The Securities and Exchange Commission (SEC) has secured a grant from the African Development Bank (AfDB) to acquire a modern market surveillance system aimed at strengthening oversight of Nigeria’s capital market and aligning it with international best practices.
Director-General of the SEC, Dr Emomotimi Agama, disclosed this on Tuesday in Abuja during the 2026 revenue monitoring exercise conducted by the House of Representatives Committee on Finance.
According to Agama, the surveillance system is expected to be deployed before the end of the year to improve market transparency, strengthen regulatory oversight and boost investor confidence.
Reps Committee Commends SEC’s Revenue Performance
The House of Representatives Committee on Finance commended the SEC for improving its financial sustainability through prudent cost management and increased internally generated revenue.
Deputy Chairman of the committee, Hon. Saeed Musa Abdullahi, praised the Commission’s performance and urged it to sustain the momentum.
“DG, you have done significantly well. We have followed the progress of the SEC over the years and urge you to keep the flag flying. We will continue to celebrate with you when you do well. This exercise is not to witch-hunt any agency; it is aimed at ensuring better performance, especially at a time when the country is facing serious fiscal challenges,” Abdullahi said.
He also challenged the Commission to exceed its 2026 revenue target by at least 20 per cent.
“You have told us your revenue projection for 2026, but we believe you can do more. We urge you to surpass your projection by at least 20 per cent, or even more,” he added.
SEC Operates Without Federal Budget Allocation
Agama told lawmakers that, in line with the principles of the International Organization of Securities Commissions (IOSCO), securities regulators are expected to operate independently, with governments providing financial support where necessary.
He, however, disclosed that the SEC receives no budgetary allocation from the Federal Government and relies entirely on income generated from activities within the capital market while continuing to remit statutory revenues to the government.
“Going by IOSCO principles, the SEC is expected to be financially independent. The government is supposed to provide support for the running of the Commission. However, due to the paucity of funds, all the money used to fund the Commission comes from the market. The SEC does not receive any funding from the government; rather, it pays money to the government,” Agama said.
He explained that statutory deductions are automatically made from the Commission’s account at the Central Bank of Nigeria (CBN) before the SEC can access its funds.
“When these funds hit our account with the CBN, deductions are made directly by the government. We do not have access to the funds before the deductions are effected,” he said.
SEC Retains 20% of Revenue Through Finance Ministry Waiver
The SEC Director-General said the Commission had avoided placing additional financial burdens on capital market operators to fund its activities.
Instead, he disclosed that the Commission obtained approval from the Minister of Finance to retain 20 per cent of its internally generated revenue through a waiver.
“We are regulators and are not expected to ask the market for money. With the kind permission of the Honourable Minister of Finance, we obtained a 20 per cent waiver on deductions to ensure our operations are not hindered,” he said.
New Surveillance System to Strengthen Market Integrity
Agama said the AfDB-funded market surveillance system would significantly enhance the SEC’s ability to monitor trading activities, detect market abuse and improve regulatory compliance in line with global best practices.
He noted that the technology would strengthen the integrity, transparency and efficiency of Nigeria’s capital market while reinforcing investor confidence and supporting sustainable market development.
