Regulator warns that global scrutiny remains high as capital market players review new rules and risks
The Securities and Exchange Commission (SEC) has called on financial sector players to deepen and sustain a proactive culture of compliance, warning that Nigeria’s recent removal from the Financial Action Task Force (FATF) Grey List must be followed by continuous reforms to protect the country’s global financial standing.
Speaking at the Nigerian Capital Market Institute Compliance Summit on Monday, SEC Director-General Dr. Emomotimi Agama described the forum as critical to safeguarding the integrity and future of Nigeria’s financial markets. He noted that the conversations taking place “touch the very heart of the market’s stability and long-term resilience.”
Grey List Exit a Landmark Achievement — But Not the Finish Line
Agama hailed Nigeria’s exit from the FATF Grey List as a significant milestone and an international vote of confidence in the country’s strengthened Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) regime.
“This was not a routine administrative update; it was a resounding global affirmation of our collective and unwavering commitment,” he said.
He credited the achievement to collaboration across both public and private institutions, acknowledging the contributions of market operators, regulators and compliance professionals.
However, he warned that Nigeria’s removal from the list should not be misconstrued as the end of the reform process.
“Exiting the grey list is not the finish line; it is the starting block for a new race. The world is watching,” Agama cautioned, stressing that global financial institutions and investors will be monitoring the country to ensure the progress is sustainable.
Shift Needed From Reactive to Strategic Compliance
Agama said the summit’s theme highlighted the need for a transition from compliance driven by external pressure to one built on internal discipline, strategic planning and long-term commitment to global best practices.
According to him, Nigeria’s ability to retain investor confidence and maintain global credibility will depend largely on whether its regulatory and compliance culture becomes truly institutionalised.
New Capital Market Law Requires Improved Understanding — SEC
Also speaking at the event, Frana Chukwuogor, SEC’s Executive Commissioner for Legal and Enforcement, stressed that many market operators struggle to adapt when new regulations are introduced.
She pointed out that the capital market now operates under a new law signed in 2025, and many compliance officers may not fully understand the changes or the risks associated with them.
“How can you be compliant if you don’t know what has changed?” Chukwuogor asked.
“Our focus today is to draw attention to the new provisions and highlight areas that may present emerging risks to operators and the market.”
She emphasised that improving regulatory awareness and building stronger compliance systems will be essential to keeping Nigeria off the FATF watchlist and strengthening investor trust.
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