In a significant development for Nigeria's financial sector, the Securities and Exchange Commission (SEC) has issued a strong call to capital market operators to deepen and sustain a proactive compliance culture. This directive comes on the heels of the country's recent exit from the Financial Action Task Force (FATF) Grey List, a move seen as crucial for safeguarding Nigeria's reputation within the global financial system.
A Pivotal Moment for Nigeria's Financial Markets
Addressing attendees at the Nigerian Capital Market Institute Compliance Summit, the Director-General of the SEC, Dr. Emomotimi Agama, described the event as a critical juncture for the future of the nation's financial markets. He stressed that the discussions held at the summit are central to the market's integrity, stability, and long-term prospects.
Dr. Agama underscored that Nigeria's removal from the FATF Grey List in October is far more than a simple administrative update. He framed it as a profound symbolic and substantive recognition of the country's unwavering commitment to fortifying its Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) framework. He attributed this success to the sustained and collaborative efforts between the public and private sectors, praising regulators, operators, and compliance professionals for their collective role in this achievement.
Not a Finish Line, But a Starting Block
However, the SEC boss delivered a clear caution, warning against complacency. "Exiting the grey list is not the finish line; it is the starting block for a new race. The world is watching," he stated. Agama explained that international financial institutions and investors will continue to scrutinize Nigeria to determine if the implemented reforms are durable and if compliance practices have been genuinely embedded across the financial ecosystem.
He highlighted the urgent need for a fundamental mindset shift—from reactive compliance driven by external pressure to a deliberate, long-term commitment to global best practices. According to him, compliance has evolved from a mere statutory obligation into a distinct strategic advantage. A market built on a foundation of transparency and accountability, he argued, naturally attracts investment and builds lasting investor trust.
Agama called on financial institutions to persistently enhance their systems by:
- Adopting modern regulatory technologies (RegTech and SupTech).
- Providing continuous training for compliance officers.
- Reinforcing ethical behaviour throughout the industry.
He assured stakeholders that the SEC remains dedicated to offering clear regulatory guidance, constructive oversight, and meaningful engagement to ensure the Nigerian capital market continues to meet global standards.
Focus on New Regulations and Vigilance
In her own remarks, the SEC’s Executive Commissioner for Legal and Enforcement, Ms. Frana Chukwuogor, drew attention to the newly enacted Investment and Securities Act of 2025. She pointed out that a major challenge for operators during regulatory changes is a lack of sufficient information about the amendments. "How can you be compliant if you don’t know what has changed?" she questioned.
She clarified that the summit was designed to illuminate new regulatory provisions and emerging risk areas, including the persistent issues of Ponzi schemes and the evolving regulation of digital assets. Chukwuogor reminded participants that Nigeria's hard-won exit from the grey list underscores the critical importance of staying informed and vigilant.
She stressed that chief executives and market operators must ensure their compliance officers possess a complete understanding of the updated regulatory requirements. The commission, she disclosed, plans to intensify its oversight by meticulously monitoring the filing of regulatory returns, warning that operators who fail to comply will face sanctions.
Dr. Agama concluded by urging summit participants to use the forum to exchange ideas and develop practical strategies to 'future-proof' the market. The ultimate goal, he emphasized, is to prevent Nigeria from ever returning to the FATF Grey List and to instead aspire to join the ranks of the world's most resilient and compliant emerging markets.
