Brokers Assure Investors of Safety Despite N10bn Infraction

As the Managing Director/Chief Executive Officer of Partnership Securities Limited, Mr. Victor Ogiemwonyi faces litigation over N10 billion clients’ money he misappropriated, stockbrokers have assured investors that their investments are safe in the Nigerian capital market.

Ogiemwonyi, who is a leading stockbroker, is currently in the custody of Economic and Financial Crime Commission (EFCC) and facing criminal and civil charges for misappropriating money of some of his clients.

Specifically, he has owned up to have sold and misappropriated about 96 million Ecobank Transnational Incorporated (ETI) shares valued at N1.24 billion and $80,000 belonging to former Chief Executive Officer of ETI, Mr. Arnold Ekpe.

There are other clients who have made similar complaints against Ogiemwonyi, a development that is sending negative signals to investors in the market.

However, the Association of Stockbroking Houses of Nigeria (ASHON), and Chartered Institute of Stockbrokers (CIS), the two umbrella bodies for stockbrokers in the market, yesterday assured of safety of investments in the market.

ASHON described the capital market as well regulated for enhanced investor protection, stating that are processes and procedures to ensure that their investments are safe.

“ASHON would continue to work very closely with the regulators, trade groups and investors to protect the integrity of the market by ensuring that its members uphold utmost level of professionalism in all their activities,” the association said.

Speaking in the same vein, the President and Chairman of Governing Council of CIS, Mr. Oluwaseyi Abe Stated that investor protection would always remain a topmost priority for both the regulators and operators in the Nigerian capital market.

Responding to the litigation of Ogiemwonyi for market infractions, Abe advised the investing public to be calm as there were sufficient measures to ensure that every investor is protected. He noted that prior to the ongoing litigation, the Securities and Exchange Commission (SEC) and the Nigerian Stock Exchange had conducted extensive investigation into the infractions.