By Peter Egwuatu

THE Securities and Exchange Commission (SEC) has said that investor education is a key prerequisite for a healthy market and the development of market confidence, adding that a well-informed investor base is crucial for the stability and growth of any capital market.

Speaking at the opening of the 2024 International Organisation of Securities Commissions (IOSCO) World Investor Week (WIW), the Director General of the SEC, Dr. Emomotimi Agama, explained 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 at SEC, Mr. Bola Ajomale, added that Nigeria has witnessed increasing participation in the capital market, with more retail investors entering the fold saying that it also highlights the need to strengthen educational efforts, especially in this era of digital finance.

He stated further: “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 equipping investors with the knowledge to navigate these markets confidently and responsibly.

“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”.

The 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.

“The rise of technology in finance is reshaping the way capital markets function, creating opportunities for greater efficiency, transparency, and inclusion. Fintech solutions are democratizing access to financial services, reducing transaction costs, and enabling faster, more secure operations across the market. In Nigeria, the rapid adoption of mobile technology and digital payments demonstrates the immense potential for growth in digital finance.

“As we embrace these innovations, the SEC assures the capital market that we work assiduously with other regulators to adopt frameworks that protect investors. Our desire is to ensure that technological advancements are deployed responsibly and that market participants understand the risks associated with digital finance, such as cybersecurity threats and data privacy concerns”.

In his remarks Governor Babajide Olusola 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, Mr. Sam Egube, Sanwo-Olu 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.