New initiative aims to guide digital finance startups, strengthen investor protection, and align emerging technologies with Nigeria’s capital market rules…..
The Securities and Exchange Commission Nigeria has launched its first Regulator/FinTech Clinic, a new initiative designed to deepen engagement between regulators and Nigeria’s fast-growing financial technology sector.
The event, which held on Tuesday, marks a strategic move by the Commission to encourage innovation while ensuring compliance with regulatory standards and safeguarding investors in the evolving digital finance space.
Opening the inaugural clinic, the Director-General of the Commission, Emomotimi Agama, said the initiative reflects the regulator’s commitment to fostering stronger collaboration with FinTech operators.
“This engagement reflects a deliberate step by the Commission to deepen dialogue between the regulator and the FinTech sector,” Agama said.
Strengthening Nigeria’s innovation ecosystem
Nigeria has increasingly emerged as one of Africa’s most vibrant hubs for financial technology innovation, with startups expanding access to financial services, democratising investment opportunities and leveraging digital tools to address structural gaps in the financial system.
However, Agama stressed that regulatory systems must evolve alongside technological innovation to ensure sustainable growth.
“Responsible innovation requires regulatory frameworks that are both protective and adaptable,” he noted. “The clinic forms part of our continuous review process to ensure our rules remain proportionate, responsive and aligned with market realities.”
He emphasised that the Commission’s core mandate protecting investors, ensuring fair and transparent markets, and supporting capital formation remains fully compatible with technological innovation.
According to him, clarity, predictability and trust are essential ingredients for innovation to flourish within the financial system.
SEC’s evolving approach to FinTech regulation
Agama also highlighted steps taken by the regulator in recent years to support innovation in Nigeria’s capital market.
Since 2018, the Commission has introduced several initiatives, including the establishment of a dedicated FinTech department, the adoption of innovation facilitators, and the development of rules specifically tailored to emerging financial technologies.
He added that the recent passage of the Investments and Securities Act 2025 has further strengthened the Commission’s ability to regulate digital financial products and platforms while reinforcing investor protection.
The newly launched clinic is expected to serve three major purposes:
- Providing clarity on regulatory requirements under the new law
- Engaging directly with FinTech operators to address compliance challenges
- Reinforcing the importance of legitimacy and transparency in building sustainable digital financial businesses
Preventing regulatory missteps
Agama noted that FinTech business models often evolve faster than regulatory frameworks, which can create compliance gaps if companies fail to engage regulators early.
“Early dialogue prevents costly missteps,” he said. “Compliance embedded at the design stage is far more effective than corrective measures after market entry.”
He encouraged participants to see the clinic as a collaborative platform for constructive engagement rather than a regulatory confrontation.
Addressing risks in digital finance
In a keynote address, the Executive Commissioner of Operations at the Commission, Bola Ajomale, highlighted the growing interest among young Nigerians in digital assets and emerging financial technologies.
He said the enthusiasm surrounding digital finance must be balanced with responsibility from both regulators and industry players.
“Among young people, digital assets have captured their imagination, and the future is promising,” Ajomale said.
However, he warned that the rapid expansion of digital finance also comes with risks, including unregistered investment platforms and fraudulent schemes targeting unsuspecting investors.
According to him, the Commission has already engaged with more than 500 firms in the digital finance ecosystem to better understand their operations and the services they intend to bring to market.
“We continue to ensure we protect investors, ensure fair and efficient markets, and facilitate capital formation,” he said.
Ajomale added that the Commission’s engagement with industry players is aimed at building a regulatory framework that allows innovation to grow while ensuring adequate oversight.
Supporting digital capital formation
The SEC also referenced its earlier efforts to regulate new forms of digital fundraising, including the introduction of the crowdfunding regulatory framework in 2021.
Agama said the Commission is currently reviewing elements of the framework to improve its effectiveness and support capital formation without compromising investor protection.
He emphasised that regulatory clarity is particularly important for retail investors, who may not fully understand the complexities of digital financial products.
“As we launch this inaugural Clinic, our goal is to align innovation with integrity, growth with governance, and technology with trust,” he said.
The initiative underscores the Commission’s broader effort to create a balanced regulatory environment where financial innovation can thrive while maintaining the integrity of Nigeria’s capital market.
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