The Securities and Exchange Commission (SEC) has unveiled plans to introduce global-ready regulations tailored to Nigeria’s burgeoning fintech sector. This initiative aims to ensure the country’s financial technology ecosystem aligns with international best practices while fostering innovation and inclusivity.
Emomotimi Agama, the SEC Director-General, shared this vision during a meeting with participants in the Regulatory Incubation and Accelerated Regulatory Incubation Programme. In his remarks, Agama acknowledged the apprehension surrounding new regulations but emphasized the necessity of a balanced approach to support growth and sustainability within the sector.
Comprehensive Regulatory Approach
Agama explained that fintech registration involves a comprehensive process beyond mere onboarding. It includes monitoring, education, and continuous surveillance to ensure compliance and adaptability to evolving industry dynamics. “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 said.
To create a more inclusive framework, the SEC has issued new draft regulations and an exposure document, inviting feedback from stakeholders. This collaborative approach allows the rules to reflect diverse perspectives and ensures that all voices in the ecosystem are heard before finalizing the guidelines.
Expanding the Regulatory Framework
The SEC has broadened its regulatory framework to accommodate a wider range of participants and activities within the fintech ecosystem. Agama highlighted the importance of this expansion, stressing its role in positioning Nigeria as a global leader in fintech innovation. By fostering a supportive regulatory environment, the SEC aims to attract international partnerships and investment while nurturing local talent and solutions.
Agama also reassured stakeholders that while not all applicants may meet the stringent requirements for registration, the Commission is committed to fairness and transparency. He encouraged collaboration among participants, emphasizing that a united effort is essential to build a robust and sustainable fintech ecosystem in Nigeria.
Legislative Backing for Fintech Regulation
Looking ahead, Agama announced that a new law aimed at strengthening the regulatory framework for fintech is expected to receive presidential assent soon. This legislation will address legal gaps and provide a solid foundation for regulating the sector effectively. Agama expressed confidence that the new law would offer clarity and guidance for fintech operators, further solidifying Nigeria’s reputation as a hub for financial innovation.
Aiming for Global Standards
The SEC’s focus on global-ready regulations reflects its commitment to ensuring that Nigeria’s fintech sector thrives in a competitive international market. By adopting best practices and fostering collaboration, the Commission aims to create an environment where innovation flourishes, consumer interests are protected, and regulatory clarity prevails.
This initiative represents a pivotal step in Nigeria’s journey toward becoming a global fintech powerhouse. With inclusive policies, robust monitoring systems, and legislative support, the SEC is laying the groundwork for a resilient and dynamic fintech ecosystem that can compete on the world stage.
