SEC Director General Calls for Innovation in Capital Market for Sustainable Development

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The Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has called on stakeholders in the capital market to embrace innovation as a catalyst for growth, increased efficiency, transparency, and resilience.

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In a statement released by the SEC on Sunday, Dr. Agama emphasized these points during his keynote speech at the 2024 Capital Market Solicitors Association Annual Business Summit held in Lagos. The summit’s theme was “Revolutionizing the Nigerian Capital Market through Innovative Financial Instruments for Sustainable Development.”

Dr. Agama highlighted the SEC’s recognition of emerging financial products and services driven by technology and expressed the commission’s commitment to adapting regulations to support these innovations.

“The Commission has a three-pronged approach to regulating innovation: safety, market deepening, and problem-solving. This strategy has and will continue to create a more efficient and reliable capital market ecosystem,” he explained.

To foster innovation and growth in the market, Dr. Agama noted that the SEC had established a Regulatory Incubation program. This initiative allows new FinTech businesses to operate within a highly controlled regulatory environment for one year while the SEC develops appropriate rules to address these innovative technologies. The program aims to ensure investor protection and market stability while encouraging advancements in financial technology within the Nigerian capital market.

Dr. Agama reiterated that leveraging technology and innovation to expand the depth and breadth of the Nigerian capital market is one of the key objectives of the Revised Capital Market Master Plan (CMMP 2021-2025). This expansion is intended to significantly contribute to national economic development.

“A major task before the Securities and Exchange Commission is creating an enabling regulatory and supervisory environment for innovation to thrive as a means of deepening the Nigerian capital market in terms of new products and processes,” he stated.

However, Dr. Agama cautioned that as the market embraces innovation, it must remain vigilant to associated risks, including cybersecurity threats, regulatory complexities, and market volatility.

“While the potential of innovation is undeniable, embracing it also comes with challenges. We must balance the exploration of new instruments with robust risk management frameworks. The SEC will ensure appropriate safeguards are in place to protect investors and maintain market stability. Investor confidence is the bedrock of any successful market, and fostering trust in innovative instruments through transparency and clear communication will be key.”

Dr. Agama concluded by emphasizing the importance of collaboration among all stakeholders, including the CMSA, legal professionals, regulators, and market participants. He called for a forum for open dialogue and continuous improvement to ensure the success of these initiatives.

Emman Tochi
Emman Tochihttps://naija247news.com
Emma Tochi is Naija247news Media Northern Bureau Chief, he's based in FCT Abuja. He overseas the northern operations of this business media

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