SEC building
The Securities and Exchange Commission (SEC) has assured operators in the FinTech and digital assets sector that its regulatory framework is designed to protect the market and foster growth, rather than gag innovation.
Director-General of the SEC, Dr. Emomotimi Agama, gave the assurance on Wednesday in Abuja during the second Bi-Annual Regulator/FinTech Clinic.
Addressing market stakeholders, Agama emphasized that the Commission is focused on creating clear, structured pathways for digital platforms while safeguarding the broader financial ecosystem.
“We want the digital platforms to enter the market through clear pathways. We do not want to gag anyone, but we are open to listening to every complaint. Time has come for us to build a stronger ecosystem for Nigeria,” Agama stated.
He urged all FinTech operators to strictly align their business models with the provisions of the Investment and Securities Act (ISA), 2025, and other statutory guidelines.
Speaking on regulatory supervision, SEC Executive Commissioner (Operations), Mr. Bola Ajomale, clarified that the Commission’s primary mandate remains risk management and financial system stability.
Ajomale noted that delay or friction in the registration process is often caused by operators themselves. He highlighted common hurdles including:
Unclear operational proposals and weak compliance strategies.
Inadequate risk governance structures.
Insufficient or unencumbered minimum capital.
Addressing the issue of supervisory frameworks, Ms. Janet Joseph, Divisional Head of Virtual Assets and FinTech Supervision, clarified that the Approval in Principle (ARIP/AIP) status is an interim, controlled supervisory pathway rather than a final license. She urged firms to view ARIP as a responsible step that allows SEC to evaluate governance, capital readiness, and investor protection safeguards.
On financial solvency, Dr. Abdulrazak Mohammed, Head of the Inspectorate Division, stressed that minimum capital requirements are non-negotiable. He reiterated that capital must be paid up, freely available, and unencumbered to serve as a buffer against operational losses, not pulled from client assets or borrowed funds.
Additionally, Tope Onwionoko, Head of SEC’s Enforcement Division, cautioned FinTech firms against scope creep, warning that offering services outside their approved capital market permissions exposes the market to severe risk.
Contributions from anti-money laundering and intelligence authorities underscored the necessity of strict compliance. Mr. Aminu Garba, Acting Head of Operational and Digital Intelligence at the Nigerian Financial Intelligence Unit (NFIU), revealed that investment fraud accounts for 50 percent of cases investigated by the unit.
Garba urged digital assets firms to enforce rigorous Customer Due Diligence (CDD), monitor cross-border flows, screen client databases, and promptly file Suspicious Transaction Reports (STRs).
In response, President of the FinTech Association of Nigeria, Dr. Stanley Jacob, commended both the SEC and the Central Bank of Nigeria (CBN) for deepening regulatory sensitization. Jacob called for enhanced regulatory alignment between agencies to ensure clarity and advocated for expanding SEC’s regulatory incubation program to onboard more emerging players. (NAN)
