Financial experts champion digital finance to fuel Nigeria’s capital market
October 11, 202490 views0 comments
Onome Amuge
Experts in Nigeria’s financial landscape have identified the need for enhanced investor education and digital finance to fuel the increasing interest in financial technology (Fintech) and foster broader market participation.
According to the Securities and Exchange Commission (SEC), investor education and digital finance initiatives are essential for creating an environment where the benefits of Fintech can be fully realised and where investors are equipped with the knowledge and tools needed to make informed decisions in a rapidly evolving financial landscape.
Emomotimi Agama, director general of the Securities and Exchange Commission (SEC), disclosed the need for investor education and digital finance at the IOSCO World Investor Week, held recently in Lagos.
The event, hosted in collaboration with AFEX Commodities Exchange Limited, gathered a diverse group of stakeholders including representatives from the financial and investment sectors, government officials, amongst others.
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Bola Ajomale, the executive commissioner of operations at the Securities and Exchange Commission, highlighted the need to empower Nigerian investors with the knowledge and tools to safely navigate the ever-changing financial landscape.
Speaking on behalf of the SEC DG, Ajomale explained that investor education is a crucial component of enabling Nigerians to effectively engage with the financial markets and protect themselves from potential risks, particularly in the context of the growing role of Fintech in the Nigerian economy.
“With the increasing role of technology in financial services, it’s essential that investors are empowered with the right information to avoid risks such as scams and unregulated schemes. The future of Nigeria’s capital market depends on an educated and engaged investor base,” he stated.
In addition to discussing the importance of investor education, Ajomale highlighted the commission’s commitment to fostering greater participation in the capital market, particularly among historically marginalised groups such as rural farmers.
He noted that by promoting initiatives such as the IOSCO World Investor Week, the SEC is seeking to bring investors into the capital market, enabling them to benefit from financial opportunities and drive economic growth in Nigeria.
Also speaking at the event, Ayodeji Balogun, the chief executive officer of AFEX Commodities Exchange, echoed the importance of digital finance in reshaping the financial landscape in Nigeria.
Balogun, who was represented by Oluwafunto Olasemo, vice president, financial market, AFEX, also highlighted the company’s commitment to bridging the gap between rural communities and small-scale producers, and the broader financial markets.
“At AFEX, our vision has always been to create transparent, efficient and robust commodities exchange that empowers the economy and transforms lives, we recognize that none of this is possible without dedication, insights, collaboration with key stakeholders like the SEC, whose role in shaping Nigeria’s capital market is invaluable, and today’s event is a testament to a collective commitment to fostering innovation, trust and growth within the commodities ecosystem,” he said.
The event marked a significant milestone with the launch of a comic book, “Tradevers”, which aims to educate investors in a more engaging manner.
In addition, Yomi Ogunleye, co-founder of HerVest, addressed the pressing issue of the financial gender gap and HerVest’s mission to bridge it by providing women with access to vital services such as savings and impact investments.
“Small women farmers constitute about 70 percent of the agricultural sector, yet only 10 per cent have access to finances. We currently have over 50,000 users, both in rural and urban areas, whose lives have improved over time through our services,” Ogunleye stated.