The Securities and Exchange Commission (SEC) has called on Nigeria’s financial market operators to deepen and institutionalise a culture of proactive compliance, warning that the country’s hard-won exit from the Financial Action Task Force (FATF) Grey List must translate into long-term behavioural reforms to protect the economy from reputational risks and regulatory vulnerabilities.
Speaking in Abuja at the Nigerian Capital Market Institute (NCMI) Compliance Summit, SEC Director-General, Dr. Emomotimi Agama, described the forum as a defining moment for the capital market, stressing that the discussions strike “at the very heart of the market’s integrity, stability and future.”
Agama acknowledged that Nigeria’s removal from the FATF Grey List was a “major national accomplishment,” describing it as both a diplomatic victory and a global endorsement of the country’s renewed commitment to strengthening its Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) regime.
According to him, the achievement was not accidental but the result of coordinated and deliberate efforts across the public and private sectors, including regulators, compliance officers, capital-market operators, financial institutions and enforcement agencies.
He stated that the milestone was “a resounding global affirmation of our collective and unwavering commitment,” but he quickly added that the work ahead is far from over.
FATF Grey List: SEC Tasks Market Operators on Sustained Compliance Culture
In his address, Agama emphasised that exiting the FATF Grey List should not be misconstrued as the end of Nigeria’s compliance journey.
Instead, he described it as “the starting block for a new race,” reminding market participants that Nigeria remains under global watch as international financial institutions evaluate whether ongoing reforms are durable and deeply embedded.
“The world is watching,” he warned. “International investors, partner governments, and global financial bodies are assessing whether our commitment to regulatory reforms is consistent or merely reactive.”
Agama stressed that the broader goal is to shift Nigeria’s compliance mindset from one driven by external pressure to one rooted in internal discipline, strategic planning, and long-term institutional culture.
According to him, sustained compliance will not only protect the integrity of the Nigerian capital market but also enhance investor confidence and improve the country’s competitiveness within the global financial system.
He added that the compliance environment is evolving rapidly and operators must anticipate regulatory expectations rather than simply reacting to enforcement actions.
“Our challenge now is to build a compliance culture that is proactive, intentional and future-focused,” he said.
FATF Grey List: SEC Tasks Market Operators on Capacity, Awareness and New Regulatory Requirements
Also speaking at the summit, Executive Commissioner, Legal and Enforcement at the SEC, Ms. Frana Chukwuogor, raised concerns about recurring compliance gaps in the capital market, especially when new regulations or legislative changes are introduced.
Chukwuogor revealed that the Nigerian capital market is already operating under a new legal framework signed into law earlier in 2025.
However, she noted that many market practitioners lack adequate knowledge of the updated requirements, exposing the system to compliance risks.
“One of the greatest challenges compliance officers and market operators face when regulations change is that they simply do not have enough information on what has changed,” she explained.
She questioned how market professionals can be expected to comply with new standards when they are not properly sensitised or trained on emerging rules, risk areas and obligations.
“Our focus today is to bring attention to those new issues—areas that may pose potential risks to operators, investors and the wider market.
Compliance requires understanding, and understanding requires deliberate education,” she said.
Chukwuogor emphasised that information gaps can undermine the integrity of the market, delay the implementation of reforms and expose institutions to unintended violations.
She urged market participants to prioritise continuous learning, internal training, and active engagement with regulators.
Building a Stronger Compliance Ecosystem Beyond the FATF Grey List Era
Participants at the summit heard that Nigeria’s progress in meeting FATF global standards must be matched with robust domestic frameworks, stronger industry collaboration and enhanced monitoring mechanisms.
Industry stakeholders acknowledged that Nigeria’s exit from the FATF Grey List has already generated positive effects, including an uplift in investor sentiment and increased confidence in the country’s financial governance.
However, they warned that backsliding into weak compliance practices could damage the country’s credibility and complicate foreign investment inflows.
Experts at the forum highlighted key areas requiring sustained attention:
• Strengthening internal controls
Operators must ensure that AML/CFT processes are not treated as box-ticking exercises but are embedded into corporate governance structures.
• Enhancing digital surveillance
With the rise in fintech, cryptocurrency use, and digital transactions, regulators and operators must adopt advanced monitoring tools.
• Improving reporting systems
Suspicious-transaction reporting mechanisms must be more efficient, timely and transparent to align with global standards.
• Continuous operator training
Regulations evolve quickly, and compliance officers must undergo periodic updates to stay informed and aligned.
• Collaboration between regulators and operators
A unified compliance ecosystem reduces loopholes and strengthens market resilience.
A New Compliance Era for Nigeria’s Capital Market
The SEC leadership reiterated that Nigeria’s ongoing economic reforms—including those targeting market transparency, investor protection and financial-crime prevention—will only succeed if compliance is treated as a shared responsibility across the ecosystem.
Agama reaffirmed that Nigeria’s presence on the global stage depends heavily on how well the country sustains the reforms that enabled its removal from the FATF Grey List.
“The global financial system is interconnected,” he said. “Our success depends on our vigilance, our consistency and our capacity to uphold global standards.”
Stakeholders left the summit with a clear message: Nigeria’s capital market stands at a crossroads, and the choices made now will determine whether the sector reinforces its reputation or risks future regulatory setbacks.
About The Author
