The Securities and Exchange Commission (SEC) has issued a stern warning to individuals and entities engaged in illegal fund management activities, cautioning them to desist immediately or face severe legal consequences.
This warning was delivered by Dr. Emomotimi Agama, Director General of the SEC, over the weekend in Abuja, ahead of the Commission’s preparation for the 2024 World Investor Week (WIW).
Dr. Agama noted that the SEC, empowered by Section 13(a) of the Investments and Securities Act 2007, is fully committed to exercising its regulatory authority over Nigeria’s investment and securities business.
The SEC has strengthened its enforcement mechanisms in partnership with the Nigerian Police Force and the Federal Ministry of Justice to clamp down on illegal operators in the investment sector.
“We are working tirelessly to ensure that the full force of the law is brought against any individual or organization operating outside of the regulatory framework,” Agama said.
“This serves as a notice to anyone not playing by the rules to desist or face legal repercussions. The SEC is resolute in its mission to protect investors and build confidence in the Nigerian capital market.”
Dr. Agama also reassured investors of the Commission’s commitment to safeguarding their interests while promoting good corporate governance across Nigeria’s publicly listed companies.
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He highlighted the importance of investor education, noting that raising awareness about investment opportunities will help democratize wealth and drive participation in the Nigerian capital market.
“The primary objective of World Investor Week is to inform and educate investors about the opportunities in the capital market, while simultaneously ensuring that they are aware of their rights, the available dispute resolution mechanisms, and the inherent risks associated with different types of investments,” Agama explained.
The DG noted that many Nigerians are unaware of investment opportunities not because of a lack of interest but due to limited access to relevant information.
“A lot of people are not aware of investment windows or opportunities simply because they lack the necessary knowledge,” he said. “World Investor Week aims to bridge this knowledge gap and help people understand how investments can prepare them for future uncertainties.”
Scheduled to take place from October 7 to 14, the global event, themed “Technology and Digital Finance, Crypto Assets, and Sustainable Finance”, is part of the SEC’s ongoing efforts to raise public awareness and financial literacy.
The World Investor Week is a flagship initiative of the International Organisation of Securities Commissions (IOSCO) and aims to educate the public on the importance of informed and responsible investing in the global capital markets.
During the World Investor Week, the SEC will host a series of activities, including Bell Ringing Ceremonies, Panel Discussions, Investor Outreach Programs, and Investor Clinics. These events, to be held at the SEC’s headquarters and zonal offices, are designed to cater to both novice and experienced investors. Dr. Agama emphasized that investment strategies should be tailored to individual risk appetites, ensuring that investors are aware of both high-risk and low-risk opportunities.
“The key is for investors to understand their own risk tolerance,” Agama said. “If you don’t have a strong appetite for risk, there are investments suitable for you. Conversely, if you have a higher risk appetite, there are also options that cater to that. The critical point is ensuring that investors are well-informed and have access to investment advisors when they need assistance.”
He added that investment education is crucial not only to prevent losses but also to ensure that when losses occur, they are based on informed decisions. “With the right education, even when you experience losses, you will at least understand why it happened, and you will be better prepared to navigate the market,” Agama added.
As part of its broader strategy to enhance financial literacy, the SEC plans to leverage social media and traditional media outlets to extend its outreach efforts.
The Commission is set to establish a dedicated capital market radio station, which will broadcast vital information about investment opportunities and market developments, especially to grassroots communities across Nigeria.
In addition to this, the SEC is working to incorporate capital market studies into the curriculum of tertiary institutions. This initiative aims to educate and nurture young Nigerians about the role of the capital market in wealth creation and economic development from an early age.
“Educating the younger generation is a critical part of our long-term strategy. By incorporating capital market studies into academic curricula, we are laying the foundation for a future generation of informed investors and financial professionals,” Dr. Agama stated.
The SEC DG stated that the upcoming World Investor Week provides a unique opportunity for investors of all backgrounds to engage with experts and learn about emerging trends in technology, digital finance, and crypto assets.
“We will be reaching out to anyone interested in understanding the capital market and learning about the plans and strategies we have to attract more investors,” he said.
Dr. Agama emphasized the importance of educating the public on priority investments, high-risk and low-risk investment options, and the potential rewards of riskier ventures. He also reiterated the value of seeking professional advice when investors are uncertain about the best course of action.
