SEC Reaffirms Zero Tolerance for Market Infractions

In a decisive move to bolster confidence in Nigeria’s capital market, the Securities and Exchange Commission (SEC) has reaffirmed its commitment to zero tolerance for market infractions.

Director-General of SEC, Dr. Emomotimi Agama, announced over the weekend that only ‘fit and proper’ individuals and entities would be allowed to operate in the financial markets.

Dr. Agama emphasised that market operators engaging in unethical or fraudulent activities would face swift regulatory action, highlighting the commission’s focus on investor protection, transparency, and accountability.

“The days of regulatory loopholes and weak enforcement are over. The SEC will strictly enforce compliance with the Investments and Securities Act (ISA) 2007 and other relevant laws,” Dr. Agama stated.

As part of its renewed enforcement drive, the SEC has intensified efforts to eradicate Ponzi schemes and fraudulent investment platforms that exploit unsuspecting investors. The new Investment and Securities Act (ISA)—awaiting presidential assent—introduces stiffer penalties for financial misconduct, signaling the regulator’s firm stance against unregistered and non-compliant firms.

Dr. Agama assured that the SEC would actively name, expose, and prosecute market violators, stating that: “There will be no hiding place for individuals attempting to manipulate investors. The SEC will ensure that defrauders face the full wrath of the law.”

This approach aligns with the SEC’s broader mission to strengthen market integrity and restore investor confidence, ensuring that only operators with strong ethical and compliance records remain in the system.

A key pillar of the SEC’s strategy is enhancing corporate disclosures, ensuring that investors have timely, accurate, and complete information for decision-making. The regulator warned that any attempt to mislead the public or withhold critical data would be met with strict penalties.

Dr. Agama reiterated that: “Transparency is a fundamental requirement for a well-functioning capital market. Failure to provide full disclosures will be considered a violation of SEC regulations.”

Public companies and financial institutions are now under closer regulatory scrutiny, with the SEC actively monitoring financial reports, investor statements, and operational disclosures.

With 2025 marking a turning point in market regulation, the SEC has already begun revoking licenses, suspending erring operators, and intensifying surveillance on unregistered market participants.

Recent enforcement actions demonstrate the commission’s commitment to weeding out non-compliant firms, ensuring that only credible operators remain active in Nigeria’s capital market.

“What we have seen so far—the revocation of licenses and clampdown on illegal firms—is just the beginning. We are entering a new era where compliance and transparency are non-negotiable,” Dr. Agama declared.

For investors, the SEC’s aggressive stance on enforcement represents a significant step toward a safer, more credible financial environment. With tighter regulations, stronger penalties, and increased oversight, Nigeria’s capital market is poised for greater trust and stability.

Investors are urged to exercise caution, verify the legitimacy of investment opportunities, and stay informed through SEC’s official updates.