SEC to crack down on market abuse and fraud with stricter enforcement measures

The Securities and Exchange Commission (SEC) in Nigeria has unveiled plans to enhance enforcement actions in the capital market in the year 2026 using broader powers given to it under the Investments and Securities Act (ISA) 2025 to bolster investor trust and market integrity.

Dr. Emomotimi Agama, the Director-General of the SEC, shared this information while highlighting the Commission’s regulatory objectives, emphasizing that the recently amended law has significantly boosted the Commission’s oversight and enforcement capabilities. Agama stressed that the SEC will effectively utilize these powers to combat market manipulation, insider trading, fraudulent investment schemes, and other forms of malpractice.

He highlighted that robust enforcement is crucial for instilling confidence in the capital market and assured that all regulatory actions would strictly adhere to due process and legal guidelines. Agama underscored that consistent and predictable regulations play a key role in maintaining investor trust and fostering sustainable market growth.

“With the enactment of the Investments and Securities Act 2025, the Commission’s supervisory and enforcement framework has been strengthened. In 2026, the Commission will continue to apply these powers firmly and impartially,” he stated.

The upcoming enforcement efforts are part of a broader strategy aimed at bolstering market integrity, efficiency, and resilience. Agama emphasized that market confidence hinges on effective supervision and the equitable enforcement of rules for all market participants.

In addition to enforcement measures, the SEC is also prioritizing enhancements in regulatory efficiency through the adoption of digitalization in its operations. These initiatives include streamlined approval processes, automated filings, and upgraded disclosure systems, aiming to minimize regulatory hurdles, enhance responsiveness, and foster transparency within the market.

“These measures are designed to eliminate unnecessary obstacles, enhance regulatory responsiveness, and promote transparency throughout the market,” Agama explained.

The Commission’s commitment to leveraging technology for regulatory improvements underscores its proactive approach to modernizing processes and ensuring effective oversight in Nigeria’s capital market. By embracing digital solutions, the SEC seeks to streamline operations, enhance oversight, and build a more transparent and efficient market environment for all stakeholders involved.