SEC Ends Ban on BGL Securities and BGL Asset Management

The Securities and Exchange Commission (SEC) of Nigeria has lifted the ban on BGL Securities Limited and BGL Asset Management. This suspension was initially placed in May 2015.

The SEC confirmed this decision in response to PREMIUM TIMES' questions about the registration status of both companies. The ban lasted for eleven years due to allegations of violations in the capital market.

On 17 April 2025, Hafsat O. Rufai, the director of Registration, Exchanges and Market Infrastructure Department at the SEC, sent a letter to the managing director of BGL Securities Limited. This letter, which PREMIUM TIMES saw, stated that BGL Securities is now registered as a broker/dealer in the capital market, effective from that date.

In another letter dated 22 November 2024, also signed by Rufai and seen by PREMIUM TIMES, the SEC confirmed BGL Asset Management Limited's registration as a fund/portfolio manager in the capital market. This registration is also effective from the same date.

The SEC explained that it approved the registration of both companies after they performed well in interviews conducted by the commission.

Background

Back in 2015, the SEC stopped BGL Securities Limited, BGL Asset Management Limited, and BGL Capital Limited from all capital market activities. This decision followed a detailed investigation into complaints from investors against the BGL Group's companies.

The SEC received over 40 letters from investors claiming that the BGL Group owed them around N5.8 billion. The commission noted, "Investigations were conducted, and all-parties meetings were arranged by the SEC during which repayment agreements were struck between BGL and some of the affected investors."

The SEC added, "Unfortunately, BGL continued reneging on promises to restitute investors."

Alex Okumagba, the former managing director of BGL Group who has since passed away, and his deputy Chibundu Edozie received lifetime bans for their roles in the alleged market abuses.

A preliminary report from forensic auditors showed that BGL Group was in serious financial trouble. The management had reduced the shareholders' funds through losses of about N48 billion over five years, by 31 December 2014, the SEC reported at that time.

The SEC also instructed BGL Group to refund over N2 billion to investors due to market violations, which went against Sections 96, 312, 322, and 323 of the Penal Code Law, Chapter 89.