The Securities and Exchange Commission (SEC) has called on Nigeria’s capital market operators and stakeholders to adopt Artificial Intelligence (AI)-driven surveillance systems. The move is part of a wider strategy to modernise regulatory oversight, boost market confidence, and ensure resilience in the face of global economic pressures.
Dr. Emomotimi Agama, the Director-General of the SEC, made the call during the fifth Fellowship Inaugural Lecture of the Capital Market Academics of Nigeria (CMAN), which was held virtually on Monday. The theme of the event was “Innovative Regulation for a Resilient Capital Market in Nigeria.” The News Agency of Nigeria (NAN) covered the lecture.
Dr. Agama said AI-based tools have the power to transform how Nigeria supervises its financial markets, especially by shifting from outdated and reactive methods to more proactive and predictive oversight. He referenced global examples, especially the United States, where the American SEC uses advanced technological systems, including a consolidated audit trail, to track market transactions in real-time and prevent fraud.
He stressed that “shifting from reactive oversight to predictive, tech-driven governance, through regulatory sandboxes, AI-powered surveillance, and robust Environmental, Social and Governance (ESG) frameworks, will enhance market stability and investor confidence.”
According to him, adopting AI tools will help Nigerian regulators detect irregularities faster and ensure compliance with rules, especially as the capital market becomes more complex and digitised. He added that the integration of such modern tools is essential for creating a future-proof capital market capable of attracting local and foreign investment.
Dr. Agama, however, acknowledged that even with recent legal reforms like the Investment and Securities Act (ISA) 2025, Nigeria’s capital market still battles deep-rooted challenges. He pointed out structural problems such as poor capital mobilisation, wealth inequality, and limited access to corporate financing.
He noted that while the ISA 2025 provided clarity on regulatory roles, fragmented oversight continues to be a problem. He said there is still poor coordination between the SEC and the Central Bank of Nigeria (CBN), as well as challenges tied to pension fund investment limitations and weak data-sharing structures among financial regulators.
The SEC DG urged for stronger institutional cooperation and strategic policy alignment. He pointed out that regulators need to work more closely to drive market innovation and restore investor trust.
Drawing lessons from global examples, Dr. Agama encouraged Nigerian regulators to study the regulatory models of the United Kingdom, where innovation has been supported through measures like phased licensing for fintechs. He also suggested the introduction of sandboxed crypto-fiat transactions, which would allow controlled testing of digital currency applications while ensuring regulatory oversight.
He explained that Nigeria must not only align with international regulatory trends but must also tailor reforms to its own economic conditions. According to him, such reforms will make the capital market more competitive and help it attract long-term investments.
“These reforms not only align with global best practices but also cater to Nigeria’s unique economic dynamics, positioning the country as an attractive destination for long-term, sustainable investments,” Dr. Agama said.
He concluded by calling on stakeholders in both the public and private sectors to collaborate. According to him, no single institution can carry out the sweeping reforms required to build a stronger capital market on its own. He urged policymakers, regulators, fintech operators, stockbrokers, and investors to work together to establish a market that reflects efficiency, innovation, and trust.
Dr. Agama’s remarks come at a time when Nigeria is trying to reposition its capital market to become a major source of finance for national development. Market analysts have welcomed the push for technological innovation but also warn that implementation must be followed with clear rules and investor education to avoid new risks.
