The Securities and Exchange Commission (SEC) has called for the adoption of Artificial Intelligence (AI)-driven surveillance systems as part of broader reforms to reposition Nigeria’s capital market for sustainable growth and resilience.
This was disclosed by the Director-General of the SEC, Dr. Emomotimi Agama, during the fifth Fellowship Inaugural Lecture organised by the Capital Market Academics of Nigeria (CMAN) on Monday.
The lecture, themed “Innovative Regulation for a Resilient Capital Market in Nigeria,” was held virtually and reported by the News Agency of Nigeria (NAN).
Dr. Agama said that AI-driven oversight will enable Nigerian regulators to monitor market activity in real time and respond to fraud and systemic risks more effectively.
Citing examples from the United States, where the SEC runs a consolidated audit trail powered by technology, Agama noted that Nigeria must transition from reactive oversight to predictive, tech-enabled regulation.
“Shifting from reactive oversight to predictive, tech-driven governance, through regulatory sandboxes, AI-powered surveillance, and robust ESG frameworks, will enhance market stability and investor confidence,” he said
He added that this shift is critical to building a resilient and future-proof capital market that can compete globally.
Structural inefficiencies persist despite reforms
The SEC boss acknowledged that despite reforms introduced by the Investment and Securities Act (ISA 2025), Nigeria’s capital market continues to suffer from deep structural weaknesses.
Agama said that the market still faces challenges in capital mobilisation, equitable wealth distribution, and corporate financing. He noted that while regulatory roles have been clarified in the new law, fragmented oversight remains an issue.
“While the ISA 2025 attempts to clarify regulatory roles, key challenges remain,” he said.
He identified poor coordination between the SEC and the Central Bank of Nigeria (CBN), pension fund restrictions, and inadequate data-sharing frameworks as major bottlenecks that continue to hamper market development.
Nigeria must learn from UK fintech model
Dr. Agama urged Nigerian regulators to take lessons from countries like the United Kingdom, which have successfully leveraged regulatory innovation to promote fintech growth.
He recommended phased licensing as practiced in the UK and suggested that Nigeria explore a partnership between the SEC and the CBN to permit sandboxed crypto-fiat transactions.
Agama said the country must embrace these global practices if it hopes to attract long-term, sustainable investments.
“These reforms not only align with global best practices but also cater to Nigeria’s unique economic dynamics, positioning the country as an attractive destination for long-term, sustainable investments,” he said.
The SEC DG emphasized that no single institution can implement the necessary reforms in isolation and urged regulators, policymakers, and private sector participants to work together to deliver a capital market that reflects innovation, efficiency, and investor confidence.
