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By Chukwuma Umeorah
Stakeholders in Nigeria’s investment ecosystem have emphasized the need for enhanced regulation in the crypto market, improved technology, and a deeper focus on sustainable finance in driving economic development.
Speaking at the opening ceremony of the World Investor Week (WIW) 2024 in Lagos on Monday, Director General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, represented by Bola Ajomale, Executive Commissioner, Operations, highlighted that with the rapid rise of digital finance and the proliferation of crypto assets, the focus must be on protecting investors through robust frameworks and regulations.
“The rise of technology in finance is reshaping the way capital markets function, creating opportunities for greater efficiency, transparency, and inclusion. However, as we embrace these innovations, we must also be cautious to ensure technological advancements are deployed responsibly,” Agama said.
The SEC also revealed that it has developed a framework for regulating Virtual Asset Service Providers (VASPs) in Nigeria, addressing risks such as fraud, money laundering, and market manipulation while fostering innovation in a safe environment. “Our desire is to ensure that market participants understand the risks associated with digital finance, such as cybersecurity threats and data privacy concerns,” he added.
The focus on crypto assets, technology, and sustainable finance aligns with the global priorities outlined by the International Organization of Securities Commissions (IOSCO) for the 2024 event. Nigeria remains one of the most active jurisdictions for crypto transactions, ranking among the top five globally in peer-to-peer trades, according to Agama. Yet, with this growth comes the pressing need to protect investors from the inherent volatility and regulatory uncertainties in the space.
In his remarks, the Governor of Lagos State, Babajide Sanwo-Olu, underscored the importance of sustainable finance as a driver of long-term value creation, noting that investments in green technologies, renewable energy, and socially responsible businesses are essential strategies for addressing global challenges like climate change and economic inequality.
“Finance must be a force for good. In Lagos, we are committed to fostering an environment that supports sustainable development and promotes the well-being of both current and future generations,” he stated.
The Managing Director and CEO of FMDQ Group, Bola Onadele, echoed these sentiments, stressing that sustainable finance is not just a necessity but a cornerstone for achieving inclusive economic growth. “Our mission as market leaders and financial educators is to ensure that every investor, regardless of their experience or background, is equipped with the knowledge to make informed decisions in a rapidly evolving financial landscape,” Onadele said.
