‘Informed investors critical to sustaining market confidence, stability’

The Securities and Exchange Commission (SEC) said well-informed investors are needed to sustain market confidence and stability.

The Director-General of the SEC, Dr Emomotimi Agama stated this at the opening of the 2024 International Organisation of Securities Commissions (IOSCO) World Investor Week (WIW).

Agama, who was represented by the Executive Commissioner Operations of the SEC, Bola Ajomale, said Nigeria has witnessed increased retail participation through robust investors’ education, stressing the need to strengthen efforts, especially in this era of digital finance.

He said: “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.

“WIW 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.”

He urged participants to take advantage of the opportunity to learn and share knowledge to continue to build a robust and investor-friendly ecosystem.

The SEC DG said the focus for 2024 is apt and extremely timely as it covers technology and digital finance, crypto assets and sustainable finance, noting that these are three critical areas that will shape the future of global capital markets.

“The rise of technology in finance is reshaping the way capital markets function, creating opportunities for greater efficiency, transparency, and inclusion.

“Fintech solutions are democratising 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,” he said.

The DG said 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 safely and transparently.

“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. He said the third focal area, which is sustainable finance, is not only a global priority but is also a pressing issue for Nigeria as environmental, social and governance factors are becoming more important in investment decisions,” he said.

Gov. Babajide 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, Sam Egube, Sanwo-Olu said the emergence of digital assets and the increasing role of technology in finance present both unprecedented opportunities and challenges.