Nigeria: SEC Enhances Oversight to Safeguard Investors Amid Nigeria’s Fintech Transformation

The Securities and Exchange Commission (SEC) has reaffirmed its commitment to safeguarding investors’ funds as financial technology (fintech) continues to reshape Nigeria’s investment landscape. The agency emphasized the importance of strong regulatory oversight to balance innovation with investor protection.

Emphasizing Accountability in the Fintech Ecosystem

During a capacity-building session for financial journalists held in Abuja, SEC Director General Dr. Emomotimi Agama underscored the necessity of enforcing capital market regulations within the fintech ecosystem. He noted that fostering innovation must go hand-in-hand with ensuring compliance and market integrity.

“The time has come for fintech operators to be held accountable under capital market regulations to protect investors and maintain market integrity,” Agama stated.

Dr. Agama highlighted that a conducive regulatory framework is crucial for encouraging technological advancements while safeguarding the interests of stakeholders in the financial markets.

Addressing Challenges in a Tech-Driven Market

Speaking on a panel at the event, Hasfat Rufai, SEC’s Director of Registration, Exchanges, and Market Infrastructure, reaffirmed the Commission’s focus on protecting investors amidst the rapid evolution of financial technologies.

“While these trends bring new opportunities, they also present challenges, particularly in regulation and safeguarding investors’ interests,” Rufai said.

She highlighted how the emergence of digital platforms, access to global markets, and the growing popularity of cryptocurrencies and startups have fundamentally altered investment patterns in Nigeria.

“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.

Advancing Commodities Markets with Fintech

In his presentation titled “Commodities Market as an Alternative Investment—Leveraging Fintech,” Abdulraham Abubakar emphasized the significant role fintech plays in enhancing Nigeria’s commodities market. He highlighted how fintech solutions have connected storage facilities electronically to exchanges, thereby boosting standardization, transparency, and efficiency in the commodities sector.

Strengthening Regulatory Frameworks

SEC continues to adapt its regulatory strategies to align with the fast-changing financial landscape. In collaboration with the Toronto Center, the Commission has enhanced its Risk-Based Supervision (RBS) regime, strengthening its oversight of market infrastructure and operators.

This proactive approach underscores SEC’s dedication to fostering a secure and innovative investment environment in Nigeria while ensuring investor confidence remains a priority.

Pioneering the Future of Investments

As fintech reshapes Nigeria’s investment landscape, SEC’s efforts to balance innovation with regulatory vigilance ensure that the market remains dynamic, inclusive, and secure for all stakeholders.