SEC Calls for Capital Market Innovation for Sustainable Growth

The Director General of the Securities and Exchange Commission, Emomotimi Agama, has encouraged those involved in the capital market to adopt innovation as a crucial catalyst for long-term growth, effectiveness, transparency, and resilience within the market.

Speaking at the 2024 Capital Market Solicitors Association Annual Business Summit in Lagos, with the theme, ‘Revolutionising the Nigerian Capital Market through Innovative Financial Instruments for Sustainable Development’.

Agama emphasized the need for the SEC to adapt regulations to accommodate emerging financial products and services driven by technology. 

He highlighted that this approach aims to promote a strong and dependable capital market ecosystem while supporting technological advancements.

Agama also mentioned the SEC's Regulatory Incubation programme, which supports new fintech businesses by allowing them to operate within a limited regulatory perimeter for one year while the SEC develops relevant rules addressing these innovative technologies. 

This programme aims to ensure investor protection and market stability while fostering financial technology advancements in the Nigerian capital market.

Agama stressed the importance of the Revised Capital Market Master Plan (CMMP 2021-2025) in leveraging technology and innovation to expand the depth and breadth of the Nigerian capital market. 

However, he cautioned stakeholders about potential risks such as cybersecurity threats, regulatory complexities, and market volatility.

He emphasized the significance of strong risk management frameworks in effectively reducing the risks, while also prioritizing investor confidence through transparent and clear communication.

He said it was important for the SEC to maintain market stability in the face of technological advancements.
He praised the cooperation among participants at the Summit, highlighting the importance of ongoing dialogue and enhancement.
"The effectiveness of these efforts relies on collaboration from all parties involved, including the CMSA, legal experts, regulators, and market players.

It is essential to establish a platform for open discussion and continual enhancement," Agama said.