The federal government has called on the newly inaugurated board of the Securities and Exchange Commission (SEC) to prioritize innovation to effectively regulate the dynamic capital market.

This directive was given by the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, during the board’s inauguration in Abuja on Monday.

Mr Edun expressed enthusiasm about the board’s composition and urged its members to demonstrate courage, boldness, openness to innovation, and readiness to tackle the challenges of regulating new financial areas.

He noted the rapid advancements in financial technology and communications, including the advent of artificial intelligence and digital currency, which now requires a knowledgeable regulator capable of providing guidance and necessary approvals.

“The top minds go into finance and technology because these areas are advancing rapidly. Unlike basic industries with settled technologies like steel making or manufacturing, financial technology, communications, artificial intelligence, crypto, and digital currency are evolving swiftly. Therefore, you must stay vigilant,” Edun stated.

He added, “For a transaction to gain approval, it must be understandable to the end investor, issuer, and regulator.

This ensures clarity and comfort in the financial market.”

The Finance Minister also highlighted the importance of regulating fast-moving, complex areas like cryptocurrency and warned against regulatory arbitrage. He noted that companies might seek the lowest level of registration to claim they are licensed and regulated. Edun emphasized the necessity of top-notch corporate governance practices, prompt conflict resolution, and adherence to global best practices to avoid becoming stumbling blocks to processes and approvals.

Mr Mairiga Katuka, the Chairman of the SEC Board, assured the Minister that the new board would leverage their collective expertise, innovation, and passion to drive growth in line with the Commission’s mandate of developing and regulating a fair and efficient capital market. “We will pursue a comprehensive agenda aimed at advancing investor interests, safeguarding market integrity, promoting capital formation, and enhancing regulatory oversight,” Katuka stated.

He also expressed optimism about Nigeria’s economic future, driven by the current administration’s reforms in inflation management, social protection, macroeconomic stability, and private sector development. These initiatives, he noted, would foster economic growth and a more prosperous financial ecosystem.

President Bola Tinubu approved the appointment of seven individuals to the SEC Board on April 19, 2024.

The appointees include Mr. Mairiga Katuka (Chairman), Mr. Emomotimi Agama (Director-General), Frana Chukwuogor (Executive Commissioner, Legal and Enforcement), Mr. Bola Ajomale (Executive Commissioner, Operations), Mrs. Samiya Usman (Executive Commissioner, Corporate Services), Mr. Lekan Belo, and Mr. Kasimu Kurfi (Non-Executive Commissioners).