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he Securities and Exchange Commission (SEC), Nigeria’s apex capital market regulator, has reiterated its commitment to safeguarding investors amidst the growing adoption of financial technology (Fintech).
At a one-day capacity-building session for financial journalists in Abuja, SEC’s Director-General, Dr. Emomotimi Agama, emphasized the Commission’s resolve to enforce regulations within the fintech ecosystem. This effort aims to curb fund mismanagement and ensure operators comply with existing capital market rules.
Agama highlighted the importance of a regulatory environment that supports technological innovation, noting its potential to drive Nigeria’s economic transformation. He further stressed that fintech operators engaged in fundraising activities must adhere to established capital market standards.
Investor Protection in a Tech-Driven Era
During a panel discussion at the event, Hafsat Rufai, Director of Registration, Exchanges, and Market Infrastructure at SEC, affirmed the Commission’s commitment to protecting investors despite the challenges posed by new market disruptions.
“While these trends bring new opportunities, they also present challenges, particularly in the areas of regulation and investor protection,” Rufai stated.
She noted that the rise of digital platforms, access to global markets, and growing interest in cryptocurrencies, fintech solutions, and startups are reshaping Nigeria’s investment landscape.
“The digital age has transformed the investment landscape, offering greater accessibility and innovation. Investors must adapt by embracing technology, seeking knowledge, and making responsible investment choices,” Rufai added.
She expressed optimism about the future of Nigeria’s capital market, which she believes will be driven by technology, younger investors, and evolving financial products.
Fintech’s Role in Commodities Market Growth
In his presentation titled “Commodities Market as an Alternative Investment – Leveraging Fintech,” Abdulraham Abubakar highlighted how fintech has revolutionized the commodities market. He explained that technology has enhanced market standardization by electronically linking storage facilities with exchanges, improving efficiency and transparency.
“By leveraging fintech, the commodities market has become more accessible and structured, encouraging greater investor participation,” Abubakar said.
Enhancing Regulatory Oversight
Acknowledging the dynamic nature of financial markets, SEC continues to refine its regulatory framework. The Commission recently partnered with the Toronto Center to enhance its Risk-Based Supervision (RBS) regime.
This collaboration aims to strengthen SEC’s capacity to supervise market infrastructure and operators effectively, ensuring a robust regulatory framework that keeps pace with market innovations.
Conclusion
As fintech continues to reshape Nigeria’s financial landscape, SEC remains focused on balancing innovation with investor protection. Through enhanced regulations, technological integration, and international partnerships, the Commission is poised to create a transparent and secure investment ecosystem for all stakeholders.
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