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ARTICLE · 28 JUNE 2021

Securities And Exchange Commission's Regulatory Incubation Program For FinTechs In Nigeria

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In April 2021, the Nigerian Securities and Exchange Commission ("SEC") issued a directive prohibiting unregistered Financial Technology ("Fintech") companies from offering, selling or dealing...

NigeriaTechnology
Seun Timi-Koleolu
Seun Timi-Koleolu
Praise Adetunmibi
Praise Adetunmibi

Introduction

In April 2021, the Nigerian Securities and Exchange Commission ("SEC") issued a directive prohibiting unregistered Financial Technology ("Fintech") companies from offering, selling or dealing in foreign listed securities1. This directive raised concerns that SEC might be stifling the development of innovation in Nigeria.

Recently, SEC has taken some positive steps that should address these concerns. One of which is the issuance of the first digital stock trading licence to Chaka Technologies Limited; another is the establishment of a Regulatory Incubation Program ("RI Program") aimed at encouraging innovation by Fintechs within limits that ensure investor protection.

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