Nigeria's SEC moves to bridge regulatory gaps in fintech sector

The Securities and Exchange Commission (SEC) has launched its inaugural Regulator/FinTech Clinic, signaling a proactive step towards strengthening dialogue with Nigeria’s rapidly growing financial technology ecosystem.

The event, held on Tuesday aims to align innovation with regulatory compliance while ensuring investor protection.

Nigeria has emerged as a leading innovation hub in Africa, with FinTech entrepreneurs expanding financial access, democratising investment opportunities, and leveraging technology to bridge structural gaps in the financial system.

Opening the clinic, Emomotimi Agama, director general, SEC highlighted the significance of a collaborative approach between regulators and innovators in one of the most dynamic segments of Nigeria’s financial system.

“This engagement reflects a deliberate step by the Commission to deepen dialogue between the regulator and the FinTech sector,” he said.

The SEC DG emphasised that while this progress is commendable, regulatory frameworks must evolve in tandem with technological advancements.

He said, “Responsible innovation requires regulatory frameworks that are both protective and adaptable. The Clinic forms part of that continuous review process to ensure our Rules remain proportionate, responsive, and aligned with market realities.”

Agama said the SEC’s mandate which is protecting investors, ensuring fair and transparent markets, and facilitating capital formation remains compatible with innovation.

He noted that clarity, predictability, and trust are critical conditions for innovation to thrive.

The SEC director general states further that since 2018, the Commission has demonstrated a commitment to facilitating technological innovation in Nigeria’s capital market, including the creation of a dedicated FinTech department, adoption of Innovation Facilitators, and drafting of FinTech-focused rules.

The recent enactment of the Investments and Securities Act, 2025, he added, has further strengthened the Commission’s capacity to regulate emerging digital products and platforms while enhancing investor protection.

The clinic serves three primary purposes providing clarity on the regulatory landscape under the new Act, engaging directly with FinTech operators on common pitfalls, and reinforcing the understanding that legitimacy is foundational to sustainable growth.

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“FinTech business models often evolve faster than regulatory frameworks,” the SEC DG noted.

“Early dialogue prevents costly missteps. Compliance embedded at the design stage is far more effective than corrective measures after market entry.”

He encouraged stakeholders to view the clinic as a constructive platform rather than an adversarial forum.

The SEC DG emphasised the Commission’s commitment to helping innovators succeed within a framework that safeguards investor interests and the integrity of Nigeria’s capital market.

He also highlighted the evolving digital financing landscape, referencing the 2021 Crowdfunding framework and ongoing reviews of structural elements to enhance capital formation while maintaining strong investor protections.

Agama stressed the importance of regulatory clarity, particularly for retail investors who may not fully grasp the complexities of digital financial products.

He reiterated that innovation must be matched with robust governance to ensure sustainable growth and investor confidence.

“As we launch this inaugural Clinic, our goal is to align innovation with integrity, growth with governance, and technology with trust,” the SEC DG said.

In a keynote address, Bola Ajomale, executive commissioner operations, SEC stated that among the young people, Digital assets has caught their imagination saying that the future is great.

Ajomale said “We believe that the responsibilities were have and everyone has as players, it must grow in compliment with the enthusiasm. There are some risks emerging and some that have been there are heightened including unregistered investment platforms among others.

“We continue to ensure we protect investors, ensure fair and efficient market and facilitate capital formation. We have taken more than 500 firms to understand how they are evolving and what they are bringing to the market. That is why we are engaging the players to understand what they are bringing to the market and then to set up a framework where we can regulate them,” Ajomale said.

Iheanyi Nwachukwu

Iheanyi Nwachukwu, is a creative content writer with almost two decades journalism experience writing on banking, finance, capital markets, and tax. The multiple awards winning journalist is Assistant Editor, BusinessDay. Iheanyi holds BSc Degree in Economics from Imo State University; Master of Science (MSc) Degree in Management from University of Lagos. Iheanyi has attended several work-related trainings including (i) Advanced Writing and Reporting Skills (Pan African University, Lagos); (ii) News Agency Journalism (Indian Institute of Mass Communication {IIMC}, New Delhi, India); and (iii) Capital Markets Development and Regulations (International Law Institute {ILI} of Georgetown University, Washington DC, USA). Other trainings Iheanyi attended include: Economic/Political Risk Analysis (By Thomson Reuters Foundation); International Financial Journalism (IFJ) (By PMA Media Training, UK); Effective Business Writing Skills (By Phillips Consulting); Reporting on Corporate Governance (By International Finance Corporation (IFC) & Thomson Reuters Foundation UK); etc. In addition, he has participated in high-level economy & markets events in Dubai, South Africa, Morocco, and other African countries like Zambia, Ghana and Gambia.