Nigeria’s SEC Vows Tougher Oversight in Fintech to Protect Investors
Nigeria’s Securities and Exchange Commission (SEC) has reiterated its commitment to safeguarding investors as the country’s fintech landscape continues to expand. The regulator announced plans to tighten its oversight of digital finance platforms, ensuring compliance with capital market rules and curbing fund mismanagement.
Speaking during a one-day training for financial journalists in Abuja, SEC Director-General Emomotimi Agama stressed the importance of a robust regulatory framework that balances innovation with investor protection.
“It is time for fintech operators to be held accountable to the rules of the capital market, particularly when raising funds,” Agama said, adding that the Commission would act decisively to enforce regulations and maintain market integrity.
Highlighting the challenges posed by emerging digital platforms, cryptocurrencies, and startups, Hasfat Rufai, Director of the Registration, Exchanges, and Market Infrastructure Department at SEC, affirmed the Commission’s focus on protecting investors amidst these disruptions.
“While these trends bring new opportunities, they also come with challenges, particularly around regulation and investor protection,” Rufai said during a panel discussion.
She further remarked on the transformative impact of technology on the investment sector, noting that it has introduced greater accessibility and opportunity but requires investors to stay informed and exercise caution.
“The digital age has transformed the investment landscape. Investors must adapt by embracing technology, seeking knowledge, and making responsible investment choices,” Rufaiadded.
In its ongoing efforts to ensure market transparency, the SEC recently issued a warning against Marino FX Ltd, a platform falsely claiming to be a licensed cryptocurrency exchange. The regulator cautioned investors and the general public to avoid engaging with the firm.
The SEC’s actions underscore the government’s determination to position Nigeria as a leading fintech hub while prioritisinginvestor security in an era of rapid digital transformation.
