Nigeria’s apex capital market regulator, Securities and Exchange Commission (SEC) has reaffirmed its commitment to deepening investors’ education as a way to foster a sustainable capital market development.
Director General, Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, at the 2024 International Organisation of Securities Commissions (IOSCO) World Investor Week (WIW), said investors’ education empowers individuals to make informed decisions and safeguard themselves against fraud, Ponzi schemes, misinformation, and excessive risk.
He noted that Nigeria has witnessed increasing participation in the capital market, with more retail investors entering the fold saying that it also highlights the need to strengthen educational efforts, especially in this era of digital finance.
“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. Throughout 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, so we can continue building a robust, investor-friendly ecosystem,” Agama said.
He said the focus for 2024 is apt and extremely timeous as it covers technology and digital finance, crypto assets, and sustainable finance, three critical areas that will shape the future of global capital markets adding that the reward potential is unimaginable but the risks are equally enormous.
“The rise of technology in finance is reshaping the way capital markets function, creating opportunities for greater efficiency, transparency, and inclusion. Fintech solutions are democratizing access to financial services, reducing transaction costs, and enabling 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, the SEC assures the capital market that we work assiduously with other regulators to adopt frameworks that protect investors. Our desire is to ensure that technological advancements are deployed responsibly and that market participants understand the risks associated with digital finance, such as cybersecurity threats and data privacy concerns,” Agama, who was represented by Executive Commissioner, Operations, SEC, Mr. Bola Ajomale, said.
According to him, Nigeria has emerged as a key player in crypto markets, particularly in peer-to-peer transactions stating 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 shall continue to address risks such as fraud, money laundering, and market manipulation, while also fostering innovation in a safe and transparent manner.
Said he: “Our frameworks balance the need to encourage innovation within a safe, regulated environment whilst maintaining investor protection. Crypto assets must be subject to clear 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. The SEC has also developed an Accelerated Regulatory Incubation Programme specifically to encourage non-registered crypto operators (who are currently extremely high risk and banned) to present themselves for regulatory oversight. I must also add that as the aforementioned framework continues to evolve, enforcement action against illegal crypto platforms, ponzi schemes and market abuse will significantly increase in severity”.
He said the third focal area, which is sustainable finance, is not only a global priority, but it is also a pressing issue for Nigeria as environmental, social, and governance (ESG) factors are becoming more important in investment decisions.
He said as Nigeria celebrates the growth of the Nigerian market, stakeholders must also acknowledge the evolving risks as global markets are interconnected, and Nigeria is not insulated from economic volatility, cybersecurity threats, and financial crimes such as fraud and market manipulation.
“We as a unified capital market join IOSCO in our commitment to fostering collaboration across borders to ensure that regulatory frameworks keep pace with these developments. You might note that so far, we have demonstrated leadership by implementing progressive regulations to protect investors and ensure market integrity.
“As we embark on this World Investor Week, let us remember that the responsibility for a strong and inclusive market lies with all of us—regulators, market participants, and investors alike. We firmly believe in the power of collective action. The Securities and Exchange Commission of Nigeria shall continue to work with all exchanges and stakeholders in the Nigerian Capital Market to ensure that we uphold the highest standards of transparency, fairness, and investor protection,” Agama said.
n his remarks Governor Babajide Olusola Sanwo-Olu said Lagos, as the commercial hub of Nigeria, stands at the intersection of innovation, technology, and finance as the state has always embraced forward-thinking solutions to foster economic growth, drive financial inclusion, and create wealth.
Represented by the Deputy Chief of Staff Governor’s Office, Mr. Sam Egube, Sanwo-Olu said the emergence of digital assets and the increasing role of technology in finance present both unprecedented opportunities and challenges, and it is imperative that we engage thoughtfully and strategically with these developments.
“Cryptocurrencies, blockchain, and digital assets are transforming how we understand value, transaction mechanisms, and investments. While their potential to democratize finance is significant, we must also be mindful of the risks they introduce, particularly in areas of regulation, security, and investor protection. The role of IOSCO in advancing investor education, regulation, and market integrity is therefore crucial as we transition into this new financial era.
“Sustainable finance is another key pillar of this event’s theme, and rightly so. As we seek to address global challenges such as climate change, inequality, and economic instability, it is clear that finance must be a force for good. Investments in green technologies, renewable energy, and socially responsible businesses are not only the right thing to do, but they are also sound business strategies for long-term value creation,” Sanwo-Olu said.
He said in Lagos, the government is committed to fostering an environment that supports sustainable development, encourages responsible investments, and promotes the well-being of both current and future generations.
Also, SEC has announced that it is targeting investor education and digital finance to boost the growing interest in financial technology and deepen capital market participation.
At an event hosted by SEC in collaboration with AFEX commodities aimed to bring together range of stakeholders from the financial and investment sectors, government, and media.
Agama 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 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 marginalised 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.”
