The Securities and Exchange Commission (SEC) of Nigeria has reported a significant improvement in compliance among capital market operators (CMOs), with prudential return filings rising to 96% in 2022 from 81% in 2021, according to a report by Nkiruka Nnorom on January 4, 2023. This milestone, highlighted by SEC Director General Mr. Lamido Yuguda in a New Year message in Abuja, reflects the impact of the commission’s enforcement actions and sets an optimistic tone for market development in 2023, a relevance that persists as of August 27, 2025.
Boost in Compliance Levels
The SEC’s stringent enforcement measures have driven this uptick, ensuring that only fit and proper CMOs operate within the market. Yuguda noted, “This has resulted in an improved level of compliance with filing of prudential returns rising to 96% in 2022 compared with 81% in 2021.” This progress underscores the effectiveness of regulatory oversight in fostering accountability and transparency among market participants.
Looking ahead, the SEC anticipates that its ongoing initiatives will yield substantial growth in 2023. Yuguda expressed confidence that the market would see uncommon development in areas such as securities issuance, digital assets, commodities trading ecosystems, custodianship of assets, and Fintech. These advancements are expected to enhance market efficiency and attract diverse investment opportunities.
Addressing Market Challenges
Despite the gains, Yuguda identified the persistent proliferation of illegal investment schemes, particularly Ponzi schemes, as a major concern. He assured a renewed onslaught against promoters of such activities, emphasizing the SEC’s ongoing campaign to protect investors. “We have been alerting people. We have said that investors should only deal with registered operators that have the registration of the Commission,” he stated, reinforcing the importance of due diligence.
The implementation of the Revised Capital Market Master Plan is also expected to boost investor confidence, drawing both domestic and foreign capital. However, Yuguda acknowledged that 2023, as an election year, might see a temporary slowdown in market activities. He remained hopeful that increased awareness and positive electioneering would ensure peaceful elections, enabling a swift return to pre-election investment levels.
Future Outlook and Stability
The SEC’s proactive stance positions the Nigerian capital market for resilience and growth. The focus on digital assets and Fintech aligns with global trends, potentially positioning Nigeria as a leader in innovative financial services. As the commission continues its fight against illegal schemes, the improved compliance rate serves as a foundation for a more stable and trustworthy market.
As of August 27, 2025, the SEC’s efforts in 2023 continue to shape the financial landscape, with the legacy of the 96% compliance rate and the Master Plan’s rollout remaining key talking points. The challenge of illegal operators persists, but the commission’s resolve offers a pathway toward a robust and inclusive market.
