The Securities and Exchange Commission has reiterated its commitment to protecting investors in Nigeria’s capital market by cracking down on fraudulent activities.
The Director-General of SEC, Dr. Emomotimi Agama, emphasized that operators involved in unethical practices will face strict penalties, as the Commission remains focused on safeguarding investor interests.
“So, clearly for us, it is getting people to understand that there is no hiding place anymore for anybody that has the intention to defraud Nigerians and to defraud anybody that is investing in this market,” Dr. Agama stated.
He stressed the significance of the “fit and proper person’s test,” which mandates that operators meet specific regulatory criteria to retain their licenses.
“This is because the very ethics of regulating or registering a securities market operator is in the principle of the fit and proper person’s test.
“What you have been seeing most recently by the revocation of licenses, the suspension of operators and our follow-up to operators that are not registered with the SEC is only a tip of the iceberg as to what we intend to do this year,” he noted.
The SEC boss assured stakeholders that the commission would use its regulatory authority under Nigerian law to deter fraudulent activities, stating, “We strongly believe that a protected investor is a powerful investor.”
The SEC recently introduced additional enforcement measures, including a “name and shame” journal to publicly identify Capital Market Operators who breach regulations.
This initiative underscores the Commission’s zero-tolerance stance on infractions and aligns with its strengthened enforcement strategies.
