September 17, 2024
By Chukwuma Kelechi InvestAdvocate
Lagos (INVESTADVOCATE)-Nigeria’s Securities and Exchange Commission (SEC) said it is committed to fostering the growth of Nigeria’s burgeoning digital assets industry, vowing to put in place the necessary regulatory frameworks to drive innovation, create wealth, and grow the economy generally.
Speaking over the weekend in Lagos, SEC Director General, Dr. Emomotimi Agama, emphasized the Commission’s measured approach to nurturing this burgeoning sector while providing requisite capacity building for market operators.
“It is essential that we exercise patience in bringing all interested parties into the fold, ensuring we collectively chart the course for this industry’s growth,” Agama told stakeholders in Lagos.
According to him, over 80 percent of the population has shown interest in digital assets, and government cannot afford to fail to protect investors, stressing that government’s involvement is both significant and crucial.
Agama who was recently elevated to the saddle after decades of serving the Commission in various capacities underscored the government’s dual role in promoting innovation while safeguarding investors.
“As government interest in digital assets intensifies, there is an inherent duty to protect investors entering this space. SEC, in its developmental capacity, is dedicated to advancing the market while simultaneously upholding investor protections,” Agama stated.
He disclosed that as part of this effort, the Commission is ramping up investor education initiatives to equip participants with the knowledge necessary to make informed decisions.
“Investor education is critical—individuals must understand that every investment carries inherent risks. It is the SEC’s responsibility to ensure that these risks are transparent so that investors make decisions with full awareness.” The SEC remarked.
Agama highlighted the Commission’s pioneering regulatory approach to digital assets, recognizing blockchain’s potential to revolutionize capital markets. He noted the introduction of the Accelerated Regulatory Incubation Program (ARIP) and the Regulatory Incubation (RI) Program, which aim to support firms in the digital assets sector.
These programs offer a structured environment for testing innovative products while maintaining strict consumer protections. Recent regulatory approvals for two digital asset exchanges and five other firms participating in these programs underscore the SEC’s commitment to enabling innovation.
“Our regulatory position is unequivocal: digital assets such as cryptocurrencies are treated as securities unless proven otherwise. We have implemented a comprehensive registration framework that demands issuers and sponsors substantiate claims that their assets do not qualify as securities. This approach ensures both investor protection and market integrity while fostering a competitive environment for legitimate industry participants,” Agama affirmed.
Beyond the economic potential, Agama emphasized blockchain’s capacity to drive profound societal change, citing its application in addressing corruption, enhancing transparency, and improving financial inclusion. “Blockchain technology offers immense flexibility, enabling solutions to complex societal challenges such as transparent voting systems and government procurement processes. These applications foster accountability and trust in public institutions,” he explained.
Moreover, Agama pointed out the technology’s transformative impact on financial access, particularly for underserved populations. By reducing costs and cutting out intermediaries, blockchain can make essential financial services—such as micro-lending and remittances—more accessible and affordable.
“This opens the door for creativity and innovation, especially among Africa’s youth, who are increasingly at the forefront of technological change,” said the SEC boss.
