SEC Orders Capital Market Operators to Renew Registration from January 1, 2026

The Securities and Exchange Commission (SEC) has issues directives to all capital market operators (CMOs) to renew their registration between January 1 and 31, 2026, as part of efforts to strengthen compliance and improve regulatory efficiency.

The Commission also reaffirmed that electronic receipt and processing of applications for registration and updates of registration information will commence in the first quarter of 2026, to make the exercise more seamless.

Director General of the SEC, Emomotimi Agama, disclosed this during an interview in Abuja at the weekend, noting that the measures are part of the Commission’s broader digital transformation agenda.

According to Agama, “These initiatives reflect our commitment to leveraging technology for faster, more transparent, and efficient regulatory processes. The Commission is taking deliberate steps to make regulatory processes faster, more transparent, and technology-driven. We are investing in automation, databased supervision, and secure infrastructure to improve how we interact with the market.”

He explained that through the SEC Digital Transformation Portal, registration and licensing processes have been automated end-to-end, allowing operators to submit applications, upload documents, and track approvals online, thereby reducing manual processing time and limiting the need for physical visits to the Commission.

Agama added that the Commission has also introduced a Commercial Paper issuance module, which enables operators to file documents, monitor progress, and receive approvals electronically. He said early user feedback shows improved turnaround time.

“Work is ongoing to automate quarterly and annual returns submissions, with structured templates and system checks to ensure accuracy. A returns analytic dashboard is also in development to support risk-based supervision and exception reporting,” he said.

To support the digital shift, the Agama said the Commission is upgrading its IT infrastructure, including servers, storage, networks and security layers, to enhance speed and reliability. He noted that selective cloud migration is underway for platforms requiring scalability and external access, while core internal systems remain on-premise for now, pending further assessment of security and cost implications.

Agama also revealed that the Commission is strengthening data integrity and cybersecurity through vulnerability assessments, with plans for penetration testing once automation and migration phases stabilize.

“These efforts show our commitment to building a modern, resilient regulatory environment that supports efficiency, investor confidence, and market stability,” he said.

He affirmed that the Nigerian capital market is on a clear path toward digital transformation but stressed the need for regulatory clarity on advanced technologies, targeted support for smaller firms, and sustained capacity-building initiatives.

“A phased and proportionate approach to regulating emerging technologies such as AI is essential, complemented by internal readiness through supervisory technology tools. Furthermore, investor education, particularly among younger demographics, will be critical to future-proof participation and drive fintech adoption,” Agama said.

He cautioned that innovation must go hand in hand with responsibility, noting that operators adopting automation, artificial intelligence and data-driven tools must ensure ethical, secure and compliant deployment.

“Safeguarding investor data, preventing market abuse, and maintaining operational resilience are non-negotiable,” he said.

Agama stressed that responsible technology adoption is central to building trust in the market, urging operators to uphold fairness, transparency, accountability and regulatory compliance to protect investors, ensure systemic stability and enhance the long-term credibility and competitiveness of the Nigerian capital market.