SEC Sponsored Individual Registration Examination (Nigeria)

Which authority acts as the apex regulatory body for the Nigerian capital market?

• ASecurities and Exchange Commission (SEC) Nigeria
• BCentral Bank of Nigeria (CBN)
• CNigerian Exchange Group (NGX)
• DNigerian Deposit Insurance Corporation (NDIC)

Which demutualized platform serves as the principal securities exchange for trading equities and corporate bonds in Nigeria?

• ANigerian Exchange Group (NGX)
• BFMDQ Securities Exchange
• CNASD OTC Securities Exchange
• DLagos Commodities and Futures Exchange (LCFE)

Which entity is responsible for clearing, depository, and settlement of transactions executed on the Nigerian Exchange (NGX)?

• ACentral Securities Clearing System (CSCS) Plc
• BSecurities and Exchange Commission (SEC)
• CCentral Bank of Nigeria (CBN)
• DNigerian Capital Market Institute (NCMI)

What is the standard transaction settlement cycle (T+N) for equity trades executed on the Nigerian Exchange (NGX)?

• AT+2 (Transaction day plus two business days)
• BT+1 (Transaction day plus one business day)
• CT+3 (Transaction day plus three business days)
• DT+5 (Transaction day plus five business days)

What is the process of converting physical share certificates into an electronic format stored in the CSCS system called?

• ADematerialization
• BImmobilization
• CRematerialization
• DRe-registration

Which exchange in Nigeria specializes in debt capital markets, foreign exchange, and over-the-counter (OTC) derivatives?

• AFMDQ Securities Exchange
• BNigerian Exchange Group (NGX)
• CNASD OTC Securities Exchange
• DAFEX Commodities Exchange

Where are the shares of public companies that are NOT listed on the Main Board of the NGX traded in Nigeria?

• ANASD OTC Securities Exchange
• BFMDQ Securities Exchange
• CPrimary Market IPOs only
• DBilateral off-market transfers only

What is the primary distinguishing feature of the primary market compared to the secondary market?

• AThe issuer receives the cash proceeds from the sale of securities directly
• BTransactions are executed through stockbrokers on the exchange floor
• CShares are traded only between existing investors
• DPrices are determined entirely by continuous matching of buy and sell orders

What is the standard settlement timeline for corporate debt instruments traded on the Nigerian over-the-counter (OTC) market?

• AT+1 (Transaction day plus one business day)
• BT+2 (Transaction day plus two business days)
• CT+0 (Same-day settlement)
• DT+3 (Transaction day plus three business days)

Which market operator maintains the official ledger of a company's shareholders and processes dividend payments?

• ARegistrar
• BCustodian
• CTrustee
• DBroker-Dealer

What is the process where institutional investors submit bids stating the quantity and price of shares they are willing to buy before a public offer is priced?

• ABook building
• BPrivate placement
• CRights issue
• DDirect listing

Which commodities exchange, licensed by the SEC, operates an electronic warehouse receipt system for agricultural products in Nigeria?

• AAFEX Commodities Exchange
• BNigerian Stock Exchange
• CAbuja Securities and Commodity Exchange (ASCE)
• DFMDQ Securities Exchange

Under SEC regulations, which instrument represents an investor's fractional ownership of a diversified, professionally managed pool of assets?

• AMutual fund unit
• BOrdinary share
• CPreference share
• DDebenture stock

Which debt instrument represents undivided shares in the ownership of tangible assets, structured in compliance with Islamic financial principles?

• ASukuk
• BEurobond
• CTreasury bill
• DCommercial paper

What settlement system is utilized for the cash leg of securities transactions executed on the NGX exchange?

• ACBN Real-Time Gross Settlement (RTGS) system
• BCSCS proprietary cash register
• CRemita payment gateway
• DSWIFT interbank messaging

What is the principal enabling statute governing all securities regulation and capital market operations in Nigeria?

• AInvestments and Securities Act 2025 (ISA 2025)
• BCompanies and Allied Matters Act 2020 (CAMA 2020)
• CBanks and Other Financial Institutions Act 2020 (BOFIA 2020)
• DSecurities and Exchange Commission Rules and Regulations 2013

Which section of the Investments and Securities Act (ISA) 2025 establishes the Securities and Exchange Commission (SEC) Nigeria?

• ASection 1
• BSection 13
• CSection 29
• DSection 197

According to the ISA 2025, which of the following represents the correct composition of the Board of the SEC?

• AA part-time Chairman, the Director-General, three Executive Commissioners, representative…
• BA full-time Chairman, the Director-General, four Executive Commissioners, and five repres…
• CThe Governor of the Central Bank, the Minister of Finance, the Director-General, and thre…
• DA part-time Chairman, the Director-General, two representatives of stockbrokers, and five…

Which section of the ISA 2025 sets out the objectives, functions, and powers of the Securities and Exchange Commission?

• ASection 3
• BSection 1
• CSection 113
• DSection 314

Which fund is mandated under Section 198 of the ISA 2025 to compensate investors for pecuniary losses arising from insolvent market operators?

• AInvestor Protection Fund (IPF)
• BCapital Market Development Fund
• CSovereign Wealth Fund
• DDepositor Protection Fund

The National Investor Protection Fund (NIPF) was established directly by the SEC to compensate investors who suffer losses in transactions with which type of operators?

• ACapital market operators that are NOT members of a self-regulatory organization (SRO) or…
• BActive member brokers of the Nigerian Exchange Group (NGX)
• CCommercial banks performing custodian duties under CBN license
• DState and federal government agencies issuing municipal bonds

What is the maximum compensation limit payable to an investor from the NGX Investors' Protection Fund (IPF) as updated by its Board of Trustees in 2021?

• A₦500,000
• B₦200,000
• C₦400,000
• D₦1,000,000

What is the maximum compensation limit payable to a single investor under the National Investor Protection Fund (NIPF) administered directly by the SEC?

• A₦200,000
• B₦500,000
• C₦400,000
• D₦100,000

Which specialized judicial body is established under Section 314 of the ISA 2025 to adjudicate capital market disputes?

• AInvestments and Securities Tribunal (IST)
• BFederal High Court
• CAdministrative Proceedings Committee (APC)
• DTax Appeal Tribunal

What is the total membership of the Investments and Securities Tribunal (IST) under the provisions of the ISA 2025?

• ATwelve members: a Chairman, five full-time members, and six part-time members
• BTen members: a Chairman and nine other members
• CFive members: a Chairman and four judges
• DSeven members: a Chairman and six commissioners

Which court has the exclusive jurisdiction to hear appeals directly arising from decisions of the Investments and Securities Tribunal (IST)?

• AThe Court of Appeal
• BThe Federal High Court
• CThe Supreme Court of Nigeria
• DThe High Court of the Federal Capital Territory

Under the ISA 2025, the Chairman of the Investments and Securities Tribunal must be a legal practitioner with at least how many years' post-call experience in capital market matters?

• AAt least 15 years
• BAt least 10 years
• CAt least 7 years
• DAt least 20 years

An market operator wishing to challenge an administrative penalty or directive issued by the SEC must first direct the challenge to:

• AThe Investments and Securities Tribunal (IST)
• BThe Federal High Court
• CThe Federal Ministry of Finance
• DThe Corporate Affairs Commission (CAC)

Under Section 113 of the ISA 2025, who can be held civilly liable to compensate investors for financial loss caused by untrue statements in a prospectus?

• ADirectors, promoters, and experts who authorized the prospectus
• BThe Securities and Exchange Commission (SEC) staff who registered the prospectus
• CAll shareholders of the issuing company under joint liability
• DThe clearing house (CSCS) that dematerialized the issuer's shares

What is the legal consequence under the ISA 2025 for any entity found operating as a capital market operator without registering with the SEC?

• AA fine, imprisonment, or both for key officers, and a daily penalty for corporate bodies
• BA formal warning letter without any monetary or criminal penalties
• CThe automatic acquisition of the company by the Federal Government
• DImmediate confiscation of all shareholders' personal assets without trial

Under the insider-dealing provisions of the ISA 2025 (Section 137), which of the following best describes a capital market 'insider'?

• AAny person who is or has been associated with the company, having access to price-sensiti…
• BAny investor holding more than 5% of the company's ordinary shares
• CFinancial journalists who write analysis on listed companies
• DAny retail client who has opened a trading account with a registered stockbroker

Under the ISA 2025, the power of the SEC to inspect the books, records, and accounts of a registered CMO is:

• AUnconditional and does not require a prior court order
• BSubject to a mandatory 30-day written advance notice to the CMO
• COnly permissible when active litigation is pending against the CMO
• DDependent on receiving written consent from the Central Bank of Nigeria

Under Section 150 of the ISA 2025, which of the following is defined as a 'Collective Investment Scheme'?

• AA scheme where investors pool funds to acquire interest in a portfolio, which is managed…
• BA private joint venture agreement between three corporate entities
• CA syndicated lending facility provided by a consortium of commercial banks
• DA direct stock purchasing program run by an employer for its staff

Which administrative organ of the SEC conducts hearings and investigates allegations of violations against CMOs before final board decisions?

• AAdministrative Proceedings Committee (APC)
• BInvestments and Securities Tribunal (IST)
• CEnforcement and Compliance Department
• DNigerian Capital Market Institute (NCMI)

Which section of the ISA 2025 gives the SEC the general power to make rules and regulations to implement the provisions of the Act?

• ASection 355
• BSection 1
• CSection 3
• DSection 198

Under the SEC Rules and Regulations, what is the role of a 'Sponsored Individual'?

• AA qualified professional registered with the SEC to perform core market functions on beha…
• BA retail client whose investment account is funded by a registered stockbroker
• CAn independent director representing minority shareholders on a public company board
• DA capital market expert hired by the SEC to conduct audits of stockbroking firms

What is the minimum number of sponsored individuals, including the Managing Director, required to register a corporate Broker-Dealer?

• AThree sponsored individuals
• BTwo sponsored individuals
• CFive sponsored individuals
• DOne sponsored individual

Under the January 2026 SEC Nigeria revised capital requirements (Circular 26-1), what is the new minimum capital requirement for a Broker-Dealer?

• A₦2 Billion
• B₦300 Million
• C₦1 Billion
• D₦5 Billion

Under the January 2026 SEC Nigeria revised capital requirements (Circular 26-1), what is the new minimum capital requirement for a Dealer (proprietary trading only)?

• A₦1 Billion
• B₦100 Million
• C₦600 Million
• D₦2 Billion

Under the January 2026 SEC Nigeria revised capital requirements (Circular 26-1), what is the new minimum capital requirement for a Broker (client execution only)?

• A₦600 Million
• B₦200 Million
• C₦300 Million
• D₦1 Billion

Under the January 2026 SEC Nigeria revised capital requirements (Circular 26-1), what is the new minimum capital for a Tier 1 (Full Scope) Fund/Portfolio Manager?

• A₦5 Billion
• B₦2 Billion
• C₦150 Million
• D₦1 Billion

Under the January 2026 SEC Nigeria revised capital requirements (Circular 26-1), what is the new minimum capital for a Tier 2 (Limited Scope) Fund/Portfolio Manager?

• A₦2 Billion
• B₦5 Billion
• C₦150 Million
• D₦500 Million

Under the January 2026 SEC Nigeria revised capital requirements (Circular 26-1), what is the new minimum capital requirement for a Registrar?

• A₦2.5 Billion
• B₦150 Million
• C₦1 Billion
• D₦5 Billion

Under the January 2026 SEC Nigeria revised capital requirements (Circular 26-1), what is the new minimum capital requirement for a Private Equity Fund Manager?

• A₦500 Million
• B₦150 Million
• C₦200 Million
• D₦1 Billion

Under the January 2026 SEC Nigeria revised capital requirements (Circular 26-1), what is the new minimum capital requirement for a Venture Capital Fund Manager?

• A₦200 Million
• B₦500 Million
• C₦150 Million
• D₦1 Billion

According to SEC Rule 3(6)(b), a pending registration application of a Capital Market Operator (CMO) expires if the applicant fails to satisfy requirements within:

• A12 months from the date of application submission
• B6 months from the date of application submission
• C3 months from the date of application submission
• D24 months from the date of application submission

Under SEC Rules, when a sponsored individual resigns or has their employment terminated, the sponsoring CMO must notify the SEC in writing within:

• A5 working days from the date the individual leaves employment
• B14 calendar days from the date the individual leaves employment
• C30 calendar days from the date the individual leaves employment
• D7 working days from the date the individual leaves employment