SEC Moves Against Unregistered Digital Investment Platforms in Nigeria
The Director-General of the Securities and Exchange Commission, Emomotimi Agama. Photo Credit: SEC
Nigeria’s Securities and Exchange Commission (SEC) has intensified efforts to regulate the country’s rapidly expanding financial technology sector, warning against the activities of unregistered digital investment platforms.
The move was announced during the Commission’s inaugural Regulator/FinTech Clinic, a new initiative designed to strengthen communication between regulators and FinTech operators while ensuring that innovation in the financial sector follows proper regulatory standards.
Strengthening Regulation in the FinTech Sector
Speaking at the event, SEC Director-General Emomotimi Agama explained that the clinic represents a deliberate effort by the Commission to build stronger collaboration between regulators and technology-driven financial companies.
According to him, Nigeria has become one of Africa’s leading innovation hubs, with FinTech companies expanding access to financial services and investment opportunities for millions of people.
However, he stressed that as technology evolves, regulatory frameworks must also adapt to protect investors and maintain confidence in the financial system.
Ensuring Innovation with Investor Protection
Agama noted that the SEC’s core responsibilities include protecting investors, ensuring fair and transparent markets, and supporting capital formation. He explained that these goals are fully compatible with technological innovation when the right rules are in place.
Since 2018, the Commission has taken several steps to support responsible innovation. These include creating a dedicated FinTech department, introducing innovation facilitators, and developing specialized rules for digital financial platforms.
He also highlighted that the recently enacted Investments and Securities Act 2025 has strengthened the SEC’s authority to regulate emerging digital assets and platforms while improving investor protection.
“Responsible innovation requires regulatory frameworks that are both protective and adaptable,” Agama said. “Compliance embedded at the design stage is far more effective than corrective measures after market entry.”
Tackling Risks from Unregistered Platforms
SEC Executive Commissioner for Operations, Bola Ajomale, noted that digital assets have become increasingly popular among young Nigerians. While this growth presents opportunities, it also brings risks, especially from unregistered investment platforms.
He revealed that the Commission has engaged with more than 500 firms to better understand their business models and the digital products they are introducing into the market.
According to him, this engagement will help regulators create a framework that encourages innovation while protecting investors from fraudulent or illegal schemes.
The SEC’s Regulator/FinTech Clinic signals a stronger commitment to balancing innovation with accountability in Nigeria’s financial ecosystem. By engaging directly with FinTech operators and strengthening regulations, the Commission aims to curb the rise of unregistered platforms while ensuring that Nigeria’s digital finance sector grows in a safe and sustainable way.
