Time is truly a valuable and finite resource. We can use, spend and trade it. But we can neither create nor store it. How time flies! 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 and powerful position, Agama was the Managing Director of the Nigerian Capital Market Institute, a subsidiary of the Commission.
Building on this momentum, he succeeded Dr Lamido Yuguda, the immediate past Director General. On Thursday, June 6, 2024, the Senate confirmed Agama as the substantive Director General and also cleared the following Executive Commissioners: Operations, Bola Ajomale; Legal and Enforcement, Franca Chuwuogor; and Corporate Services, Samia Hassan. The new Board of SEC comprises Mairiga Katuka as the Chairman and Lekan Bello and Kasimu Kurfi as Non-Executive Directors, respectively. The Board is uniquely populated with seasoned stockbrokers – core professionals in the securities market. 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. Upon his assumption of office, he told the staff that “I have come here as your colleague, because without you, this institution won’t get anywhere. This institution has been built by you. Your resilience, even in trying times, has brought us thus far. All of you have been symbols of hard work.’
With these inspiring words, Agama and his team swung into action, starting with the brand activation of the Commission. 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, the SEC has recently announced that a T+2 settlement cycle for equity transactions shall commence on November 28, 2025, indicating that transactions will be settled two business days after the trade day as opposed to the current T+3 settlement cycle. Today, electronic filing systems and the deployment of e-offering platforms have significantly reduced manual processes. It is heartwarming that the 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 the SEC under the Agama administration is more accessible to market operators, and it’s collaborating with the Central Bank of Nigeria (CBN) and other relevant institutions for a symbiotic relationship. The ongoing 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 of 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 the 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 the globalisation of the Nigerian capital market and a 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 based on the number of asset classes they deal in. The Act also empowers the SEC to adopt risk-based supervision and prosecute and jail anyone that runs foul of the securities laws, among other things. 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 to digest its provisions to avert breach from the outset. At the moment, the 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 the 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 was 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 the 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 the tenure of the previous directors general. For instance, many investors had lost their life savings in the primary market when sleazy fundraisers deceived them with false offer documents approved by the SEC, raised funds and disappeared without listing on the Nigerian Stock Exchange (now NGX). Although the SEC is trying to address the issue of unclaimed dividends from different perspectives, there are still some glitches with the new method of addressing unclaimed dividends. Corporate raiders have perfected many styles of indirect takeover in quoted companies. The Commission’s directive that unlisted securities of public companies be traded on securities exchanges is breached with impunity, among other things.
Agama’s crack team should celebrate their first anniversary by doubling down on their success while embracing the responsibility that comes with it – after all, greater power demands greater accountability.
Oni, an integrated communications strategist, chartered stockbroker, commodity broker and capital market registrar, is the chief executive officer of Sofunix Investment and Communications.
