Economy

Appeal Court Affirms SEC Powers to Regulate Public Firms

Published

7 years ago

14/03/2019

By Dipo Olowookere

A Court of Appeal in Nigeria has said the Securities and Exchange Commission (SEC) has been authority to oversee affairs in any publicly listed companies in the capital market so as to protect interest of investors.

The judgment, which was given on January 31, 2019, emphasised that SEC, being the apex regulator in the capital market in Nigeria, has powers to intervene in the management and control of any public company which is considered to have failed, is failing or is in crises.

The ruling noted that the commission was statutorily mandated to ensure the protection of investors and maintain a fair, efficient and transparent market.

In 2008, SEC had conducted an investigation on Big Treat Plc, a public listed company (firstrespondent) and its directors which revealed several infractions of the Investments and Securities Act (ISA) 2007 such as inadequate internal control systems and a breakdown of corporate governance in the company.

Based on the foregoing, and pursuant to the provisions of Section 13 (v) of the ISA 2007, the commission in 2010 approached the Federal High Court seeking a number of reliefs against Big Treat Plc (first respondent), three of its directors – Pamela Wu, Harries Wu, Steve Wu – and two entities owned by them – New Frontier Engineering and Construction Company Ltd and Skyone Group of Companies Ltd with a view to preserving the assets of the first respondent.

In the course of the proceedings, SEC applied for and was granted an ex-parte order of interim injunction restraining the second– sixth respondents, their agents, servants or privies from obstructing the commission in the exercise of its statutory oversight responsibilities to the first respondent including the appointment of an interim management to take charge of the day to day administration of the first respondent with a view to preserving its assets in the interest of its stakeholders pending the determination of the motion on notice already filed in this suit.

However, the ex-parte order was subsequently vacated on the grounds that the first respondent (Big Treat Plc) “was not a capital market operator amenable to the control and management of the appellant in times of financial distress”.

The commission appealed against the decision of the Federal High Court and the sole issue for determination as raised by SEC before the Court of Appeal was “whether the lower court was right when it held that the first respondent (Big Treat Plc) is not a capital market operator because it does not play any specific role in the capital market and as such, not registerable or subject to the control of the appellant (the commission)”.

In the judgment, the appellate court held, “That the first respondent, an issuer of securities, having been duly registered with the appellants and was at all material times performing the specific function of issuing securities in the capital market was subject to the intervention of the statutory powers of the appellant as the pinnacle regulatory authority for the Nigerian capital market whose sole purpose is to ensure the protection of investors and to maintain fair, efficient and transparent capital market as well as reduction of systemic risk as stated in the preamble of the ISA- the beacon light to the powers of the appellant under the ISA.”

“In conclusion, I most respectfully hold that the court below should not have vacated the interim preservative order made by it to protect the imminent collapse of the first respondent but the appellant who at all material times was exercising statutory powers under the ISA to stem the tide of decay in the internal management of the first respondent,” the court further held.

Economy

Crude Oil Slightly Rises as Iran Allows Safe Passage for Ships

Published

45 minutes ago

15/05/2026

Adedapo Adesanya

By Adedapo Adesanya

Crude oil marginally appreciated on Thursday after it was reported that about 30 vessels had crossed the Strait of Hormuz, with Brent crude oil futures gaining 9 cents or 0.09 per cent to trade at $105.72 a barrel, and the US West Texas Intermediate (WTI) futures expanding by 15 cents or 0.15 per cent to $101.17 a barrel.

Iranian state media reported that about 30 Chinese vessels were allowed safe passage by Iran through the Strait, which has been largely shut since the Iran war broke out at the end of February.

Before the report, a Chinese supertanker carrying 2 million barrels of Iraqi crude sailed through the contested waterway on Wednesday after being stranded in the Gulf for more than two months, while a Panama-flagged crude oil tanker managed by Japanese refining group Eneos had also passed.

Bloomberg also reported that the vessels were allowed to pass the Strait of Hormuz with the coordination of the Iranian authorities and Islamic Revolutionary Guard Corps’ navy, however, it added that it is yet unknown or unclear whether the US Navy side of the de facto blockade will also let them pass.

The move also follows formal requests by China’s foreign minister as well as its ambassador to Iran, with Iran reportedly agreeing based on safeguarding the two allies’ strategic partnership.

It also comes as President Donald Trump’s ongoing state visit to China, where he and President Xi Jinping agreed that the ‌Strait of ‌Hormuz must be open for ‌the free flow of energy.

President Xi expressed interest in purchasing more US oil to reduce China’s dependence on the Strait of Hormuz, according to the White House. China, the world’s largest oil importer, is not a big buyer of US crude and has not imported any since May 2025 due to a 20 per cent import tariff imposed during the trade war.

Iran, a member of the Organisation of the Petroleum Exporting Countries (OPEC), also appears to have tightened control over the strait, cutting deals with Iraq and Pakistan to ship oil and liquefied natural gas from the region.

The International Monetary Fund (IMF) said the global economy is clearly moving into a middle “adverse scenario,” which would see global real GDP growth falling to 2.5 per cent this year from 3.4 per cent growth in 2025, citing the Iran war as the cause.

Economy

Run From Any Unregistered Online Investment Platform—SEC Warns Nigerians

Published

18 hours ago

14/05/2026

Aduragbemi Omiyale

By Aduragbemi Omiyale

For the umpteenth time, the Securities and Exchange Commission (SEC) has run to the rooftop to warn Nigerians against putting their hard-earned money in online investment platforms not authorised to operate in the nation’s capital market.

SEC is the apex regulatory agency in the Nigerian capital market. It issues licences to companies operating in the ecosystem.

In a statement on Thursday, the organisation expressed concerns over the rising “promotion of unregistered online investment schemes on social media applications and websites, including WhatsApp, Instagram, Telegram, Facebook, TikTok and other digital platforms.

In the notice, the SEC emphasised that, “Many of these investment schemes exhibit characteristics of Ponzi or Prohibited investment schemes, while some operators of such schemes also provide unauthorised investment services to members of the public.”

In view of these, the commission advised members of the public “to refrain from investing or participating in any unregistered online investment platform or scheme promising unrealistic or guaranteed returns.”

“Members of the public are further advised not to rely on investment advisories circulated through online platforms by persons or entities not registered by the commission, as reliance on such advisories may expose investors to significant financial losses and fraudulent schemes,” it noted.

“The public is reminded that, under the provisions of the Investments and Securities Act, 2025, only entities registered by the commission are authorised to promote investment services, provide investment advisory services or solicit funds from the public in the Nigerian capital market,” another part of the circular signed by the management noted.

The regulator urged the investing public to verify the registration status of any platform, company, or entity offering investment opportunities on its dedicated portal: https://sec.gov.ng/fintech-and-innovation- hub-finport/registered-fintech-operators/ or https://www.sec.gov.ng/cmos before transacting or investing with them.

Economy

Dangote Rejects NNPC Bid to Raise Stake in Soon-to-Be Listed Refinery

Published

18 hours ago

14/05/2026

Adedapo Adesanya

By Adedapo Adesanya

Nigerian businessman, Mr Aliko Dangote, has disclosed that he rejected requests by the Nigerian National Petroleum Company (NNPC) Limited to increase its 7.25 per cent stake in the Dangote Petroleum Refinery.

Mr Dangote stated this in a podcast with the Chief Executive Officer of the Norwegian Sovereign Wealth Fund, Mr Nicolai Tangen.

In the podcast interview, the billionaire revealed that the state oil company offered to increase its current 7.25 per cent stake in the 650,000 barrels per day plant.

However, this was rejected because the company is planning to go public and give other Nigerians the opportunity to own shares in the plant.

Recall that the refinery is planning a multi-exchange listing and targeting a valuation of $50 billion. It has appointed a consortium of three financial advisers to manage the offering. Stanbic IBTC Capital to handle international book-building process and lead engagement with foreign portfolio investors; Vetiva Capital Management to manage retail investor distribution within Nigeria; and FirstCap to focus on placements with Nigerian institutional investors, particularly pension funds.

It was reported in 2021 that the NNPC acquired the 7.25 per cent stake in the refinery for $1 billion, with an option to acquire the remaining 12.75 per cent stake by June 2024.

However, the national oil firm reneged on its decision.

During the interview with the Norwegian Sovereign Wealth Fund CEO, Mr Dangote revealed that the state oil company had made attempts to acquire more stakes in the refinery, but this was turned down.

The revelation came while he was responding to questions about what could be the biggest risks to his businesses.

“Actually, if there are civil wars, which is not in the offing at all.

“The other biggest risk is government inconsistencies in policies, and we are addressing that one because if you look at our refinery, the national oil company already owns 7.25 per cent, and they are trying to buy more. We are the ones that said no; we want to now spread it and have everybody be part of it.”

In 2024, Mr Dangote revealed that under the former Group Chief Executive Officer, Mr Mele Kyari, the NNPC reduced its stake in the refinery from 20 per cent to 7.25 per cent. He disclosed that the NNPC had only a 7.2 per cent stake in the refinery and not 20 per cent as many Nigerians believed.

“The agreement was actually 20 per cent, which we had with NNPC, and they did not pay the balance of the money up until last year; then we gave them another extension up until June (2024), and they said that they would remain where they had already paid, which is 7.2 per cent. So NNPC owns only 7.2 per cent, not 20 per cent,” Mr Dangote stated at the time.