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The Securities and Exchange Commission (SEC) has reassured investors of the safety of their funds as financial technology (Fintech) reshapes Nigeria’s investment landscape.
Commitment to Investor Protection
Speaking at a capacity-building workshop for financial reporters in Abuja, Hasfat Rufai, Director of Registration, Exchanges, and Market Infrastructure at SEC, emphasized the Commission’s proactive stance on managing the risks associated with technological disruptions in the financial sector.
“While Fintech offers significant opportunities, it also presents challenges, particularly in regulation and investor protection,” Rufai said.
She highlighted the impact of digital platforms, increased global market access, and the growing interest in cryptocurrencies and startup investments on Nigeria’s financial ecosystem.
“The digital age has redefined investment practices, providing greater accessibility, innovation, and opportunities. Investors must adapt by embracing technology, acquiring knowledge, and making informed decisions,” Rufai added.
Technology and the Future of Investments
Rufai outlined how the future of investments will be shaped by technological advancements, the involvement of younger investors, and the development of innovative financial products.
In a related discussion, Dr. Abdulraham Abubakar, a financial expert, explained how Fintech has enhanced standardization in the commodities market. He noted that electronic connectivity between storage facilities and exchanges has improved efficiency and accessibility, opening up new opportunities for investors.
“By integrating Fintech, the commodities market has become more streamlined, allowing Nigerians to explore broader investment options,” Abubakar said.
Dynamic Regulation for a Robust Financial Ecosystem
Abubakar commended SEC’s adaptive regulatory approach, which he described as essential for maintaining stability and bolstering investor confidence in a rapidly evolving financial environment.
To further strengthen its regulatory framework, SEC recently collaborated with the Toronto Center to enhance its Risk-Based Supervision (RBS) model. This initiative is aimed at improving the Commission’s oversight of market infrastructure and operators, thereby safeguarding investors.
Securing Opportunities in the Digital Economy
As Fintech continues to drive innovation across Nigeria’s financial sector, SEC reiterated its commitment to ensuring a secure and transparent investment climate. The Commission assured investors that their interests remain a top priority, urging them to leverage the opportunities presented by the digital economy responsibly.
Through its dynamic regulatory initiatives and emphasis on risk mitigation, SEC is positioning Nigeria’s financial markets for sustainable growth and global competitiveness.
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