Nigeria Securities and Exchange Commission (SEC) Director General Emomotimi Agama calls for “smart regulation” to balance the rapid growth of fintech with the need for investor protection and market integrity in Africa Ta.
Speaking at the Nigeria FinTech Week 2024 themed “Positioning Africa’s FinTech Ecosystem to Accelerate Inclusive Growth”, Agama reviewed Africa’s financial landscape while warning of significant regulatory risks. He emphasized the transformative potential of fintech.
Agama highlighted growing concerns over the misuse of investment data, vulnerability to cyber-attacks, and the rise of unregulated fintech companies that raise public funds without proper oversight.
He noted that these practices expose investors to fraud and undermine the SEC’s mission to protect investors.
The need for a regulatory framework Mr. Agama emphasized the need for a regulatory framework that ensures fintech innovation is safe, sustainable and profitable, and said smart regulation means companies need the security, consumer protection and market integrity they need. He described it as a flexible yet rigorous approach that fosters innovation while ensuring standards are met.
Agama revealed that the SEC has introduced a regulatory innovation program designed to allow fintech companies to test their business models in a controlled environment before launching full-scale operations. This initiative, along with the Accelerated Regulatory Innovation Programme, aims to establish Nigeria as a nation. FinTech capital of Africa and the world.
“These programs are essential to protecting fintech entrepreneurs and creating a stable and inclusive environment in which innovation can thrive.
“This initiative has already produced concrete results, with several fintech companies receiving approval and others in the pipeline undergoing thorough evaluation.
“Trust is the foundation of any financial system. Sensible regulation builds trust by ensuring transparency for fintech companies and protecting both investors and consumers,” he said.
Fintech’s role in driving inclusive growth Mr Agama urged fintech innovators to continue developing solutions that address Africa’s unique challenges, particularly financial inclusion, wealth creation and economic growth.
He also called on governments to promote fintech through initiatives such as digital infrastructure development, public-private partnerships, and digital skills-building programs. He said Nigeria is well-positioned to support global fintech innovation by providing an enabling environment and harmonious regulatory framework. Mr. Agama emphasized the need for collaboration between fintech innovators, investors, financial institutions, academia, and civil society. He encouraged these groups to work together to build digital literacy and financial education to ensure: The benefits of fintech are widely understood and accessible to everyone. fintech opportunities
FintechNGR Chairman, Ade Bajomo, previously said that the fintech industry still has significant growth opportunities as millions of people in Nigeria and across Africa remain without access to financial services.
“40 million Nigerians and 350 million Africans remain economically excluded. This presents an opportunity for our ecosystem to leverage to achieve inclusive growth. Masu.
“While we face investment droughts and cost-of-living challenges, we remain committed to the goal of leveraging fintech as a tool for socio-economic development and leveraging every opportunity that innovation, technology and leadership can offer for improvement. We have to stay focused on our governance, our processes and our scale,” Bajomo said.
But he also pointed out that with great opportunity comes great responsibility. Bajomo said African fintech companies currently face challenges of inadequate infrastructure, including limited internet connectivity, unreliable electricity supply and lack of human resources. Bajomo said the Fintech Association of Nigeria will continue to play its role in connecting, accelerating growth and advocating for fintechs. The group also added that it will continue to deepen its relationships with regulators to co-develop policies and proactively address issues affecting the fintech ecosystem.
What you need to know: Nigeria FinTech Week is an annual event that brings together stakeholders from various sectors, including technology companies, financial institutions, regulators, investors, and industry experts.
This provides a platform for stakeholders to critically assess the current state of African fintech and chart a positive path forward.
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