SEC to make Nigeria Africa’s fintech capital with effective regulation

The Director General of the Securities and Exchange Commission, Emomotimi Agama, has stated that Nigeria aims to position itself as Africa’s top financial technology hub through a strategic, balanced regulatory framework.

Speaking at the Nigeria Fintech Week on Tuesday in Lagos, Agama highlighted the SEC’s commitment to a regulatory approach that combines oversight with flexibility.

This year’s theme, “Positioning Africa’s Fintech Ecosystem to Accelerate Inclusive Growth,” underscores the critical role of fintech in driving Nigeria’s economic expansion.

The capital market chief explained how this regulation aligns with global trends and the country’s development strategy.

He noted that the SEC’s regulations allow fintech firms to test their business models in controlled environments before launching on a larger scale, fostering innovation while safeguarding market integrity.

“We are focused on smart regulation—an approach that encourages innovation without compromising security or market standards,” Agama emphasised.

“At SEC, we have introduced an Accelerated Regulatory Incubation Program that helps fintech companies pilot their solutions within a structured setting before they fully enter the market,” he stated.

Agama noted that the programme has already yielded results, with several firms receiving approvals, while others are still undergoing evaluation.

This initiative is part of a broader strategy to make Nigeria the fintech capital of Africa and a significant player on the global stage, the DG remarked.

He described the programme as a key step in creating an environment where fintech innovations can thrive.

“Through this programme, we are not just approving anyone who applies. We are ensuring that only firms with strong governance structures and long-term sustainability plans can proceed. We don’t want operators who lack serious commitment to the industry or the Nigerian economy,” Agama added.

In September, the capital market regulator approved two firms under the Commission’s Accelerated Regulatory Incubation Programme.
Four other companies—Trovotech Ltd, Wrapped CBDC Ltd, Dream City Capital, and HousingExchange.NG Ltd—were also admitted to test its models and technology under the Regulatory Incubation Programme.

Furthermore, the Director General underscored the importance of collaboration between regulators and industry players in ensuring a stable and inclusive financial environment that encourages innovation.

“Nigeria has immense potential in the fintech space, and we are doing everything we can to harness that potential. The feedback from stakeholders has been overwhelmingly positive, and we welcome continued input as we evolve our regulatory framework,” he said.

Nigeria’s fintech sector has been experiencing rapid growth, driven by a young, tech-savvy population 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 remains the leading sector for funding in Africa, as startups collectively secured $138m in September 2024 through a mix of equity, debt, and grants.

A report by “Africa: The Big Deal” released on Monday highlighted that 61 startups raised over $100,000 each, a significant increase from the 12-month average of 42 startups.

These ventures spanned 12 countries, with 90 per cent of the funds concentrated in Egypt, South Africa, Nigeria, Kenya, and Ghana.

Other countries highlighted in the report include Morocco, Algeria, Tunisia, Côte d’Ivoire, Tanzania, Uganda, and Rwanda.