Securities and Exchange Commission Director-General Emomotimi Agama said Nigeria aims to establish itself as Africa’s top financial technology hub through a strategic and balanced regulatory framework.
Speaking at the Nigeria Fintech Week in Lagos on Tuesday, Agama highlighted the SEC’s commitment to a regulatory approach that combines oversight and flexibility.
This year’s theme, “Positioning Africa’s FinTech Ecosystem to Accelerate Inclusive Growth,” highlights the critical role of FinTech in driving Nigeria’s economic expansion.
The Head of Capital Markets explained how this regulation is consistent with global trends and the country’s development strategy.
He noted that SEC regulations allow fintech companies to test business models in a controlled environment before launching at scale, fostering innovation while protecting market health.
“We are focused on smart regulation, an approach that fosters innovation without compromising security or market standards,” Agama stressed.
“The SEC has introduced an accelerated regulatory incubation program to help fintech companies pilot their solutions in a structured setting before fully entering the market,” he said.
Agama noted that the program has already yielded results, with several companies receiving approval, while others are still being evaluated.
The Director-General said the initiative is part of a broader strategy to make Nigeria the FinTech capital of Africa and a significant player on the world stage.
He said the program is an important step in creating an environment where fintech innovation can thrive.
“Through this program, we do more than just approve applicants. We strive to ensure that only companies with strong governance structures and long-term sustainability plans are able to proceed. . We don’t want operators that lack serious commitment to the industry and the Nigerian economy,” Agama added.
In September, the capital markets regulator approved two companies under the European Commission’s accelerated regulatory incubation program.
Four other companies (Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital and HousingExchange.NG Ltd) were also allowed to test their models and technologies under the regulated incubation program.
Additionally, the Director-General emphasized the importance of cooperation between regulators and industry stakeholders in ensuring a stable and inclusive financial environment that fosters innovation.
“Nigeria has immense potential in the fintech space and we are committed to harnessing that potential. Feedback from stakeholders has been overwhelmingly positive and regulatory We welcome continued input as we evolve the framework,” he said.
Nigeria’s fintech sector is experiencing rapid growth driven by a tech-savvy youth and increasing access to digital financial services.
The SEC’s efforts are aimed at positioning the country as a leader in Africa’s competitive fintech market, ahead of rivals such as Kenya and South Africa.
Fintech continues to be a major area for funding in Africa, as startups secured a total of $138 million in a mix of equity, debt and grants in September 2024.
The Africa: The Big Deal report released on Monday found 61 startups each raised more than $100,000, a significant increase from the 12-month average of 42 startups. This was emphasized.
These operations spanned 12 countries, with 90% of the funding concentrated in Egypt, South Africa, Nigeria, Kenya, and Ghana.
Other countries featured in the report include Morocco, Algeria, Tunisia, Ivory Coast, Tanzania, Uganda and Rwanda.