The Securities and Exchange Commission (SEC) has reiterated its zero-tolerance stance against fraudulent activities, particularly insider trading and the misuse of privileged information. Director-General Dr. Emomotimi Agama emphasized that operators engaging in unscrupulous practices will face stringent penalties as the Commission prioritizes safeguarding investor interests.
“For us, mainstreaming the Nigerian Capital Market into the economy is very vital,” Dr. Agama stated. “Enforcement is the backbone of effective regulation. We are revamping our investigative processes to enhance efficiency and hold bad actors accountable more decisively.”
The SEC’s renewed focus includes intensifying efforts to eliminate Ponzi and pyramid schemes, thereby fostering an environment conducive to genuine investment opportunities. Dr. Agama highlighted that insider trading undermines market fairness and dampens investor confidence. By revising the regulatory framework, the Commission aims to strengthen detection, prevention, and accountability mechanisms.
Central to these efforts is the enforcement of the Investment and Securities Act (ISA) of 2007, which serves as the legal foundation for regulating securities and investments in Nigeria. The Act empowers the SEC to oversee the capital market, ensuring the protection of investors and the maintenance of fair, efficient, and transparent market practices.
Furthermore, Dr. Agama underscored the importance of the “fit and proper person’s test,” a regulatory criterion requiring market operators to meet specific standards to obtain and retain their licenses. This measure is designed to promote ethical conduct and reinforce corporate governance within the market.
