The Director General of the Nigeria Securities and Exchange Commission (SEC), Emomotimi Agama, has called for “smart regulation” to balance the rapid growth of fintech with the need for investor protection and market integrity in Africa.
Speaking at the Nigeria Fintech Week 2024, themed “Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth,” Agama emphasized the potential of fintech to transform Africa’s financial landscape while warning of significant regulatory risks.
Agama highlighted the growing concerns around the misuse of investment data, vulnerability to cyber-attacks, and the rise of unregulated fintech firms raising public funds without proper oversight.
These practices, he noted, expose investors to fraud, undermining the SEC’s mandate to protect them.
Emphasizing the need for regulatory frameworks that ensure fintech innovations are secure, sustainable, and beneficial, Agama described smart regulation as a flexible yet rigorous approach that promotes innovation while ensuring that companies meet required security, consumer protection, and market integrity standards.
“These programs are essential to protect fintech entrepreneurs and create a stable, inclusive environment where innovation can flourish.
“The initiatives have already yielded tangible results, with several fintech firms receiving approvals, and others in the pipeline undergoing thorough assessment.
“Trust is the cornerstone of any financial system. Smart regulation builds trust by ensuring that fintech companies operate transparently, protecting both investors and consumers,” he said
Agama urged fintech innovators to continue developing solutions that address Africa’s unique challenges, particularly in financial inclusion, wealth creation, and economic growth.
Speaking earlier, the President of the FintechNGR, Mr. Ade Bajomo, said the fintech industry still has huge opportunities for growth as millions of people across Nigeria and Africa still lack access to financial services.
“There are 40 million Nigerians and 350 million Africans still financially excluded. This offers opportunities for our ecosystem to exploit to achieve inclusive growth,
“Though we are facing a period of investment drought and cost of living challenges, we must stay focused on our goals, for leveraging fintech as a tool for socio-economic development and exploiting every opportunity that innovation, technology, and leadership can deliver to improve our governance, processes, and scale,” Bajomo said.
What you should know: The Nigeria Fintech Week is an annual event that gathers stakeholders from various sectors, including technology firms, financial institutions, regulators, investors, and industry experts.
It provides a platform for the stakeholders to critically assess the current state of fintech in Africa and chart a forward-thinking path for the future.