In 2026, the Securities and Exchange Commission (SEC) of Nigeria has announced a determined effort to strengthen enforcement of market regulations following the passage of the Investments and Securities Act (ISA) 2025. The Director-General of the SEC, Dr. Emomotimi Agama, outlined that the Commission will be taking stronger action to uphold market integrity, boost investor confidence, and ensure that all market players follow the rules.
The rationale behind this intensified enforcement drive stems from the expanded authority given to the SEC under the ISA 2025, which was signed into law and provides broader regulatory and supervisory powers. According to Agama, this legal framework equips the SEC with the tools it needs to act decisively against unfair conduct and market misconduct.
Addressing journalists and stakeholders, Agama emphasized that the SEC’s approach to enforcement would be firm but equitable, aimed at protecting the market rather than punishing participants without cause:
“With the enactment of the Investments and Securities Act 2025, the Commission’s supervisory and enforcement framework has been strengthened. In 2026, the Commission will continue to apply these powers firmly and impartially.”
The SEC is particularly focused on cracking down on behaviours such as insider trading, market manipulation, fraudulent investment schemes, and other forms of abuse that can undermine confidence in Nigeria’s capital market. The goal is to cultivate a transparent and predictable marketplace where both domestic and foreign investors can operate with confidence.
In addition to enforcement actions, the SEC plans to modernize its regulatory processes. This includes leveraging digital tools to streamline approval processes, automate filing systems, and enhance overall responsiveness. These initiatives are designed to reduce unnecessary bureaucratic friction and improve how the regulator communicates with market participants.
“These measures are intended to reduce unnecessary frictions, improve regulatory responsiveness, and enhance transparency across the market,” Agama explained.
Another priority for the Commission is improved disclosures across the board. This includes not only financial reporting but also enhanced environmental, social, and governance (ESG) standards, which are part of global investor expectations. The SEC hopes that better quality disclosures will make Nigerian markets more competitive and appealing.
The SEC also plans a structured review of governance and capitalization among market intermediaries, the firms that act as brokers, dealers, and fund managers. This review is meant to ensure that these entities are financially resilient and better able to manage risk in their operations.
Protecting smaller investors remains a core concern. Agama underscored that while the Commission advocates for widening participation in the capital markets, especially among retail investors and small and medium enterprises (SMEs), this must be balanced with safeguards that prevent harm.
“We will regulate not to stifle, but to catalyse. We will enforce not to punish, but to protect and build trust,” said Agama, reflecting the dual purpose of the enforcement strategy.
To support ordinary investors, the SEC is also planning a nationwide financial literacy campaign in 2026. The aim of this program is to equip more Nigerians with the knowledge needed to make informed investment decisions and to avoid falling victim to fraudulent schemes.
The SEC’s regulatory reinforcement comes at a time when Nigeria’s economy shows early signs of stabilizing with improved market sentiment and a growing stock exchange valuation. Strong enforcement and reliable oversight can attract more capital inflows and support economic growth by fostering a trustworthy investment climate.
