SEC DG: We’ll enforce regulations in fintech ecosystem to curb funds mismanagement

Emomotimi Agama, the director-general of the Securities and Exchange Commission (SEC), says fintech operators must adhere to the rules of the capital market when raising funds.

At a one-day capacity training for financial journalists in Abuja, Agama said the SEC will enforce regulations in the fintech ecosystem to prevent fund mismanagement and align operators with existing rules.

He said the commission is committed to protecting investors, especially with the increasing use of fintech.

Agama added that creating a regulatory environment conducive for the innovative use of technology is essential to transforming Nigeria.

In her remarks, Hasfat Rufai, director of the registration, exchanges and market infrastructure department at SEC, said the digital advancements in the financial industry have reshaped how Nigerians invest, but there are challenges around regulation and investor protection.

“While these trends bring new opportunities, they also come with challenges, particularly around regulation and investor protection,” she said.

“The digital age has transformed the investment landscape, offering greater accessibility, innovation, and opportunity. Investors must adapt to this evolving environment by embracing technology, seeking knowledge, and making responsible investment choices.

“The future of investment in Nigeria will likely be driven by the continued rise of technology, young investors, and evolving financial products.”

Also speaking, Abdulrahman Abubakar, senior manager at SEC, said the commission recently engaged the Toronto Center to assist in improving its Risk-Based Supervision (RBS) regime.

In his presentation on the commodities market as an alternative investment, leveraging fintech, Abubakar said the commission has consistently made improvements on how it regulates the markets due to their dynamic nature.

On November 27, the commission announced that Marino FX Limited is not licensed to operate in the Nigerian capital market.