SEC reaffirms commitment to transparency, fairness in fintech regulation
BY TEMITOPE ADEBAYO
The Securities and Exchange Commission (SEC) has pledged its dedication to ensuring transparency and fairness in regulating Nigeria’s fintech sector. This assurance was given by SEC Director General, Dr Emomotimi Agama, during a meeting with applicants under the Regulatory Incubation Programme and Accelerated Regulatory Incubation Programme on Monday.
Dr Agama emphasised that the Commission is creating a level playing field for all applicants while ensuring that regulatory processes are thorough and inclusive. He explained that the process of registration is highly technical and goes beyond onboarding, involving continuous monitoring, education, and surveillance. He added that the Commission’s approach aims to manage risks posed to both investors and operators in this evolving space.
The SEC boss acknowledged the need for careful oversight to ensure regulatory frameworks align with the industry’s dynamic nature.
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Stakeholder feedback, he noted, is critical, as regulators cannot possess all the knowledge required to address emerging challenges.
The Commission has introduced exposure documents to update existing regulations, incorporating stakeholder input to develop inclusive guidelines. These updates aim to accommodate more participants, institutions, and activities within the fintech ecosystem.
Dr Agama expressed optimism about Nigeria’s potential to lead in fintech regulation. With over 70 per cent of the population engaging with this space, he said, Nigeria must approach it with intellectual rigour to position itself as a global leader.
He also urged collaboration among fintech participants to create an ecosystem that is robust and globally appealing, emphasising that international partners would only be attracted if Nigeria gets its regulatory framework right.
While assuring applicants that all submissions are being reviewed, Dr Agama cautioned that not all will meet regulatory requirements. He stressed the importance of fairness and clarity in the approval process, saying that decisions must meet international best practices and protect Nigeria’s interests. The SEC is deliberate in building a fair and sustainable regulatory framework and will apply lessons learned in the current phase to accelerate future regulatory actions.
Dr Agama disclosed that a new fintech regulation law is awaiting presidential assent. The law is designed to provide the legal foundation for regulating the space while protecting investors and fostering innovation.
He highlighted ongoing collaborations with key national and international bodies, including the Nigeria Financial Intelligence Unit, the Central Bank of Nigeria, and the Financial Action Task Force, to ensure regulatory alignment and mitigate risks.
The SEC Director General called for the cooperation of stakeholders to build a formidable and transparent fintech ecosystem.
He emphasised that this effort aligns with President Tinubu’s vision of creating opportunities for Nigeria’s youth and strengthening the nation’s economy.
The SEC reaffirmed its commitment to creating a regulatory environment that balances innovation with investor protection, ensuring Nigeria’s fintech ecosystem thrives on the global stage.
