Mohammed Shosanya
The Securities and Exchange Commission has assured stakeholders in the digital assets space that it is ready to provide the necessary guidance that will grow the industry, create wealth for Nigerians and lead to economic growth and development.
Director General of the SEC, Dr. Emomotimi Agama,stated this in Lagos weekend,where he also said Commission is willing to be patient in ensuring that majority of interested participants are carried along.
He said:“We need to be patient in getting everybody on board to be able to provide the guidance that is needed for us to grow this industry, we need to grow this industry together.
“Over 80 percent of our population are interested in this area and that is why the government is showing so much interest too. And if the government is interested in it, the government has a responsibility to protect the investors that will come into it”.
He explained that due to the developmental role of the Commission, the SEC will develop the market while also ensuring that investors are protected adding that the Commission is stepping up its investor education mechanism to ensure that investors get the information they require to make informed investment decisions.
He added:“We need to be able to educate people, to educate the citizens, to educate investors, to educate participants, because there’s something that we can take away in every investment, there’s a risk and that risk must be understood by the people.
“The SEC has a responsibility to share that information with people that whatever you intend to do, you must be aware of these risks. So when you get into it, and if for any reason, things go the other way, you know exactly that you were aware you just decided to do it. Of course, investment is about risk reward, and that risk reward is, the higher the risk, the sweeter the reward, the lower the risk, the less the reward” .
He said the SEC Nigeria’s Approach to Digital Asset Regulation recognises the potential of blockchain and digital assets to revolutionize the capital markets and that is why the Commission has introduced several measures to ensure that these innovations are harnessed responsibly.
According to Agama, “We introduced the Accelerated Regulatory Incubation Program (ARIP) and Regulatory Incubation (RI) Program: The ARIP and RI Program were designed to on-board firms operating in the digital asset space and provide a controlled environment to test new models, products, and services. These programs foster innovation while ensuring that robust consumer safeguards are in place. The recent approval-in-principle granted to two digital asset exchanges and five firms participating in these programs is a testament to our commitment to enabling innovation.
However, beyond the obvious economic benefits, the SEC Boss said blockchain can drive significant social change, address difficult social issues, improving user experience and settlement speed and aid in financial inclusion and encourage creativity and innovation among others.
“Blockchain can be used to solve complex social challenges, such as corruption and lack of transparency in public services. For example, using blockchain for transparent voting systems or government procurement processes can increase accountability and trust in public institutions.
“The flexibility of blockchain technology allows for endless possibilities for new applications, from social impact bonds to decentralised applications that can address specific community needs. This opens up room for creativity and innovation, particularly among Africa’s youth, increasingly driving technological change on the continent.
“Blockchain-based solutions can provide access to finance for millions of people currently excluded from the formal financial system. By reducing costs and eliminating intermediaries, blockchain can make micro-lending, remittances, and other financial services more accessible and affordable” he said.
He said blockchain enables real-time transactions and settlements, reducing the time and costs associated with traditional financial services.
