The Nation Newspaper

Tag: The Securities and Exchange Commission (SEC)

  • Nigeria sets September 2027 to transit to market valuation of fixed-income assets

    Nigeria sets September 2027 to transit to market valuation of fixed-income assets

    Nigeria has set September 2027 deadline to begin full implementation of the International Financial Reporting Standards (IFRS) 9, which requires market-to-market valuation of all assets.

    Director-General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, at the weekend the outlined key modalities guiding Nigeria’s transition to the market-to-market (MTM) valuation of assets in the fixed income space of the capital market.

    According to him, the transition framework was a result of engagements with market participants.

    He noted that the October 2, 2025, deadline for the submission of implementation plans would enable the commission to assess each institution’s preparedness and capacity, while the September 2027 deadline remains the target for full transition to IFRS 9.

    He said: “Timelines have been carefully considered, you know, especially with the concerns being raised by market participants. For us at the SEC, it is important that while we try to introduce new rules and regulations, we also listen to the market and say, okay, how do we meet, how do we meet at the junction where we can all agree to move forward?

    “Requesting for implementation plans is not a bureaucratic exercise—it’s to gauge capacity, identify challenges, and meet operators at the point where we can all achieve compliance with one purpose and one goal.

    “Equity funds are already reported at fair value. The aspect of the Fund Management that was not aligned with international best practice was in the Fixed Income Funds space and that is what this policy alignment covers.

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    “Nigeria has come of age, and we must be seen to be doing things according to global standards. IFRS 9 requires market-to-market valuation of assets, and we cannot be left behind among the comity of nations.”

    He added that the reform would ensure that Nigerian assets are comparable globally, allowing investors to assess market performance more accurately.

    According to him, the goal is to create a market that is internationally competitive as adoption of IFRS 9 enables ease and compatibility among assets from different nations, clearly positioning Nigeria within the global market space.

    Responding to criticisms that the shift to market valuation could expose investors to short-term volatility, Agama said the move is intended to strengthen, not destabilise, the market.

    He said: “Some have expressed concerns about volatility, but our intention is not to disadvantage Nigerian investors. It is to expose them to global standards and transparency. Over time, as the market adjusts, these concerns will ease off and everyone will benefit from a more transparent and credible system”.

    He explained that beyond IFRS 9, the SEC is also leading Africa in adopting the International Sustainability Standards Board (ISSB) framework.

    He noted that Nigeria was among the first countries to accept and begin implementing the ISSB standards, emphasising their importance for climate and sustainability disclosures.

    He said: “We pride ourselves as performers—first among nations to accept and adopt the ISSB standards. But we are not oblivious of our contextual issues. We are taking a gradual approach so that our companies are not unduly burdened”.

    He added that the Commission’s objective is to implement standards that attract rather than restrict capital.

    “We will not implement standards that will shut companies out of capital. Instead, we are implementing those that will help bring in capital and promote sustainable growth,” Agama said.

    He expressed optimism about the Nigerian capital market’s performance in the final quarter of the year, citing the government’s macroeconomic reforms and the enactment of key laws such as the NIIRA 2025 and ISA 2025 as catalysts for stability and investor confidence.

     He said: “Markets do not operate in a vacuum, they thrive on stability. With the micro- and macro-economic stability being championed by President Bola Ahmed Tinubu, the market is positioned for significant growth.

    The NIIRA 2025 is a game changer that provides the framework for sustainable expansion.

    “We are on a path of progress and growth. The President’s reform agenda is already taking shape, ensuring that Nigeria’s capital market becomes a global reference point for transparency, regulation, and investor confidence”.

    He enthused that t SEC’s ongoing reforms, particularly the IFRS 9 transition and the adoption of sustainability standards, are part of a broader agenda to globalize Nigeria’s capital market, enhance transparency, and ensure wealth redistribution through a more resilient financial system.

  • SEC to adopt global sustainability disclosure standards in phases — Agama

    SEC to adopt global sustainability disclosure standards in phases — Agama

    The Securities and Exchange Commission (SEC) has announced plans to gradually implement the global sustainability disclosure standards developed by the International Organisation of Securities Commissions (IOSCO).

    Director General of the Commission, Dr. Emomotimi Agama, disclosed this at an investors’ roundtable on the International Sustainability Standards Board (ISSB) over the weekend. He explained that Nigeria, which actively participated in the development of the standards, will adopt a strategic approach to ensure successful implementation.

    “Nigeria, with its vast natural resources and growing population, is particularly vulnerable to climate change and is simultaneously pursuing an ambitious sustainable finance agenda,” Agama said.

    While commending the ISSB framework, the SEC chief clarified that Nigeria would not adopt a wholesale approach but would instead apply the standards in a manner suited to the local environment.

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    “This means: capacity building—working with issuers, auditors, and preparers to ensure they understand and are ready for the new requirements; phased implementation—considering a graduated approach, perhaps beginning with larger, listed entities before expanding to others; assurance framework—developing a robust system for the verification of disclosures to guarantee their credibility; and alignment with local realities—ensuring the global baseline is applied in a way that is appropriate and proportional for our market, while maintaining the core goal of global comparability,” he explained.

    According to him, adopting the standards will make Nigeria’s capital market more attractive to investors by reinforcing transparency, accountability, and long-term risk management.

    “We believe that embracing this global baseline will enhance the attractiveness of the Nigerian capital market. It signals to international investors that we are serious about transparency, governance, and managing long-term risk. It has transformed the ISSB from a promising new initiative into the definitive global framework for sustainability disclosures,” he stated.

    Dr. Agama maintained that the adoption of the ISSB standards would boost investor confidence and align Nigeria with international best practices.

    “The case for adoption is clear: for global comparability, for investor trust, for managing systemic risk, and for reducing complexity. This is no longer a question of if, but of how and when. The journey to a sustainable global economy requires a common language. The ISSB has provided that lexicon. IOSCO has called us to speak about it. At SEC Nigeria, we have answered that call,” he said.

    He further assured stakeholders that the Commission will continue to collaborate both locally and internationally to ensure effective application of the standards.

    “The global perspective is one of unity and decisive action. By adopting the ISSB standards, we are not just complying with a global trend; we are actively building a more stable, transparent, and sustainable financial future for Nigeria, for Africa, and for the world,” Agama added.

  • SEC moves against 79 suspected Ponzi schemes

    SEC moves against 79 suspected Ponzi schemes

    The Securities and Exchange Commission (SEC) has launched an investigation into 79 suspected Ponzi schemes across Nigeria, warning that those found culpable will face severe legal consequences, including prosecution under the Investment and Securities Act (ISA).

    The Commission said it will announce the outcomes of its investigations into the 79 suspected schemes, including FF Tiffany, when the probes are concluded.

    In a statement issued in Abuja, the Commission disclosed that it is also opening a separate, full-scale probe into the activities of an entity known as FF Tiffany. The company has been widely accused of orchestrating a fraudulent investment scheme that has allegedly swindled thousands of Nigerians at home and in the diaspora.

    “Preliminary findings suggest the scheme promised unusually high and unrealistic returns, leading to losses running into several billions of naira” the Commission said. The SEC described this as a grave threat to investor confidence and the stability of the financial system.

    The Commission assured Nigerians that it is working closely with law enforcement and other relevant agencies to trace those behind the scheme, stressing that individuals and entities found guilty will be prosecuted in line with the law.

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    In response to the growing number of unregulated investment platforms, the SEC repeated its advisory to the public to steer clear of Ponzi schemes and other ventures that promise guaranteed or exaggerated returns.

    The Commission warned that these schemes are not registered and therefore offer no investor protection under Nigerian law.

    To protect potential investors, the Commission urged Nigerians to verify the registration status of any investment firm or product by checking the SEC website or contacting its offices directly.

    “The SEC remains committed to protecting investors, ensuring fair practices, and preserving confidence in Nigeria’s capital market,” the statement read.

    As part of ongoing efforts to curb the spread of fraudulent schemes, the SEC has recently carried out awareness campaigns across markets nationwide. These sensitization exercises, led by SEC Director General Dr. Emomotimi Agama, aimed to educate traders and the wider public on the dangers of putting money into unregistered and risky investment platforms.

    Speaking to journalists during one of these campaigns, Agama explained that the Commission decided to take the message directly to the streets and markets, rather than relying solely on online platforms or official channels.

    “It is crucial that Nigerians understand the dangers of putting their hard-earned money into ventures that are not registered or regulated by the SEC,” Agama said. “We have come out here to inform them, and more importantly, they are now being enlightened that if it is too good to be true, then it is not good—it is certainly not true.”

    Agama noted that many of those engaged during the campaigns encouraged the SEC to return regularly, and he called on them to share the knowledge with friends, family, and colleagues. According to him, raising awareness at the grassroots level can help protect millions from falling victim to Ponzi schemes.

    Explaining the real risks, Agama said: “The danger is real. You could lose all your money. You could fall into ill health from the stress, and that could destroy your family, your foundation, your business—even the nation.”

    The SEC boss pointed out that with the signing of the new ISA 2025 by President Bola Ahmed Tinubu, penalties for promoting or participating in Ponzi schemes have become more severe. Those involved—including influencers, bloggers, and other accomplices—now risk a fine of N20 million and up to 10 years in prison.

    “We will not stop here. We will go to every market we can reach—every nook and cranny of this country. We will visit churches, mosques, hospitals, even the navy. We want everyone to hear this message.

    “It is never too late. When you wake up, that is your morning. Now that you are educated, you can protect yourselves and others. Ponzi schemes are a global problem, but together, we can fight them here.”

    Stressing the SEC’s determination to stamp out Ponzi operations and protect investors, Agama appealed for collective action: “The SEC of today is reaching out like never before. We will continue to do this, but we need your help to spread the information. Together, we will be better off.”

  • SEC bars independent directors from becoming Executive Directors

    SEC bars independent directors from becoming Executive Directors

    The Securities and Exchange Commission (SEC) has banned the conversion of Independent Non-Executive Directors (INEDs) into Executive Directors within the same company or corporate group.

    This is part of the SEC’s efforts to tighten corporate governance standards in Nigeria’s capital market.

    In a circular titled “Circular to All Public Companies and Capital Market Operators on the Transmutation of Independent Non-Executive Directors and Tenure of Directors”, the Commission stated that the practice compromises board independence and erodes the objective oversight that independent directors are expected to provide.

    The SEC expressed concerns over what it described as a growing trend of boardroom recycling within public companies and capital market operators, particularly the transmutation of INEDs into executive roles such as Chief Executive Officer (CEO). 

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    It said the practice undermines the neutrality and objectivity of such individuals and violates both the National Code of Corporate Governance (NCCG) and the SEC’s own Corporate Governance Guidelines (SCGG).

    “This practice clearly erodes the neutrality of the transmuting INEDs, compromises their ability going forward to provide objective judgment and is generally antithetical to the principles which underpin independent directorship,” the Commission noted.

    Effective immediately, public companies and capital market operators with significant public interest are required to discontinue the practice of appointing former INEDs to executive positions within the same firm or its group.

    In order to strengthen boardroom accountability and reduce concentration of power, the SEC introduced a mandatory three-year “cooling-off” period before a CEO or Executive Director can be appointed as Chairman of the same company. 

    According to the circular, “a Chief Executive Officer or Executive Director who steps down after 10 or 12 consecutive years, as the case may be, cannot be appointed as Chairman until the expiration of a 3-year cooling-off period.”

    Additionally, the tenure of directors in capital market firms identified as significant public interest entities will now be capped. Directors can serve a maximum of 10 consecutive years within the same company and up to 12 years within the same group structure. Where a CEO or Executive Director becomes Chairman after the cooling-off period, the tenure in that role will be limited to four years.

    The circular draws its authority from Section 355(r)(iv) of the Investments and Securities Act (ISA) 2025, which empowers the SEC to prescribe governance standards for regulated entities.

    To ensure immediate compliance, the SEC clarified that the tenure count includes years already served by current appointees. Companies are therefore expected to begin succession planning and board composition reviews in line with the directive.

    “These directives take immediate effect and compliance is mandatory,” the Commission stated. “Public Companies and Capital Market Operators are required to take the directives into account in their board appointments and succession planning.”