By Kayode Ogunwale

The Securities and Exchange Commission has reaffirmed its commitment to safeguarding investors’ funds amid the growing prominence of fintech in Nigeria’s financial sector.

This is according to a statement on Sunday by the Commission, which noted that the Director-General of SEC, Dr Emomotimi Agama, said this at a one-day capacity-building session for financial journalists in Abuja.

The SEC DG assured all that the commission would enforce existing regulations within the fintech space to prevent mismanagement of funds and ensure operators comply with the capital market rules, especially about fundraising.

The statement read, “The Securities and Exchange Commission has restated its commitment to investors’ protection, especially with the increasing use of Fintech.

“Speaking at the one-day capacity training for financial journalists in Abuja, the Director General of the SEC, Dr Emomotimi Agama, said the commission will enforce regulations in the fintech ecosystem to curb mismanagement of funds and align operators with existing rules.”

Agama emphasised that creating a regulatory environment conducive for technological innovation was crucial for Nigeria’s financial transformation.

He added that it was now imperative for fintech operators to adhere to the established rules of the capital market, particularly in the area of raising capital.

During a panel discussion at the event, Director of Registration, Exchanges and Market Infrastructure at the SEC, Hasfat Rufai,

Assured attendees that despite the disruption caused by new technologies, the commission would continue to ensure investors do not lose their funds.

Rufai acknowledged that the rise of digital platforms, cryptocurrencies, and fintech startups had fundamentally changed how Nigerians approach investing.

She urged investors to adapt to this new digital age by embracing technology and making informed investment decisions.

Rufai also noted that the future of investment in Nigeria is likely to be driven by technology, with younger investors and new financial products playing a significant role in shaping the market.

Abdulrahman Abubakar, in his presentation, highlighted the role of fintech in improving the standardisation of Nigeria’s commodities market.

According to Abubakar, the integration of fintech has facilitated the electronic linking of storage facilities with exchanges, enhancing market transparency and operational efficiency.

Abubakar also noted that the SEC had been continuously improving its regulatory approach to keep pace with the dynamic nature of the market.

The statement noted that in a move to strengthen its oversight of the financial market, the SEC has enlisted the Toronto Centre’s expertise to improve its Risk-Based Supervision regime.

The Initiative aims to enhance the Commission’s ability to supervise market infrastructure and operators effectively.

The RBS framework is expected to provide valuable insights into refining the SEC’s supervisory capabilities, ensuring it remains agile and responsive to emerging market trends and innovations in fintech.