The Securities and Exchange Commission (SEC) has lifted the suspension imposed on BGL Securities Limited and BGL Asset Management Limited in May 2015, allowing both entities to resume operations in the Nigerian capital market.
In a letter dated 17 April 2025, signed by Hafsat O. Rufai, Director of Registration, Exchanges and Market Infrastructure Department, the SEC approved BGL Securities Limited's registration as a broker/dealer effective from that date. Similarly, a letter dated 22 November 2024 confirmed the approval of BGL Asset Management Limited as a fund/portfolio manager.
Background of the Suspension
The SEC barred BGL Securities, BGL Asset Management, and BGL Capital Limited from capital market operations in 2015 following a comprehensive investigation into investor complaints. The commission received over 40 complaint letters alleging indebtedness of approximately N5.8 billion.
"Investigations were conducted, and all-parties meetings were arranged by the SEC during which repayment agreements were struck between BGL and some of the affected investors," the commission stated. "Unfortunately, BGL continued reneging on promises to restitute investors."
Forensic Audit Findings
The preliminary report of forensic auditors revealed that BGL Group was in a critical financial state, with management progressively eroding shareholders' funds through losses totalling about N48 billion as of December 31, 2014. The SEC also ordered BGL Group to refund investors over N2 billion for market infractions contrary to Sections 96, 312, 322, and 323 of the Penal Code Law.
Then managing director of BGL Group, Alex Okumagba (now late), and his deputy, Chibundu Edozie, received a life ban for their roles in the alleged abuses.
Reinstatement Conditions
The SEC noted that the registration approvals followed successful performance in interviews conducted by the commission. Both companies are now permitted to operate as broker/dealer and fund/portfolio manager respectively, marking the end of an 11-year prohibition.
