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NSE, SEC Blacklist 16 Brokers in One Year

Nigeria’s stock market regulators, the Nigerian Stock Exchange, NSE, and Securities and Exchange Commission, SEC, blacklisted 16 dealing clerks in 2016.

The dealers were blacklisted due to fraud and market infractions. Also, about 80 per cent more than what were blacklisted between 2014 and 2015.

The first set of brokers blacklisted on 28th January 2016 include; Alhaji Maina Muniga, Mr. John Nsofor and Mr. Oye Oyefeso who were accused of unauthorized sales of clients’ shares. While on the 31st of March 2016, Mr. Ayokunle Oyedeji, Mr. Abioye Eluwole, and Mr. Gregory Otsu were also blacklisted by the Exchange for the same offence.

The Securities and Exchange Commission (SEC) on 25th of May 2016, placed a ban on former President, Chartered Institute of Stockbrokers (CIS), and erstwhile CEO of BGL Asset Management, Albert Okumagba for 20 years from participating in all capital market activities for market infractions, while his companies were subsequently ordered to restore to investors over N2 billion.

His deputy Chibundu N. Edozie also got banned for 20 years while other members of staff involved in the infractions include Adebola Peter who was banned for five years, Joshua Sesan Adetiloye received a two year ban, while Nkechi Azubike and Anthony Nwozor were banned from capital market activities for 1 year each, effective May 2016.

The ban followed complaints from investors against Okumagba and his company over failure, refusal and or/neglect to liquidate their investments in both the Guaranteed Consolidated dated Notes and Guaranteed Premium Notes, two investment products run by the company.

SEC had suspended Okumagba and BGL from operating in the market a year ago and has since been investigating the complaints. He was also removed as the President CIS. Apart from the ban placed on them and some monetary fines, the companies were directed to refund N24.034 million to the National Open University Staff Cooperative Multipurpose Society; N1.876 billion to Delta State Ministry of Finance; N204.832 million to Azort Nigeria Limited; N10.970 million to Prof. Ojuah Umunnakwe; N3.039 million to Orsule Awase and N10.747 million to Mahmoud Usman.

Other blacklisted stockbrokers in the NSE’s report obtained by WorldStage Newsonline include, Mr. Taju Folaji, Mr. Ichie Mike Ejezie, Mr. Segun Adebayo Adams and Mr. Olorunfemi Ayorinde. They were blacklisted by the Exchange for unauthorised transfers and sales of clients shares on the 28th of October 2016.

Also on the list were Mr. Kinglsley Nnaji who was blacklisted May 12 for unprofessional misconduct, Mr. Kayode Awotile for unauthorized transfers and sales of clients shares on 26 Feb 2014, Mr. Akinwale Olagundoye whose membership with the chartered institute of stockbrokers (CIS) was withdrawn 28th March 2014 and Mr. Agomo Chidi Solomon blacklisted by the Exchange on 30th September 2015 for share price/market manipulation.

BI

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