SEC DG Advocates for Smart Regulation to Balance Fintech Growth and Investor Protection

At the 2024 Nigeria Fintech Week, the Director General of the Nigeria Securities and Exchange Commission (SEC), Emomotimi Agama, called for “smart regulation” to manage the fast-paced growth of fintech while safeguarding investors and maintaining market integrity. Speaking at the event themed “Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth,” Agama outlined the transformative potential of fintech for Africa’s financial services industry, but warned of significant regulatory challenges.

Agama highlighted concerns over the misuse of investment data, increased vulnerability to cyber-attacks, and the rise of unregulated fintech firms soliciting public funds without proper oversight. These issues, he stated, expose investors to fraud and undermine the SEC’s core mandate of investor protection.

To address these challenges, Agama advocated for a regulatory framework that promotes fintech innovation while ensuring consumer protection and market security. He introduced the SEC’s Regulatory Innovation Program, designed to allow fintech firms to test their business models in a controlled environment before full-scale market entry. The initiative, along with the Accelerated Regulatory Innovation Program, aims to position Nigeria as a fintech hub, both in Africa and globally.

“These programs are essential to protecting fintech entrepreneurs while creating a stable and inclusive environment for innovation to thrive,” Agama noted, adding that several fintech firms have already received regulatory approval under these initiatives.

Agama further stressed the importance of building trust in the financial system, stating that smart regulation plays a pivotal role in ensuring fintech companies operate transparently. He urged fintech innovators to focus on developing solutions that address Africa’s unique challenges, such as financial inclusion, wealth creation, and economic growth.

Also speaking at the event, FintechNGR President, Ade Bajomo, pointed out that fintech still has immense growth potential in Nigeria and Africa, with millions of people yet to access financial services. Despite current challenges, including inadequate infrastructure and limited investment, Bajomo remained optimistic about the sector’s future, calling on stakeholders to remain focused on leveraging technology to drive socio-economic development.

The Nigeria Fintech Week, a major annual industry event, brings together stakeholders from across the financial, regulatory, and technology sectors to discuss the current state of fintech in Africa and chart a strategic path forward.

By advocating for smart regulation, the SEC aims to strike a balance between innovation and investor protection, ensuring fintech’s continued growth while maintaining market integrity.

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