Abuja, Sept. 29, 2024 (NAN) — The Securities and Exchange Commission (SEC) has issued a strong warning to entities involved in illegal fund management, threatening legal action against perpetrators of fraudulent activities in Nigeria’s capital markets. This comes in the wake of significant losses due to stock market fraud, with Nigeria losing an estimated N1.23 trillion between 2021 and 2023 .
Thank you for reading this post, don't forget to subscribe!Dr. Emomotimi Agama, Director-General of the SEC, emphasized during a press briefing ahead of the Commission’s World Investor Week (WIW) that SEC’s enforcement mechanisms, in collaboration with law enforcement agencies, will be fully deployed to curb illegal activities. “Anyone engaging in fraudulent investment schemes will face the full wrath of the law,” Agama said, citing Section 13(a) of the Investments and Securities Act (ISA) of 2007, which empowers SEC to regulate the investment business in Nigeria.
He reassured both investors and potential investors that SEC is committed to ensuring a transparent and safe investment environment. “Our goal is to protect and educate investors to build confidence in the market,” he added.
The forthcoming 2024 WIW, scheduled for October 7-14, will focus on increasing financial literacy, with themes around Technology, Digital Finance, Crypto Assets, and Sustainable Finance. One of the key objectives is to educate the public on legitimate investment opportunities and mechanisms to resolve disputes in cases of fraud.
Agama noted that many Nigerians fall victim to fraudulent schemes due to a lack of awareness. “Through the WIW, we aim to bring investment opportunities to light, inform people about their rights, and educate them on how to protect themselves from investment fraud,” he said.
The SEC plans to leverage social media and traditional media channels to ensure a wide reach during the week-long event, empowering Nigerians to make informed investment decisions and avoid falling prey to illegal fund managers.
This push for education and stricter enforcement comes at a critical time, as Nigeria grapples with the staggering financial losses incurred by stock market fraud, which poses a significant threat to the nation’s economic stability and investor confidence .
