SEC Nigeria Leverages Blockchain To Foster Trust, Transparency

The Securities and Exchange Commission (SEC) is actively exploring the integration of blockchain technology to bolster trust and transparency in Nigeria’s capital market.

Dr. Emomotimi Agama, the SEC’s Director-General, revealed this during the annual conference of the Capital Market Correspondents Association of Nigeria in Lagos.

Represented by Mr. John Achile, Divisional Head of Legal and Enforcement at the Lagos Zone Office, Dr. Agama emphasised the transformative potential of blockchain in fostering secure and transparent market operations.

“Harnessing innovation for inclusive growth is key to bridging the gap between issuers and investors,” he said, noting how digital platforms have broadened market access, allowing even retail investors in remote areas to participate in recapitalisation activities.

Blockchain, a decentralised digital ledger known for its transparency and immutability, has been identified as a tool that could redefine trust in the Nigerian capital market. In leveraging this technology, the SEC aims to ensure secure and tamper-proof transaction processing, which would enhance investor confidence and streamline operations.

Dr. Agama highlighted the strong investor confidence reflected in the oversubscription of recapitalisation offers in 2024. To sustain this positive trend, the SEC has intensified its focus on improving disclosure standards and corporate governance. Financial literacy campaigns and partnerships with fintech companies are also underway to democratise access to investment opportunities, particularly for retail investors.

The SEC is addressing market challenges by embracing technology and introducing innovative financial products, including green bonds and sukuk. These instruments aim to attract a diverse range of investors while promoting financial inclusion and deepening market liquidity.

The commission is committed to creating a seamless capital formation environment by digitising processes, reducing bureaucratic hurdles, and enhancing regulatory oversight. Efforts to ensure timely review and approval of applications are complemented by open communication with stakeholders to foster trust and integrity.

Dr. Agama also stressed on the critical role of collaboration among regulators, issuers, and investors in driving the success of recapitalisation and ensuring the sustained growth of Nigeria’s capital market.