Seplat Crisis: We Will Take Effective Measures To Protect Nigeria’s Capital Market, SEC Assures

Nigeria’s capital market regulator, the Securities and Exchange Commission has reacted to the crisis in Seplat Energy Plc, saying it is monitoring the situation and would react to protect market integrity.

THE WHISTLER had reported that some aggrieved shareholders of the company accused Seplat’s former Chief Executive Officer, Roger Brown of alleged racism against Nigerians and favouring expatriate workers leading to the withdrawal of his Visa and work permit by Nigerian authorities.

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Brown was later moved to the UK office where he will oversee Seplat but an ex-perte order was granted by Justice C. J. Aneke of the Federal High Court, restraining Brown from participating in the running of the company for seven days.

The injunction was filed by Messrs. Moses Igbrude, Sarat Kudaisi, Kenneth Nnabike, Ajani Abidoye and Robert Ibekwe, who have shares in Seplat Energy Plc.

Brown however handpicked, Samson Ezugworie, Chief Operating Officer to act as CEO.

On March 26, 2023, Make a Difference Initiative, a civil society group called for Mr. Basil Omiyi, Independent Chairman to step aside from Seplat.

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The Group protested that Omiyi has ‘exceeded his tenure,’ adding that his refusal to stepdown was responsible for the crisis rocking the company.

Amidst the crisis, Seplat announced the termination of the relationship between its founder, A.B.C Orjiako over alleged false representation.

Seplat said the retired Chairman was awarded a consultancy contract after exiting the company.

The company said it suspended the “Consultancy Agreement on 13 February 2023, as unanimously approved by the Board of Directors, following repeated warnings about breaches of a material nature, such as unilaterally making significant commitments on Seplat’s letterhead without prior Board authority or knowledge.

“This course of action was necessary to protect the Company and its Shareholders, Directors, and Officers from potential and increasing liability arising from the conduct of the Consultants, Dr. Orjiako and Amaze Limited.”

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The SEC said it has engaged with the board over the various issues surrounding the indigenous oil company.

The regulator said,“In line with its core mandate of investor protection, the Commission has sought and obtained explanations from Seplat through its Board of Directors and from the NGX, the primary exchange on which it is listed. The Commission notes that the Board has remained united and that the reported events have not affected the fundamentals of Seplat. However, the Commission encourages the Board to continue effective dialogue with all stakeholders in dealing with the issues.

“The Commission will continue to work with the Board of Seplat to monitor the situation and take effective measures to preserve the integrity and transparency of the capital market.”

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