By Anthony Otaru, Abuja
The Securities and Exchange Commission (SEC) has emphasised the importance of investors’ education, describing it as a critical prerequisite for a healthy market and stable development
It further promotes confidence even as a well-informed investor base is crucial for the stability and growth of any capital market, it said
SEC’s Director-General, Dr Emomotimi Agama, stated this yesterday at the opening of the 2024 International Organisation of Securities Commissions (IOSCO) World Investor Week (WIW) in Lagos.
Agama highlighted that investor education empowers individuals to make informed decisions and safeguard them against fraud, Ponzi schemes, misinformation, and excessive risks
Represented by SEC Executive Commissioner Operations, Mr. Bola Ajomale, Agama stressed that Nigeria had witnessed increasing participation in the capital market, with more retail investors entering the fold, adding that there’s an urgent need to strengthen educational efforts, especially in this era of digital finance.
He said, “As financial products become more complex and technology-driven, from fintech innovations to cryptocurrency trading, it is critical and responsible for stakeholders to commit to equipping investors with the knowledge to navigate these markets confidently and responsibly.
“World Investor Week provides a platform for us to reinforce this commitment. This week, we will engage with investors, discuss best practices, and focus on improving transparency and accountability in financial markets. I encourage all participants to take these opportunities to learn and share knowledge to continue building a robust, investor-friendly ecosystem”.
The SEC boss explained that the focus for 2024 was quite apt as it covers Technology and Digital Finance, Crypto assets, and Sustainable Finance, which are the three critical areas that will shape the future of global capital markets.
He says, “The rise of technology in finance is reshaping the way capital markets function, creating opportunities for greater efficiency, transparency, and inclusion. Fintech solutions democratize access to financial services, reduce transaction costs, and enable faster, more secure operations across the market. In Nigeria, the rapid adoption of mobile technology and digital payments demonstrates the immense potential for growth in digital finance.
“As we embrace these innovations, SEC assures the capital market players that we work assiduously with other regulators to adopt frameworks that protect investors. We desire to ensure that technological advancements are deployed responsibly and that market participants understand the risks associated with digital finance, such as cyber security threats and data privacy concerns.”
The DG said Nigeria has emerged as a key player in crypto markets, particularly in peer-to-peer transactions.
However, he added that the space remains highly volatile, and investor protection is paramount.
He said the SEC has developed and released frameworks for regulating Virtual Asset Service Providers (VASPs) and will continue to address risks such as fraud, money laundering, and market manipulation while also fostering innovation in a safe and transparent manner.
He said, “Our frameworks balance the need to encourage innovation within a safe, regulated environment while maintaining investor protection. Crypto assets must be subject to apparent regulatory oversight that ensures market integrity without stifling growth.
“Through this approach, we have created a Regulatory Incubation Programme within which new technologies and digital assets can be tested and approved for public use. SEC has also developed an Accelerated Regulatory Incubation Programme to encourage non-registered crypto operators (currently extremely high risk and banned) to present themselves for regulatory oversight. I must also add that as the framework mentioned above continues to evolve, enforcement action against illegal crypto platforms and Ponzi schemes.”
