Compensated at last! Peter Obi appointed Chairman of Nigeria's Security and Exchange Commission (SEC)

Compensated at last! Peter Obi appointed Chairman of of Nigeria's Security and Exchange Commission (SEC)

President Goodluck Ebele Jonathan approved the appointment of the former Governor of Anambra State, Mr. Peter Obi as Chairman of the Securities and Exchange Commission (SEC). The appointment takes immediate effect.

The President has also relieved the Executive Secretary/Chief Executive Officer of the National Health Insurance Scheme (NHIS), Dr. Femi Thomas of his appointment with immediate effect. 

The President also approved the appointment of Mr. Olufemi A. Akingbade as Acting Executive Secretary/Chief Executive Officer of the NHIS.

Mr. Akingbade who hails from Ekiti State and holds a Bachelors Degree in Computer Science as well as a Masters in Business Administration was the General Manager, ICT in the NHIS until his new appointment.

President Jonathan has also approved the confirmation of Mr. Mounir Haliru Gwarzo as Director-General of the Securities and Exchange Commission.

Mr. Gwarzo who has been acting as Director-General of the Commission, was appointed to the Board of the Securities and Exchange Commission as Executive Commissioner in January, 2013.

The Securities and Exchange Commission is Nigeria's primary organ for regulation of investors' market. In regulating the market, SEC undertakes the following activities in order to protect investors, market operators and also ensure market integrity:

• Registration of securities and market intermediaries to ensure that only fit and proper persons / institutions are allowed to operate in the market.  Instruments and persons registered in the market are:
  • Securities/Commodity Exchanges/Capital Trade Points
  • Futures, Options and Derivatives Exchanges
  • Depository, Clearing and Settlement agencies
  • Capital Market Operators:
    • Issuing Houses
    • Securities dealers/Stock brokers/Sub- brokers
    • Registrars/Transfer agents
    • Trustees
    • Reporting Accountants
    • Solicitors
    • Investment Advisers etc.
  • Securities:
    • Equities
    • Debentures
    • Debt instruments
  • Collective investment schemes

• Inspection either done “onsite” or “off-site”.  The Commission, at regular intervals, calls for information from capital market operators. It also undertakes and conducts inquiries and audits of any participant in the market whenever necessary.

• Surveillance is carried out over exchanges and trading systems to forestall breaches of market rules as well as deter and detect manipulations and trading practices which are capable of causing market disruption.

• Investigation of alleged breaches of the laws and regulations governing the capital market and enforcement of sanctions where appropriate.

• Enforcement actions are taken against market operators who are found wanting after investigation is carried out, in minor cases, an all parties meeting is convened by the Commission where it mediates between parties involved in a dispute.  However, if the case is serious or where no resolution is reached or a party fails to comply with a directive given at the all parties meeting, the defaulting party will be called before the Administrative Proceedings Committee (APC), which is a quasi judicial court, with only civil jurisdiction.    Appeals against decisions of the APC are usually made at the Investment and Securities Tribunal (IST).  Enforcement action may be in the form of payment of fine, ban, suspension or even forwarding the case to the Nigeria Police Force (NPF), Economic and Financial Crimes Commission (EFCC) or the Attorney - General of the Federation (AGF) where allegations are found to be criminal in nature.

• Rule making by the Commission as developments occur.  This is to ensure that the Commission meets up with international best practices.
• Market Development
  In the area of market development, the Commission collaborates with relevant stakeholders to introduce new products and processes.  The SEC encourages improved investor participation in the market through any or a combination of the following activities:
  • Workshops and seminars
  • Town hall meetings
  • Television/Radio programmes
  • Introduction of e-processes e.g. e-dividend, e- allotment, etc
  • Secondary school quiz and essay competitions
  • Introduction of capital market studies in tertiary institutions 
  • Publications (i.e. Journals, bulletins and cartoons)
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The origin of the Securities and Exchange Commission dates back to 1962, when an ad hoc consultative and advisory body, known as the Capital Issues Committee, was established under the aegis of the Central Bank of Nigeria (CBN). Its mandate was to examine applications from companies seeking to raise capital from the capital market and recommend the timing of such issues to prevent issues clustering which could overstretch the market’s capacity. The Committee operated within the Central Bank of Nigeria unofficially as a capital market consultative and advisory body with no regulatory framework.


-Additional information from SEC website