THE Securities and Exchange Commission (SEC) has said the adoption of blockchain technology will enhance efficiency and aid the regulation of Nigeria’s capital market.
Director-General of the SEC, Dr. Emomotimi Agama, made this known during a meeting with a delegation from the Algorand Foundation at the Commission’s headquarters in Abuja.
He noted blockchain’s potential to address key challenges in Africa, such as financial exclusion, lack of transparency, and inefficiencies in both public and private sectors.
Blockchain is a decentralized system that allows multiple parties to verify and validate transactions independently. It is recognized for its ability to enhance trust and security.
Agama noted that leveraging this digital ledger technology would enable the SEC to build a more transparent and efficient regulatory framework for the capital market.
“We want to activate blockchain in our efficiency; we want to be able to use it to regulate our market. My dream is to have all of the information we need to do our work in a blockchain. We want to bring technology into our system for effectiveness, where we can work seamlessly, and everything that we do will be traceable”, Agama stated.
He further stated that the SEC is committed to international best practices by collaborating with global regulatory bodies such as the International Organization of Securities Commissions (IOSCO). This, he explained, ensures that Nigeria’s regulatory framework remains robust and adaptive while aligning with global standards to foster cross-border collaboration and investor confidence.
To harness blockchain responsibly, the SEC has introduced programmes such as the Accelerated Regulatory Incubation Programme (ARIP) and the Regulatory Incubation (RI) Programme. These initiatives provide a controlled environment for firms in the digital asset space to test new models, products, and services while ensuring consumer protection. Agama noted that the recent approval-in-principle granted to two digital asset exchanges and five firms participating in these programmes shows the Commission’s commitment to supporting innovation.
“In this era of technological innovation, the question is not whether Africa will adopt blockchain, but how it will shape its adoption to maximize its benefits for all the people,” he added.
Agama stressed that blockchain’s immutable and tamper-proof structure ensures transparency in financial transactions and regulatory oversight. He disclosed plans to integrate blockchain into the SEC’s operations to improve accountability, stating, “Wherever there is a toxin in the blockchain, we will find it and deal with it. We will extend it to the point where the review of applications will be done on the blockchain, so whoever drops the ball will be seen.”
As part of efforts to drive technological advancement, Agama said the SEC has engaged the Algorand Foundation to explore blockchain’s potential applications and benefits for the Commission. He stressed the importance of continuous education and skill development for SEC staff, noting that regulators must be well-equipped to oversee the evolving digital market.
“It is very interesting that we are having this opportunity to do this for our organization. This is a knowledge-based institution, and I am leading from the front. All our staff must begin to retool themselves because as regulators, we have to be on top of our game,” he said.
Speaking at the meeting, Global Head of Business Development at the Algorand Foundation, Mr. Eric Wragge, reiterated the foundation’s commitment to democratizing blockchain technology and supporting organizations in leveraging its benefits.
“We are here to tell you what blockchain is all about and how it can help your work. We are here to democratize the technology—it’s free to use, anybody can use it. Our job is to go around the world, discover where the technology can be used, and help people implement it,” Wragge stated.
