Smart Regulation Key to Accelerating Inclusive Growth in Fintech-SEC DG

Samuel Mobolaji

The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has emphasized that smart regulation is crucial for driving inclusive growth by promoting transparency, protecting investors, and ensuring financial stability in today’s evolving financial landscape.

Speaking at the FintechNGR Conference in Lagos, themed “Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth,” Dr. Agama highlighted the SEC’s efforts in balancing oversight with flexibility through smart regulation, which supports fintech innovation while maintaining security, consumer protection, and market integrity.

The SEC’s Regulatory Incubation (RI) Programme was introduced to allow fintech firms to test their business models in a controlled environment, encouraging innovation without jeopardizing the broader financial ecosystem.

According to Agama, the programme has already yielded significant results, with recent fintech approvals and more undergoing thorough assessments.

Agama also noted the SEC’s three-pronged regulatory approach focusing on safety, market expansion, and problem-solving. This strategy aims to ensure compliance, stakeholder confidence, and value creation for fintech innovators while collaborating with other regulators, such as the Central Bank of Nigeria, and international bodies like the International Organization of Securities Commissions (IOSCO), to create a harmonized regulatory environment.

He stressed the transformative potential of fintech in addressing challenges like financial exclusion and limited access to credit, driving economic participation, and contributing to Nigeria’s growth, with services contributing 56 per cent to the nation’s GDP since 2023.

While acknowledging fintech’s potential, Agama also warned of regulatory risks such as data misuse, cyberattacks, and fraudulent fund-raising practices. He reiterated the importance of a regulatory framework that ensures fintech solutions are safe, sustainable, and beneficial to all users.

Dr. Agama called on governments to support fintech through digital infrastructure development and urged innovators to create solutions that address Africa’s unique challenges, particularly in financial inclusion and wealth creation. He reaffirmed SEC’s commitment to fostering a resilient, inclusive financial system through smart regulations that balance innovation with investor protection.