Securities and Exchange Commission (SEC) on Wednesday disclosed that its Collective Investment Schemes increased to over N3tn in 2024.

Dr. Emomotimi Agama, director-general of the SEC, who disclosed this during an interaction with reporters in Abuja, explained that collective investment schemes are a part of the market system that allows people to diversify their risk via different angles besides going straight to the companies to invest.

He said, “In the collective investment schemes, you get a bucket of shares and ask people to invest. Therefore, if you are investing through a collective investment scheme, you probably will be investing in 10 companies via one route as different from going to invest directly in any company.

“It reduces your risk, it diversifies your potential and of course takes care of the ups and downs in the market whenever it does exist and it is for us a very good area for Nigerians to invest in because when you do not understand it, do not go into it.

“With a collective investment scheme, you do not need to understand it because someone is there to understand it for you and invest on your behalf, understanding the vagaries of the market, its dynamics and how it runs”.

The SEC DG disclosed that beyond the CIS, the capital market aided in the development of the economy through the recapitalization exercise of banks by the Central Bank of Nigeria.

According to him, “As you are all aware, the banks are a very important element in our development and economic sphere.

“Last year 2024, the Central bank came up with a regulation to increase capital for all banks. Many people thought it was too daunting a task for the Capital market.

“But of course, the Capital Market came to the rescue. For all of the issuance that happened in the market last year, we were able to raise more than N2tn, precisely about N2.2tn for the banks, which means the Capital Market is actually the element that helps to galvanize growth and development.”

Agama also disclosed that apart from banks, other institutions also came to raise capital from the Capital Market.

Agama stated that within the period under review, there were other developments in the market including many government bond issuances geared toward infrastructural development, adding that there is no economy that can actually grow without infrastructure.

“And the only place you can get long-term capital for infrastructural development is the Capital Market. There has always been this mistake of people going to the money market to loan money that will be used for long-term projects. It is a recipe for failure.

“The only place you can get that kind of money that you need for long-term projection that you need in achieving the goals of government, the goals of the institution is the Capital Market.”

Central Bank of Nigeria (CBN) has officially approved the release of the Nigerian Foreign Exchange (FX) Code, a move aimed at fostering ethical conduct and transparency within the nation’s foreign exchange market.

In a statement on the apex bank’s website, it disclosed that the Code, which will serve as a vital guideline for the banking industry, is designed to ensure that authorised dealers uphold the highest standards of professionalism and integrity when conducting FX transactions.

The CBN emphasized that the introduction of the FX Code is part of its ongoing efforts to enhance the stability and integrity of Nigeria’s FX market.

The Code will offer clear directives on the expectations for market participants, ensuring that the market operates in a fair and transparent manner.

This step is particularly significant as the Nigerian FX market has experienced volatility in recent years, with issues such as currency devaluation and irregularities in FX transactions affecting both investors and businesses.

“The Central Bank of Nigeria has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote ethical conduct of Authorised Dealers in the Nigerian Foreign Exchange Market,”, the bank said.

Sterling Bank Limited and its holding company, Sterling Financial Holdings Company, are embroiled in a scandal involving the theft of ₦1.2 billion from depositors’ accounts.

The funds were reportedly stolen by a network of fraudsters in collusion with some bank staff, leading to a high-profile court case.

The suspects, identified as Victor Nwabueze (50), Favour Odey (22), Adekunle Daniel (34), and Yetunde Oguntade (28), along with an accomplice, Akachukwu Alagbogu, were arraigned before Justice Ambrose Lewis-Alagoa at the Federal High Court in Lagos.

Justine Enang, prosecutor, revealed that the fraud occurred between November 3 and 4, 2024, when the suspects allegedly breached Sterling Bank’s sensitive systems.

Using compromised data such as IP addresses and mobile equipment identities, they transferred ₦1,257,536,572.50 into fraudulent accounts.

The suspects faced a three-count charge of conspiracy, hacking, and money laundering under the Cybercrimes Act and the Money Laundering Prohibition Act.

The charge sheet detailed the fraudulent acts, highlighting that the defendants, in collaboration with internal staff, exploited the bank’s platform to steal depositors’ funds. It stated:

Conspiracy and Internet Fraud: The defendants conspired to commit internet fraud by falsely manipulating banking systems, causing financial losses to Sterling Bank and its customers.

Unauthorized System Breach: They knowingly accessed and suppressed parts of the bank’s systems, transferring funds to fraudulent accounts.

Money Laundering: The stolen funds were converted, transferred, or retained by the defendants, who reasonably ought to have known they were proceeds of unlawful activities.

These acts contravened sections 27(1)(b) and 14(1) of the Cyber Crimes Act (2015, amended in 2024) and sections 18(2)(b) & (d) of the Money Laundering (Prevention and Prohibition) Act, 2022.

The defendants pleaded not guilty to all charges.

However, the prosecution opposed their bail applications, citing their potential to flee.

After deliberation, Justice Lewis-Alagoa granted bail at ₦50 million each, with a condition that one surety must own landed property within the court’s jurisdiction.

The suspects were remanded in custody until they meet the bail terms.

The court has adjourned the case to March 13, 2025, for the commencement of trial.

This case highlights the growing risks of cybercrime within Nigeria’s banking sector. With internal collusion amplifying vulnerabilities, financial institutions are urged to enhance their cybersecurity frameworks to safeguard customer funds.

Sterling Bank has yet to issue an official statement on the incident but is expected to cooperate fully with investigators to ensure justice is served.