The Director General of the Securities and Exchange Commission (SEC), Emomotimi Agama has stated that smart regulation is a catalyst for inclusive growth that promotes transparency, protects investors, and ensures financial stability in a rapidly evolving ecosystem.
Agama stated this while delivering a keynote address at the FintechNGR Conference with the theme ‘Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth’, held in Lagos Tuesday.
Smart regulation is a regulatory approach that balances oversight with flexibility, and 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 the SEC has adopted a Regulatory Incubation (RI) Programme, which allows fintech firms to test their business models in a controlled environment before full-scale operations.
This he said, enables 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, stakeholder confidence, and value creation for innovators seeking legitimacy,” he stated.
Furthermore, Agama said the Commision has prioritised collaboration with other regulators, both locally and internationally.
“By working closely with the Central Bank of Nigeria, the Financial Services Regulatory Coordinating Committee, and international bodies like the International Organization of Securities Commissions (IOSCO), we are creating a harmonised regulatory environment that encourages fintechinnovations”, he explained.
He said Fintech, particularly in Africa, offers transformative potential to address long-standing challenges such as financial exclusion, limited access to credit, and the inefficiencies of traditional financial services.
Agama said the SEC believes that effective regulation is not just about enforcement; it is about creating an enabling environment where innovation can thrive while protecting the interests of all stakeholders.
According to him, “the 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 where 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. I will also highlight our initiatives aimed at fostering innovation while ensuring that the fintech ecosystem develops in a secure, sustainable, and inclusive manner.
“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”.
The SEC DG said there is a significant opportunity for fintechs to contribute to economic growth in Nigeria as services have contributed an average of 56% to GDP in Nigeria since 2023 while Financial Services have recorded growth rates of 30% within the same period.
He disclosed that while FinTech offers great potential, it poses significant regulatory risks as large amounts of investor data could be misused without consent, and the systems are vulnerable to cyberattacks with potentially severe consequences.
“Additionally, companies using FinTech to raise public funds without regulatory approval expose 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 stated.
While urging governments to promote fintech through initiatives like digital infrastructure development, public-private partnerships, or educational programs to build digital skills in fintech, the SEC DG also urged fintech innovators to continue developing solutions that address Africa’s unique challenges, particularly in the areas of financial inclusion, access to capital, and wealth creation for underserved populations.
Agama added that the SEC is committed to supporting this future through forward-thinking regulations that balance innovation with protection, fostering a resilient and inclusive financial system adding, “together we can build a fintech ecosystem that accelerates economic growth, reduces inequality, and ensures prosperity for all.”
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