The Securities and Exchange Commission (SEC) has issued a stern warning to individuals and organizations involved in illegal fund management, urging them to halt their activities or face stringent legal actions.
This comes as part of SEC’s ongoing efforts to safeguard the Nigerian investment landscape.
In addition, SEC is laying the groundwork for the establishment of a dedicated capital market radio station, aimed at informing Nigerians, particularly those in rural areas, about the available investment opportunities and fostering better financial awareness.
Emomotimi Agama, Director General of SEC, made these announcements in a statement released on Sunday in Abuja. He emphasized that the commission is intensifying its crackdown on illegal activities within Nigeria’s investment sector, working closely with law enforcement agencies.
According to him, “Section 13(a) of the Investments and Securities Act 2007 states that the SEC has the power to regulate Investments and Securities business in Nigeria. So, within the law, we have the power to do so.
“What we are doing is strengthening our enforcement mechanism in collaboration with the Nigerian Police Force and the Federal Ministry of Justice. This serves as a notice to anyone not playing by the books to desist or face the law.”
Agama reassured investors that the SEC remains committed to protecting their interests, building trust in the capital market, and ensuring that public companies adhere to good corporate governance practices.
The DG also disclosed that the commission is scheduled to hold the World Investor Week 2024 from October 7-14 with the theme “Technology and Digital Finance, Crypto Assets and Sustainable Finance.”
This global initiative, spearheaded by the International Organisation of Securities Commissions (IOSCO), aims to enhance financial literacy among the public.
The week-long event will feature bell-ringing ceremonies, panel discussions, outreach programs, and investor clinics at SEC’s headquarters and its zonal offices across the country.
Agama noted that the key objective of World Investor Week is to inform and educate the public on how to invest in the Nigerian capital market, ultimately broadening wealth creation opportunities for all citizens.
“Investor education is a crucial part of our strategy,” Agama said. “Many Nigerians are unaware of the various investment opportunities available, not because they lack interest, but because they simply do not have the information. World Investor Week will highlight these opportunities, inform investors of their rights, and explain the dispute resolution processes available should challenges arise.”
Agama further emphasized the importance of understanding different types of investments, particularly those that carry higher risks, and how investors can match their risk appetite to the appropriate investment opportunities.
He said, “During the week-long events, we will be reaching out to everyone who is interested and needs to know some of the plans and strategies that the SEC has in place to attract more investors to the market.
“One of the major plans within the WIW is investor education. You cannot overrule the value and essence of education. A lot of people are not aware of investment opportunities or investment windows, not because they don’t want to invest, but because they just don’t know.
“So the idea of the World Investor Week is to bring to fore the opportunities that exist, rights of the investor and the dispute resolution mechanisms that are available in case they have those challenges, and also to let them understand the value of investments and preparing for the rainy day.”
SEC also plans to use a mix of social media and traditional platforms to expand its educational outreach to the public.
Additionally, Agama revealed that capital market studies will be incorporated into university curricula to ensure that students are exposed to the importance of capital markets in wealth creation and national development from an early age.
“The point is, people have to know exactly what their appetite is. It’s not everyone that has a strong risk appetite. So you need to understand that if you do not have a strong risk appetite, there is an investment meant for you, but if you have a strong risk appetite, there is also an investment meant for you.
“Therefore, having that education and being able to reach out to an investment advisor when you are not sure is a critical part of educating you so you do not get burnt again. With the right education, even when you are burnt, you know you are burnt for a good reason,” he stated.
Agama said the SEC will leverage social media and other traditional media channels to reach out to the populace in a bid to educate and enlighten them further.
“Besides that, we are also incorporating capital market studies into the curriculum of tertiary institutions so that these students can be taught and nurtured from the cradle on the value of the capital market in wealth creation and economic development”, he added.
