SEC: No Intention of Gagging FinTech, Digital Assets Operators

The Securities and Exchange Commission (SEC) says it has no intention of gagging FinTech and digital assets operators.
The ​‌‌​​‍⁠​‍⁠⁠‍​​⁠⁠‍⁠‌‌‌​Director
General of SEC, Dr Emomotimi Agama, said this at the second Bi-Annual Regulator/FinTech Clinic yesterday in Abuja.
Agama said the Commission was working to ensure the safety of the FinTech and digital assets ecosystem through effective regulation.
“We want the digital platforms to enter the market through clear pathways,” Agama said.
He said the Commission was committed to providing an environment that accommodated all operators in line with its regulations.
The Director General urged FinTech operators to comply with the Investment and Securities Act (ISA), 2025, and other relevant regulations.
Agama said the Commission would collaborate with FinTech and digital assets firms to ensure the safety and stability of the market.
“We do not want to gag anyone, but we are open to listening to every complaint.
“Time has come for us to build a stronger ecosystem for Nigeria,” he said.
Also speaking, the Executive Commissioner, Operations of SEC, Mr Bola Ajomale, said the Commission’s mandate was to manage risks and ensure financial system stability.
He said the Commission would continue to clarify its regulatory boundaries and collaborate with operators to achieve its objectives.
Ajomale said some FinTech and digital assets operators sometimes impeded the smooth approval of their registration by the Commission.
He listed unclear proposals, inadequate risk governance structures, insufficient capital and weak compliance plans among challenges affecting the registration process.
The executive commissioner said SEC would continue to deliberately deepen its capacity to match evolving technologies in the market.
Ms Janet Joseph, the Divisional Head of Virtual Assets and FinTech Supervision of SEC, said Approval in Principle (ARIP/AIP) was a controlled supervisory pathway, not a final licence.
She said ARIP allowed the Commission to assess evidence of governance, capital readiness, technology controls and investor protection safeguards.
Joseph said ARIP could be granted to a FinTech or digital assets firm before the Commission made its formal registration decision.
She urged FinTech and digital assets operators not to view ARIP as a supervisory grip, but as a responsible pathway to registration.
Speaking on capital requirements for FinTech operators, Dr Abdulrazak Mohammed, the Head, Inspectorate Division of SEC, said the goal was to build operators that would remain in the market.
Mohammed said the Commission would consider operators with real and available resources to withstand losses before registration.
According to him, capital must be paid up, freely available and unencumbered.
“Capital is the firm’s financial buffer against adversity, not clients’ assets, borrowed funds or unrealised assets,” he said.
Tope Onwionoko, the Head, Enforcement Division of SEC, said some FinTech firms sometimes deviated from their approved capital market activities to offer unapproved services.
She urged FinTech and digital assets operators to remain within the scope of their registration to avoid risks.
Mr Aminu Garba, the Acting Head, Operational and Digital Intelligence, Nigerian Financial Intelligence Unit, said investment fraud represented half of the cases investigated by the unit.
He urged digital assets operators to comply with Anti-Money Laundering regulations when serving their customers.
Garba advised operators to conduct customer due diligence, monitor cross-border transactions, screen customers’ names and report suspicious transactions to the unit.
Dr Stanley Jacob, the President, FinTech Association of Nigeria, commended SEC and the Central Bank of Nigeria for efforts to improve digital assets sensitisation.
Jacob said FinTech players expected effective regulatory alignment to ensure clarity of purpose.
He urged SEC to encourage more FinTech firms to join its regulatory incubation programme for better knowledge sharing.