The Nigerian National Assembly has conferred extensive regulatory authority on the Securities and Exchange Commission (SEC) to oversee online forex trading platforms, activities, and intermediaries.
This was outlined in the recently passed Investments and Securities Bill, which repeals the 2007 Act and re-establishes SEC as the apex regulatory body for Nigeria’s capital market. The new legislation empowers SEC to ensure fair, transparent market operations, protect investors, and mitigate systemic risks.
The bill which originated from the Senate also passed through third reading on the floor of the House of Representatives last week, further seeks to enact the Investments and Securities bill and to establish Securities and Exchange Commission as the apex regulatory authority for the Nigerian capital market as well as regulation of the market to ensure capital market formation, the protection of Investors, maintain fair, efficient and transparent market and reduction of systemic risk and other related matters.
Notably, Clause 3(3)(o) grants SEC authority to register and regulate online forex platforms, while Clause 3(4)(c) allows the commission to place directors of public companies on probation as deemed necessary.
Other key provisions include the authority to impose fines, revoke licenses, and enforce penalties. For instance, securities exchanges failing to comply with SEC directives could face fines starting at ₦10 million, with additional daily penalties for continued non-compliance.
The bill also empowers SEC to levy penalties for violations, utilize collected fees, and provide training and guidelines to strengthen the capital market. The legislation reflects a commitment to enhancing market integrity and investor confidence.
