Economy
SEC Tasks Shareholders to Raise Relevant Observations at AGMs
By Aduragbemi Omiyale
Shareholders, especially those under registered groups, have been tasked by the Securities and Exchange Commission (SEC) to endeavour to raise relevant observations on key areas at the Annual General Meetings (AGMs) of companies listed on the stock exchanges.
The Director-General of SEC, Mr Lamido Yuguda, said this could be achieved by carefully reviewing audited reports and accounts of listed organisations prior to such yearly shareholders’ gatherings, urging them to uphold high ethical standards and promote new strategies to strengthen accountability among market participants in the Nigerian capital market.
According to Mr Yuguda, in 2016, pursuant to Section 8(y) of the Investments and Securities Act (ISA), the commission released a Code of Conduct for members of shareholders’ associations to guide their conduct during general meetings of public companies and their relationship with public companies outside the general meetings, and for other purposes connected therewith.
He said this code was still in force, noting that it is intended to ensure the highest standard of conduct amongst members and the companies with whom they interact as bona fide shareholders.
“The code is designed to ensure that association members uphold high ethical standards and make positive contributions in ensuring that the affairs of public companies are run in an ethical and transparent manner in compliance with the Nigerian Code of Corporate Governance and the SEC Corporate Governance Guidelines.
“I urge you to continue to abide by this Code of Conduct for Members of Shareholders’ Associations by being disciplined and ensuring good governance,” the SEC DG said at the 2022 edition of the Independent Shareholders Association of Nigeria (ISAN) Triennial Delegates Conference held in Lagos recently.
“We, therefore, urge this association to continue to improve performance of the function of monitoring of companies to contribute to their growth by reviewing Audited Reports and Accounts prior to AGMs to raise germane observations on key areas,” he added.
Mr Yuguda also urged the shareholders to continue to promote their core activities which centre on minority shareholder protection, advancement of corporate governance and development of a deep and robust capital market.
He described the theme of the conference, which focuses on reforming the judicial system in order to stabilise and encourage the growth of the Nigerian economy, as very important and relevant to the growth and development of Nigeria.
The DG commended the shareholders for the excellent support the agency has received from the various shareholder associations in the country, especially ISAN.
“ISAN is one of the largest and foremost shareholders’ advocacy groups in the country. We are proud to be associated with your core activities which centre on minority shareholder protection, advancement of corporate governance and development of a deep and robust capital market,” he said.
“The judiciary has also been contributing to the development of the capital market through its role of adjudicating over matters involving stakeholders in the capital market. As the SEC continues its important regulatory work of protecting both foreign and domestic investors who invest their funds in the Nigerian capital market, we will continue to partner with and engage the judiciary and other relevant stakeholders,” Mr Yuguda noted.
He stated that in an increasingly competitive global environment for capital flows, foreign investors consider the strength and independence of a regulator in their investment decisions, stressing that it is, therefore, a matter of urgent national priority to continue to send the right signals to the investing world that the Nigerian capital market is indeed soundly regulated by a strong and independent SEC, devoid of conflicting interference from any arms of government.
“The SEC is happy to have, over the years, enjoyed the support of the Nation’s courts in the quest to build a vibrant capital market that can contribute to achieving our national objectives.
“The judiciary’s important work impacts market integrity, investor confidence, market development and market fairness. It is clear that without the fair, prompt and effective dispensation of justice, capital markets can never develop. Therefore, in our quest to develop a vibrant capital market in Nigeria, we cannot afford to overlook the central role of the Judiciary,” he said.
However, the SEC DG stated that there was room for reform in the judiciary, especially on issues around investor protection and dispute resolution mechanisms in the Nigerian capital market, adding that the commission supports this reform and is happy to play a role in it.
“As a regulator of this dynamic market, the commission is focused on facilitating capital raising for sustainable national development and transformation of Nigeria’s priority economic sectors, thereby effectively contributing to the national economy.
“Our focus has always centred on the creation of an ecosystem whereby issuers, whether government, entrepreneurs and other businesses, can access capital efficiently. The process of raising money through the capital market plays a vital role in our economy and will help bring nascent ideas to life,” he added.
By Aduragbemi Omiyale
Five stockbroking firms operating in the Nigerian capital market have been sanctioned for engaging in market infractions.
The affected companies, Meristem Stockbrokers Limited, CSL Stockbrokers Limited, Cowry Securities Limited, Associated Asset Managers Limited, and SMADAC Securities Limited, were fined a total of N291 million.
The Nigerian Exchange Regulation (NGX RegCo) Limited, which imposed the penalties on the stockbrokers, accused them of being involved in wash trades and self-matching transactions.
It was gathered that the culprits were investigated by the exchange’s panel, which uncovered repeated instances of improper trading practices such as artificial price formation and misleading market activity.
They have all been directed to undergo mandatory compliance and market conduct training.
Business Post learned from a notice to the Securities and Exchange Commission (SEC) that CSL Stockbrokers Limited was fined over N91 million, while the other four firms were each fined N50 million in line with provisions of the Investment and Securities Act 2025.
NGX RegCo noted that the penalties reflect the gravity of the breaches and were aimed at strengthening market discipline, deterring misconduct and preserving the integrity of the Nigerian capital market.
It further stated that the action reinforces its drive to ensure a fair, orderly and transparent trading environment, while bolstering investor confidence through stricter enforcement of market rules.
In accordance with the Memorandum and Articles of Association (MemArt) of the Exchange, the board of NGX Regco held a meeting on March 27, 2026, wherein it confirmed the decision of the RNBC to sanction the five trading license holder firms. These sanctions are commensurate to infractions and to serve as a deterrence to these violations,” a part of the notice read.
The action of RegCo came a few weeks after the price movement of a company on the NGX platform, Zichis Agro-Allied Industries Plc, was probed after gaining almost 900 per cent in one month.
Trading in the shares of the company was suspended for about a month and was only lifted on March 23, 2026, with its share price adjusted downward to N8.58 from N17.36.
By Aduragbemi Omiyale
Over 200 secondary school students from Covenant Child Academy, Testimony College, and Green Pastures High School were recently introduced to the fundamentals of financial literacy, capital markets, and responsible investing, offering early exposure to wealth-building principles by the Nigerian Exchange (NGX) Limited.
It was part of Customs Street’s week-long programme to commemorate Global Money Week 2026, themed Smart Money Talks.
The bourse joined the global community to celebrate the week as part of its commitment to advancing financial literacy and equipping the next generation of investors.
The students, who underwent the seminar under the NGX’s flagship X-Tour initiative, were guided by representatives from NGX and NGX Regulation on key considerations before investing, as well as common warning signs to watch for when evaluating investment opportunities.
The session reinforced the importance of cultivating positive money habits to support sound financial decisions in the future.
Extending its impact beyond in-person engagement, the exchange also convened an interactive Instagram Live session in collaboration with United Capital Plc.
Featuring Stanley Onuorah, widely known as Online Banker, the session focused on Building a Portfolio in Today’s Markets. It addressed pressing questions from young Nigerians on navigating the capital market, understanding available investment products, and making informed financial choices.
During the session, a representative from NGX’s Trading and Products division shared practical insights into the range of instruments available in the market, including equities, fixed income securities, and exchange-traded funds, while outlining clear pathways for getting started and building resilient portfolios across varying market conditions.
In parallel, a representative from Market Regulation emphasised the importance of investor protection frameworks, educating participants on their rights, the safeguards that ensure fair market practices, and the necessity of due diligence in sustaining trust and integrity within the market.
The session has since attracted thousands of views, significantly amplifying awareness around financial literacy and encouraging greater youth participation in the capital market.
Through these initiatives, NGX continues to play a pivotal role in shaping financially responsible citizens, in line with its broader mandate to drive inclusive growth and strengthen investor confidence within Nigeria’s financial ecosystem.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange declined by 2.14 per cent on Monday, March 30, weakening the Unlisted Security Index (NSI) by 89.95 points to 4,109.74 points from 4,199.69 points.
During the session, investors lost N53.82 billion, leaving the market capitalisation of the trading platform at N2.458 trillion versus the previous session’s N2.512 trillion.
The bourse recorded four price gainers and four price losers led by 11 Plc, which shed N35.12 to close at N316.50 per share compared with last Friday’s value of N351.17 per share. MRS Oil Plc declined by N20.00 to quote at N190.00 per unit versus the previous price of N21o.00 per unit, FrieslandCampina Wamco Nigeria Plc dropped N11.00 to trade at N99.00 per share versus N110.00 per share, and Central Securities Clearing System (CSCS) Plc dipped N2.93 to N77.17 per unit from N80.10 per unit.
Conversely, IPWA Plc appreciated by 55 Kobo to N6.06 per share from N5.51 per share, Industrial and General Insurance (IGI) Plc expanded by 5 Kobo to 57 Kobo per unit from 52 Kobo per unit, Geo-Fluids Plc gained 4 Kobo to close at N3.22 per share versus N3.18 per share, and Acorn Petroleum Plc improved by 1 Kobo to N1.34 per unit from N1.33 per unit.
Trading data revealed a decline of 63.7 per cent in the volume of securities to 21.3 million units from 58.6 million units, a 59.6 per cent drop in the value of securities to N651.1 million from N1.6 billion, and a 24 per cent contraction in the number of deals to 38 deals from 50 deals.
The most active stock by value on a year-to-date basis was CSCS Plc with 56.3 million units exchanged for N3.8 billion, trailed by Okitipupa Plc with 27.5 million units traded for N1.8 billion, and Infrastructure Guarantee Credit Plc with 400 million units valued at N1.2 billion.
Resourcery Plc was the most traded stock by volume on a year-to-date basis with 1.1 billion units worth N415.7 million, followed by Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion, and Geo-Fluids Plc with 133.1 million units transacted for N511.2 million.
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