With Nigeria’s stock market witnessing unprecedented growth, the threat of financial fraud is looming larger than ever. To combat this, the Chief Executive Officer of Nigerian Exchange Regulation (NGX RegCo), Olufemi Shobanjo, has called for stronger collaboration with the Economic and Financial Crimes Commission (EFCC) to safeguard investor confidence and market integrity.
During a visit to the EFCC headquarters in Abuja, Shobanjo made a passionate case for renewed efforts to curb fraudulent activities in the capital market. His concerns were echoed in a statement released on Tuesday by EFCC’s Head of Media and Publicity, Dele Oyewale.
“In 2024, we saw a very big push in the market. Unfortunately, with this success, we are also seeing criminal elements looking to take advantage of it. It is time we strengthened our collaboration,” Shobanjo stated.
While acknowledging that the NGX does not have criminal enforcement powers, he stressed the need for EFCC’s expertise in prosecuting financial crimes. He also revisited a 2013 Memorandum of Understanding (MoU) between the two agencies, urging its revival to tackle emerging threats, particularly in digital trading.
“I remember we signed an MoU in 2013 which worked many years ago. We want to see how we can bring that back because we need your assistance and support in protecting the integrity of the market,” he added.
In response, EFCC Chairman Ola Olukoyede lauded the NGX’s dedication to market integrity and assured that the anti-graft agency would do its part to strengthen compliance and enforcement.
“I know you are also concerned with regulatory compliance because the issue of compliance is a key issue. It is part of our mandate to enforce compliance,” Olukoyede stated.
He further proposed setting up a dedicated liaison desk to ensure swift action on market-related infractions.
“Under my administration, we have strengthened our bond with different regulatory bodies. Let’s see how we can have a desk where we can work better and attend to you,” he said.
Expressing his commitment to the capital market, Olukoyede highlighted the need to monitor asset abuse and fraudulent trading.
“We will try to review the MoU, make our observations in line with the relevant laws and regulations, and communicate our views to you. We pledge our commitment to this,” he assured.
The collaboration between the NGX and the EFCC is expected to be a game-changer in Nigeria’s financial sector, providing a formidable barrier against fraud while fostering a more transparent and secure environment for investors.
As Nigeria’s capital market continues to expand, the challenge remains: can regulatory bodies stay ahead of financial criminals? With this renewed alliance, the answer may be a resounding yes.
