While Nigeria’s stock market continues to gain global recognition, its regulator, the SEC, operates without oversight.

In January, NGX, Nigeria’s stock market, claimed the title of the world’s best-performing stock market. However, amid this impressive performance, a crucial element is missing: the board of the Securities and Exchange Commission (SEC). Despite being responsible for overseeing the exchange and safeguarding investors, Nigeria’s SEC has been functioning without a board for almost a year.

According to an investment analyst at the SEC who preferred to remain anonymous, “President Tinubu has not made any appointments yet.” Traditionally, the president appoints board members, and the Senate confirms these appointees to ensure the board’s independence from political influence in its role of holding the SEC accountable.

As of the time of this report, NGX and the SEC had not responded to TechCabal’s request for comments.

The term of the previous board expired in May 2023. As outlined on the SEC website, the board consists of a chairman and four other members, including representatives from the Ministry of Finance and the Central Bank. The SEC’s Director-General, Lamido Yuguda, holds the highest-ranking position on the board, according to the SEC’s organogram.

Despite the positive sentiment surrounding NGX in the past year, there are concerns that require regulatory attention. The market’s exuberance has overshadowed allegations of insider trading and a significant critique: the NGX’s struggle to attract new and noteworthy listings.

EDC Nigeria, a securities research firm, attributes the surge in stock prices to investors taking positions “in fundamentally driven stocks as we approach the earnings season.

Source: TechCabal