On Friday, April 19, 2024, Dr Emomotimi Agama hit headlines with the news of his appointment as the Director General of the Securities and Exchange Commission (SEC). Prior to the exalted position, Agama was the Managing Director of the Nigerian Capital Market Institute, a subsidiary of the Commission. He succeeded Dr Lamido Yuguda, the immediate past Director General.
In my piece, entitled: ‘Who’s Afraid of Emomotimi Agama?”, I posited that his appointment as the SEC Director General is difficult to challenge. He cannot be faulted on the basis of skill and industry experience. Agama rose through the ranks and has played strategic roles in the Commission over the years barely one week in the office, the Commission has reduced the time it takes for companies to obtain approval to raise capital in the Nigerian capital market from almost one year to 14 days.
The time reduction can lead to quicker revenue generation, enhanced efficiency and increased investor confidence. Remarkably, SEC has recently announced that a T+2 settlement cycle for equity transaction shall commence on November 28, 2025, indicating that transactions will be settled two business days after the trade day as against the current T+3 settlement cycle. Today, electronic filing system and deployment of e-offering platforms have significantly reduced manual processes.
It is heartwarming that SEC has directed all public companies and their registrars to stop treating unclaimed dividends older than 12 years as statute-barred, especially those declared before the enactment of the Finance Act 2020. The directive is expected to further reduce the backlog of unclaimed dividends.
Market pundits believe that SEC under Agama Administration is more accessible to market operators and it’s collaborating with the Central Bank of Nigeria (CBN) and other relevant institutions for symbiotic relationship. The on-going bank recapitalisation is the Administration’s first assignment. Success stories have already emanated from many banks. The Commission has taken a deep dive into the trading in digital assets by granting two Digital Exchanges- Quidax Exchange and Busha Exchange approval-in- Principle.
Another milestone in the Administration’s first year was the signing into law of Investment and Securities Act (ISA 2025), by President Bola Tinubu. Agama has always described the new Act as “a transformative step, aiming to enhance the capital market by aligning it with international standards and boosting investor confidence.”
The ISA 2025 has been widely acclaimed by stakeholders as a pathfinder towards globalisation of the Nigerian capital market and confidence booster for investors. The Act incorporates innovative products like digital assets, crowdfunding, and financial technology. It classifies exchanges into composite and non-composite functionally on the number of asset classes they deal in.
The Act also empowers SEC to adopt risk-based supervision, prosecute and jail anyone that runs foul of the securities laws amongst others. Miffed by his members’ fears that a sudden full-blown implementation of the dreaded ISA 2025 might put market operators under severe pressure, Sam Onukwue, the Chairman, Securities Dealing Houses of Nigeria (ASHON), has appealed to SEC to grant a cooling-off period for market operators to enable them digest its provisions to avert breach from the outset. At the moment, SEC is cracking down on Ponzi Schemes.
Market pundits commended the Agama Administration for achieving so much in just one year, but they expressed concerns in some areas and called for urgent attention. An observer said “Agama and his Team have the mindset to transform the market and they have not deviated. SEC’s advocacy requires fine-tuning to expand investor base.
The Commission needs to work harder to get the government’s buy-in of its projects. We want to see the link between the Commission’s activities and the Federal Government’s Economic Recovery and Growth Plan (ERGP). We expect a Commission that treats complaints with dispatch. There is no need to dissipate much energy on attracting foreign investors. If our market thrives, foreign investors will come. Companies are delisting from NGX because the market is not meeting their corporate goals. How are the quoted companies supervised? It is commendable that ISA 2025 is signed in Agama’s first tenure. We hope it will be well-implemented.”
Another market watcher described the Commission’s explanation of its handling of the toxic case of fraud estimated at N1.3 trillion by a digital platform, CYBEX as untenable. “The Agama Administration, has done fairly well in the first year. But the Commission’s defence of its handling of CBEX after a fraud of over N1.3 trillion was uncovered was reactive rather than preventive. CBEX was not registered with SEC and kept on collecting money from people. It would have been more assuring if the Commission had discovered CBEX before the bubble burst. More work has to be done to build investor trust in the market.”
Agama and his Team obviously know that there are legacy issues that continue to haunt the Commission during tenure of the previous Director Generals. For instance, many investors had lost their life savings in the primary market when sleazy fund-raisers deceived them with false offer documents approved by SEC, raised fund and disappeared without listing on the Nigerian Stock Exchange (now NGX). Although SEC is trying to address the issue of unclaimed dividend from different perspectives, are still some glitches with the new method of addressing unclaimed dividend. Corporate raiders have perfected many styles of indirect take-over in quoted companies.The Commission’s directive that unlisted securities of public companies be traded on securities exchange is breached with impunity amongst others.
Agama’s crack Team should celebrate their first anniversary by doubling down on their success while embracing the responsibility that come with it-after all, greater power demands greater accountability.
Oni, an Integrated Communications Strategist, is the Chief Executive Officer, Sofunix Investment and Communications.
