To protect investors from losses as a result of Fintech operations in the capital market, the Securities and Exchange Commission (SEC) says it was determined to enforce regulations in the fintech ecosystem to curb mismanagement of funds and align operators with existing rules.
The Director General of the Commission, Dr. Emomotimi Agama, who gave the assurance in Abuja at the one-day training programme for financial journalists said investors’ protection, especially with the increasing use of Fintech, was of paramount importance to the regulatory authorities.
Agama said the Commission would do everything within its capacity to ensure a regulatory environment that was conducive for the innovative use of technology, as this was essential to drive Nigeria’s transformation.
“It is time for fintech operators to be held accountable to the rules of the capital market when it comes to fundraising. This is the only way to curb the mismanagement of funds and check losses by investors in the capital market,” Agama said.
Also speaking during a Panel discussion at the event, the Director, Registration, Exchanges and Market Infrastructure Department of the Commission, Hasfat Rufai, said despite the new fintech disruptions in the global system, SEC would continue to ensure investors do not lose their investments.
“While these trends bring new opportunities for investors, they also come with challenges, particularly around regulation and investor protection,” she said.
Rufai added that the rise of digital platforms, access to global markets, and growing interest in cryptocurrencies, fintech, and startups have reshaped how Nigerians invest.
“The digital age has transformed the investment landscape, offering greater accessibility, innovation, and opportunity. Investors must adapt to this evolving environment by embracing technology, seeking knowledge, and making responsible investment choices.
“The future of investment in Nigeria will likely be driven by the continued rise of technology, young investors, and evolving financial products,” she insisted.
On his part, Abdulraham Abubakar, in his presentation on “Commodities Market as an Alternative Investment-Leveraging Fintech”, said that Fintech has further helped to boost standardization in the commodities market.
By leveraging on Fintech in the operations of the capital market, Abubakar said the system has been able to connect storage facilities electronically to the exchanges.
He said the Commission has consistently made improvements on how it regulates the markets due to their dynamic nature.
The Commission, he said, recently engaged the Toronto Centre to assist it in improving its risk-based Supervision (RBS) regime.
The exercise, he explained, was expected to provide insights into how to enhance the Commission’s supervision capabilities, particularly for market infrastructure and operators.
