DistantNews
Support us
SEC lifts ban on BGL Securities, BGL Asset Management
🇳🇬 Nigeria /Economy & Trade

SEC lifts ban on BGL Securities, BGL Asset Management

From Premium Times · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Outcome reported
  • Nigeria's Securities and Exchange Commission (SEC) has lifted the suspension on BGL Securities and BGL Asset Management, effective April 17, 2025, and November 22, 2024, respectively.
  • The companies were initially banned in May 2015 following numerous investor complaints totaling approximately N5.8 billion.
  • The SEC approved their re-registration after successful interviews, despite past allegations of market infractions and significant financial losses by the BGL Group.

Nigeria's Securities and Exchange Commission (SEC) has officially withdrawn the suspension previously imposed on BGL Securities Limited and BGL Asset Management. The regulator confirmed the lifting of the ban, which had been in place since May 2015, in response to inquiries about the companies' registration status. This decision allows BGL Securities to operate as a broker/dealer and BGL Asset Management as a fund/portfolio manager in the capital market.

Suspension is lifted from BGL Securities and BGL Asset Management.

— SECThe Securities and Exchange Commission confirmed the withdrawal of the suspension on the two BGL entities.

The SEC's approval for the re-registration of both entities is effective from April 17, 2025, for BGL Securities and November 22, 2024, for BGL Asset Management. According to the commission, this decision followed their successful performance in interviews conducted by the SEC. The regulator noted that the companies had been banned eleven years ago over allegations of capital market infractions.

the SEC approved the registration of the company as a broker/dealer in the capital market effective from the same date.

— Hafsat O. RufaiA letter signed by Hafsat O. Rufai, director of Registration, Exchanges and Market Infrastructure Department at the SEC, detailed the approval for BGL Securities.

In 2015, the SEC barred BGL Securities, BGL Asset Management, and BGL Capital from capital market operations after investigating over 40 investor complaints. These complaints alleged an indebtedness of roughly N5.8 billion against the BGL Group's subsidiaries. Although repayment agreements were struck between BGL and some investors, the commission stated that BGL continued to default on its promises to make restitution. The former managing director of BGL Group, Alex Okumagba (now deceased), and his deputy, Chibundu Edozie, received lifetime bans for their involvement in the alleged market abuses. A preliminary forensic audit revealed that the BGL Group had suffered substantial losses, eroding its shareholders' funds by approximately N48 billion as of December 31, 2014. The SEC had also ordered BGL Group to refund over N2 billion to investors for market infractions.

the regulator confirmed its approval of the registration of BGL Asset Management Limited as a fund/portfolio manager in the capital market with effect from the same date.

— Hafsat O. RufaiAnother letter signed by Hafsat O. Rufai confirmed the SEC's approval for BGL Asset Management.
DistantNews Editorial

Originally published by Premium Times. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog