The Securities and Exchange Commission (SEC) has issued a stern warning to rule violators in Nigeria’s capital market, vowing to crack down on fraudulent operators and unscrupulous activities.
The SEC Director-General, Dr. Emomotimi Agama, made this declaration in a statement on Sunday, emphasizing that the commission will intensify actions against defaulters in 2025.
Agama noted that recent license revocations and suspensions were just the beginning, as the SEC is determined to protect investors and maintain market integrity.
“We strongly believe that a protected investor is a powerful investor. We will do everything within the powers of SEC and Nigerian law to deter individuals trying to defraud Nigerian investors,” he stated.
SEC to Enforce Compliance and Transparency
Agama reiterated that the Investments and Securities Act (ISA) 2007 prioritizes investor protection, requiring market operators to adhere to compliance and disclosure standards.
“Operators must understand that the ethics of the capital market demand they pass a fit-and-proper test and satisfy all regulatory requirements,” he added.
He warned that non-compliant market participants should expect more license revocations and suspensions as the commission steps up its enforcement actions.
Stiffer Penalties for Ponzi Scheme Operators
With the recent passage of the new Investment and Securities Act (ISA) by the National Assembly, Agama disclosed that stricter penalties would be imposed on Ponzi scheme operators and other fraudulent schemes once the law receives presidential assent.
“There is no hiding place anymore for anyone intending to defraud investors in Nigeria’s capital market,” he declared.
SEC Exposes Fraudulent Schemes
The commission recently published a list of unregistered investment schemes for public awareness, including Promiseland Estates Limited, Promiseland Building & Construction Limited, and UYJ Multitrade Limited (My Share).
According to Mr. Ugochukwu Obichukwu, an economic analyst, SEC’s action is not about questioning the legitimacy of these firms but ensuring they follow due process before soliciting public investments.
“A company cannot raise money from the public for investments without proper registration with SEC. If a firm is taking money from more than 20 people and promoting investment opportunities online, it must be assessed and certified by SEC,” Obichukwu explained.
He advised Nigerians to verify the approval status of any investment company on the SEC website before committing funds, especially when promised unusually high returns.
Provest Seeks SEC Approval After Blacklisting
Following the SEC’s warning against unlicensed investment schemes, Provest, a firm behind an illicit investment scheme, has now applied for approval to operate a crowdfunding platform.
The company claims it will use funds raised for real estate projects in a transparent manner, but SEC has yet to grant the necessary authorization.