New SEC Boss Takes Over Controversial Seat, To Face Market Manipulation By Insiders

The new director-general of the Securities and Exchange Commission (SEC), Lamido Yuguda, has his mind set on market manipulation as he assumed duty of the capital market. Yuguda stated this as part of his plan after the acting director-general of SEC, Mary Uduk, exited the position.

As Yuguda and three executive commissioners, Reginald Karawusa, Ibrahim Boyi and Dayo Obisan, resumed office on Monday, he said the new management will continue to tailor its activities in line with the capital market master plan launched in 2014. He also stated that the new management will build on the effort of the outgoing management team.

Yuguda To Target Market Manipulators 

Recall that on May 19, 2020, President Muhammadu Buhari appointed Yuguda as Uduk's replacement. Before his appointment, Yuguda was a member of the Board of SEC. Speaking on the work on ground for his team, Yuguda said curbing market manipulation would be on his agenda as they will make efforts in protecting consumers in the capital.

He also stated that “Many of the plan’s initiatives have been successfully implemented while many others are work in progress in line with its objectives. Therefore, the continued implementation of the plan will be one of the major focus of the incoming management, while we also seek possible ways of strengthening it for enhanced impact.

"We would equally work towards improved market regulation, surveillance and general development. Together we must set our sights on achieving those milestones that are capable of making the capital market a powerful engine of growth for the Nigerian economy.”

Note that some individuals in the capital market usually use trade secrets or other illegal methods to manipulate the market to their own favour. This manipulation usually occurs in the stock market, which will lead to an increased gain for the manipulator.

Meanwhile, in her outgoing speech, Uduk said, "In implementing the commission’s mandate of regulating and developing the Nigerian capital market, most of our recent activities are guided by the capital market master plan (2015-2025),”  she said.

“This is a 10-year plan with over 100 initiatives to position the capital market for accelerated development of the national economy. It has an implementation governance structure (CAMMIC) to drive advocacy and ensure national buy-in. Through this, a series of engagement has been made with many of the plan’s initiatives achieved.”

Here's The Controversy Surrounding SEC Seat

Yuguda is taking over a controversial role which has been under immense pressure following Uduk's appointment as acting-director General. She had served in the role for about two years, coming in after the former Director-General, Mounir Gwarzo, was controversially sacked by the then Minister of Finance, Kemi Adeosun, in November 2017.

Gwarzo was accused of awarding contracts to his companies and collection of a severance package from SEC when he served as Executive Commissioner. An administrative panel of inquiry recommended Gwarzo's sack after probing the allegation, resulting into the appointment of Uduk.

However, Gwarzo claimed that his dismissal was due to his insistence that a forensic audit be carried out on Oando, which he said Adeosun wanted to prevent.

Yuguda Is A CBN Legend

Yuguda has over 30 years of experience in financial services having started his career with the Central Bank of Nigeria (CBN) where he spent most of his career life. He started out at the CBN in 1984, taking up the role of Senior Supervisor of the Foreign operations department - which manages Nigeria’s external debt records.

A year later, he joined the Banking Supervision Department of CBN, taking charge of bank licensing and prudential regulations. He was part of the pioneer staff of CBN's Debt Conversion Committee Secretariat, managing the Nigerian Debt Conversion Programme. In 1992, he rejoined the Foreign Operations Department before leaving for the International Monetary Fund (IMF), where he worked as an economist in the Africa Department.

Yuguda returned to CBN nine years later to restructure and diversify CBN's FOREX reserve portfolio with a team he headed. He is credited for the CBN’s in-house fixed-income trading and settlement capabilities upgrade. In summary, Yuguda is an experienced economist, banker and investment manager.

Yuguda's Educational And Certification Path

Meanwhile, his educational path started from Ahmadu Bello University, Zaria, where he graduated with a Bachelor of Science in Accounting in 1983. He went on to study Money, Banking, and Finance in the University of Birmingham, UK, in 1991, bagging a Master’s degree.

Yuguda also received leadership training at notable business schools like Harvard, INSEAD, IMD, Saïd, Wharton, Haas, and London. He is also a Fellow of the Institute of Chartered Accountants of Nigeria (ICAN). Yuguda is a CFA charter holder. Part of his certificates also includes Swiss Finance Institute's Certificate in Financial Asset Management and Engineering.