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NIGERIA: SEC restrains fintech firm Chaka from advertising or offering shares for sale

Nigeria's SEC has restrained fintech startup, Chaka Technologies Limited, and its promoters from advertising or offering shares, stock or other securities for sale.

Ola Olaoluwa
Ola Olaoluwa

Nigeria's Securities and Exchange Commission, SEC, has disclosed that it will restrain fintech firm, Chaka Technologies Limited, and its promoters from advertising or offering for shares, stock or other securities of companies or other entities for sale.

This was announced in a statement by the SEC on Saturday evening. SEC said its Investments and Securities Tribunal (IST) gave an interim order on Thursday, 17th December 2020.

Chaka Technologies Executive Team. Image Source: TOS TV Network

SEC said the interim order applies to all Chaka platforms, citing that the startup carried out operations outside the regulatory purview of the Commission and without requisite registration.

  • The interim Orders, which apply to all Chaka platforms, were granted pursuant to an application by the Securities and Exchange Commission.
  • In the application, the Commission – through its solicitor, Dr. Chuka Agbu, SAN – informed the Tribunal that the Defendants were engaged in investment activities, including providing a platform for the purchase of shares in foreign companies such as Google, Amazon and Alibaba.
  • The Commission also stated that the said activities were carried out by the Defendants outside the regulatory purview of the Commission and without requisite registration, as stipulated by the Investment and Securities Act 2007.

SEC said the Interim order is to ensure Chaka’s operations are regulated by law to protect investors interest.

Nigeria In Focus:

Population: 206.6 million (Compared to South Africa's 59.6 million)

GDP: $504.57 billion (Compared to South Africa's $369.85 billion)

GDP Per Capita: $2,465 (Compared to South Africa's $6,193)

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Ola Olaoluwa

Writer | Economist | Actor | Fashion Entrepreneur