Driving innovation in Nigeria's capital market

Nigeria's Securities and Exchange Commission (SEC) has recently introduced a Regulatory Incubation Program aimed at supporting FinTech firms operating or looking to operate within the Nigerian capital market. Abdulkadir Abbas, the Director of Registration, Exchanges, Market Infrastructure, and Innovation at the SEC, shed light on the objectives and expectations of this program in a recent interview with CNBC Africa. The initiative is designed to provide a platform for FinTech companies to test their innovative ideas within a regulatory framework, similar to a sandbox concept. While the program allows for testing and experimentation for a period of one year, it does not guarantee immediate approval. However, FinTech ideas that align with investment activities defined by the SEC can participate in the program. The key objectives of the Regulatory Incubation Program include ensuring the safety of FinTech ideas for investors, offering a controlled environment for testing innovative solutions, and addressing existing market challenges through technology-driven approaches. Abbas expressed optimism about the initial response to the program, with several FinTech companies showing interest and actively engaging in the application process. The SEC has emphasized the importance of meeting eligibility criteria, such as providing solutions to market problems, demonstrating compliance with investment regulations, and committing to abide by post-incubation rules. The program aims to foster innovation, enhance market participation, and drive growth within the Nigerian capital market, ultimately benefiting investors and stakeholders.