SEC lifts ban on BGL Securities, BGL Asset Management

The Nigerian capital market’s top watchdog, the Securities and Exchange Commission (SEC), has withdrawn the suspension it placed on BGL Securities Limited and BGL Asset Management in May 2015.

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“Suspension is lifted from BGL Securities and BGL Asset Management,” the SEC confirmed in its response to PREMIUM TIMES’ inquiry into the registration status of the two entities, which the regulator banned eleven years ago over allegations of capital market infractions.

According to a letter signed by Hafsat O. Rufai, the director of Registration, Exchanges and Market Infrastructure Department at the commission, on 17 April 2025, to the managing director of BGL Securities Limited, seen by PREMIUM TIMES, the SEC approved the registration of the company as a broker/dealer in the capital market effective from the same date.

In another letter, signed by the same official, dated 22 November 2024 and seen by PREMIUM TIMES, 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.

The SEC noted that it approved the registration of both companies following their successful performance in interviews conducted by the commission.

Background

In 2015, the regulator barred BGL Securities Limited, BGL Asset Management Limited, and BGL Capital Limited from all capital market operations following a comprehensive investigation into investor complaints against the BGL Group’s subsidiaries.

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It said at the time that it received more than 40 letters of complaint from investors against the BGL Group, alleging indebtedness of roughly N5.8 billion.

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“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 commission stated.

“Unfortunately, BGL continued reneging on promises to restitute investors,” it added.

The then managing director of BGL Group, Alex Okumagba (now late), and Chibundu Edozie, his deputy, got a life ban for their part in the alleged abuses in the market.

From the preliminary report of forensic auditors, it was revealed, among other facts, that BGL Group was in a critical financial state in which the group’s management had progressively eroded its shareholders’ funds through losses sustained over 5 years totalling about N48 billion as at December 31, 2014, the SEC said at the time.

The commission also ordered BGL Group to refund investors over N2 billion for market infractions, contrary to Sections 96, 312, 322, and 323 of the Penal Code Law, Chapter 89.