WIW: SEC Targets Investor Education, Digital Finance

From left: Executive Commissioner Operations, SEC; Mr. Bola Ajomale; Managing Director, AFEX Investment Limited;AFEX Samirah Ade-adebiyi; and Vice President, Financial Market,AFEX; Oluwafunto Olusemo, at the Opening Ceremony of the World Investor Week 2024. Image Credit: SEC Nigeria

The Securities and Exchange Commission has announced that it is targeting investor education and digital finance to boost the  growing interest in financial technology and deepen capital market participation.

This was disclosed by the Director General, SEC, Dr. Emomotimi Agama at the ongoing IOSCO World Investor Week held in Lagos, on Wednesday .

The day’s initiative, hosted by SEC in collaboration with AFEX commodities aimed to bring together range of stakeholders from the financial and investment sectors, government, and media.

The SEC DG represented by the Executive Commissioner, Operations SEC, Bola Ajomale, emphasized the importance of equipping Nigerian investors with the right knowledge and tools to safely navigate the evolving financial landscape.

He said, “When you are talking about digital finance for for rural communities, it can’t be anyone other than the commodities markets. They are right there in the most rural of communities, getting their products from the farm into the markets, in fact, into the ports, into other countries.

“It is also critical that we discuss it, because Mr. President has an aim to get to a $1 trillion economy. This is the way we are going to do it. It is by us, encouraging investors, encouraging investments, and also projecting to the world that we do have a safe, investable environment. It is only by investments that we know growth.

“With the increasing role of technology in financial services, it is essential that investors are empowered with the right information to avoid risks such as scams and unregulated schemes. The future of Nigeria’s capital market depends on an educated and engaged investor base”.

Agama said that through this initiative, the commission is bringing investors to the capital market, and  ensuring that marginalized groups, such as rural farmers, can partake in financial opportunities, further driving Nigeria’s economic growth.

According to him, “Our direction is protecting investors, and one of the ways by which you can protect investors is obviously by equipping them with knowledge and giving them the know how to discern between what is a good investment and what is not a good investment.

“I am not talking about this in terms of returns. I am talking about in terms of safety, in terms of avoiding risk, in terms of avoiding a Ponzi scheme, or spotting a Ponzi scheme when it’s there, or spotting a scam, or even just taking care of your assets. So that is our primary objective at the SEC, and it is  by various ways”.

Speaking at the event, the Chief Executive Officer of AFEX Commodities Exchange, Mr. Ayodeji Balogun said that the rise of digital finance is reshaping how the public trade , invest, and build economic value.

Represented by Vice President, Financial Market, AFEX Oluwafunto Olasemo , Balogun said that AFEX remains committed to connecting rural communities and small-scale producers to broader markets, ensuring no one is left behind in this technological revolution.

He said, “At AFEX, our vision has always been to create transparent, efficient and robust commodities exchange that empowers the economy and transforms lives, we recognize that none of this is possible without dedication, insights, collaboration with key stakeholders like the SEC, whose role in shaping Nigeria’s capital market is invaluable, and today’s event is a testament to a collective commitment to fostering innovation, trust and growth within the commodities ecosystem”.

In his remarks, the co-founder of HerVest, Yomi Ogunleye, highlighted the financial gender gap, stating, “The gap is quite wide. At HerVest, we’re trying to bridge that gap by providing women access to services like savings and impact investments. Small women farmers constitute about 70 per cent of the agricultural sector, yet only 10 per cent have access to finances. We currently have over 50,000 users, both in rural and urban areas, whose lives have improved over time through our services.”

A highlight of the event was the launch of a comic book titled ‘Tradevers,’ aimed at fostering investor education.