The Securities and Exchange Commission (SEC) has announced its commitment to eliminate Ponzi and pyramid schemes by 2025, to protect investors and enhance the integrity of Nigeria’s financial markets. This initiative is part of the SEC’s New Year agenda, which emphasizes investor safety and the promotion of legitimate investment opportunities.
Dr. Emomotimi Agama, the Director-General of the SEC, shared this vision in a recent statement, highlighting that safeguarding investors will be at the core of the commission’s mission.
“We will intensify our efforts to stamp out Ponzi and pyramid schemes while creating an environment where legitimate investments can thrive,” Agama stated.
The SEC is not only focused on combating fraudulent schemes but is also dedicated to revamping its regulatory framework to bolster market integrity. Agama noted that effective enforcement is crucial for regulation, and the commission plans to enhance its investigative processes to hold wrongdoers accountable more decisively.
“Transparency is essential for building investor confidence,” he added. To this end, the SEC will introduce measures aimed at increasing visibility and trust in securities transactions. The agency also plans to tackle issues like insider trading, which undermine market fairness.
In addition to fighting fraud, the SEC is prioritizing the development of Nigeria’s commodities market. Recognizing Nigeria’s agrarian roots, Agama emphasized the importance of leveraging this sector for economic growth. “Our goal is to create a vibrant commodities ecosystem that can significantly contribute to Nigeria’s economy,” he said.
The commission intends to strengthen legal and regulatory frameworks that support this growth, ensuring that both soft and hard commodities are utilized effectively across the country.
Interestingly, while focusing on traditional markets, the SEC has also shown a willingness to engage with local cryptocurrency companies. Despite recent crackdowns on major exchanges like Binance and OKX, Agama indicated that some crypto entities have received an “Approval-in-Principle” to operate under a new regulatory framework.
However, he cautioned that not all applications for regulatory approval would be successful, as the SEC maintains strict standards for compliance.
Agama concluded by urging stakeholders in the financial sector to collaborate with the SEC in achieving its vision for a more secure and inclusive capital market in 2025. With these ambitious plans in place, the SEC is determined to foster a safer investment landscape for all Nigerians.
