Business
EMOMOTIMI Agama, Director-General of the Securities and Exchange Commission (SEC) says smart regulation is a catalyst for inclusive growth that ensures financial stability in a rapidly evolving ecosystem.
Agama said this while delivering a keynote address at the FintechNGR conference with the theme, “Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth”, held on Tuesday in Lagos.
He said that smart regulation was a regulatory approach that balanced oversight with flexibility.
According to him, smart regulation ensures that fintech innovations meet the necessary standards of security, consumer protection, and market integrity while still providing room for experimentation and growth.
Agama said that SEC had adopted a Regulatory Incubation (RI) programme, which allows fintech firms to test their business models in a controlled environment before full-scale operations.
He said that this enabled innovation to flourish within a framework that protects the broader financial ecosystem.
“The programme has already yielded tangible results with our recent approvals, while others are in the pipeline and undergoing thorough assessment.
“The commission has adopted a three-pronged approach to regulate innovation in the Nigerian capital market, focusing on safety, market expansion, and problem-solving.
” This forward-thinking strategy ensures regulatory compliance, stakeholders confidence, and value creation for innovators seeking legitimacy,”he said.
Agama said that the commision had prioritised collaboration with other regulators, both locally and internationally.
He said that this was to create a harmonised regulatory environment that encouraged fintech innovations working closely with the Central Bank of Nigeria, and the Financial Services Regulatory Coordinating Committee.
The D-G said that Fintech, particularly in Africa, offered transformative potential to address long-standing challenges.
He listed such challenges to include financial exclusion, limited access to credit, and the inefficiencies of traditional financial services.
Agama said that SEC believed that effective regulation was not just about enforcement, bus about creating an enabling environment where innovation can thrive while protecting the interests of all stakeholders.
According to him, SEC believes that the driver to transforming Nigeria into a smart financial centre is the provision of a regulatory environment that is conducive for innovative use of technology.
“Indeed, the Investments and Securities Act (ISA) is clear when it grants SEC a dual mandate of regulation and development of the capital market.
“Fintech and smart regulation can work hand-in-hand to position the fintech ecosystem in Africa towards accelerated and inclusive growth.
“Fintech has emerged as a solution, offering services that are not only accessible but also cost-effective.
“By leveraging innovative technologies such as mobile payments, peer-to-peer lending, and digital currencies, fintech platforms are driving financial inclusion at an unprecedented scale.
“This allows individuals, small businesses and underserved populations to access the financial system, thereby contributing to broader economic participation and growth,”he said.
The SEC D-G noted that there was a significant opportunity for fintechs to contribute to economic growth in Nigeria.
He said that fintech services had contributed an average of 56 per cent to GDP in Nigeria since 2023, while financial services recorded growth rates of 30.per cent within the same period.
He said that while fintech offers great potential, it posed significant regulatory risks, as large amounts of investor data could be misused without consent.
The SEC boss said that the systems were vulnerable to cyberattacks with potentially severe consequences.
He said that companies using fintech to raise public funds without regulatory approval exposed investors to fraud, undermining the commission’s investor protection mandate.
“However, the success of fintech and financial services in driving inclusive growth hinges on the regulatory environment.
“Regulation plays a pivotal role in ensuring that fintech solutions are safe, sustainable, and beneficial for all users,” he said.
Agama said that SEC was committed to supporting the future through forward-thinking regulations that balanced oversight innovation with protection, fostering a resilient and inclusive financial systems.
He urged governments to promote fintech through initiatives like digital infrastructure development, public-private partnerships, or educational programmes to build digital skills in fintec
He also urged fintech innovators to continue developing solutions that addressed Africa’s unique challenges, particularly in the areas of financial inclusion, access to capital, and wealth creation for underserved populations.(NAN)
A.I
Oct. 9, 2024
Tags: Dr Emomotimi Agama
