Nigeria’s Securities and Exchange Commission (SEC) says it has engaged more than 500 firms as part of a broad effort to align financial technology innovation with investor protection in the country’s capital market.
The disclosure was made by SEC Director-General Emomotimi Agama during the Commission’s inaugural Regulator/FinTech Clinic held with FinTech operators, regulators, and other market stakeholders.
The SEC said the clinic is a strategic platform to discuss emerging digital financial products and the regulatory frameworks required to govern them effectively as Nigeria’s digital finance ecosystem expands rapidly through technology-driven financial service providers.
According to the Commission, Nigeria’s growing FinTech ecosystem has improved financial inclusion and widened access to investment opportunities, but innovation must operate within regulatory boundaries that safeguard investors and maintain market integrity.
What they are saying
Nigeria’s capital market regulator says the rapid rise of financial technology has created opportunities for innovation but also introduced regulatory risks, including the growth of unregistered investment platforms.
For this reason, the Commission said it has engaged more than 500 firms to understand their business models and the products they are bringing into the market.
- “As we launch this inaugural clinic, our goal is to align innovation with integrity, growth with governance, and technology with trust,” said SEC Director-General Emomotimi Agama.
- “We have taken more than 500 firms to understand how they are evolving and what they are bringing to the market,” said SEC Executive Commissioner for Operations, Bola Ajomale.
- “That is why we are engaging the players to understand what they are bringing and then set up a framework where we can regulate them,” Ajomale added.
The Commission noted that such engagements are essential to designing regulatory structures that encourage innovation while strengthening investor protection.
More insights
The Commission said the FinTech Clinic will serve as a platform to clarify regulatory expectations under the recently enacted Investments and Securities Act 2025, which expands SEC’s powers to regulate digital investment platforms and products.
According to the regulator, the engagement will help FinTech companies understand their compliance obligations while enabling the Commission to monitor emerging technologies more effectively.
- “Responsible innovation requires regulatory frameworks that are both protective and adaptable,” Agama said.
- “Early dialogue prevents costly missteps, and compliance embedded at the design stage is far more effective than corrective measures after market entry,” he added.
Agama explained that the SEC’s core mandate—protecting investors, ensuring fair and transparent markets, and facilitating capital formation—remains compatible with technological innovation when supported by responsive regulation.
What you should know
Nigeria’s FinTech sector has expanded significantly in recent years, driven by mobile technology, digital payments, and online investment platforms targeting retail investors.
- The rapid growth of digital financial services has prompted regulators to introduce new frameworks to ensure that innovation does not expose investors to undue risks.
- The SEC established a dedicated FinTech department in 2018 to monitor emerging technologies and support innovation within the capital market.
- The Commission introduced innovation facilitators and regulatory engagement initiatives to help FinTech firms better understand compliance requirements.
In 2021, the SEC rolled out crowdfunding rules designed to support capital raising for small businesses while maintaining strong investor safeguards.
Regulators at the clinic emphasized that technology-driven financial innovation must be supported by robust governance frameworks to sustain investor confidence.
Agama also stressed that the FinTech Clinic is intended as a constructive engagement platform rather than a compliance enforcement exercise, encouraging operators to view regulatory dialogue as an opportunity to strengthen their business models and ensure alignment with capital market rules.
