent schemes. 

    According to Agama, the objective is not just to punish offenders but to create deterrent measures that discourage fraudulent activities in the capital market.

    The new law also grants the SEC expanded investigative powers, including the authority to access and review telephone records and other communications necessary to prosecute Ponzi scheme operators. Agama noted that these provisions will empower the SEC to take swift enforcement actions against fraudulent actors.

    Agama acknowledged that many Nigerians have fallen victim to Ponzi schemes due to the lack of stringent sanctions. The new law introduces measures aimed at preventing such schemes from thriving.

    “Protecting investors is a core responsibility of the SEC, and this law strengthens our ability to fulfill that duty. We now have greater authority to obtain phone records and other vital evidence to track down individuals defrauding Nigerians. This law provides us with limitless enforcement capabilities,” he stated.

  • SEC to clamp down on unfit market operators

    SEC to clamp down on unfit market operators

    …pledges stronger investor protection

    The Securities and Exchange Commission (SEC) has pledged to ensure that only individuals who meet rigorous ethical and professional standards are allowed to operate in Nigeria’s capital market.

    This decision the Commission said is aimed at safeguarding investors and strengthening market confidence.

    A statement from the SEC said the Director-General, Dr. Emomotimi Agama, made this known in Abuja over the weekend, where he issued a stern warning to market operators engaging in dubious or unethical practices, noting that such individuals will face serious consequences.

    According to Agama, the Commission will intensify efforts to enforce the “fit and proper person’s test,” a benchmark that assesses whether an individual or firm meets the statutory and regulatory standards required to function in the market.

    “As a form of self-regulation, operators must understand that if you engage in unethical conduct, the SEC will act decisively. The essence of registering a securities market operator lies in the fit and proper person’s test. This test ensures compliance with the provisions of the Investments and Securities Act (ISA) 2007 and other relevant SEC regulations,” he said.

    He added that public companies must provide accurate and timely disclosures, which are essential in enabling investors to make informed decisions. Any breach of disclosure requirements, he warned, contravenes both SEC regulations and the ISA and will attract regulatory action. “There is no hiding place anymore for anyone with an intention to defraud investors in the Nigerian capital market,” he stated.

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    Agama explained that investor protection remains a cornerstone of the Commission’s mandate, as outlined in the ISA 2007, and that ensuring the safety of investments is integral to the market’s growth. He noted that the Commission, under the leadership entrusted to him by President Bola Ahmed Tinubu, is determined to enforce this responsibility diligently.

    “It is important to state that every investor in Nigeria is under the cover of the SEC, provided they operate within the Nigerian capital market. The year 2025 is one where we will not tolerate any activities that fall outside the provisions of the ISA 2007,” Agama said.

    He said he was eagerly anticipating for the Presidential assent to the newly passed Investment and Securities Bill, which is currently undergoing administrative procedures. According to him, the new legislation will further strengthen the SEC’s regulatory powers and intensify the clampdown on Ponzi schemes, with stiffer penalties designed to serve as a deterrent.

    “Once the new Act is signed into law, it will underscore our determination to provide a robust regulatory framework that shields investors from fraudulent schemes, especially Ponzi schemes, which have caused significant financial losses in the past,” he noted.

    Agama also spoke on the importance of regulatory compliance and timely disclosure, describing them as non-negotiable duties for all market participants. He urged operators—both existing and prospective—to collaborate with the SEC to foster sustainable growth in the capital market.

    Commenting on recent regulatory actions, he said the revocation of licenses, suspension of operators, and pursuit of unregistered firms are early indicators of the Commission’s broader strategy in 2025. 

    “What you have seen in recent months is only a tip of the iceberg. We believe that a well-protected investor is an empowered investor, and we will use every tool at our disposal, within the bounds of Nigerian law, to prevent and penalize fraudulent activities in the capital market,” he added.

  • SEC’s hammer falls on two operators

    SEC’s hammer falls on two operators

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has revoked the registration of Mainland Trust Limited.

    SEC also imposed an indefinite suspension on Centurion Registrars Limited, its directors, and sponsored individuals from all capital market activities.

    SEC stated that the actions, announced in two separate circulars issued over the weekend, marked a firm response to persistent non-compliance and unresolved client complaints involving the two firms.

    According to the circular on Mainland Trust Limited, SEC disclosed that the decision to cancel the company’s registration was taken in exercise of its statutory authority under Section 38(4) of the Investments and Securities Act (ISA) 2007 and Rule 34(1)(e) of the SEC Consolidated Rules and Regulations 2013.

     “The Securities and Exchange Commission hereby notifies the general public that the registration of Mainland Trust Limited as a capital market operator has been cancelled with immediate effect,” the notice stated.

    The Commission cited the company’s failure to adhere to regulatory directives and its inability to resolve several outstanding complaints lodged by clients as the reasons for the cancellation.

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    Clients of Mainland Trust Limited have been advised to approach the Central Securities Clearing Systems Plc (CSCS) for guidance on how to transfer their stocks to another stockbroker of their choice.

    In addition to terminating the firm’s registration, SEC has directed all market institutions and associations including the Nigerian Exchange Group (NGX), the Institute of Capital Market Registrars (ICMR), the Chartered Institute of Stockbrokers (CIS), and the CSCS to cease all capital market-related transactions with Mainland Trust Limited.

    In another development, the SEC also announced the suspension of Centurion Registrars Limited. The order, which affects the company, its directors, and sponsored individuals, was issued with immediate effect. SEC stated that Centurion Registrars Limited had similarly failed to comply with regulatory instructions and had unresolved complaints against it.

    This suspension, according to the Commission, was enacted under the powers granted by Sections 38(4) and 38(5) of the ISA 2007 and Rule 34(1)(e) of the SEC Rules. Affected clients have been instructed to contact Africa Prudential Plc for assistance in transferring their investment portfolios to an alternative registrar.

    As part of the enforcement action, SEC has mandated the NGX, ICMR, CIS, CSCS Plc, and all Capital Market Trade Associations to cease dealings with Centurion Registrars Limited and its principal officers.

    The Commission also made it known that it is intensifying efforts to maintain a strict regulatory environment in the Nigerian capital market. As part of a revised enforcement strategy, SEC announced that going forward, the names of capital market operators found to have violated market laws and regulations will be published in a “name and shame” journal.

    The publication, according to SEC, will be in addition to existing sanctions and penalties stipulated in the Investments and Securities Act 2007 and the SEC Rules and Regulations. This move, the Commission stated, aims to uphold the integrity and stability of the capital market while ensuring that investors are protected and market participants remain compliant with the rules.

    The SEC called on all stakeholders and capital market operators to take note of these developments and act accordingly.

  • SEC warns against phony investment schemes

    SEC warns against phony investment schemes

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has warned the general public against investing in unregistered investment schemes.

    SEC particularly highlighted Promiseland Estates Limited and Promiseland Building & Construction Limited which hold themselves out as investment advisers and fund managers in the Nigerian capital market and promote an illegal investment scheme called “PRO-VEST” and MY SHARE operating under the name; UYJ MULTITRADE LIMITED.

    According to the Commission “the attention of the Securities and Exchange Commission (SEC) has been drawn to the activities of Promiseland Estates Limited and Promiseland Building & Construction Limited which hold themselves out as Investment Advisers/Fund Managers in the Nigerian Capital Market and promote an illegal investment scheme called “PRO-VEST”.

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    SEC stated that members of the public are specifically warned against patronizing or investing in the scheme PRO-VEST.

    Similarly, the Commission said its attention has been drawn to the activities of MY SHARE operating under the name; UYJ MULTITRADE LIMITED which holds itself out as an Investment Adviser/Fund Manager in the Nigerian Capital Market.

     “The Commission hereby notifies the investing public that Promiseland Estates Limited and Promiseland Building & Construction Limited are NOT REGISTERED to operate in any capacity in the Nigerian Capital Market.

     “Accordingly, the general public is advised to refrain from engaging with Promiseland Estates Limited and Promiseland Building & Construction Limited and MY SHARE and UYJ MULTITRADE LIMITED or any of their representatives in respect of any business pertaining or relating to the Nigerian capital market,” SEC stated.

    The Commission reiterated that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment.

    SEC urged the investing public to confirm the status of companies and entities offering investment opportunities its dedicated portal before transacting with them.

  • SEC warns public against illegal investment schemes

    SEC warns public against illegal investment schemes

    The Securities and Exchange Commission (SEC) has cautioned the public against investing in unregistered investment schemes, specifically naming Promiseland Estates Limited, Promiseland Building & Construction Limited, and UYJ Multitrade Limited for engaging in illegal financial activities.

    In a statement, SEC disclosed that Promiseland Estates Limited and Promiseland Building and Construction Limited have been falsely presenting themselves as Investment Advisers and Fund Managers in the Nigerian capital market while promoting an unapproved investment scheme known as “PRO-VEST.”

    “The attention of the Securities and Exchange Commission (SEC) has been drawn to the activities of Promiseland Estates Limited and Promiseland Building and Construction Limited, which hold themselves out as Investment Advisers/Fund Managers in the Nigerian Capital Market and promote an illegal investment scheme called ‘PRO-VEST,’” the statement read.

    The Commission warned members of the public not to patronise or invest in PRO-VEST, as it is neither registered nor recognized under Nigerian capital market regulations.

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    Similarly, SEC identified UYJ Multitrade Limited, which operates under the name “MY SHARE,” as another entity posing as an Investment Adviser and Fund Manager without proper authorization.

    “The Commission hereby notifies the investing public that Promiseland Estates Limited, Promiseland Building and Construction Limited, and UYJ Multitrade Limited (MY SHARE) are NOT REGISTERED to operate in any capacity in the Nigerian capital market,” SEC stated.

    As a precaution, the Commission urged Nigerians to avoid doing business with these entities or any of their representatives, stressing that engaging with unregistered investment schemes exposes investors to fraud and potential financial losses.

  • SEC slashes time for companies to raise capital to 14 days

    SEC slashes time for companies to raise capital to 14 days

    The Securities and Exchange Commission (SEC) has reduced the time required for companies to secure approval to raise capital in the Nigerian capital market, cutting the process from over a year to just 14 days.

    This development aims to make the capital market more efficient and better positioned to support the growth and development of Nigeria’s economy.

    In a statement issued by the SEC, its Director General, Dr. Emomotimi Agama, disclosed the initiative over the weekend in Abuja. He said that the current management of the SEC has streamlined approval processes to enable companies access funding more swiftly.

    “Since we came on board, it is instructive to say that we have helped propel the economy. One of the things that has been a challenge before we came to the saddle was time to market. Issuers would come to the market and spend time before they got approval to raise capital,” Agama stated.

    He added, “The capital market is the life and blood of any economy, and of course, this is actually regulated by time. So one of the first things we tackled since we came was to reduce the time to market. Therefore, I can proudly say that we have reduced the time to market from over a year to fourteen days.”

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    The SEC DG noted the success of the banking sector’s recapitalization exercise, where banks raised over N2.2 trillion from the capital market using the e-offering platform. He stated that the Commission’s efficiency mechanisms ensured that issuers did not face delays in their applications, allowing approvals to be granted within record time.

    “In addition, all of these transactions have been fully subscribed, and we have encouraged the use of technology. They used the e-offering platform, meaning you do not have to use paper anymore to apply in this market. We hope to get better by the day,” Agama explained.

    He stressed the growing role of technology in modernizing the market, stating, “Technology is the in-thing. The ISA 2007 has provided for that, and we feel that to achieve the milestone we want in the market, we need to do better. We applied that in the bank recapitalization, and the success is massive and overwhelming. The NGX has an e-IPO system that has proven to be very effective.”

    The SEC DG pointed out that all offers submitted during the recent period were approved within the promised 14 days. He also observed that the use of technology has attracted more young people to the market, contributing to its vibrancy.

    “In this year, we will make more use of technology in the work that we do,” he stated.

    Agama reiterated the Commission’s commitment to enhancing the capital market’s role in driving economic growth and providing solutions for the Nigerian economy.

    “What is new for us this year is efficiency, dedication, and giving back to society by using the capital market as an engine of growth and a propeller of wealth for all Nigerians. We must give back by ensuring that Nigerians are properly served.” 

    “The SEC is committed to protecting investors and developing the market. We must do everything within our powers and the laws to provide that and ensure Nigerians are happy again in investing in the market and making wealth for Nigerians,” he added.

  • SEC pledges commitment to financial inclusion for women

    SEC pledges commitment to financial inclusion for women

    In recognition of the critical role financial inclusion plays in national development, the Securities and Exchange Commission (SEC) has reaffirmed its commitment to ensuring that women—whether traders, entrepreneurs, professionals, or investors—have equitable access to financial services, investment opportunities, and the necessary tools to build sustainable wealth.

    Speaking at the She’s Included Gender Inclusion Conference and Summit 2025, themed “Breaking Barriers, Building Resilience for Sustainable Economic and Financial Inclusion,” SEC’s Executive Commissioner for Corporate Services, Mrs. Samiya Usman, emphasized the Commission’s dedication to fostering an inclusive financial ecosystem that empowers women across all sectors.

    Usman said that as Nigeria’s apex regulator of the capital market, the SEC operates with a dual mandate: to regulate and develop the market.

    In fulfilling this mandate, she noted that the Commission recognizes the pivotal role financial inclusion plays in national development, saying that a financially empowered woman is an empowered household, and an empowered household is the bedrock of a prosperous economy.

    She disclosed that over the years, the SEC has taken deliberate steps to ensure that the Nigerian capital market fosters inclusivity and caters to the unique financial needs of women.

    Said she: “Through policy advocacy, regulatory frameworks, and partnerships, we continue to encourage the development of women-focused financial products and services. I am pleased to highlight that some of our capital market operators have heeded this call by designing tailored investment solutions.

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     “A notable example is United Capital’s Women Wealth for Women Fund, which seeks to empower women with wealth creation opportunities. Similarly, within the commodities market, innovative financial products have been structured to enhance women’s participation in agribusiness, an area where many Nigerian women play a critical role.

     “At the mention of this summit, we mobilized our operators to key into this conference as part of their support towards financial inclusion and they are all represented here with their booths showcasing their products and ready to discuss and educate you on your investments and opportunities in the capital market. We have six registrars under the Institute of Capital Market Registrars (ICMR) and Fund Managers of Nigeria (FMAN)”.

    Additionally, she said the Commission has actively promoted Investor Education for Women, through Webinars, reaching market women, SMEs, and women-led businesses through targeted financial literacy programmes.

    Usman disclosed that through these initiatives, thousands of women have gained the knowledge required to participate meaningfully in the capital market.

    The SEC Executive Commissioner said that despite the progress made, several barriers still hinder women’s full participation in the financial sector ranging from cultural limitations to financial literacy gaps, inadequate access to credit, and predominance of informal economic activities among women.

    Usman stated that in Northern Nigeria, in particular, financial exclusion remains a pressing concern, making it imperative to intensify efforts to bridge the gap.

     “We acknowledge that there remains a lot of work to be done. Knowledge is key, and financial empowerment ensures that communities as a whole reap the benefits of economic progress,” Usman said.

    She enjoined stakeholders to work collectively to dismantle these barriers adding that the SEC is committed to strengthening collaboration with stakeholders to drive more gender-focused financial inclusion policies, encourage financial institutions and market operators to introduce more products tailored to the unique needs of women, expand investor education programs to reach even more women, particularly in underserved regions and support women-led businesses and SMEs in accessing capital market financing for growth and sustainability.

    “We are delighted to be part of this noble initiative, which aligns with our unwavering commitment to fostering financial inclusion, empowering women, and strengthening economic resilience.

    “I would like to commend the organisers for convening this impactful event and for choosing such a thought-provoking theme: Breaking Barriers, Building Resilience for Sustainable Economic and Financial Inclusion. This theme resonates deeply with the SEC’s mission to build a capital market that serves all segments of society and ensures no one is left behind in the quest for economic empowerment,” she added.

  • SEC flags two unregistered cooperative societies

    SEC flags two unregistered cooperative societies

    Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has warned the investing public against engaging in any investment-related transactions with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society, commonly known as Stecs.

    In a circular issued at the weekend in Abuja, SEC stated that neither entity was registered or authorised to operate in the capital market.

    “The attention of the Securities and Exchange Commission has been drawn to the activities of Risevest (Victoria Island) Cooperative Multipurpose Society Limited, which is engaging in capital market activities by inviting the public to invest in its various investment schemes.

    “Similarly, our attention has been drawn to Stecs (Alausa) Multipurpose Cooperative Society (popularly known as Stecs), which is engaging in capital market activities by inviting the public to invest in its Stecs Commodity Mudarabah Investment Series I.

    “The Commission hereby notifies the public that Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society are not registered to operate in any capacity in the Nigerian capital market. Similarly, the investment schemes promoted by them have not been authorized by the Commission.

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     “Accordingly, the SEC advised the public to refrain from engaging with Risevest (Victoria Island) Cooperative Multipurpose Society Limited and Stecs (Alausa) Multipurpose Cooperative Society in respect of any business pertaining or relating to the Nigerian capital market,” SEC stated.

    The Commission further reiterated that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to the risk of fraud and potential loss of investment.

    “The SEC remains committed to the protection of investors in the Nigerian capital market and is working diligently to combat the activities of illegal and unregistered entities,” SED stated.

    SEC urged investors to verify the registration status of entities offering investment opportunities in the Nigerian capital market through its website and other channels.

  • SEC plans improved rules for borrowing by govts, corp

    SEC plans improved rules for borrowing by govts, corp

    The Securities and Exchange Commission (SEC) has announced plans to enhance the rules and regulations around borrowing for both the government and businesses.

    A statement from the SEC said Dr. Emomotimi Agama, the Director General of the SEC, noted the importance of ensuring that borrowing practices are sustainable for various levels of government, including local and state governments.

    His comments come in light of a recent Supreme Court order that allows the 774 local government areas to receive direct financial support from the Federal Government.

    Dr. Agama explained that, “It is crucial that we manage these resources wisely through strategic borrowing, which will promote development in these sectors”.

    For businesses, Dr. Agama disclosed that new regulations concerning Central Counter Parties (CCPs), which are intermediaries that help facilitate and manage trading between companies are expected to come into effect in 2025 and are designed to make the borrowing process smoother for Nigerian companies looking to raise capital.

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    He stated, “We want to make borrowing an easy and trouble-free experience for Nigerian businesses”.

    Historically, Nigeria’s economy has been viewed as reliant on a narrow range of products, but Dr. Agama believes that significant changes will be introduced by 2025. He revealed the introduction of derivatives—financial contracts whose value is linked to the future price of an asset—which will diversify the capital market.

    To encourage this growth, the SEC is working on creating laws and regulations that will provide a clear and safe trading environment for derivatives, including protecting these transactions from general insolvency laws. Dr. Agama noted that building trust in derivatives trading is key to attracting more investors into the market.

    The SEC is focused on creating a safer and more reliable trading atmosphere, which is expected to increase participation and investment in Nigeria’s financial market.

    By enhancing regulations and introducing new financial products, the SEC aims to foster economic growth and build confidence among businesses and investors across the country.

  • SEC targets fraud-free market

    SEC targets fraud-free market

    The Securities and Exchange Commission (SEC) has reaffirmed its commitment to eliminating Ponzi and pyramid schemes in Nigeria, aiming to create a conducive environment for legitimate investments to flourish in 2025.

    In a New Year address to the capital market community, SEC’s Director-General, Dr Emomotimi Agama, outlined the commission’s strategic focus for the year. He emphasised that protecting investors and restoring trust in the capital market remain central to SEC’s mission.

    He said: “Enforcement is the backbone of effective regulation. We are revamping our investigative processes to enhance efficiency and hold bad actors accountable more decisively. Insider trading undermines activities and dampens market fairness. By revising our regulatory framework, we aim to strengthen detection, prevention, and accountability mechanisms.”

    Agama highlighted the commission’s multi-pronged approach to tackle fraudulent schemes, which have been a persistent threat to investor confidence. According to him, SEC will prioritise enforcement actions, enhance market transparency, and revitalise the Investments and Securities Tribunal (IST) for more efficient resolution of disputes.

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     “Transparency is at the heart of investor confidence and capital markets. We will introduce measures to ensure greater visibility and trust in securities transactions,” he said.

    The SEC boss also identified the commodities market as a key area for growth in 2025. With Nigeria’s agrarian economy offering a comparative advantage, the commission plans to bolster the legal and regulatory frameworks governing this sector.

     “The commodities market holds immense potential for economic development. This year, SEC will focus on reinforcing the structures that support its growth, ensuring a vibrant ecosystem for both soft and hard commodities. We are committed to taking Nigeria’s commodities market to the next level,” he said.

    Dr Agama tasked stakeholders to collaborate with SEC in driving the capital market towards inclusive growth.

     “As we embark on this journey, I invite all stakeholders to work with us in achieving these goals. Together, we can unlock the potentials of the Nigerian capital market and make this a defining year for our economy,” he urged.

    He assured of the Commission’s dedication to drive the capital market to deliver development to every Nigerian.