BREAKING: We Can’t Regulate What We Don’t Know, SEC DG Agama Responds to CBEX Collapse

The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has defended the agency’s response to the collapse of CBEX, a now-defunct investment scheme accused of defrauding Nigerians, adding that the agency cannot act on CBEX activities due to lack of important information on its activities.

“The first responsibility of the SEC is to watch over regulated institutions within the confines of its available resources. Once you are registered with the SEC, you are totally and completely under our watch. Registration actually is the hallmark of regulation. Without registration, the possibility of regulation becomes difficult.”

Speaking during an interview on ARISE NEWS on Monday, Dr. Agama insisted that the SEC was unaware of CBEX’s operations until recently and reiterated that the commission can only act on registered institutions.

“It’s very pathetic that Nigerians will lose their money this way,” he said. “At the SEC, and I’m sure speaking for my colleagues, we’re very empathic about the situation. But even at that, we must say clearly that the idea or thoughts that the SEC is not working is totally out of it.”

Dr. Agama clarified that CBEX was not under SEC’s regulatory radar.

“The CBEX is not registered with the SEC. And no one up until last week had reported the CBEX to the SEC as an investment platform or even made an inquiry to that effect,” he stated.

Despite criticism, Dr. Agama said the SEC has taken proactive steps in public awareness.

“We have continued mass education. Just about two months ago, we launched a podcast at the SEC to provide information to people. We’ve also gone around holding enlightenment campaigns all over the place,” he noted.

He encouraged Nigerians to verify investment opportunities.

“If there is any investment you are not sure about, contact a financial advisor, a lawyer, an investment advisor or a stockbroker. Investments are very serious business, and Nigerians must take time to check and confirm before delving into it.”

Reacting to claims that CBEX was in the process of getting certified, Dr. Agama said, “It’s totally untrue, in capital letters. No institution applies to the SEC after operating. You cannot operate without a license from the SEC. That alone is a red flag.”

He further warned that CAC registration does not imply SEC approval.

“Sometimes these people are deceptive and manipulative. They could have applied for registration not as an investment platform or exchange. So they may receive a certificate innocently from the CAC,” he said.

On restitution and prosecution, Dr. Agama assured that investigations are underway, “We are continually investigating this CBEX scheme and of course we will bring them to book. There is a strong collaboration between all the agencies of government to make sure that this happens. As much as possible, whatever we can recover, certainly in this instance, will be returned back to the investors.” He said.

He also urged media houses and influencers to play a more responsible role.

“We want to crave the indulgence of the media houses especially. So join us in this campaign to rid Nigeria of these men,” he said, referencing new legal provisions. “If you are a blogger, you are an influencer, and you help in participating in this kind of fraudulent activities… the sanction in the ISA 2025 is 20 million naira in the first instance, and 10 years imprisonment.”