The Director General of the Securities and Exchange Commission, Emomotimi Agama, has responded to public criticism over the agency’s perceived inaction in the collapse of CBEX, a controversial investment platform accused of defrauding unsuspecting Nigerians.
Speaking during an interview on a live television programme on Monday, Agama explained that the SEC could not intervene because CBEX was never registered with the Commission.
“The first responsibility of the SEC is to watch over regulated institutions within the confines of its available resources.
“Once you are registered with the SEC, you are totally and completely under our watch. Registration actually is the hallmark of regulation. Without registration, the possibility of regulation becomes difficult,” he said.
He emphasized that the SEC only became aware of CBEX recently and had not received any reports about the platform prior to that time.
“It’s very pathetic that Nigerians will lose their money this way.
“At the SEC, and I’m sure speaking for my colleagues, we’re very empathic about the situation. But even at that, we must say clearly that the idea or thoughts that the SEC is not working is totally out of it.”
According to Agama, CBEX had operated outside the Commission’s radar entirely.
“The CBEX is not registered with the SEC. And no one up until last week had reported the CBEX to the SEC as an investment platform or even made an inquiry to that effect,” he stated.
He stressed that despite such limitations, the SEC has remained proactive in educating the public about safe investing.
“We have continued mass education. Just about two months ago, we launched a podcast at the SEC to provide information to people. We’ve also gone around holding enlightenment campaigns all over the place,” he noted.
To avoid falling victim to fraudulent schemes, he advised Nigerians to seek professional advice before making any investments.
“If there is any investment you are not sure about, contact a financial advisor, a lawyer, an investment advisor or a stockbroker. Investments are very serious business, and Nigerians must take time to check and confirm before delving into it.”
On the notion that CBEX was in the process of securing certification, Agama dismissed the claims.
“It’s totally untrue, in capital letters. No institution applies to the SEC after operating. You cannot operate without a license from the SEC. That alone is a red flag.”
He also addressed the misconception that registration with the Corporate Affairs Commission is equivalent to SEC approval.
“Sometimes these people are deceptive and manipulative. They could have applied for registration not as an investment platform or exchange. So they may receive a certificate innocently from the CAC,” he said.
Agama assured that justice will be pursued through an ongoing investigation and collaboration with other relevant government agencies.
“We are continually investigating this CBEX scheme and of course we will bring them to book. There is a strong collaboration between all the agencies of government to make sure that this happens. As much as possible, whatever we can recover, certainly in this instance, will be returned back to the investors,” he said.
He also called on media houses and social media influencers to be more accountable in their content promotion and due diligence.
“We want to crave the indulgence of the media houses especially. So join us in this campaign to rid Nigeria of these men,” he said, referencing new legal provisions.
“If you are a blogger, you are an influencer, and you help in participating in this kind of fraudulent activities… the sanction in the ISA 2025 is 20 million naira in the first instance, and 10 years imprisonment.”
