Nigeria’s SEC moves to stop online platforms from trading in foreign securities

Nigeria’s Securities and Exchange Commission (SEC) has recently issued a statement prohibiting online investment and trading platforms from facilitating the trade of foreign securities that are not registered in Nigeria. The Commission emphasized that only foreign securities listed on exchanges registered in Nigeria may be issued, sold, or offered for sale to the Nigerian public. The development has sparked a debate on the impact on innovation in the fintech space in Nigeria. Gbite Oduneye, CEO of EGM Group, and Bismarck Rewane, CEO of Financial Derivatives, shared their insights on the matter in a recent interview on CNBC Africa. According to Bismarck Rewane, the regulations are aimed at protecting investors, ensuring compliance with exchange rules, and addressing the volatility of international markets. On the other hand, Gbite Oduneye highlighted the innovative nature of the fintech sector and the need for clear regulations that do not stifle growth and innovation. The interview shed light on the need for collaboration between regulators and industry players to find a balance between investor protection and fostering innovation in the digital trading space. Despite the current regulatory challenges, both experts expressed optimism that ongoing discussions between industry stakeholders and regulators will lead to a framework that safeguards investors while allowing for continued innovation in the sector. The evolving landscape of online trading platforms in Nigeria underscores the importance of adapting regulatory frameworks to keep pace with technological advancements while ensuring consumer protection and market integrity.