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Tag: SEC

  • FG issues N1.1trn Sukuk bonds for road projects

    FG issues N1.1trn Sukuk bonds for road projects

    The Securities and Exchange Commission (SEC) has said the Federal Government issued six Sovereign Sukuk worth N1.1 trillion ($657.6m) to finance 124 federal road projects.

    A statement by SEC said its Director-General, Dr Emomotimi Agama, said this during the ongoing 2nd International Islamic Capital Market Conference in Karachi, Pakistan on  Thursday.

    Agama said the road projects covered over 5,820 kilometers across the six geopolitical zones of the country.

    He said the success rate made the Islamic Capital Market (ICM) to stand out as a resilient and innovative tool for mobilising resources.

    Agama described the issuance of sovereign Sukuk since 2017 as a key pillar responsible for growth of the ICM in the country.

    The director-general said that the issuance had consistently been oversubscribed, with subscription rate reaching as high as 441 per cent.

    He disclosed that sub-national and corporate Sukuk issuances were also growing in the country.

    ”Beyond Sukuk, the ICM segment in Nigeria offers diverse investment opportunities.

    ”From one registered fund in 2008, the segment currently boasts of 14 registered Halal mutual funds with a net asset value exceeding ₦105 billion as of November 2024.

    ”The NGX Lotus Islamic Index tracks 11 Shariah-compliant equities, while Nigeria’s first Islamic Real Estate Investment Trust – ChapelHill N-REIT highlights the potential of real estate investments.

    ”The prospects for Nigeria’s Islamic finance industry are underpinned by key growth drivers, both global and domestic,” he said.

    Agama said the growth of the ICM segment had come with some challenges including limited public awareness of Islamic finance principles, paucity of tradable instruments, and regulatory alignment across institutions.

    He said that capacity building efforts, particularly in Shariah governance and compliance remained critical to sustaining the growth.

  • PenCom lifts restrictions on LPFAs investing in commercial papers

    PenCom lifts restrictions on LPFAs investing in commercial papers

    The National Pension Commission (PenCom) has lifted restrictions on Licensed Pension Fund Administrators (LPFAs) investing in commercial papers where capital market operators act as Issuing and Paying Agents (IPAs).

    This decision was announced through a circular issued by the commission on Tuesday in Abuja.

    According to the circular, the Securities and Exchange Commission (SEC) has developed draft rules and amendments to regulate the issuance of commercial papers by its regulated entities.

    The SEC has addressed PenCom’s concerns about the role of non-bank IPAs in commercial paper transactions by bringing them within regulatory boundaries.

    To facilitate capital raising and ensure continued market stability, PenCom had lifted the restriction on LPFAs investing in commercial papers where capital market operators act as IPAs.

    However, LPFAs must ensure that they undertake appropriate legal and financial due diligence on all Prospectus/Offer Documents of commercial papers prior to investment, as stipulated in Section 2.9 of the Regulation on Investment of Pension Fund Assets.

    This decision follows PenCom’s directive in October for LPFAs to suspend further investment in commercial papers where capital market operators (non-banks) are engaged as IPAs due to the absence of rules governing the issuance.

  • It’s time for fintech operators to follow rules – SEC

    It’s time for fintech operators to follow rules – SEC

    The Securities and Exchange Commission (SEC) has said it is about time fintech operators are held to the rules of the capital market, especially in terms of fund-raising.

    TheNewsGuru.com (TNG) reports Director-General of SEC, Dr Emomotimi Agama said this in a statement in Abuja on Sunday, while restating the commission’s commitment to investors’ protection, especially with the increasing use of fintech.

    Agama affirmed that SEC would enforce regulations in the fintech ecosystem and noted that this would help to curb mismanagement of funds and align operators with existing rules.

    The SEC DG stressed that a regulatory environment that is conducive for the innovative use of technology was essential in the drive to transform the country.

    According to him, it is time for fintech operators to be held to the rules of the capital market when it comes to fund-raising.

    ”While these trends bring new opportunities, they also come with challenges, particularly around regulation and investor protection.

    ”The digital age has transformed the investment landscape, offering greater accessibility, innovation, and opportunity.

    ”Investors must adapt to this evolving environment by embracing technology, seeking knowledge, and making responsible investment choices.

    “The future of investment in Nigeria will likely be driven by the continued rise of technology, young investors, and evolving financial products,” he said.

  • SEC warns Nigerians not to do business with Marino FX

    SEC warns Nigerians not to do business with Marino FX

    The Securities and Exchange Commission (SEC) has cautioned the public against conducting business with Marino FX Ltd., saying the company is not registered or licensed to operate in Nigeria’s capital market. The commision gave the warning in a notice on Wednesday in Lagos.

    “We hereby notify the public that Marino FX Ltd., who has been parading itself as a SEC licensed cryptocurrency exchange is NOT registered or licensed by SEC to operate in any capacity in the Nigerian capital market, including cryptocurrency exchanges.

    “Any claim to the public by the company of its registration or license by SEC is false and misleading. The commission thereby advised the public to exercise caution and refrain from engaging with Marino FX Ltd. or any of its representatives.

    SEC further stated that transacting in the Nigerian capital market with unregistered and unregulated entities exposes investors to financial risks, which include fraud and the potential loss of investment.

    The commission expressed commitment to protecting investors in the Nigerian capital market, while working diligently to curb scams and other fraudulent activities.

    The commission noted that a public hearing was held on the proposed Investments and Securities Bill (ISB) 2024 , which proposes a penalty of N20 million or 10 years imprisonment or both for Ponzi scheme operators.

    The Director-General of SEC, Dr Emomotimi Agama, said that the bill also prescribed stringent jail terms and other stiff sanctions for the promoters of ponzi schemes.

    He said that SEC introduced an express prohibition of Ponzi/Pyramid schemes and other illegal investment schemes to ensure that illegal fund managers were not allowed to fleece unsuspecting Nigerians of their funds.

    Agama said the commission had observed areas which required review in the ISB 2007 to strengthen existing provisions, remove ambiguities, introduce new provisions that would enhance the international competitiveness of the Nigerian capital market.

    The director-general added that the move was to reposition the market to catalyse national economic transformation.

  • Banks, others raise N2.7trn via rights, public issuance

    Banks, others raise N2.7trn via rights, public issuance

    The Securities and Exchange Commission (SEC) says more than N2.7 trillion has been raised in the capital market by banks and other companies.

    The Director-General of SEC, Dr Emomotimi Agama, said this at 2024 Journalists Academy in Abuja on Monday, with the theme: “Fintech: Leveraging Technology to Drive Capital Market Participation.”

    He said the figure, which included equity capital, excluded the amount raised by funds managers in the capital market.

    Agama said that out of the N2.7 trillion, about N1.7 trillion was raised by banks through their recapitalisation exercise.

    He said the Commission had made significant progress in registering Capital Market Operators (CMOs), including on-boarding FinTechs under the Commission’s Regulatory Incubation Programmes (RIP).

    The director-general said the SEC was working with the Nigerian Financial Intelligence Unit (NFIU) to ensure the country exited the Financial Action Task Force (FATF) grey list, adding that this is crucial for the development of the financial sector.

    ”As you are aware, we came on board with an important banking recapitalisation exercise which we can declare has been successful.

    ”This exercise will enhance financial stability and bolster investor confidence and improve the Nigerian economy,” he said.

    Agama said the Commission’s approval of the Ministry of Finance Incorporated Real Estate Investment Fund (MREIF) to tackle housing deficit in the country by enabling affordable mortgage financing, aligned with the Federal Government’s one million homes initiative.

    He reaffirmed the Commission’s commitment to implementing its Revised Capital Market Masterplan (2021-2025) by prioritising stakeholder engagement, awareness creation, capacity building, and developing regulatory frameworks.

  • Ponzi schemes growing at alarming rate in Nigeria – SEC warns

    Ponzi schemes growing at alarming rate in Nigeria – SEC warns

    The Securities and Exchange Commission (SEC) says Ponzi schemes in the country’s market is continuously growing on a daily basis.

    Dr Emomotimi Agama, the Director-General of SEC said this at an engagement with newsmen in Abuja on Monday.

    Agama who appealed to journalists to help the Commission with information on the schemes, vowed to take regulatory actions on any Ponzi scheme discovered.

    ”The other thing I will also encourage you to do, because its time I mentioned it is that the number of Ponzi schemes in the Nigerian market grows every day.

    ”You can do one thing to help the SEC and to help the citizenry of this country by letting us know. We can assure you that every information you give to us will be treated in strict confidence.

    ”But that is not even what is important. What is important is that we will take action no matter whose ox is gored,” he said.

    Agama said that losses in the capital market was an opportunity for people to come in and invest and not a time to fear or exit the market.

    ”I dare say here that when the market goes down, when the market makes a loss, or becomes  bearish, there is one thing that it does, which I would encourage you to report.

    ”Every loss that is made in the market is an encouragement for people to come in. Because when the prices are down, it is the time to come in.

    ”To think that when the prices are down is a negative trend, I beg to differ. It only provides an opportunity more than you can imagine. When the prices are down, it means more people should come and invest.

    ”And if we see it that way as journalists, the information to be conveyed to people will be that of hope rather than that of fear,” he said.

    He said that the journalists were invaluable in shaping public perception and understanding the market. According to him, through accurate reporting and constructive critiques, you are partners in building trust and confidence in the country’s capital market.

  • ISB proposes N20m fine for Ponzi scheme operators

    ISB proposes N20m fine for Ponzi scheme operators

    The Securities and Exchange Commission (SEC) says the Investments and Securities Bill (ISB) 2024 is proposing a penalty of not less than N20 million or 10 years imprisonment or both  for Ponzi scheme operators.

    The Director-General of SEC, Dr Emomotimi Agama, said this at the Public Hearing of the bill on Thursday in Abuja.

    Agama said that the bill also prescribed stringent jail terms and other stiff sanctions for the promoters of Ponzi schemes.

    He said that SEC introduced an express prohibition of Ponzi/Pyramid Schemes and other illegal investment schemes to ensure that illegal fund managers were not allowed to fleece unsuspecting Nigerians of their funds.

    Agama said the commission had observed areas which required review in the ISB 2007 to strengthen existing provisions, remove ambiguities, introduce new provisions that would enhance the international competitiveness of the Nigerian capital market.

    Agama said the move was to reposition the market to catalyse national economic transformation.

    ”A vital provision in the Bill is the new stipulation that the Investor Protection Fund (IPF) set up by the securities exchanges would compensate investors who suffer pecuniary losses arising from the revocation or cancellation of the registration of a dealing member firm.

    “In the extant law, compensation from the IPF is limited to instances of “bankruptcy”, “insolvency” or other acts of “negligence” by a dealing member firm.

    “This Bill also contains an entirely new part which provides for the regulation of Commodity Exchanges and Warehouse Receipts.

    ”These provisions are essential for the development of the entire Commodities ecosystem. There is no doubt that Nigeria needs and deserves a world-class capital market to facilitate the on-going economic diversification.

    “The passage and enactment of the Investments and Securities Bill will be a pivotal step in this direction,” he said.

    In his remarks, the President of the Senate, Sen. Godswill Akpabio, said the ISB 2024 was a beacon of hope for the nation’s economic landscape.

    Akpabio, represented by Sen. Binos Yaroe, said the country was taking a bold step toward modernising its financial market and fostering transparency by repealing the ISB Act 2007.

    He said the Bill was designed to create a more robust and equitable environment for investments to thrive in an increasingly competitive global economy.

    ”As we delve into the discussions today, I urge you to embrace this opportunity with an open heart and a discerning mind. The importance of your contributions cannot be overstated. We are gathered here to listen, to learn, and to engage in honest dialogue.

    ”Your insights will help us craft a Bill that not only reflects the aspirations of our people but also addresses the intricate challenges we face in the investment landscape. Let us remember that the Senate remains fully committed to Nigerian people.

    “Together, we can ensure that the ISB 2024 is not just a piece of legislation but a transformative tool that propels Nigeria towards a future of economic resilience and prosperity,” Akpabio said.

    The Chairman, Senate Committee on Capital Market, Sen. Osita Izunaso, Izunaso said that a well-developed capital market which served as the bedrock for long term capital raising and industrial development was imperative.

    Izunaso said the capital market required a strong legal framework which was in conformity with ever evolving societal and global realities.

    “You will all agree with me that Fintech has caused a lot disruptions in the capital market in recent years such that digital assets platforms are fast gaining ground as a critic aspect of the capital market ecosystem.

    “Having operated the ISA 2007 for over 15 years, it has, therefore, become apparent that the law requires holistic review in order to strengthen its existing provisions, remove ambiguities, introduce new provisions that will enhance the international competitiveness of the Nigerian capital market.

    ”This will help reposition the market to more strategically fulfil its role as a critical segment of the Nigerian financial system,” he said.

  • Why we approved crypto exchanges – SEC

    Why we approved crypto exchanges – SEC

    The Securities and Exchange Commission (SEC) on Wednesday, explained that it granted approval-in-principle to two crypto exchanges recently to give Nigerian youths the opportunity for capital market participation.

    NAN reports that SEC, on Thursday, granted Busha Digital Ltd., and Quidax Technologies Ltd., “approval-in-principle” to commence operation under the Accelerated Regulatory Incubation Program (ARIP).

    Dr Emomotimi Agama, Director General of SEC, gave the clarification in a statement made available in Lagos.

    Agama said that in line with the desire of President Bola Tinubu to engage with the youths, it became important to create a structure that will enhance their participation, as well as other Nigerians in the market.

    “It is important that we act accordingly. We can not be left out of the global phenomenon that is beginning to take shape.

    “SEC, as a future looking institution,  is poised to making sure that we are in the league of countries that do what is needed.

    “As much as possible, we are building talents to be able to deal with the challenges that these asset classes could bring to our shores.

    “A lot of young Nigerians are fully involved in cryptocurrencies and we cannot shut the door against them, rather the intention of the president is to have them included in the capital market.

    “That is why SEC is ensuring that there is regulation and no one is hurt at the end of the day, which is part of our responsibility to protect investors and develop the market,”he said.

    According to Agama, the commission is doing all of these cautiously to ensure that these institutions do not pose risks to the national economy and to citizens who  invested in them.

    He disclosed that SEC’s programme on the digital assets exchanges emerged from its Virtual Assets Service Providers Regulation in view of the nature of crypto exchanges and the entire industry.

    The director-general noted that it was important to outline a regulation that allowed the commission to fully understand crypto exchanges and virtual financial assets services providers.

    He said that the idea was borne out of the initial Regulatory Incubation Programme of SEC in its desire to understudy fintech platforms and products that are new to the market.

    Agama said that this was to enable the dimension of the risks that were associated with these institutions and their products.

    He stressed that the commission had not yet outrightly licenced any exchange, but had provided an approval-in- -principle.

    He said that the approval granted was a controlled experiment wherein companies that have applied, meet the fit and proper persons test and other regulatory guidelines are invited into a regulatory incubation.

    “It gives us an opportunity to know exactly what they are doing, the risks that they pose to our economy, investors, and to themselves as operators.

    “The idea is, you need to do that to be able to study them and provide all the guidance and regulations required by them to operate in the system seamlessly while also not defrauding Nigerians.

    “We are making sure that they operate within regulations similar to what is obtainable in other jurisdictions”he said.

  • SEC officially accepts two cryptocurrency firms to operate in Nigeria 

    SEC officially accepts two cryptocurrency firms to operate in Nigeria 

    The Securities and Exchange Commission (SEC), has officially granted operational approvals to several crypto operators, indicating an acceptance of the digital currency.

    On Thursday, the SEC announced that it had granted approval-in-principle to two Digital Asset Exchanges to begin operations under its Accelerated Regulatory Incubation Program (ARIP). Five firms were also admitted to test their models and technology under its Regulatory Incubation Program.

    The approved firms include Busha Digital Limited, Quidax Technologies Limited, Trovotech Ltd, Wrapped CBDC Ltd, HousingExhange.NG Ltd, Dream City Capital, and Blockvault Custodian Ltd.

    The ARIP was introduced by the SEC to onboard firms that had already begun operations before the release of the Rules on Virtual Asset Service Providers in May 2022. The RI Program was designed to evaluate the business models of digital asset firms and allow them to test their products, services, and technology in a real-world market environment under the regulator’s close supervision.

    This latest development follows a recent announcement by Zacch Adedeji, chairman of the Federal Inland Revenue Service (FIRS) that the government is drafting an executive bill to overhaul revenue administration, including regulating the cryptocurrency industry.

    “We need a law that regulates that area of our economy. This is why we are having this engagement with the legislators. We will regulate it in a way that is not injurious to the economic development of Nigeria,” he stated.

    SEC’s approvals come despite a series of crackdowns on the crypto sector earlier in 2024, following the lifting of a ban on official crypto transactions in December 2023. The government had targeted crypto operators, blaming them for the naira’s volatility, tax evasion, and terrorism financing.

    The SEC emphasised that these approvals are a precursor to granting full registrations and aim to ensure appropriate protection and transparency. With these approvals, Busha Digital Limited and Quidax Technologies Limited have become the country’s first ‘licensed’ crypto operators.

    “I am pleased to announce that Busha has been granted one of the first provisional licenses from the Nigerian Securities and Exchange Commission to operate as a regulated Virtual Asset Service Provider,” tweeted Michael Adeyeri, Busha’s chief executive officer.

    He noted that the firm had been engaged with the process for over five years, ensuring their systems prioritised security and compliance.

     

  • Two cryptocurrency firms granted approval to operate in Nigeria

    Two cryptocurrency firms granted approval to operate in Nigeria

    The Securities and Exchange Commission (SEC) has granted two  digital assets Exchanges “Approval-in-Principle” to commence operation under the Accelerated Regulatory Incubation Program (ARIP). Ms Efe Ebelo, the spokesperson of the commission announced this in a statement on Thursday in Lagos.

    According to Ebelo,  the companies that were granted the approval are Busha Digital Ltd., and  Quidax Technologies Ltd. She  said  that the approval-in-principle was in furtherance of SEC’s commitment to enabling innovation that would deepen the capital market while guaranteeing the protection of investors.

    She said that the cohort comprises of two digital asset exchanges, four digital asset offering platforms and one digital asset custodian.

    “Busha operates a digital exchange that facilitates the buying and selling of crypto assets with fiat currency. It enables individuals and businesses in Nigeria and other developing economies to access basic digital asset investment services.

    “Busha’s customers use the mobile and web applications to buy, sell, store, send, receive, trade, invest and make payments in cryptocurrencies,” she said.

    The  spokesperson said that Quidax Technologies operated a cryptocurrency trading platform in Nigeria

    “The platform leverages blockchain technology to list and trade already issued crypto tokens (assets). The services are provided via a proprietary blockchain owned and controlled by Quidax,” she  said.

    According to her, the exchange platform is both web and mobile enabled for ease of access and use. She said Quidax also utilised digital wallet to enable its users store, receive and transact in variety of cryptocurrencies.

    Similarly, Ebelo onfirmed that five firms had been admitted to test their models and technology under the commission’s Regulatory Incubation(RI) Programme. She listed the companies as Trovotech Ltd., Wrapped CBDC Ltd., HousingExhange.NG Ltd., Dream City Capital and Blockvault Custodian Ltd.

    She said that the commission recently introduced ARIP to “strategically on-board firms” which had commenced operations prior to the release of the Rules on Virtual Asset Service Providers in May 2022.

    According to her, the current cohort of the ARIP and the RI programmes is characterised by the increased use of distributed ledger technology (“DLT”) in creating and trading crypto assets

    She added that the outcome of the process would inform further policy development in the space.

    She said that tests would be conducted on a short-term and small-scale basis,  and the commission would continue to work with the participating firms to agree on testing parameters and robust consumer safeguards.

    “The referenced approvals-in-principle are a precursor to the granting of full registration by SEC and are meant to ensure that appropriate protection and transparency is in place in respect of each product or service.

    “It is noteworthy that the above firms are not the only entities that have applied to ARIP and the RI programmes. Other applications received are being assessed and would be granted approval-in-principle on a case-by-case basis as they meet all SEC requirements,” she said.

    Ebelo, however, reiterated that only approved digital exchanges and platforms are legally authorised to carry out the business of crypto trading in any form in Nigeria.

    She said that in this regard, ARIP and RI remained the only avenues for well-intentioned entities to legitimately introduce their digital products and services to the Nigerian capital market.

    She advised the public to refrain from dealing with illegal operators who had not applied to and received SEC’s approval under the ARIP or the RI programme.

    “Intending investors are also reminded to always confirm from various SEC information portals whether entities purporting to provide investment services are legally empowered to so do,” she said.