News & Publications

By: Nneka Oduada Eze (Esq)

The Securities and Exchange Commission (SEC) has sealed the premises of three firms — Oxford International Group/Oxford Commercial Services, Farmforte Agro Allied Solutions Limited/Agro Partnerships and Vektr Capital Investment/Vektr Enterprise for illegally engaging in capital market activities.

In an official statement issued on Monday, 14^th March, 2022, SEC said the offices of the companies in Lagos, Port Harcourt and Abuja were shut down for carrying out investment operations that fall within ambit of fund management without registration with the apex regulator, contrary to the provisions of the Investments and Securities Act 2007. The statement read in part, “These companies do not have registration of SEC to conduct fund management activities and have been found to promise exorbitant rates of returns to lure investors. SEC has exercised its powers under Section 13 (w) of the Investments and Securities Act 2007, to shut them down. The General public is strongly advised to always confirm from the Commission whether an entity providing investment services has been duly registered and whether the investment schemes are authorized by the Commission. Any member of the investing public dealing with unregistered entities is doing so at his/her own risk.”

The Commission further notified the investing public that none of these entities or their investment platforms are registered by the SEC. According to SEC, it is unlawful for any private enterprise, whether incorporated as a company or not, to solicit funds from the public by whatever means, to fund its private ventures as so would contravene the Investments and Securities Act, 2007.

This is an applaudable move taken by SEC. A large chuck of unsuspecting members of the public in Nigeria have fallen victim of these fraudulent investment companies that promises unrealistic return of investment all in a bid to rip them of their hard earned funds. Whilst some of their victims are left permanently traumatized due to the down slope turn out of event and the subsequent discovery of the actual intention of these investment companies, some others learn to pick up their fatally destroyed financial aspect of their lives to forge ahead. Furthermore, Nigerians should learn from past experiences and be enlightened on conducting a holistic investigation of the activities of any investment company that they intend having any business relations with. This will also reduce the rate of investment scam in the country.

While the fight against these unregistered entities by SEC continues, it is hoped that all other regulatory agencies will act in unison in the fight against these fraudulent investment platforms that have vowed to extort hardworking unsuspecting Nigerians of their funds for their personal enrichment irrespective of the direct daring consequences of their actions. This is because there is a dare need to fix all sectors of the country and protect its citizens and integrity.