Tag: Securities and Exchange Commission

The Securities and Exchange Commission (SEC) has cautioned that not all fintech companies applying for registration will be approved, as some may fail to meet the required standards.

Speaking during a meeting with applicants from the Regulatory Incubation and Accelerated Regulatory Incubation Program yesterday, SEC Director-General, Dr. Emomotimi Agama, assured that the Commission remains committed to maintaining transparency and fairness in its regulatory activities.

Agama emphasized that the registration process is complex, involving not only onboarding but also ongoing monitoring, education, and risk management. “Registration is the foundation of regulation,” he said, adding that the Commission aims to ensure that all decisions align with international standards and serve Nigeria’s interests.

SEC has provided a level playing field for all applicants but stressed the need for caution in its drive for inclusivity. “This is a new journey with challenges, but every challenge is solvable,” Agama noted.

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The Director General explained that the Commission collaborates with key stakeholders, including the Central Bank of Nigeria, Nigeria Financial Intelligence Unit, and Federal Inland Revenue Service, to ensure its regulations are robust and widely accepted. He also highlighted the need for stakeholder input in shaping regulatory guidelines, describing the process as a shared responsibility.

Agama reassured fintech stakeholders that the SEC is working diligently to address their concerns while protecting investors and the broader ecosystem. “We are building a new economy that benefits everyone. If we get it right, international partners will be attracted to our space,” he said.

He also disclosed that new laws are being finalized to improve regulatory oversight and guide operators effectively. These efforts, he said, aim to make Nigeria a global leader in fintech regulation.

The SEC called for the cooperation of all stakeholders in creating a strong and transparent ecosystem, urging collaboration to achieve shared goals. “Together, we can build an ecosystem we will all be proud of,” Agama said.

The Nigerian capital market is on a good footing to support the attainment of the Federal Government’s agenda of leapfrogging the national economy to a $1 trillion economy.

Director General, Securities and Exchange Commission (SEC), Dr Emomotimi Agama  said the capital market as the financial backbone of the economy has the capacity to drive the $1 trillion economy agenda.

Agama spoke yesterday in Lagos as the 2024 SEC Journalists Academy. The theme of the workshop was: “The Role of the Capital Market in Driving Nigeria’s $1 Trillion Economy”.

He said the $1 trillion journey demands collective effort—from policymakers ensuring an enabling environment, to businesses leveraging market opportunities and, importantly, to journalists who communicate the market’s value to the broader public.

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Said he: “Achieving a N1 trillion economy is not merely an aspirational goal; it is a necessity for the prosperity and resilience of Nigeria”.

He, however, said that limited investor participation, regulatory bottlenecks and macroeconomic uncertainties was constraining the capital market full potential to achieve one trillion economy.

He said the challenges must be addressed to achieve the full potential of the capital market in the one trillion dollar economy.

Agama said the capital market in spite of these challenges had helped in the development of the nation’s economy.

He noted that the Federal Government had raised significant capital by issuing six Sukuk to find road projects across the six geo-political zones.

Agama explained that a significant pathway to economic transformation lies in financing critical national projects, especially in infrastructure.

“Nigeria has already demonstrated how the capital market can fund these needs through innovative instruments like sovereign bonds and a number of Sukuk,” Agama said.

The SEC DG said this innovative funding approach reduced the reliance on external borrowing while driving job creation, improved logistics, and regional integration.

“The issuance of green bonds has further cemented the role of the capital market in supporting Nigeria’s transition to a low-carbon economy, addressing both infrastructure and environmental sustainability,” he said.

He added that the listing of firms such as Dangote Cement and BUA Group underscores how the capital market supports industrial growth and job creation.

“The total market capitalisation of the Nigerian Exchange Limited stood at N60 trillion by December 13, 2024, a testament to the growing role of the private sector in driving national economic outcomes.

“One of the most remarkable opportunities within the capital market is its ability to democratise wealth creation. Through vehicles like collective investment schemes, retail bonds, and exchange-traded funds, the market provides access to financial products for Nigerians across income levels.

“Beyond government financing, the capital market is a vital enabler of private sector growth,” he said.

He added that companies in Nigeria had utilised the market to raise capital, expand operations, and compete globally.

“A prime example is MTN Nigeria, whose public offering in 2021 attracted significant local investor participation, broadening its shareholder base while showcasing the strength of our market.

“As we navigate the complexities of Nigeria’s economic landscape, the capital market emerges as a cornerstone in the pursuit of sustainable growth and development.

“The capital market is the engine that drives economic progress by channeling resources from savers to those who need capital for productive use.

“Globally, countries that have achieved economic milestones—whether in industrialisation, infrastructure, or innovation—have relied heavily on the capital market to mobilise and allocate resources efficiently.

“However, through concerted efforts by stakeholders—including the Securities and Exchange Commission, market operators, and policymakers—we are laying the foundation for an inclusive, efficient, and globally competitive capital market,” Agama said.

He noted that the rise of the retail bond market had enabled ordinary Nigerians to participate in the nation’s economic growth.

“The Federal Government introduced the Savings Bond in a bid to expand the retail investor base in the bond markets and this has been well received by investors in recent times.

“The introduction of fintech platforms has further simplified access to investment opportunities, driving financial literacy and inclusion. Today, numerous retail investors actively participate in the Nigerian capital market—and we are committed to growing this participation.

“The role of the capital market also extends to state governments, offering a sustainable avenue for financing projects. Sub-nationals like Lagos, and Ogun states among others have leveraged bond issuances to fund infrastructure, education, and healthcare projects.

“These bonds not only enable states to execute developmental projects but also foster accountability and transparency, as market discipline demands robust reporting and monitoring mechanisms. Expanding this model across more states could unlock development at unprecedented scales, especially when paired with public-private partnerships.

“However, through concerted efforts by stakeholders—including the Securities and Exchange Commission, market operators, and policymakers—we are laying the foundation for an inclusive, efficient, and globally competitive capital market.

He said initiatives like improving market liquidity, simplifying listing requirements, and fostering innovation through fintech solutions are vital to building confidence and attracting both local and foreign investors.

Agama urged journalists, as custodians of public knowledge to amplify the capital market’s impact by shaping narratives that would inspire trust and participation.

“Moreover, as journalists, your ability to present accurate, insightful, and engaging narratives about these developments is crucial in educating the public and removing any misconceptions.

“Together, we can move toward a more inclusive, dynamic, and prosperous Nigeria,” Agama said.

In its commitment to ensure that more Nigerians are attracted to the capital market, the Securities and Exchange Commission (SEC) has rolled out an enlightenment initiative tagged #investnigeria.

Speaking at the official rollout at the weekend, Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama said the aim is to promote investment in the capital market through advertising, which he emphasized, has numerous benefits.

According to him, “Some reasons why advertising can be an effective way to promote investment in the capital market are that it can educate potential investors about the benefits and opportunities of investing in the capital market, the campaigns improve literacy by helping investors understand various investment products, risks, and rewards and advertising can assist investors have access to investment opportunities by informing them about available investment opportunities, such as initial public offerings (IPOs), bonds, and mutual funds.

The SEC DG said the initiative would also benefit the economy as encouraging investment in the capital market can lead to increased economic activity, job creation, and GDP growth.

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 “Advertising can attract domestic and foreign investment, leading to increased capital formation and development of the capital market. Advertising can also aide Financial deepening as promoting investment in the capital market can contribute to financial deepening, making financial services more accessible and affordable.

Agama said the #investnigeria initiative also has enormous benefits for the capital market as it can attract more investors, leading to increased liquidity and market efficiency as well as promote transparency and disclosure, essential for a well-functioning capital market.

He noted that advertising can help the capital market become more competitive, attracting more issuers and investors both local and foreign adding that by promoting investment in the capital market through advertising, the Commission can increase awareness, improve financial literacy, and attract more investors, ultimately contributing to economic growth and development.

He disclosed that aside the billboards already being installed in different parts of the country, the Commission intends to utilize social media, online advertising, and email marketing to reach a wider audience.

 “We hope to collaborate with financial influencers, bloggers, and thought leaders to promote investment in the capital market. We will also host seminars, workshops, and conferences to educate investors and promote investment opportunities, as well as leverage media coverage to raise awareness about the capital market and investment opportunities”, he added.

The SEC Boss stressed the need to equip investors with the necessary knowledge and tools to navigate the evolving financial landscape safely.

 “One of the ways by which you can protect investors is obviously by equipping them with knowledge and giving them the know-how to discern between what is a good investment and what is not a good investment.

“I am talking about in terms of safety, in terms of avoiding risk, in terms of avoiding a ponzi scheme, or spotting a ponzi scheme when it’s there, or spotting a scam or even just taking care of their assets”, Agama said.

He underscored the knowledge-based nature of the capital market, stating, “We need to continue constant education in the capital market. The market is knowledge-based and we are committed to ensuring that information is made available to the investing public.

 “The commission will continue to partner with relevant stakeholders to create more learning opportunities. That is the reason we have decided to collaborate with relevant stakeholders to ensure that the message is taken to every part of this country as investor education can foster the growth and development of Nigeria’s capital market”.

The Securities and Exchange Commission (SEC) has disclosed that the Federal Government of Nigeria has issued six Sovereign Sukuk bonds worth N1.1 trillion ($657.6 million) since 2017.

Proceeds from these bonds issuances were used to finance 124 federal road projects spanning over 5,820 kilometers across Nigeria’s six geopolitical zones.

This revelation was made by the SEC Director General, Dr. Emomotimi Agama, at the 2nd International Islamic Capital Market (ICM) Conference in Karachi on Thursday.

A statement from the SEC said Dr. Agama was happy  with the subscription rates of Nigeria’s sovereign Sukuk, which have reached as high as 441 percent, showing the resilience and innovation of the ICM as a resource mobilization tool.

Dr. Agama attributed the growth of Nigeria’s Islamic Capital Market to the successful issuance of sovereign Sukuk and the increasing involvement of sub-national and corporate entities.

He noted that states like Osun and Lagos, alongside corporate entities such as Family Homes Ltd and TAJ Bank Plc, have utilized Sukuk to fund school infrastructure, housing projects, and bank capital—demonstrating the versatility of these instruments.

“These instruments have been instrumental in funding critical infrastructure and innovative projects, such as tier-1 capital for a bank, a first in Nigeria,” Dr. Agama said.

Beyond Sukuk, the ICM in Nigeria has diversified significantly. With just one registered fund in 2008, the segment now boasts 14 Halal mutual funds with a combined net asset value exceeding N105 billion as of November 2024.

The NGX Lotus Islamic Index, which tracks 11 Shariah-compliant equities, and Nigeria’s first Islamic Real Estate Investment Trust (ChapelHill N-REIT) further highlight the expanding opportunities in the sector.

Dr. Agama identified several factors fueling the growth of Nigeria’s Islamic finance industry. Globally, economic diversification efforts, regulatory support, and demographic trends are increasing demand for Shariah-compliant products. Locally, Nigeria’s large Muslim population, government-backed Sukuk initiatives, and growing investor awareness have strengthened the market expansion.

Agama added that, fintech innovations are transforming the landscape. In 2022, the SEC registered Nigeria’s first Robo advisory firm focused on Shariah-compliant investments, expanding accessibility and participation.

 Dr. Agama noted that the success of the ICM is rooted in its alignment with Nigeria’s infrastructure financing, financial inclusion, and sustainability goals.

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He traced this focus to 2004, when the SEC joined the Islamic Finance Task Force of the International Organization of Securities Commissions (IOSCO). The subsequent issuance of Islamic fund and Sukuk rules in 2010 and 2013, respectively, laid the groundwork for the Non-Interest Capital Market Master Plan (NICMMP) 2015–2025.

The NICMMP envisions the ICM contributing 25 percent of Nigeria’s total market capitalization by 2025, with Sukuk accounting for 15 percent. A 2021 review of the master plan targeted 50 Shariah-compliant product listings with a market capitalization of at least N5 trillion ($11 billion) by 2025.

 “The performance of the NICMMP has been remarkable, with 70% of its initiatives fully implemented by 2022. These include improved public awareness, increased retail participation in Sukuk, and the introduction of the Non-Interest Pension Fund (Fund VI) in collaboration with PenCom,” Dr. Agama stated.

Despite its successes, Nigeria’s Islamic finance sector faces challenges, including limited public awareness, a lack of tradable instruments, and the need for greater regulatory alignment. To address these, the SEC is focusing on capacity-building in Shariah governance, compliance, and collaboration with stakeholders to develop innovative Shariah-compliant instruments.

Dr. Agama revealed ongoing efforts to engage stakeholders in the mortgage sector to create Shariah-compliant housing finance solutions, which could catalyze the development of asset-backed instruments and deepen the market.

As Islamic finance continues to address Nigeria’s infrastructure deficit, financial exclusion, and ethical investment needs, Dr. Agama urged domestic and international investors to seize opportunities in the sector.

“This is the time to stake positions that will produce competitive returns while satisfying ethical and sustainability concerns. The table is set for investing, and foreign participants should align with domestic trends,” he said.

The Securities and Exchange Commission (SEC) has warned the public against conducting any business with Marino FX Limited.

According to the Commission, Marino FX Limited, which claims to be a SEC-licensed cryptocurrency exchange, is neither registered nor authorized to operate in the Nigerian capital market.

This announcement was made in a notice released by SEC in Abuja on Wednesday. The Commission stated: “We hereby notify the public that Marino FX Ltd, parading itself as a SEC-licensed cryptocurrency exchange, is NOT registered or licensed by the SEC to operate in any capacity in the Nigerian capital market, including cryptocurrency exchanges.

Any claim to the public by the company of its registration or license by the SEC is false and misleading.”

The SEC advised members of the public to exercise caution and avoid engaging with Marino FX Ltd or any of its representatives. The Commission emphasized that transacting with unregistered and unregulated entities in the capital market exposes investors to significant financial risks, including fraud and potential loss of investments.

In a related development, a public hearing was recently held on the proposed Investments and Securities Bill (ISB) 2024. The bill introduces stringent penalties, including a fine of N20 million, 10 years imprisonment, or both, for operators of Ponzi schemes.

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Speaking at the event, SEC Director-General Dr. Emomotimi Agama explained that the bill aims to expressly prohibit Ponzi/pyramid schemes and other illegal investment practices. “This initiative is designed to prevent illegal fund managers from exploiting unsuspecting Nigerians and siphoning their hard-earned money,” Agama stated.

Dr. Agama noted that SEC had identified several areas for review in the existing Investments and Securities Act (ISA) 2007. The proposed changes aim to strengthen existing provisions, eliminate ambiguities, and introduce new measures to enhance the international competitiveness of Nigeria’s capital market.

“The proposed amendments are part of our broader efforts to reposition the market to catalyze national economic transformation,” he added.

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC), has set up a committee to review curriculum already approved by the National Universities Commission (NUC) on securities and investment management for Nigerian universities and other tertiary institutions.

The review is to align the curriculum to include emerging trends like cyber security, artificial intelligence and advanced crypto among others in line with current market trends.

Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, at the inauguration of the review committee, said the initiative which has been ongoing remains a priority to the commission as part of its efforts to equip future professionals with relevant capital market knowledge and skills.

“Due to new development in fintech, cyber security, Artificial Intelligence and others, there is a need to expand the curriculum to accommodate the new trends. It is an important time and we want to latch in to be able to teach Nigerians, especially the young people about the capital market. In the light of this, the Commission has set up a Committee to review and enrich the existing curriculum to reflect these advancements.

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“It is sad that people do not have a full grasp of capital market issues, we must do everything to share knowledge and educate people. We want to be the best capital market among nations and that can only be possible due to the superiority of our knowledge. You are well placed to do this being in the ivory towers and i thank you for accepting to serve as we look forward to a robust discussion,” Agama said.

He outlined the terms of reference of the committee headed by Professor Uche Uwaleke, a Professor of Capital Market Studies at Nasarawa State University, Keffi, to include review of the NUC curriculum on securities and investment management to include non-interest capital market (NICM); the commodities ecosystem; financial derivatives market; sustainable finance, and capital market regulations; expand the “introduction to cryptocurrency” section of the NUC curriculum to reflect current developments.; and develop a standard capital market studies curriculum to be a d o p t e d by Nigerian universities and other tertiary institutions.

Members of the committee included Prof Augustine Agom of the Ahmadu Bello University, Prof Seth Akutson of the Kaduna State University, Prof Chuke Nwude of the University of Nigeria, Nsukka and Dr Akeem Oyewole of Marble Capital Ltd.

Others were Prof Oladele John Akinyomi of the Mountain Top University, Mrs Ojone Kabir, Head of Market Development Department of SEC, Dr Hassan Suleiman, Head of Economic Research and Intelligence of SEC and Mrs Jessica Ogwuche of the Financial Inclusion and Investor Education Department of SEC who is the secretary of the committee.

Uwaleke expressed appreciation to the commission for finding them fit and trusted to carry out the assignment saying that they consider it a national assignment.

“We know that part of our challenge is because our retail investor base is shallow in relation to our population and one way to change the narrative is through capital market literacy.

We as lecturers can attest to the fact that capital market literacy within the academic environment is low and I think tackling that is one low hanging fruit.

“I am aware that the DG and others have been trying to increase the level of awareness with various programmes like quiz, essays, investor clinics and others, but for us to make more impact, we need to focus on tertiary institutions and that is why I think what we are doing is very crucial,” Uwaleke said.

He assured that the members will add value given their track record, saying that the objectives and terms of reference of the committee would be achieved

Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has announced plans to establish a new Office of Small Business Capital Formation.

The Office will support small businesses in accessing capital by exempting them from going through the rigours of listing on the capital market in order to raise capital or smaller offerings.

This new office will provide targeted assistance to help Micro, Small, and Medium Enterprises (MSMEs) and their investors utilise the capital market to grow and prosper.

Director-General, Securities and Exchange Commission (SEC), Dr. Agama Emomotimi, made this known in a goodwill message delivered by Mrs. Samiya Hassan Usman, Executive Commissioner of Corporate Services, at the 2024 National MSME Conference.

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Dr. Emomotimi stated that the new office is part of SEC’s commitment to addressing MSMEs’ financing challenges and fostering their growth within the Nigerian economy. “This Office will champion initiatives that help MSMEs leverage capital market opportunities to thrive,” he said.

The office will work directly with small businesses and investors, offering educational programmes to address their capital needs.

Additionally, Dr. Emomotimi stated that all crowdfunding platforms must be registered with the SEC and comply with regulatory standards to safeguard retail investors, including keeping proper records and adhering to investment limits based on net worth or income.

The SEC also expressed readiness to help MSMEs in offering shares through online platforms, allowing investors to gain equity and participate in these companies’ growth.

The Commission’s 2021 crowdfunding guidelines specify requirements for platform registration, operation, and reporting.

“As the apex capital market regulator, SEC is committed to creating a conducive environment for MSMEs to secure capital, scale their businesses, and use financial technology to enhance growth,” said Emomotimi.

He noted the capital market’s potential to provide patient-capital through equity financing and bonds, which are essential for MSMEs’ innovation, expansion, and access to global markets.

Emomotimi further explained that the SEC’s commitment to MSMEs aligns with Nigeria’s “GROW Nigerian” initiative, which focuses on empowering sectors like creative industries, agriculture, light manufacturing, and tourism.

He argued that these sectors are essential for job creation, economic diversification, and export growth.

The guidelines released by the Securities and Exchange Commission prior to the banking recapitalization exercise has been described as one of the steps that has made the process more transparent and easily accessible for Nigerians to participate in.

Director General of the SEC, Dr Emomotimi Agama stated this at the Commission’s head office in Abuja weekend.

Agama said the present Management of the Commission is interested in integrity and transparency of processes, and that is why it provided clarity before the recapitalization exercise commenced, which is a major ingredient in a transparent capital market.

According to him, “That clarity came out of the regulations that the SEC brought up to support the banking recapitalization. The banking capitalization is a very important step by the government to strengthen the banks and indeed provide capacity for the banks to lend to the real sector for us to drive the economy, as provided for by the Renewed Hope Agenda Initiative and the design of the President to turn out a $1 trillion economy.

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“And so it was important that all institutions that are concerned with this activity, come together and provide a needed guidance for the banks to be able to run the programme. This is about the second time that the SEC will be tested in its capacity to be able to handle this. The first was in 2004 as you are aware, during the Soludo recapitalization exercise, the SEC was tested, and we came out of the test positive, this time around, it will not be different”.

The SEC Boss said the processes could only get better as the Commission has learnt a few lessons from the previous exercise, adding those lessons have led to creating an environment that makes it seamless, including the introduction of the guidelines, and the needed technology to help deal with it.

“So the guidelines, as it were, have actually brought about stability, transparency to the recapitalization process and public offerings have increased. And of course, you see the interest being galvanized by the actions of the SEC in trying to make sure that this is a success.

“And I can tell you without doubt, the information we have received thus far shows that we are actually on the right course, and we are happy that that is happening. We’ll continue to give support to the Central Bank of Nigeria and to every institution that understands the value and the premise of the capital market.

The capital market is indeed the barometer of the economy. And the SEC at this juncture is ready to live up to that bidding. I want a more sustainable industry”, he added.

Dr. Agama said the Commission is cooperating with the Central Bank of Nigeria, the Federal Inland Revenue Service as well as the Office of the National Security Adviser to ensure that there is a safe environment for investments to thrive with special focus on attracting the youth populace to the market.

He stated that youth empowerment is a cardinal objective of the President in line with the Renewed Hope agenda and that is why the SEC has to embrace innovation to make the capital market attractive to them adding that the Commission will continue to guide these enterprising youths to unleash their potentials in the area of Fintech.

“And it is important that we understand that we are an emerging economy, and being an emerging economy, the statistics and the principles that exist within other economics do not exist in ours. However, we are peculiar, so contextually, we need to do certain things to push the envelope. What are those things that we need to do to push the envelope?

“Education is critical. Sometimes we think that we need to put in policies first. No, the first thing that we need to do is educate people, get them to understand the value of what we are speaking to. Again, I commend the president, because he has always hammered on the need to redistribute wealth. How do you distribute wealth? You can only redistribute wealth, mostly right now through privatization, through listing where more persons are welcome to the table”, he explained.