Nigeria’s capital market regulator, the Securities and Exchange Commission (SEC), has revealed that it has engaged more than 500 companies as part of a sweeping initiative aimed at balancing financial technology innovation with stronger investor safeguards.


The engagement forms part of the Commission’s broader strategy to ensure that the rapid expansion of digital financial services in Nigeria does not outpace the regulatory systems designed to protect investors and preserve market stability.


The announcement was made by SEC Director-General Emomotimi Agama during the Commission’s first Regulator–FinTech Clinic, a new engagement platform bringing together FinTech operators, regulators, and key participants across the capital market ecosystem.


The event reflects the regulator’s growing focus on ensuring that technological innovation within financial markets evolves alongside effective governance and oversight.


A Platform to Align Innovation With Regulation


According to the SEC, the newly introduced FinTech Clinic was designed as a structured forum where regulators and industry players can openly discuss emerging financial technologies, digital investment products, and the policy frameworks required to supervise them effectively.


Nigeria’s digital finance landscape has expanded quickly in recent years, fuelled by mobile technology, digital payments, and a surge in online investment platforms targeting everyday investors.


While this growth has helped broaden financial inclusion and create new investment opportunities, the SEC says it also introduces new regulatory complexities that must be addressed proactively.


As we launch this inaugural clinic, our goal is to align innovation with integrity, growth with governance, and technology with trust,” said SEC Director-General Emomotimi Agama.


Understanding New FinTech Business Models


A major component of the Commission’s strategy has been direct engagement with companies operating in Nigeria’s financial technology ecosystem.


The SEC executive commissioner for operations, Bola Ajomale, disclosed that more than 500 firms have already been reviewed as the regulator works to understand how digital finance businesses are evolving and what products they are introducing into the market.


We have taken more than 500 firms to understand how they are evolving and what they are bringing to the market, Ajomale said.


That is why we are engaging the players to understand what they are bringing and then set up a framework where we can regulate them, she added.


The Commission believes that close interaction with innovators allows regulators to design more effective policies and rules that support technological advancement while still protecting investors.



Addressing the Risks of Unregulated Investment Platforms


The SEC noted that while financial technology has unlocked significant opportunities for innovation, it has also created new regulatory challenges.


Among the most pressing concerns is the rise of digital investment platforms operating outside formal regulatory oversight.


These platforms often promise high returns but may expose investors to significant risks if they are not properly supervised.


By engaging with FinTech firms early in their development stages, the regulator aims to identify potential risks and introduce clear regulatory expectations before products reach the wider market.

New Regulatory Powers Under the Investments and Securities Act 2025

The Commission also used the FinTech Clinic to highlight the implications of the recently enacted Investments and Securities Act 2025, which expands the SEC’s authority to oversee digital investment platforms and technology-driven financial products.


Under the new legislation, the regulator has broader powers to supervise emerging financial technologies within Nigeria’s capital market.


According to Agama, the clinic will help industry participants understand how the updated legal framework affects their operations and what compliance obligations they must meet.


Responsible innovation requires regulatory frameworks that are both protective and adaptable, Agama said.


Early dialogue prevents costly missteps, and compliance embedded at the design stage is far more effective than corrective measures after market entry, he added.



Building a FinTech-Friendly Regulatory Environment


The SEC has been gradually building a framework to support innovation within Nigeria’s capital market for several years.


In 2018, the Commission established a dedicated FinTech department tasked with monitoring emerging technologies and working with innovators.


Additional initiatives followed, including regulatory engagement programmes and innovation facilitators designed to guide startups through compliance requirements.


In 2021, the Commission also introduced crowdfunding regulations aimed at helping small businesses raise capital through digital platforms while maintaining robust investor protection standards.


Read More: The Evolution of Nigerian Fintech, A 2026 Industry Analysis


Balancing Innovation With Market Integrity


Ultimately, the SEC says its approach is rooted in its core mandate: protecting investors, maintaining fair and transparent markets, and supporting capital formation.


Agama emphasised that technological progress and regulatory oversight are not opposing forces but complementary elements of a healthy financial ecosystem.


Regulators participating in the clinic stressed that strong governance structures must underpin digital financial innovation if Nigeria’s capital market is to maintain investor confidence and long-term stability.


Agama also clarified that the FinTech Clinic is intended as a collaborative engagement forum rather than an enforcement exercise.


By encouraging open dialogue, the Commission hopes FinTech companies will see regulatory interaction as an opportunity to refine their products, strengthen their governance frameworks, and ensure their operations align with capital market rules.