The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has called on the newly appointed board of the Securities and Exchange Commission (SEC) to embrace innovation to effectively regulate a dynamic capital market.
Speaking during the board’s inauguration in Abuja on Monday, Edun expressed his enthusiasm for the board’s composition and encouraged its members to put forth their best efforts, exhibit courage, and remain open to innovation.
According to the press statement from SEC, Edun emphasized the importance of being prepared to tackle the challenges of regulating emerging areas.
“The new board of the Securities and Exchange Commission to embrace innovation to be better prepared to regulate a dynamic capital market,” he said.
The minister highlighted the rapid advancements in financial technology and communications, noting that areas such as Artificial Intelligence and digital currencies are evolving quickly.
He stressed the need for the SEC to stay knowledgeable in these fields to provide the necessary guidance and approvals.
“The top minds go into finance, they go into technology because, in the basic industries, the technology is simple, whether it is steel making or basic manufacturing, fast-moving consumer goods, etc.
Those are settled technologies. The areas that are advancing at a fast pace are financial technology, communications, artificial intelligence, crypto, digital currency, and digital transitions as a whole.
“Therefore, you do have to be on your toes. The good thing is that when a transaction comes, it has to be discernible, understandable to the end investor, it has to be understandable to the issuer, it has to be understandable to the regulator or it won’t get the approval it needs, so that is one comfort I see about the financial market.”
Edun told the SEC board to be willing to accept the challenge of regulating these new areas particularly crypto as they are fast moving into complex areas, adding that they also have to watch out for regulatory arbitrage where a company with a portfolio of huge sophisticated transactions now comes and takes the lowest level of registration that they can just so they can say they are licensed and regulated.
“You have been carefully selected for this role, ensuring top-notch corporate governance practices. Where there are conflicts, they are quickly identified, disclosed, and dealt with according to global best practices. Do not be stumbling blocks to people awaiting processes and approvals”, he added.
The Chairman of the SEC Board, Mr. Mairiga Katuka assured the Minister that the new Board will harness their individual and collective expertise, innovation, and passion to drive growth in line with the Commission’s dual mandate of developing and regulating a capital market that is fair and efficient.
He said that the board will pursue a comprehensive agenda aimed at advancing the interest of investors safeguarding market integrity, promoting capital formation, and enhancing regulatory oversight.
According to him, the nation’s future economic outlook appears positive, driven by reforms put in place by the current administration including robust inflation management, social protection, macroeconomic stability initiatives, and improved private sector development.
He noted that the initiatives would undoubtedly engender economic growth.
Katuka stated that in line with the renewed hope agenda of the current administration, he is optimistic about the future of Nigeria’s securities market, adding that together with diligence, integrity, and a shared sense of purpose there is hope for a more prosperous and resilient financial ecosystem.
President Bola Tinubu had on April 19, 2024, approved the appointment of seven persons to the Board of the Securities and Exchange Commission.
They include Mr. Mairiga Katuka (Chairman of the Board), Mr. Emomotimi Agama as Director-General, Frana Chukwuogor as Executive Commissioner (Legal and Enforcement), and Mr Bola Ajomale as Executive Commissioner (Operations).
Others are Mrs. Samiya Usman as Executive Commissioner (Corporate Services), Mr. Lekan Belo, and Mr. Kasimu Kurfi as Non-Executive Commissioners.
