Nigeria’s apex capital market regulator, the Securities and Exchange Commission (SEC), has reaffirmed its commitment to investors’ protection and enforcing regulatory oversight in Nigeria’s growing fintech sector.
This was disclosed by SEC Director-General Dr. Emomotimi Agama during a one-day capacity training for financial journalists in Abuja.
Dr. Agama emphasized that fintech operators must adhere to capital market rules, particularly when raising funds, to ensure investor protection.
He highlighted the importance of fostering a regulatory environment that balances innovation with accountability. “It is time for fintech operators to be held accountable to the rules of the capital market, particularly when raising funds,” he stated.
The rise of digital platforms, cryptocurrencies, and fintech startups has revolutionized Nigeria’s investment landscape, offering new opportunities while presenting regulatory challenges.
Addressing these disruptions, Hasfat Rufai, SEC’s Director of Registration, Exchanges, and Market Infrastructure, reiterated the Commission’s dedication to protecting investors and ensuring that their interests remain protected despite these new disruptions.
“While these trends bring new opportunities, they also come with challenges, particularly around regulation and investor protection,” Rufai noted during a panel discussion.
She highlighted the transformative impact of the digital age, which has enhanced accessibility and innovation in investments. Rufai urged investors to adapt to these changes by leveraging technology, gaining financial knowledge, and making responsible investment decisions.
Furthermore, Abdulraham Abubakar, in his presentation on “Commodities Market as an Alternative Investment—Leveraging Fintech,” noted that technology has boosted standardization in Nigeria’s commodities market. By integrating storage facilities with electronic exchanges, fintech has enhanced efficiency and transparency in the sector.
To strengthen its regulatory framework, the SEC has engaged the Toronto Center to improve its Risk-Based Supervision (RBS) regime. This initiative is expected to enhance the Commission’s oversight capabilities, particularly for market infrastructure and operators.
