The Securities and Exchange Commission has emphasized the potential of blockchain technology in improving efficiency and strengthening the regulation of Nigeria’s capital market. The Director-General of SEC, Dr. Emomotimi Agama, made this known on Tuesday during a visit by a delegation from the Algorand Foundation in Abuja. He noted that while blockchain is widely known for its role in cryptocurrency, its application extends to enhancing transparency, reducing inefficiencies, and addressing financial exclusion across Africa.
Agama explained that the commission is aligning with international best practices by collaborating with global regulatory bodies such as the International Organisation of Securities Commissions. He stated that such partnerships ensure a dynamic regulatory framework that fosters cross-border collaboration and boosts investor confidence. To support innovation while maintaining oversight, SEC has introduced measures like the Accelerated Regulatory Incubation Programme and the Regulatory Incubation Programme.
He highlighted the recent approval-in-principle granted to two digital asset exchanges, Quidax and Busha Digital Limited, as well as five firms participating in these regulatory programs. According to him, these steps demonstrate SEC’s commitment to fostering responsible innovation. He stressed that the commission aims to integrate blockchain into its operations to improve regulatory efficiency, ensure traceability, and enhance market oversight.
Speaking at the event, Mr. Eric Wragge, Global Head of Business Development at the Algorand Foundation, stated that the foundation is in Nigeria to promote blockchain adoption and assist businesses in leveraging its benefits. He described blockchain as an open and accessible technology that can transform various sectors, emphasizing the foundation’s commitment to helping institutions implement its applications.
The SEC’s initiatives align with its broader strategy to regulate the growing digital asset market. In August 2024, the commission granted approval-in-principle to Quidax and Busha Digital Limited to commence operations under the Accelerated Regulatory Incubation Program. Additionally, five firms were admitted into the Regulatory Incubation Programme to test their business models and technology under SEC’s supervision, ensuring compliance with industry standards.