The Securities and Exchange Commission (SEC) has announced its intention to implement globally-aligned regulations for Nigeria’s fintech sector. This initiative aims to position the country’s financial technology landscape on par with international standards, ensuring growth and sustainability within the ecosystem.
Inclusive Regulatory Framework
In a statement released on Tuesday, SEC’s Director-General, Emomotimi Agama, shared this vision during a meeting with participants in the Regulatory Incubation and Accelerated Regulatory Incubation Programme. He acknowledged the concerns surrounding regulatory processes but underscored the Commission’s inclusive approach to creating a robust regulatory framework.
Comprehensive Registration Process
Agama explained that registration within the fintech sector is not merely about onboarding but involves a comprehensive process that includes monitoring, education, and ongoing surveillance. “The process of registration is a technical one, as it goes beyond onboarding. It involves monitoring, education, and continuous surveillance. While this is a new journey, we are confident that we can solve any challenges that arise,” he stated.
Stakeholder Engagement and Feedback
The SEC has recently issued new regulations, including an exposure draft, to gather feedback from stakeholders before finalising the guidelines. This move ensures inclusivity and allows all relevant voices within the ecosystem to contribute to the regulatory framework. The Commission has also broadened its scope to accommodate a larger number of individuals, institutions, and functions within the fintech industry.
Positioning Nigeria as a Global Fintech Leader
Highlighting the importance of this initiative, Agama expressed the Commission’s commitment to creating a regulatory environment that fosters innovation and positions Nigeria as a global leader in fintech. He reassured stakeholders that while not all applicants may meet the requirements for registration, the SEC is dedicated to maintaining clarity and fairness throughout the process.
Encouraging Collaboration
Agama also encouraged collaboration among industry participants to build a resilient and sustainable fintech ecosystem. “Collaboration is key to addressing challenges and ensuring the growth of a fintech sector that is both innovative and compliant with global standards,” he added.
New Law to Strengthen Fintech Regulation
Looking to the future, the SEC Director-General revealed that a new law designed to strengthen fintech regulations is expected to receive presidential assent soon. This legislation will address critical legal gaps, providing a comprehensive framework to guide operators and protect stakeholders within the sector.
Through these efforts, the SEC aims to establish Nigeria’s fintech industry as a benchmark for innovation and regulation, fostering trust and growth in an increasingly competitive global market.
This strategic regulatory push underscores the Commission’s commitment to balancing innovation with oversight, ensuring that Nigeria remains a prominent player in the global fintech space.
