In a bold move aimed at restoring investor confidence, the Director-General (DG) of the Securities and Exchange Commission (SEC), Emomotimi Agama, has outlined an aggressive agenda for 2025, with a firm focus on combating Ponzi schemes and insider trading, while enhancing transparency in the Nigerian capital market.
Agama, who shared the SEC’s plans for the year in his recent New Year message to the Nigerian capital market, stated that revamping regulations governing investment fraud would be a top priority. This, he emphasized, would help improve market oversight and ensure that those who engage in fraudulent activities face greater accountability.
“We will step up our efforts in 2025 to fight investment fraud, particularly Ponzi schemes, which have a negative impact on market integrity and investor confidence,” Agama said. He also pointed out that the commission’s strategy for 2025 would not only address fraudulent schemes but also strengthen the legal framework governing the market.
According to the SEC DG, mainstreaming the Nigerian capital market into the broader economy is essential for national development. “The Nigerian Capital Market plays a crucial role in the country’s economic structure. For us at the SEC, this means ensuring that all stakeholders, from the small investor to large corporations, are confident in the market’s fairness, transparency, and regulatory rigor,” Agama added.
Ramp-Up on Ponzi Scheme Crackdowns
Agama’s comments come amidst a growing concern over Ponzi schemes, which have been reported as a growing problem in Nigeria’s investment landscape. These fraudulent schemes, which promise high returns with little or no risk, often collapse, leaving investors with significant losses.
The SEC has faced criticism in the past for its handling of Ponzi schemes, with many Nigerians questioning the effectiveness of the commission’s enforcement mechanisms. In his statement, Agama acknowledged this challenge and pledged to revamp the regulatory processes. “Enforcement is the backbone of effective regulation, and we are working on revamping our investigative processes to enhance their efficiency and effectiveness,” he affirmed.
This initiative aims not only to increase the detection of Ponzi schemes but also to speed up the response time and ensure swift prosecution of fraudsters. SEC’s new measures are expected to include more rigorous monitoring systems and more proactive investigations into investment firms suspected of operating fraudulent schemes.
The DG pointed out that ensuring a robust market is key to making the country’s capital market a competitive player on the global stage. “Our efforts will focus on protecting investors and ensuring that they are not victims of unscrupulous operators who take advantage of their hard-earned money,” he said.
Tackling Insider Trading and Market Fairness
Another area of focus for Agama in 2025 is tackling insider trading, which he described as a “silent destroyer” of market fairness. Insider trading, where individuals with access to non-public information about a company make trades based on that information, erodes the integrity of the market and discourages honest investors.
“To preserve fairness in the market, we must close the gaps that allow insider trading to thrive,” Agama remarked. He added that the SEC is actively revising its regulatory framework to improve detection, prevention, and enforcement mechanisms aimed at curbing this practice.
Insider trading has been a major issue globally, and Nigeria has not been immune. High-profile cases involving well-known individuals have raised concerns about the SEC’s ability to effectively regulate and hold perpetrators accountable. With new measures being put in place, the commission hopes to restore investor confidence by ensuring a level playing field for all market participants.
Transparency as the Bedrock of Investor Trust
Agama underscored that one of the cornerstones of the SEC’s 2025 agenda is improving market transparency. In order to foster investor trust, he stated that the SEC plans to introduce several initiatives designed to increase visibility in securities transactions. These will include measures that make it easier for investors to track investments and understand the risks involved.
“We know that transparency is crucial to building trust in the market,” Agama explained. “Our goal is to ensure that investors feel safe, informed, and confident in their investment decisions.” To achieve this, the SEC plans to work with stakeholders, including market operators, to implement systems that will increase the openness of market transactions.
Agama also pointed out that the SEC intends to strengthen its regulatory oversight over market operators to ensure that they adhere to best practices. “We will introduce measures that will make it easier for investors to access accurate information about market players,” he said. “This will help to eliminate the doubts and uncertainties that often lead to distrust in the market.”
A Stronger Focus on the Commodities Market
In addition to addressing Ponzi schemes and insider trading, Agama outlined the SEC’s focus on strengthening the commodities market, which he described as an integral part of Nigeria’s economy. As an agrarian nation, Nigeria has vast untapped potential in both soft and hard commodities, ranging from agricultural produce to natural resources like oil and minerals.
The SEC plans to work closely with stakeholders to reinforce the legal and regulatory structures that support the growth of the commodities market. “The commodities market is vital to Nigeria’s economic development, and we are committed to supporting its growth through effective regulation,” Agama stated.
The SEC’s role, according to Agama, is not only to regulate but also to act as a partner in developing the necessary infrastructure to support a vibrant commodities ecosystem. “We are confident that by focusing on strengthening the regulatory framework for the commodities market, we will be able to create a solid foundation that will drive economic growth,” he said.
This focus on commodities is expected to open new opportunities for Nigerian businesses and investors alike, with potential benefits in areas such as agricultural exports, mining, and other resource-based industries.
A Market for All Nigerians
Ultimately, Agama’s message for 2025 centered on ensuring that the capital market is accessible and beneficial to all Nigerians, not just large corporations or high-net-worth individuals. “We are committed to making sure that the benefits of the capital market reach every Nigerian,” he emphasized. “Our reforms will ensure that all segments of the market, from small investors to large companies, are better served.”
The SEC’s 2025 agenda aims to balance the need for regulation with the goal of market development. By focusing on issues like Ponzi schemes, insider trading, market transparency, and the commodities market, the commission hopes to foster an environment that will drive growth, attract investment, and bolster Nigeria’s position as a key player in the global economy.
As 2025 unfolds, all eyes will be on the SEC to see how effectively it can implement these changes and bring about the much-needed reforms to make Nigeria’s capital market safer, more transparent, and more attractive to investors.
