The Director-General of the Securities and Exchange Commission (SEC), Emomotimi Agama, has said financial markets must continuously integrate innovation and efficiency in order to fulfill their potential.
Agama noted that technological innovation in the capital market is a key driver of economic growth and national development.
Delivering the keynote address at the maiden Nairametrics Capital Market Choice Awards (NCMA) in Lagos on Friday, Agama emphasized that market infrastructure, including clearinghouses, depositories, trading platforms, and surveillance systems, forms the backbone of transformation in the capital market ecosystem.
“Financial markets must evolve continuously, integrating greater efficiency, security, and innovation to fulfill their potential.”
“Without increased efficiency, security, and innovation, the market cannot fulfill its promise in delivering an excellent performance. In Nigeria, we are committed to building the capital market as a resilient, inclusive, transparent, and future-ready institution,” he stated.
Role of financial markets
Agama underlined the critical role of financial markets as mechanisms of capital allocation, agents of national development, and drivers of regional integration and global competitiveness in an era of accelerated technological innovation.
The SEC DG expressed appreciation for Nairametrics’ initiative in organizing the event, praising its focus on recognizing outstanding brands and individuals in the financial sector.
“On behalf of the Securities and Exchange Commission Nigeria, I extend our deepest appreciation to Nairametrics for organizing this important gathering, focused on the truly important theme, the capital market as a catalyst for addressing climate transformation. Believing in an era of accelerated technology, economic and geopolitical transformation, financial markets serve as the mechanisms of capital allocation, the agents of national development, regional integration, and global competitiveness.”
Investment and Securities Act 2025: A Landmark Regulatory Overhaul
Agama hailed the recent passage of the Investment and Securities Act (ISA) 2025, which repealed the 2007 Act and ushered in a new era of regulatory modernization.
“The ISA 2025 is a landmark achievement that elevates the powers of the SEC, enhances investment protection, introduces frameworks for new asset classes such as digital assets and derivatives, and aligns Nigeria’s financial sector with global best practices.”
He emphasized that, for the first time, Nigeria has a legal and institutional framework that not only reacts to current market realities but is also proactively shaping the future of financial innovation.
“Amongst many forward-looking features, the ISA 2025 strengthens both sides of market infrastructure, reinforces the fight against illegal investment schemes, and enables the SEC to collaborate with other regulators across borders.”
Warehouse Receipts and Commodities Trade Regulation
Agama further highlighted new regulatory measures introduced under the ISA 2025, particularly in warehouse receipts and commodities trading.
“The Act introduces detailed recommendations regarding probable market changes, requiring the registration of warehouses storing commodities traded in the industry, regulating emissions, trading of warehouse receipts, and outlining market dynamics,” he explained.
This formalization is expected to boost commercial finance, facilitate trade in commodities, and reduce risks for producers and buyers.
Digital Transformation: The Future of Nigeria’s Financial Markets
The SEC DG cautioned that legislation alone is not enough to modernize Nigeria’s financial sector.
“We must ensure that the infrastructure underpinning our market is digitally advanced, robust, and future-friendly. That is why the SEC is embarking on a bold digital transformation journey, one that includes the development of new telemarketing tools, expanded investigative systems, innovation-enabling frameworks, and the emergence of credible new asset classes.”
Agama’s Leadership in Transforming Nigeria’s Capital Market
Since assuming office in 2024, Agama has demonstrated a clear mission—to supercharge Nigeria’s capital market and make it a transformative force in the country’s economic development.
Speaking at key industry events, such as the Chartered Institute of Stockbrokers’ Annual Conference, Agama has consistently emphasized the market’s untapped potential, stating:
“If we unlock the potential of our capital market, we unlock the future of Nigeria.”
Under his leadership, the SEC has pushed boundaries, embracing fintech, expanding financial access, and reshaping the narrative surrounding Nigeria’s capital market potential.
What you should know
Several tangible initiatives have already been launched to accelerate financial market innovation, including:
- The Regulatory Incubation Programme which provides a controlled testing environment for fintech startups.
- New digital asset regulations, facilitating the growth of cryptocurrency platforms and blockchain-driven financial products.
- Innovative financing tools such as Sukuk bonds which are actively funding major infrastructure projects across Nigeria.
With these bold initiatives, Agama and the SEC are rewriting the future of Nigeria’s financial sector, ensuring it remains a competitive force in the global economy.
