The Securities and Exchange Commission (SEC) is the main regulatory institution of the
Nigeria
Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf o ...
n capital market.
It is supervised by the
Federal Ministry of Finance.
[
The ]Nigerian Stock Exchange
The Nigerian Stock Exchange (NSE) now Nigerian Exchange Group is a Nigerian stock exchange founded in 1961 in Lagos. As of November 2019, it has a total of 161 listed companies, with 8 domestic companies on the premium board, 144 companies on the ...
(NSE) is privately owned and self-regulating, but the SEC maintains surveillance over it with the mandate of ensuring orderly and equitable dealings in securities, and protecting the market against insider trading
Insider trading is the trading of a public company's stock or other securities (such as bonds or stock options) based on material, nonpublic information about the company. In various countries, some kinds of trading based on insider information ...
abuses.[
]
Formation and early years
The Commission originates from the ad hoc, non-statutory Capital Issues Committee established in 1962 as an arm of the Central Bank of Nigeria
The Central Bank of Nigeria (CBN) is the central bank and apex monetary authority of Nigeria established by the CBN Act of 1958 and commenced operations on 1 July 1959.
The major regulatory objectives of the bank as stated in the CBN Act are ...
. The committee became the Security Exchange Commission in 1977, and then the Securities and Exchange Commission was chartered with SEC Decree No. 71 of 1979.
The commission is now chartered by the Investments and Securities Act No 45 of 1999.[
A second-tier securities market was established in 1985, and the market grew as the government followed a program of privatization of public sector enterprises.
With market capitalization of N4.46 billion in 1980, by the end of 1997 the Nigerian securities market had a market capitalization of N281.8 billion. The market appeared to be operating efficiently, although it was depressed by low personal incomes in Nigeria and political instability deterring foreign direct investment.
]
2000-2010 capital market boom and bust
During the first half of the 2000s, the Central Bank of Nigeria
The Central Bank of Nigeria (CBN) is the central bank and apex monetary authority of Nigeria established by the CBN Act of 1958 and commenced operations on 1 July 1959.
The major regulatory objectives of the bank as stated in the CBN Act are ...
instituted reforms that led to a reduction in the number of banks but a great increase in their size. This and other factors led to a surge in equity market capitalization on the NSE, peaking in March 2008 at US$100 billion, over 60% of which was owned by the banks.[
When Musa Al-Faki, a stockbroker, was installed Director General in 2004, many thought his appointment had been engineered by Ndi Okereke-Onyiuke, head of the Nigerian Stock Exchange. If so, this may have undermined the authority of the SEC as a supervisor during a period of rampant speculation.][
The ]global financial crisis
Global means of or referring to a globe and may also refer to:
Entertainment
* ''Global'' (Paul van Dyk album), 2003
* ''Global'' (Bunji Garlin album), 2007
* ''Global'' (Humanoid album), 1989
* ''Global'' (Todd Rundgren album), 2015
* Bruno ...
that began in 2008 caused a severe crisis among Nigerian banks, with several forced to close. After the Central Bank had audited the banks in 2009, the SEC started legal proceedings at the Investments and Securities Tribunal against about 260 individuals and entities, alleging that they were involved in abuse such as insider dealing and share price manipulation. The commission also instituted various reforms including improving regulations so as to encourage development of the bond market, promoting collective investment schemes and reviewing the 2003 Corporate Governance Code.[
SEC Director General Al-Faki resigned in April 2009 amid criticism of the SEC role in a share-manipulation scandal involving the African Petroleum stock. He was eventually replaced by ]Arunma Oteh
Arunma Oteh is a Nigerian economist. She was the Treasurer and a Vice President of the World Bank (2015–2018). She became the Director General of the Securities and Exchange Commission (SEC) in Nigeria in January 2010. In this position she wa ...
, who became Director General in January 2010. In August 2010 Oteh dismissed Okereke-Onyiuke from the stock exchange.[
The President of the Stock Exchange, Alhaji Aliko Dangote, was also dismissed.][
In September 2010 it was reported that the SEC was considering converting the stock exchange to a private company rather than a mutually owned enterprise. The SEC said its actions were due to problems at the stock exchange that included "inadequate oversight...ongoing litigation, allegations of financial mismanagement, governance challenges".
]
Leaders
* Joseph Oladele Sanusi Chief executive (1978–1979)
* John Madaki
John Yahaya Madaki (?–2018) was military governor of Katsina State, Nigeria in December 1989, during the military regime of General Ibrahim Babangida.
He handed over to the elected civilian governor Saidu Barda in January 1992 at the start of t ...
Chairman (2001 –)
* John Edozien Chairman (2005 –)
* Musa Al-Faki, Director General (2004 – May 2009)
* Udoma Udo Udoma
Udoma Udo Udoma is Nigeria's Former Minister of Budget and National Planning and the son of Late Sir Egbert Udo Udoma. He is also the founding partner of Udo Udoma & Belo Osagie - one of Nigeria's oldest and largest commercial law firm Edu ...
Chairman (2009 –2010)
* Arunma Oteh
Arunma Oteh is a Nigerian economist. She was the Treasurer and a Vice President of the World Bank (2015–2018). She became the Director General of the Securities and Exchange Commission (SEC) in Nigeria in January 2010. In this position she wa ...
Director General (January 2010 – 2015)
* Mounir H. Gwarzo Director General (May 2015 – 2017)
*Abdul Zubair Acting Director General (2017 – 2018)
*Mary Uduk Acting Director General (2017 – 2020)
*Olufemi Lijadu Chairman (2019 - till date)
*Lamido Yuguda Director General (2020 – till date)
References
{{authority control
Regulation in Nigeria
Government agencies established in 1979
Nigeria
Nigeria ( ), , ig, Naìjíríyà, yo, Nàìjíríà, pcm, Naijá , ff, Naajeeriya, kcg, Naijeriya officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf o ...
Government agencies of Nigeria
Finance in Nigeria