In recent months, the Securities and Exchange Commission (the SEC or Commission) has intensified its crackdown on unregistered and illegal Capital Market Operators (CMOs) in Nigeria, issuing multiple public alerts on its website. Among these are entities operating as digital asset and exchange platforms without authorization. [1] These platforms have been linked to unregulated cryptocurrency trading, unauthorized token offerings, and other high-risk, deceptive market activities.
In its sanitization efforts, the SEC has also named several unregistered collective investment schemes and other pooledfund vehicles [2] found to be soliciting and managing investor funds outside the SEC’s regulatory framework, often through unapproved investment programmes and real estate ventures. Despite their varied activities, these operators share a common infraction: carrying on regulated investment activities without SEC registration.
It is an interesting coincidence that these awareness-driven crackdowns have occurred the most within weeks of the Investment and Securities Act 2025 (the ISA 2025 or the Act) coming into force. This informs the expediency of assessing how the Act has strengthened the SEC’s mandate to “prevent unauthorised, illegal, unlawful, fraudulent and unfair trade practices relating to securities investments.” [3] Therefore, this newsletter highlights key SEC enforcement actions, examines the Act’s relevant provisions, which underscore the SEC’s enforcement powers against infractions under the Act, and identifies investor safeguards embedded in the Act.
[1] https://home.sec.gov.ng/enforcements/keep-track-of-enforcement-updates/
[2] Ibid
[3] Section 3(2)(c) of the ISA 2025
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