The Director-General of the Securities and Exchange Commission (SEC) Nigeria, Dr. Emomotimi Agama, has said that smart regulation remained a catalyst for inclusive growth that promotes transparency, protects investors, and ensures financial stability in a rapidly evolving ecosystem.
Agama made this remark while delivering his keynote address at the FintechNGR Conference with the theme ‘Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth’ on Tuesday Lagos.
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 creating room for experimentation and growth.
Agama said the 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.
According to him, the initiative enables innovation to flourish within a framework that protects the broader financial ecosystem.
The capital market regulator disclosed that the Programme was already yielding tangible results, with our recent approvals while others are in the pipeline and undergoing thorough assessment.
He said: “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.
“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 fintech innovations”, the Director-General added.
Agama said Fintech, particularly in Africa, offered transformative potential to address long-standing challenges such as financial exclusion, limited access to credit, and the inefficiencies of traditional financial services.
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”, Agama stressed.
This is even as he noted a significant opportunity had been created for fintechs to contribute to economic growth in Nigeria as services had contributed an average of 56% to GDP in Nigeria since 2023 while Financial Services recording growth rate of 30% during the 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.
Agama further expatiated: “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 added.
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 capital market regulator also advised fintech innovators to continue to develop solutions that address Africa’s unique challenges, particularly in the areas of financial inclusion, access to capital, and wealth creation for underserved populations.
He restated the SEC’s commitment to supporting this shared vision through forward-thinking regulations that balance innovation with protection, fostering a resilient and inclusive financial system, adding that “together we can build a fintech ecosystem that accelerates economic growth, reduces inequality, and ensures prosperity for all”.
