Nigeria must adopt AI-driven surveillance for resilient capital market -SEC

The Securities and Exchange Commission (SEC) says the country must adopt Artificial Intelligence (AI) driven surveillance to transition to a resilient, future-proof capital market.

Dr Emomotimi Agama, the Director-General of SEC, said at this at the fifth Fellowship Inaugural Lecture organised by the Capital Market Academics of Nigeria (CMAN) on Monday.

Agama said the AI-driven surveillance just like in the United States of America SEC’s consolidated audit trail would help the country to combat fraud in the market.

Agama said structural inefficiencies constrained capital mobilisation, wealth distribution, and corporate financing in the country’s market.

He said the structural weaknesses had persisted in spite of the Investment and Securities Act (ISA 2025) reforms.

According to him, fragmented oversight has improved but not fully resolved

”While the ISA 2025 attempts to clarify regulatory roles, key challenges remain,” he said.

He listed the challenges to include SEC-CBN coordination issues, pension fund restrictions
and data sharing gaps.

The director-general said the country needed to learn fintech revolution from other countries especially the United Kingdom to fast-track licensing.

Agama said the country’s capital market stood at a pivotal juncture, where embracing innovation and forward-thinking regulation could drive sustainable growth and resilience.

He said the country needed to learn fintech revolution from other countries, especially the United Kingdom to fast-track licensing.

Agama said the country could also adopt “phased licensing” like in the UK and partner with the Central Bank of Nigeria to allow sandboxed crypto-fiat transactions.

“Shifting from reactive oversight to predictive, tech-driven governance, through regulatory sandboxes, AI-powered surveillance and robust ESG frameworks, will enhance market stability and investor confidence.

“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.

“By adopting these strategies, Nigeria can future-proof its capital market, ensuring it thrives amid evolving financial landscapes and emerging risks.

”This transformation demands collaboration among regulators, policymakers, and market participants, reflecting the need for proactive adaptation in an increasingly complex financial world,” he said.

It was reported that the online lecture is with title: ‘Innovative Regulation for a Resilient Capital Market in Nigeria.’