Oteh’s tenure ends January 7

The single tenure of five years of the current Director General of the Securities and Exchange Commission (SEC) comes to an end this week.

The director general is the chief executive of the apex regulatory body of the nation’s capital market.

There is strong indication that Ms. Arunma Oteh may not get the extension for second term in office as it required National Assembly approval with the rift between the SEC DG and House of Representatives that led to the decision by the house to suspend the commission’s budget for the last two years.

In line with this, there have been several calls for and against the re-appointment of Oteh whose tenure has been eventful and challenging.

Oteh resumed as SEC DG in January 2010. Her tenure ends January 7, 2015. The Investments and Securities Act (ISA) 2007, the law regulating the capital market, provides for a five-year tenure for the director general, in the first instance, renewable for a similar term of five years only.

Section 5, subsection 1 stipulates that the director general and the three full time commissioners shall be appointed by the president upon the recommendation of the minister and confirmation by the Senate. Section 5, subsection 2 states that “the Director General shall hold office for a period of 5 years in the first instance and may be reappointed for a further period of five years and no more.”

This may affect the growth expected in the market this year as capital market is driven by information.

In the alternative, the director-general may be requested to appoint one of the commissioners to supervise activities in her absence. Subsection 7 stipulates that “the Director General or, in his absence, one of the commissioners nominated by the director general shall be responsible for the day to day management and administration of the commission and shall be answerable to the board of the commission.