Nigeria's Blockchain Boost: SEC Explores Tech to Revolutionize Capital Markets
The Nigerian SEC is exploring blockchain technology to bridge trust gaps in capital markets, enhance transparency, and develop innovative financial products like green bonds and sukuk.
Nigeria's Blockchain Boost: SEC Explores Tech to Revolutionize Capital Markets
Bridging the Trust Gap
The Nigerian Securities and Exchange Commission (SEC) is actively exploring the potential of blockchain technology to enhance trust and transparency in capital markets. According to Director-General Emomotimi Agama, adopting blockchain could be pivotal in “bridging the [trust] gap between issuers and investors.”
At a recent Capital Market Correspondents Association of Nigeria conference, Agama outlined the benefits of blockchain integration for investors, including those in underserved regions of the country. “The SEC is exploring the integration of blockchain technology for secure and transparent transaction processing, a step that will redefine trust in the market,” he stated.
This move aligns with Nigeria’s broader push toward blockchain adoption. In May 2023, the Nigerian government launched a national blockchain adoption policy and reconstituted the blockchain policy steering committee the following year. Additionally, the National Information Technology Development Agency (NITDA) initiated a program in 2022 to train 30,000 individuals in blockchain technology. This initiative has since been bolstered by partnerships such as the collaboration between the Nigerian Institute of Social and Economic Research (NISER) and Japanese tech firm Soramitsu to advance blockchain research and development in Nigeria.
Meanwhile, Agama highlighted strong investor confidence, as evidenced by the oversubscription of recapitalization offers this year. To maintain this momentum, he emphasized the importance of enhancing disclosure standards and corporate governance practices.
“Developing innovative financial products, such as green bonds and sukuk, to attract diverse investor segments is crucial. The success of recapitalization efforts depends on collaboration among regulators, issuers, and investors,” Agama noted.
As a proponent of innovation, Agama’s vision underscores the importance of cooperation among stakeholders to create a more inclusive and robust capital market in Nigeria.
What's Your Reaction?
