[1] The Nigerian Stock Exchange (NSE) is privately owned and self-regulating, but the SEC maintains surveillance over it with the mandate of ensuring orderly and equitable dealings in securities, and protecting the market against insider trading abuses.

The market appeared to be operating efficiently, although it was depressed by low personal incomes in Nigeria and political instability deterring foreign direct investment.

[4] When Musa Al-Faki, a stockbroker, was installed Director General in 2004, many thought his appointment had been engineered by Ndi Okereke-Onyiuke, head of the Nigerian Stock Exchange.

The commission also instituted various reforms including improving regulations so as to encourage development of the bond market, promoting collective investment schemes and reviewing the 2003 Corporate Governance Code.

The SEC said its actions were due to problems at the stock exchange that included "inadequate oversight...ongoing litigation, allegations of financial mismanagement, governance challenges".