- SEC vows strict oversight to boost investor confidence
The Central Bank of Nigeria has directed foreign exchange (FX) market participants to submit a compliance report on adherence to the Nigeria FX Code by January 31, 2025.
This initiative aims to bolster ethical practices, governance, and transparency within the nation’s FX market.
According to the FX Code document released on Monday, participants must conduct a self-assessment and submit a detailed report approved by their board of directors.
The document states, “Market participants will be required to conduct a self-assessment and submit to the CBN a report on the institution’s level of compliance with the FX Code by January 31, 2025.
“All market participants will thereafter be required to submit to CBN a detailed compliance implementation plan that is approved and signed by its Board along with the extracts of the Board meeting.”
The Nigeria FX Code, effective from December 2, 2024, provides a framework for good practices in the FX market.
The code applies to authorized dealers licensed under the CBN Act 2007, the Bank and Other Financial Institutions Act 2020, and other wholesale FX business participants.
Participants are expected to conduct a self-assessment and submit a compliance report by the January deadline, provide a board-approved implementation plan to address compliance gaps, submit extracts from board meeting minutes to demonstrate oversight, file quarterly compliance reports with the CBN’s Financial Markets Department, starting with the first report due by March 31, 2025.
To ensure adherence, the CBN has outlined enforcement mechanisms, including monetary penalties and administrative sanctions under the CBN Act 2007 and BOFIA Act 2020.
The Nigeria FX Code is modeled after the Global FX Code, integrating international best practices while addressing Nigeria’s unique FX market dynamics.
It is built on six core principles, High ethical standards and professionalism, Robust oversight frameworks for FX activities.
Fair and transparent transaction handling, Confidentiality and accuracy in communication, Strong frameworks to identify and mitigate risks, Efficient post-trade processes for smooth transactions.
The FX Code underscores the CBN’s commitment to fostering a resilient and transparent FX market that adheres to global standards.
The directive aims to enhance confidence among market participants by ensuring competitive pricing and ethical practices. Failure to comply with the directive could result in significant penalties, which underscores the need for participants to adhere to the stated principles.
With this initiative, the CBN seeks to ensure the long-term stability and integrity of the Nigerian foreign exchange market.
SEC vows strict oversight to boost investor confidence
In the same vein, the Securities and Exchange Commission has reaffirmed its commitment to boosting investor trust by stepping up regulatory oversight of capital market operators.
The Director General of the Securities and Exchange Commission, Emomotimi Agama, made this pledge at the office launch of Norrenberger Asset Management Limited and the 2025 Capital Market Outlook event in Abuja on Monday.
Agama highlighted the SEC’s zero-tolerance policy for market infractions, stating that the commission would adopt a proactive approach to ensure compliance among operators.
He declared, “We are going to get to every capital market operator, watching them like an eagle, making sure they are doing just the right thing. We want to be sure that Nigerians here and abroad, and even foreigners, believe and trust in our market.”
Agama revealed that a recently passed bill awaiting presidential assent would empower the SEC to enforce regulations more effectively.
“This legislation will ensure accountability and justice for any violations, creating a market climate of trust, confidence, and transparency,” he noted.
He stressed that the SEC’s primary goal is to create a self-assured market environment that does not rely on external validation, emphasizing that achieving this would require commitment and diligence from all stakeholders.
Agama also underscored the importance of financial education in 2025, outlining plans to increase awareness of the capital market’s opportunities among Nigerians.
“As much as we educate people to know, we will also not tolerate any form of infractions or violations of the rules and regulations,” he asserted.
Reflecting on the successes of 2024, Agama highlighted the market’s capacity to fund long-term projects, citing the N2.2 trillion raised for bank recapitalization and N3 trillion secured through collective investment schemes.
He dismissed fears that government borrowing could overshadow private sector activities, arguing that the market has the depth to support both.
“The market is robust, and private sector players should take advantage of its capacity. Quality products will always attract investors,” he said.
Looking ahead, Agama described 2025 as a transformative year for the capital market, with plans to expand its role in addressing economic deficits and fostering growth.
Speaking at the event, the Group Managing Director of Norrenberger, Tony Edeh, highlighted the firm’s mission to address gaps in the asset management sector.
“Our goal is to optimise and diversify investment opportunities, especially for Nigerians currently excluded from accessing these services,” Edeh said.
He added that while asset management services are concentrated in Lagos, Abuja, and Port Harcourt, Norrenberger plans to extend its reach to underserved regions, such as Kano, to support the government’s $1 trillion economy target.
The Managing Director of Norrenberger Asset Management Limited, Pabina Yinkere, reaffirmed the firm’s dedication to financial inclusion through innovative products.
“We are expanding Islamic finance offerings and introducing investments in commodities, infrastructure, and digital assets, leveraging the SEC’s new guidelines,” Yinkere announced.
He underlined Norrenberger’s dedication to democratising investing access so that resilient and diverse portfolios may benefit Nigerians from all areas.
It is anticipated that this strategic emphasis on diversity, innovation, and compliance would propel Nigeria’s capital market to unprecedented heights by 2025.
