Nigeria’s Securities and Exchange Commission Warns Against Illegal Fund Management
The Securities and Exchange Commission (SEC) in Nigeria has issued a stern warning to individuals and entities engaging in illegal fund management activities, cautioning them to desist immediately or face severe legal consequences. The Commission also announced plans to establish a capital market radio to disseminate information on the capital market and investment opportunities to Nigerians at the grassroots.
In a statement issued on Sunday in Abuja, Emomotimi Agama, Director General of the SEC, said the Commission’s enforcement mechanisms will be fully deployed to fish out anyone perpetrating illegal activities within the investment climate in Nigeria. Agama emphasized that the SEC has the power to regulate investments and securities business in Nigeria, as stated in Section 13(a) of the Investments and Securities Act 2007.
The SEC is also preparing to hold the World Investor Week 2024 from October 7-14, with the theme "Technology and Digital Finance, Crypto Assets and Sustainable Finance." The event aims to raise financial literacy among the general public and provide information to investors on investing in the Nigerian capital market and its opportunities.
According to Agama, one of the major plans within the World Investor Week is investor education. He noted that many 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. The SEC aims to educate investors on priority investments, risky investments, and the rewards of risky investments, as well as the investments that are less risky.
The Commission will leverage social media and other traditional media channels to reach out to the populace in a bid to educate and enlighten them further. Additionally, the SEC will incorporate capital market studies into the curriculum of tertiary institutions to teach students about the value of the capital market in wealth creation and economic development.
The SEC’s efforts aim to protect investors, educate them, and superintend over public companies to ensure good corporate governance. With the right education, investors will be better equipped to make informed decisions and avoid getting burnt by illegal fund management activities.
