By Milcah Tanimu
The Nigeria Securities and Exchange Commission (SEC) Director General, Emomotimi Agama, has urged for “smart regulation” to harmonize the rapid growth of fintech with essential investor protection and market integrity across Africa. Speaking at the Nigeria Fintech Week 2024, themed “Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth,” Agama highlighted fintech’s transformative potential while warning of significant regulatory risks.
Agama raised concerns regarding the misuse of investment data, vulnerability to cyber-attacks, and the prevalence of unregulated fintech firms soliciting public funds without oversight. These practices expose investors to fraud and undermine the SEC’s mandate to protect them.
To address these challenges, Agama emphasized the need for robust regulatory frameworks that secure fintech innovations while ensuring sustainability. He described smart regulation as a flexible yet stringent approach that promotes innovation while adhering to standards for security, consumer protection, and market integrity.
The SEC has introduced a Regulatory Innovation Program to allow fintech firms to test their business models in controlled environments before full-scale launches. This initiative aims to establish Nigeria as a fintech hub in Africa and globally.
Agama underscored that trust is fundamental in any financial system, asserting that smart regulation fosters trust by ensuring transparent operations among fintech companies, safeguarding both investors and consumers.
Furthermore, he urged fintech innovators to focus on solutions that tackle Africa’s unique challenges, such as financial inclusion and economic growth. By collaborating with governments, investors, and other stakeholders, Agama believes Nigeria can support global fintech innovation while reducing barriers to entry.
