By Emmanuel Ogbodo
The Director General of the Nigeria Securities and Exchange Commission (SEC), Emomotimi Agama, has emphasised the need for “smart regulation” to balance fintech growth with investor protection and market integrity across Africa. Speaking at the Nigeria Fintech Week 2024, themed “Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth,” Agama highlighted the transformative potential of fintech for Africa’s financial landscape while also warning of regulatory challenges.
Agama raised concerns about the misuse of investment data, vulnerability to cyber-attacks, and the activities of unregulated fintech firms raising public funds without adequate oversight. He warned that these issues could expose investors to fraud and undermine the SEC’s goal of safeguarding them.
To address these concerns, Agama called for a regulatory approach that allows fintech innovations to thrive while ensuring that companies meet standards for security, consumer protection, and market integrity. He described smart regulation as a flexible yet rigorous strategy that promotes innovation while maintaining a focus on safety and transparency.
The SEC has already taken steps towards implementing this vision through its Regulatory Innovation Program, which allows fintech firms to test their business models in a controlled environment before a full-scale launch. Additionally, the Accelerated Regulatory Innovation Program aims to position Nigeria as a leader in the global fintech sector.
“These initiatives are critical to fostering an environment where fintech innovation can thrive securely and inclusively. We’ve already seen positive outcomes, with several fintech firms receiving approvals and others in the assessment phase,” Agama said. He stressed that trust is fundamental to any financial system, and smart regulation is key to building that trust by ensuring transparency for both investors and consumers.
Agama urged fintech innovators to continue creating solutions tailored to Africa’s unique challenges, particularly in areas like financial inclusion, wealth creation, and economic growth. He also called on governments to support fintech through initiatives focused on digital infrastructure, public-private partnerships, and digital skills development.
Nigeria, he noted, is well-positioned to lead in global fintech innovation by providing an enabling environment and harmonized regulatory frameworks that lower barriers to entry and encourage cross-border collaborations. He emphasized the importance of collaboration among fintech innovators, investors, financial institutions, academia, and civil society to enhance digital literacy and financial education.
FintechNGR President Ade Bajomo, also speaking at the event, highlighted the vast growth potential in the fintech sector, citing the significant number of financially excluded individuals in Nigeria and Africa. He noted that approximately 40 million Nigerians and 350 million Africans still lack access to financial services, representing a massive opportunity for fintech to drive inclusive growth.
Bajomo acknowledged the current challenges fintechs face in Africa, such as inadequate infrastructure, limited internet connectivity, unreliable power supply, and a shortage of skilled talent. He emphasized the need for fintech companies to stay focused on leveraging technology for socio-economic development, despite investment challenges and rising costs of living.
He also assured that the Nigeria fintech association would continue to play a crucial role in connecting and advocating for the growth of fintech firms. The association plans to strengthen its relationship with regulators to co-develop policies that proactively address issues affecting the fintech ecosystem.
