Capital Market

SEC Nigeria Approves 5 Infrastructure Fund Shelf Programmes Totalling N1.5 Trillion

Published

2 years ago

Apr 26, 2024

CBEX: SEC, EFCC to prosecute influencers, celebrities promoting fraudulent investments The Securities and Exchange Commission (SEC) has warned that celebrities, influencers, and bloggers who promote unregistered investment schemes will face prosecution, as the commission moves to enforce provisions of the newly enacted Investments and Securities Act (ISA) 2025. In a statement released on Sunday in Abuja, SEC Director-General Emomotimi Agama said, “The law also covers influencers and bloggers who promote fraudulent schemes, with clear penalties, including imprisonment.” “We are using this opportunity to warn such individuals to immediately desist from promoting unregistered entities,” he added. Citing the recent collapse of CBEX, a digital investment platform accused of defrauding Nigerians of over N1.3 trillion, Agama said, “The collapse of CBEX underscores the urgency of our crackdown. We are shutting down their operations, and the promoters will face the full weight of the law.” He urged Nigerians to remain vigilant and always verify investment opportunities with the commission before committing funds. “If it sounds too good to be true, it probably is,” he warned. Agama reiterated the SEC’s commitment to protecting investors and enhancing market integrity. “We have dealt with similar schemes in the past and will continue to do so, leveraging the powers of the ISA 2025 to safeguard investors and develop the capital market,” he said. He also disclosed that the commission has taken proactive steps to prevent future occurrences. “The SEC has also established dedicated departments to monitor market activities and conduct inspections aimed at detecting irregularities early,” Agama said. “These proactive measures are designed to prevent large-scale frauds like CBEX from recurring.”

As part of efforts to reposition the capital market as a catalyst for economic development, the Securities and Exchange Commission (SEC) announced that it had approved five (5) infrastructure fund shelf programmes to a tune of N1.5 trillion.

This is to support the federal government’s infrastructure development goals directly.

Read Also:

The approval, announced at the first Capital Market Committee quarterly meeting for 2024 (Q1,2024), is expected to address infrastructure deficits in areas such as roads, rail, and power.

Economists and analysts have described the capital market as a veritable platform to mobilise long-term capital to finance infrastructure projects in Nigeria.

Some infrastructure funds already listed in the capital market are the Chapel Hill Denham Nigeria Infrastructure Debt Fund and the United Capital Infrastructure Fund.

The Capital Market Committee was also informed that efforts are ongoing to ensure the passage of the Investments and Securities Bill 2024 and the implementation of the Revised Capital Market Master Plan (RCMMP).

On the 2024 to 2026 banking recapitalization exercise, the Securities and Exchange Commission informed the CMC that appropriate guidelines would be issued to facilitate an efficient capital-raising process in the present exercise.

The Commission committed to a process ensuring speed, fairness, and good market conduct. SEC assured that it collaborates with the Central Bank of Nigeria (CBN) and other relevant agencies to ensure a smooth process.

The CMC agreed that the capital market is strong, efficient, and resilient. It also noted that in the past few quarters, some large companies have raised significant financing from the market, signifying their depth and ability to provide such financing.

The Securities and Exchange Commission was confident that the market could provide the funds needed for banking recapitalization.

The meeting, attended by 345 capital market operators and stakeholders, received updates from CMC Technical Committees and Heads of Self-Regulatory organizations.

The Committee on Identity Management for the Capital Market also provided an update on the committee’s work. CIMCM aims to tackle investor data problems by creating a unified database, improving data accuracy, and establishing a central repository for such data. This will ease market participation, address unclaimed dividends, and mitigate KYC/AML risks.

It also underscored the Capital Market Committee’s dedication to propelling Nigeria’s economy forward and ensuring that the capital market remains a strong platform for financing governments and businesses.