Economy
How FG Suspended SEC DG for Insisting on Forensic Audit of Oando
By Modupe Gbadeyanka
The suspension of Director-General of the Securities and Exchange Commission (SEC), Mr Mounir Gwarzo, yesterday by the Federal Government may not come as a surprise to some observers in the Nigerian capital market, but the reason behind this move may shock some.
An exclusive report by Premium Times suggested that the regulatory chief was suspended because he insisted on conducting a forensic audit on one of the biggest indigenous oil firms in the country, Oando Plc, headed by Mr Adewale Tinubu, to save the integrity of the capital market regulator.
Oando was accused of gross financial misconducts by two petitioners and SEC suspended trading of shares of the company on the Nigerian Stock Exchange (NSE).
After this action, there was an allegation against the SEC boss that after he was appointed as the DG, he paid himself N104 million as severance package as a former Executive Commissioner of SEC.
Below is Premium Times’ report:
Just before 5:00 p.m. on Wednesday evening, selected journalists got mails from the finance ministry of an impending ‘news break.’
“Kindly await a major news break from the Federal Ministry of Finance today at 6.30 p.m.,” Oluyinka Akintunde, the spokesperson of the Finance Minister, Kemi Adeosun, said; an indication that a decision to be announced to the public about 90 minutes later had already been made.
Less than an hour after Mr. Akintunde’s mail, the news was announced. Munir Gwarzo, the Director General of the Securities and Exchange Commission, SEC, had been suspended.
Suspended alongside Mr. Gwarzo were two officials of the regulatory commission, Abdulsalam Habu, Head of Media Division, and Anastasia Braimoh, Head of Legal Department.
The finance ministry in the statement signed by Patricia Deworitshe, Deputy Director, Press, announced that the officials were suspended based on corruption allegations against them.
“The Honourable Minister has set up an Administrative Panel of Inquiry (API) to investigate and determine the culpability of the Director-General”, Ms. Deworitshe announced.
Ms. Deworitshe did not announce the reason why it took the finance minister 10 months to acknowledge and act after the allegations were made to her office and anti-corruption agencies against Mr. Gwarzo and the two others.
However, ongoing investigation by PREMIUM TIMES reveals that while the allegations against the regulatory chief deserve to be investigated and suspects prosecuted if found guilty, the real reason for the suspension was the crisis rocking Nigeria’s supposed largest indigenous oil and gas firm, Oando.
In fact, sources told PREMIUM TIMES, the decision to suspend Mr. Gwarzo was taken at least 24 hours before Mr. Akintunde’s first mail to journalists on Wednesday at a meeting attended by three people.
THE MEETINGS
On Tuesday, the SEC chief met with the Permanent Secretary of the Ministry of Finance, Mohammed Dutse, two sources knowledgeable about the meeting told PREMIUM TIMES although both gave varying details of the meeting.
One source said the Tuesday meeting was a follow up to another held between Mr. Gwarzo, Mrs. Adeosun, and Mr. Dutse.
At the Monday meeting, the source said, Oando was the only topic of discussion.
A few hours before the Monday meeting, SEC had written the oil and gas firm, formally notifying it of the decision to commence the forensic audit earlier announced in October.
“The Commission notes that the above findings (of irregularities in Oando) are weighty and therefore needs to be further investigated. After due consideration, the Commission believes that it is necessary to conduct a forensic audit into the affairs of Oando Plc”, the commission had stated on October 18.
However, hours after the SEC letter was delivered to Oando, the Monday afternoon meeting was reportedly called at the instance of the minister.
During the meeting, Mrs. Adeosun reportedly ordered Mr. Gwarzo to call off the forensic audit of Oando.
“She advised him to rather constitute a committee that would recommend that Oando pays large sums as penalties for its various infractions”, the source said.
Mr. Gwarzo reportedly told the minister and permanent secretary that his commission would not discontinue the audit process as such would have a negative effect on public perception of its role as a regulator.
The source said the DG was confronted with the threat to either resign or be suspended from office, ostensibly to allow ample time for the Oando issue to be sorted before his reinstatement later.
It was then Mr. Gwarzo reportedly received the shocker. He was allegedly reminded by the minister of pending allegations against him and that, “those could be brought back.”
Worried by the mood of the alleged Monday meeting and the pressure allegedly put on him by the minister, Mr. Gwarzo reportedly briefed some of his close confidants on the discussions at the meeting.
Mrs. Adeosun’s spokesperson, however, told PREMIUM TIMES that the Monday meeting never held. He, however, confirmed the Tuesday meeting but gave a different narrative of what transpired.
Our source, who sought anonymity for fear of victimisation, said Mr. Gwarzo on Tuesday sent a memo to Mrs. Adeosun documenting the implications of derailing the forensic audit, particularly the negative signal it would send to the capital market, in view of the horrible financial position of Oando.
In the memo, he made reference to Section 11(d) of the SEC Act on his duty as the Director General of the Commission to advise the minister on such matters, the source said.
He advised the minister to “allow the matter to follow its course professionally, for the integrity of its regulatory function.” The source said it was the content of the memo, and the minister’s actions, that was discussed with Mr. Dutse on Tuesday.
Mrs. Adeosun’s spokesperson, Mr. Akintunde, however, gave a different narrative of what transpired on Tuesday.
In an interview with PREMIUM TIMES on Thursday morning, Mr. Akintunde said the SEC boss did not meet with the minister but only met with the permanent secretary on Tuesday to seek a “soft landing” over the corruption allegations.
“The minister was not even in office on Monday. Mr. Gwarzo went to the Permanent Secretary on Tuesday to seek a soft landing over allegations that he paid himself N104 million severance package while still in office; and the private companies he used to award contracts to his relations.”
Mr. Akintunde said it was after the meeting with the permanent secretary that Mr. Gwarzo was advised to go and consider resigning his appointment.
In his reaction to why it took 10 months for the minister to react to the corruption petition, Mr. Akintunde said, “investigations were conducted to authenticate the substance of the petition, queries were issued and answers received; the anti-graft agencies have to be given the chance to do their job.”
Another source at the SEC, knowledgeable about the matter, however, questioned Mr. Akintunde’s claim.
“If the investigations have already been conducted by the finance ministry, why set up a panel again? Since the matter is already being investigated by EFCC and ICPC, why not let them complete their investigation and prosecute those found wanting. It’s a lie, the suddenness is all about protecting Oando even though Gwarzo has a case to answer,” the source said.
THE ALLEGATIONS AGAINST GWARZO
In the corruption petition, which is currently being investigated by the two anti-corruption agencies, EFCC and ICPC, Mr. Gwarzo was accused of pocketing about N104.85 million as severance package while still in service.
He was also accused of getting entangled in a conflict of interest as a Director in Medusa Investment Limited, a company he allegedly used to funnel millions in contract awards while still in office in violation of extant rules.
Officials at the EFCC and the ICPC confirmed that their commissions are investigating the matter and had indeed questioned several officials mentioned in the alleged scandal several times.
EFCC
At the EFCC, the case is being handled by the Capital Market and Investment Fraud Section, CMIFS, section headed by Adesola Amusan.
When he was invited earlier this year, the SEC chief was said to have admitted to the EFCC that he indeed received a severance package, but insisted it was not for the office he currently occupies as DG, but for when he held office as a commissioner.
Mr. Gwarzo was said to have submitted documents, including the extract of a Board meeting of SEC held on July 11, 2002, long before he joined the commission.
Any senior official who attains the position of either a DG or commissioner was entitled to draw a severance package after completing two years in office, that board resolution stated.
Having completed over two years and five months in office, as a commissioner, Mr. Gwarzo reportedly told the operatives he was entitled to the severance package.
PREMIUM TIMES findings show that Mr. Gwarzo served as Executive Commissioner of SEC for two years and four months prior to his appointment by former President Goodluck Jonathan on May 22, 2015, to succeed Arunma Oteh as the Director-General of SEC.
While our ongoing investigations show that this practice of paying people such severance packages is common in SEC, its legality is questionable, an issue the EFCC and ICPC are still looking into; to, among others, determine how many officials benefitted from such arrangement in the past.
Apart from the suspended officials, other officials including the executive commissioner, corporate services of SEC, also appeared before ICPC investigators.
The spokespersons of both the EFCC, Wilson Uwujaren, and ICPC, Rasheedat Okoduwa, could not be reached for comments on the current status of their investigations.
While Mr. Uwujaren’s phone number was not reachable, Ms. Okoduwa did not pick or return calls made to her.
While the anti-corruption agencies continue to investigate the allegations against Mr. Gwarzo and others, and now joined by the administrative panel set up by the finance ministry, attention will now be focused on what the regulator will do about Oando.
THE OANDO CRISIS
The proposed forensic audit of Oando followed two petitions SEC received from concerned shareholders, Dahiru Mangal and Ansbury Incorporated, about alleged mismanagement of the company’s financial affairs and distortion of its shareholding structure.
Following the petition, SEC said it conducted a comprehensive review, which revealed massive breaches of the provisions of the Investments & Securities Act 2007 and the SEC Code of Corporate Governance for Public Companies.
Consequently, the Commission announced the appointment of a consortium of experts, consisting auditors, lawyers, stockbrokers and registrars, to conduct the forensic audit, while shares of Oando Plc at the Nigerian Stock Exchange, NSE were placed on temporary technical suspension.
The technical suspension is still in place, meaning while trading on Oando stock is still allowed, there will not be any price changes.
Last week, the oil firm also lost a bid to stop the forensic audit planned by SEC as a Federal High Court ruled against it.
By Dipo Olowookere
The first trading session of the week on the floor of the Nigerian Exchange (NGX) Limited ended in the green territory on Monday, with a 1.20 per cent rise.
This was buoyed by the gains recorded by Airtel Africa and other equities, according to analysis of data harvested from the Customs Street yesterday.
During the trading day, the consumer goods index grew by 0.76 per cent, enough to offset the losses recorded by the other sectors.
The insurance counter shrank by 1.64 per cent, the banking space lost 0.24 per cent, the energy sector contracted by 0.09 per cent, and the industrial goods segment retreated by 0.05 per cent.
When trading activities ended for the day, the All-Share Index (ASI) was up by 2,956.15 points to 248,529.75 points from 245,573.60 points, and the market capitalisation gained N1.909 trillion to finish at N160.422 trillion compared with the previous session’s N158.513 trillion.
Fortis Global Insurance expanded by 10.00 per cent to N2.86, Chams surged by 9.80 per cent to N4.48, NAHCO jumped by 9.29 per cent to N153.00, Airtel Africa soared by 8.59 per cent to N6,300.00, and Sovereign Trust Insurance rose by 6.59 per cent to N1.78.
Conversely, AVA Capital shed 10.00 per cent to N9.90, Ecobank decreased by 9.92 per cent to N64.95, Caverton crashed by 9.09 per cent to N5.00, Ikeja Hotel slipped by 8.41 per cent to N43.00, and FTN Cocoa dropped 8.37 per cent to trade at N8.10.
A total of 23 equities were on the gainers’ chart yesterday, while 37 equities ended on the losers’ table, indicating a negative market breadth index and weak investor sentiment.
As for the activity log, the trading volume remained elevated, though lower than the preceding session, as it receded by 26.67 per cent to 1.1 billion units from 1.5 billion units. The trading value, however, increased by 1.12 per cent to N27.0 billion from N26.7 billion, while the number of deals advanced by 39.00 per cent to 59,185 deals from 42,580 deals.
Consolidated Hallmark was the most active stock yesterday, with a turnover of 354.1 million units valued at N1.5 billion, Fortis Global Insurance traded 307.3 million units worth N818.3 million, Access Holdings exchanged 48.1 million units for N1.4 billion, Chams transacted 37.4 million units worth N163.3 million, and First Holdco sold 35.8 million units valued at N5.1 billion.
By Adedapo Adesanya
Oil prices traded 5 per cent higher on Monday after Iran and the United States argued about demands for compensation, further stalling a possible deal to reopen the Strait of Hormuz.
Brent crude futures chalked up $4.17 or 4.99 per cent to sell at $87.72 a barrel, while the US West Texas Intermediate (WTI) crude futures surged $3.95 or 5.05 per cent to $82.13 per barrel.
Iran said the US must lift sanctions on it and meet other conditions for reopening the vital waterway, which carried a fifth of the world’s oil and liquefied natural gas before the start of the Middle East conflict in late February.
Meanwhile, US President Donald Trump said Iran must pay compensation for “all of the people that they have killed and gravely wounded.”
This comes as the Middle East country said it was nearing a final pact with Oman to define new shipping lanes through the strait but repeated that the US must meet other conditions, including compensation and an end to sanctions and military threats before the strategic waterway is reopened.
In a further threat to supply, the Iran-aligned Houthis said they had struck Saudi Aramco’s Jazan refinery on Sunday. Saudi Aramco has postponed the restart of the 400,000-barrel-per-day refinery to August 30 after two Houthi attacks in recent weeks.
ADNOC, a state-owned oil company in the United Arab Emirates, said on Friday that 15 of its vessels had been attacked while transiting the Strait of Hormuz since the beginning of the conflict.
Meanwhile, Ukraine’s military continued to attack Russia’s energy infrastructure, hitting the Taneco oil refinery in Tatarstan and the ZapSibNeftekhim petrochemical plant in Russia’s Tyumen region.
On the US supply side, stocks of crude oil in the Strategic Petroleum Reserve (SPR) fell by about 6.1 million barrels to 298.7 million barrels last week, the lowest level since January 1983.
Bank of America (BoFA) warned that oil prices could continue climbing into the winter if the US and Iran fail to reach an agreement reopening the Strait of Hormuz, with severe shortages already emerging in diesel, petrol, and global natural gas markets.
Mr Francisco Blanch, Bank of America’s head of commodities and derivatives research, told CNBC on Monday that only around 5 to 10 ships per day are currently passing through Hormuz, compared with roughly 140 before the war. With some crude now being rerouted through Saudi Arabia and the UAE, traffic would need to recover to around 80 to 100 ships per day just to stabilise energy markets.
By Adedapo Adesanya
The Senate Committee on Banking, Insurance and Other Financial Institutions has called for stronger collaboration among financial sector regulators and other stakeholders to strengthen Nigeria’s financial system and support sustainable economic growth.
The committee made the call during an expanded stakeholders’ engagement in Lagos, attended by the leadership of the Central Bank of Nigeria (CBN), Nigeria Deposit Insurance Corporation (NDIC), Asset Management Corporation of Nigeria (AMCON), National Insurance Commission (NAICOM) and Nigeria Export-Import Bank (NEXIM), among other industry stakeholders and financial experts.
Chairman of the committee, Mr Adetokunbo Abiru (Lagos East), who was represented by Mr Osita Izunaso (Imo West), said stronger legislative reforms and regulatory collaboration were necessary to reposition Nigeria’s financial architecture for long-term economic prosperity.
Mr Abiru said the financial sector remained critical to investment, job creation, business expansion and macroeconomic stability, stressing that its ability to mobilise savings, channel credit to productive sectors, facilitate investment and manage risks was fundamental to sustainable economic growth.
He said the current economic realities required closer collaboration between the legislature and financial regulators, noting that challenges confronting the sector were interconnected and could not be effectively addressed through isolated interventions.
The lawmaker identified inflationary pressures, global economic uncertainties, cybersecurity threats, low insurance penetration and the need to diversify Nigeria’s export base as some of the challenges requiring coordinated policy responses.
He said the engagement was aimed at generating practical solutions to strengthen the country’s financial architecture and support sustainable economic growth.
According to him, monetary policy, financial safety nets, banking institutions, the insurance industry and export finance were interdependent components of a stable financial system and must therefore be strengthened collectively.
The Commissioner for Insurance and Chief Executive Officer of the National Insurance Commission (NAICOM), Mr Olusegun Ayo Omosehin, said the Nigeria Insurance Industry Reform Act (NIIRA) 2025 had contributed significantly to stabilising and repositioning the insurance sector.
Mr Omosehin disclosed that 43 insurance companies had successfully recapitalised, describing the development as a major milestone for the industry.
He commended Abiru and members of the committee for their role in advancing insurance sector reforms and urged the House of Representatives to expedite action on the relevant insurance reform bill to enable it to receive presidential assent and become operational.
Representatives of the CBN Governor and the Managing Directors of AMCON, NEXIM and NDIC also commended the Senate committee for its oversight and legislative support, saying its interventions had strengthened the agencies’ capacity to discharge their statutory mandates.
The engagement, held under the theme, Strengthening Financial System Architecture for Sustainable Economic Growth and Stability in Nigeria, also featured presentations by Professor Uche Uwaleke, President of Capital Market Academics of Nigeria (CMAN); Professor Biodun Adedipe, Chief Consultant, B. Adedipe Associates Limited; and Dr Tilewa Adebajo, Chief Executive Officer of CFG Advisory.
The experts presented policy recommendations on key issues affecting Nigeria’s financial system, with emphasis on financial stability, investment and sustainable economic growth.
Mr Abiru said the Senate would continue to engage financial regulators and other stakeholders to deepen financial inclusion, strengthen public confidence in financial institutions and improve regulatory effectiveness.
He said the broader objective was to position Nigeria’s financial system to compete more effectively in the global economy while remaining resilient and responsive to the country’s economic transformation agenda.
