Securities Commission Steps Up Enforcement To Boost Investor Confidence

The Securities and Exchange Commission (SEC) has announced plans to significantly step up enforcement actions in 2026, following the enactment of the Investments and Securities Act (ISA) 2025, as part of efforts to strengthen investor confidence and market integrity.

The director-general of SEC, Dr. Emomotimi Agama, disclosed this while outlining the Commission’s regulatory priorities, noting that the new law has expanded the Commission’s supervisory and enforcement powers.

Agama said the Commission would apply these powers ‘firmly and impartially’ to address market abuse, insider dealing, fraudulent investment schemes, and other forms of misconduct in the capital market.

He stressed that enforcement actions will be guided by due process and the rule of law, adding that predictable and consistent regulation remains critical to building trust among investors.

“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,” he said.

He explained that the SEC’s enforcement push forms part of broader measures to strengthen market integrity, efficiency, and resilience, adding that confidence in the capital market depends on effective supervision and the consistent application of rules.

Beyond enforcement, the Commission, he stated, plans to advance regulatory efficiency through digitalisation, including streamlined approvals, automated filings, and improved disclosure processes.

“These measures are intended to reduce unnecessary frictions, improve regulatory responsiveness, and enhance transparency across the market”, he emphasized.

Agama also said the SEC would introduce enhanced disclosure standards, including environmental, social, and governance (ESG) reporting, alongside a structured recapitalisation and governance review of market intermediaries to ensure financial resilience and sound risk management.

On investor protection, SEC DG reaffirmed the Commission’s commitment to balancing broader market access with strong safeguards, particularly for retail investors and small and medium-sized enterprises (SMEs).

Looking ahead, Agama said the SEC remains focused on supporting Nigeria’s economic transition while maintaining market discipline.

“We will regulate not to stifle, but to catalyse. We will enforce not to punish, but to protect and build trust,” he said.

Agama stated that the SEC also plans to roll out a nationwide financial literacy programme in 2026 aimed at improving investor awareness and reducing vulnerability to fraudulent schemes.