SEC Strengthens Oversight to Protect Investors Amid Fintech Evolution in Nigeria
The Securities and Exchange Commission (SEC) has reaffirmed its dedication to protecting investors’ funds, emphasizing the importance of robust oversight as financial technology (fintech) transforms Nigeria’s investment landscape.
During a one-day capacity-building session for financial journalists in Abuja, SEC Director General Dr. Emomotimi Agama stressed the need for strict enforcement of regulations within the fintech ecosystem. He highlighted that a conducive regulatory environment is critical for fostering technological innovation in Nigeria while ensuring fintech operators adhere to the capital market rules regarding fundraising.
“The time has come for fintech operators to be held accountable under capital market regulations to protect investors and maintain market integrity,” Agama stated.
Speaking at a panel discussion during the event, Hasfat Rufai, Director of Registration, Exchanges, and Market Infrastructure at SEC, reiterated the Commission’s commitment to investor protection despite the challenges posed by technological disruptions.
“While these trends bring new opportunities, they also present challenges, particularly in regulation and safeguarding investors’ interests,” Rufai noted.
She further explained that digital platforms, access to global markets, and increased interest in cryptocurrencies and startups have reshaped the way Nigerians invest.
“The digital age has transformed investment, providing greater accessibility, innovation, and opportunities. Investors must adapt by embracing technology, acquiring knowledge, and making responsible choices. The future of investment in Nigeria will be driven by technology, young investors, and evolving financial products,” she added.
Abdulraham Abubakar, in his presentation on “Commodities Market as an Alternative Investment—Leveraging Fintech,” emphasized fintech’s role in advancing the commodities market. He noted that fintech solutions have enabled the electronic connection of storage facilities to exchanges, boosting standardization and efficiency.
SEC has continuously adapted its regulatory framework to keep pace with the dynamic nature of the market. In collaboration with the Toronto Center, the Commission has been enhancing its Risk-Based Supervision (RBS) regime to strengthen its oversight capabilities, particularly for market infrastructure and operators.
This ongoing effort underscores SEC’s proactive approach in safeguarding investor interests and fostering a secure, innovative investment ecosystem in Nigeria.
