The Director-General of Nigeria’s Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has called for the adoption of Artificial Intelligence (AI)-powered surveillance systems to strengthen the country’s capital market. Speaking during the fifth Fellowship Inaugural Lecture organized by the Capital Market Academics of Nigeria (CMAN), Agama emphasized that innovative regulation is essential to ensure market resilience and investor trust. The lecture, themed “Innovative Regulation for a Resilient Capital Market in Nigeria,” was held virtually and reported by the News Agency of Nigeria (NAN).
Dr. Agama highlighted the potential of AI to enable real-time oversight of market activities, citing global examples such as the U.S. SEC’s consolidated audit trail. He stated that Nigeria must move away from reactive regulatory models toward predictive, tech-driven governance. Tools like AI surveillance, regulatory sandboxes, and enhanced ESG frameworks are crucial to improving transparency, preventing fraud, and attracting global investment.
Despite the passage of the Investment and Securities Act (ISA 2025), the SEC chief admitted that Nigeria’s capital market continues to face significant structural inefficiencies. These include difficulties in capital mobilisation, uneven wealth distribution, and a weak corporate financing system. Agama noted that while the ISA provides some regulatory clarity, fragmented oversight remains a persistent problem, particularly the lack of coordination between the SEC and the Central Bank of Nigeria (CBN).
To overcome these issues, Dr. Agama recommended that Nigeria emulate the regulatory practices of countries like the UK. He advocated for phased licensing systems and collaborative sandbox initiatives between the SEC and CBN to manage crypto-fiat transactions. This, he argued, would not only encourage fintech innovation but also help Nigeria integrate with the global investment landscape more effectively.
Concluding his address, Agama stressed the need for unified action among regulators, policymakers, and private sector stakeholders. He reiterated that a resilient, efficient, and innovation-driven capital market cannot be achieved by any single institution alone. Coordinated reform efforts are necessary to build a globally competitive market that supports sustainable economic growth and investor confidence.
Source: Nairametrics