Investor Education Key To Stable Capital Market – SEC

The Securities and Exchange Commission (SEC) has emphasised that investor education is a key prerequisite for a healthy market and the development of market confidence.

The Commission stated that a well-informed investor base is crucial for the stability and growth of any capital market.

The director-general of SEC, Dr. Emomotimi Agama, stated this during the opening of the 2024 International Organisation of Securities Commissions (IOSCO) World Investor Week (WIW).

He highlighted that investor education empowers individuals to make informed decisions and safeguard themselves against fraud, Ponzi schemes, misinformation, and excessive risk.

Agama, who was represented by the executive commissioner operations, SEC, Bola Ajomale, stated that Nigeria has witnessed increasing participation in the capital market, with more retail investors entering the fold.

He said, “as financial products become more complex and technology-driven, from fintech innovations to cryptocurrency trading, it is critical and responsible for stakeholders to commit to equip investors with the knowledge to navigate these markets confidently and responsibly.

He added that “World Investor Week provides a platform for us to reinforce this commitment. Throughout this week, we will engage with investors, discuss best practices, and focus on improving transparency and accountability in financial markets. I encourage all participants to take these opportunities to learn and share knowledge, so we can continue building a robust, investor-friendly ecosystem.”

SEC DG said “the focus for 2024 is apt and extremely timeous as it covers Technology and Digital Finance, Crypto Assets, and Sustainable Finance, three critical areas that will shape the future of global capital markets adding that the reward potential is unimaginable but the risks are equally enormous.”

He noted that Nigeria has emerged as a key player in crypto markets, particularly in peer-to-peer transactions stating the space remains highly volatile, and investor protection is paramount.

He said the SEC has developed and released frameworks for regulating Virtual Asset Service Providers (VASPs) and shall continue to address risks such as fraud, money laundering, and market manipulation, while also fostering innovation in a safe and transparent manner.

He said as Nigeria celebrates the growth of the Nigerian market, stakeholders must also acknowledge the evolving risks as global markets are interconnected, and Nigeria is not insulated from economic volatility, cybersecurity threats, and financial crimes such as fraud and market manipulation.

The Governor of Lagos State, Babajide Sanwo-Olu said Lagos, as the commercial hub of Nigeria, stands at the intersection of innovation, technology, and finance as the state has always embraced forward-thinking solutions to foster economic growth, drive financial inclusion, and create wealth.

Represented by the deputy chief of staff governor’s office, Sam Egube said the emergence of digital assets and the increasing role of technology in finance present both unprecedented opportunities and challenges, and it is imperative that we engage thoughtfully and strategically with these developments.