E-Financial
SEC, Stakeholders Harp on Fintech, Collaborations for Capital Market Efficiency
The Securities and Exchange Commission (SEC) and other stakeholders in the Nigerian capital market, have championed the adoption of technology and fintechs in the development of innovative products critically needed for capital market efficiency.
This was revealed over the weekend at the 12th annual conference of the Institute of Capital Market Registrars (ICMR) with the theme: “Navigating Nigeria’s Economic Realities: The Transformative Power of Technology in the Capital Market.”
Speaking on the topic; “Empowering market participants through education and capacity building,” the Executive Commissioner, Operations, SEC, Dayo Obisan, urged registrars to first of all identify the participants in the sector, which has changed due to technology, in order to educate them.
He said, “The market has changed. There has been a lot of dynamics. A lot of people use the word, fintechs loosely but a lot is happening in that space and that was one of the reasons we had to quickly revise the capital market master plan. Back then, there were no fintechs, there were no digital brokers, there were no robot advisors, but we now have those, and we had to quickly register.”
Ade Bajomo, the President, FinTech Nigeria, during his keynote address urged capital market operators to harness technology’s potential to boost their operations while being cautious of associated risks.
Bajomo said, “Technology has the potential to be a powerful equaliser and if our industry is to play a part in the fifth industrial era, then we must have capital market operators use the technology. It has been proven time and time again that those who exploit technology in a certain manner will keep competitive advantage.
“We must also be mindful of the potential risks in the use of the technology in our capital market. We must ensure we have appropriate regulatory framework in place to protect investors and maintain market integrity. In conclusion, the power of technology in transforming the capital market is undeniable. However, we must use this power responsibly and with caution.”
In his presentation at the conference, Professor of Capital Market, Uche Uwaleke, advised companies to diversify their business operations in order to weather the economic headwinds in the country.
He said innovation and resilience are essential for sustainable business growth in an uncertain world.
“Core principles of business resilience include risk identification, contingency planning, diversification, innovation, and strong relationships with customers and suppliers.
“Strategies for sustainable business growth during uncertain times include developing new products and services, adopting new technologies, creating sustainable business models, focusing on innovation management, building a strong brand and reputation, leveraging customer-centric innovation, data-driven decision-making, and nurturing strong relationships with customers and suppliers,” he said.
Speaking at the event, the Chief Executive, Central Securities Clearing System Plc, Haruna Jalo-Waziri, said, “One of the reasons everyone had to accommodate the fintechs in the banking space was that the entry of the fintechs was translating to the growth of the market.
“So even though they came in as fringe players, they brought in a lot of innovations. So those who are traditional are beginning to say, ‘If we remain traditional, we will lose relevance in this market.’ And that’s why every bank today is investing in a fintech with all the HoldCos coming up or strategically supporting a fintech brand.
Jalo-Waziri, who was represented by a director at the CSCS, Tobe Nnadozie, added “If we want this market to grow, we need to encourage fintech so that they can come in and bring very innovative products.”
In his welcome remarks, the President/Chairman of Council, ICMR, Oluseyi Owoturo, said the theme of the conference had been premised on the challenging economic conditions of the country.
He said, “At this conference, owing to the weakened macroeconomic environment, surging inflation that is pushing millions of Nigerians into poverty amidst global commodity shocks, depreciating currency, trade restrictions, steady decline in per capita income, fall in real GDP growth to 3.3 per cent in 2022 from 3.6 per cent in 2021, and the dramatic alteration of the capital markets over the past few decades through technology-induced innovations such as electronic exchanges and high-frequency trading; the Institute would want us to deliberate on how Nigeria is navigating these economic realities. Consequently, our theme for this year’s conference is “Navigating Nigeria’s Economic Realities: The Transformative Power of Technology in the Capital Market.”
“It is our desire that this conference should expose what should be done to regain economic momentum through the capital markets in Nigeria, discover the secrets of navigating uncertainties in the economy, and how innovative technology could help transform and expand the capital market.”
Central Bank of Nigeria (CBN) has issued a fresh advisory warning the public about the persistent activities of fraudsters peddling fictitious contracts, loans, grants and intervention funds under the guise of affiliation with the apex bank.
This is aimed at protecting Nigerians from financial fraud.
The advisory, signed by Mrs Hakama Sidi-Ali, acting director, Corporate Communications, noted that despite an earlier advisory issued on November 18, 2024, these criminal elements continue to exploit unsuspecting individuals with fake offers falsely attributed to the CBN.
The apex bank has once again disclaimed any association with such claims, describing them as entirely fraudulent and misleading.
“The Central Bank of Nigeria has not authorised, licensed, or appointed any individual, group, or organisation to act on its behalf in offering contracts or financial benefits to the public,” the statement clarified.
According to the CBN, it does not engage in unsolicited communications, via emails, phone calls, SMS, WhatsApp or any social media platforms, to award contracts or disburse funds. It also stressed that the bank does not request payments or fees in exchange for any financial service or opportunity.
The apex bank urged the public to remain vigilant and to immediately report any suspicious approaches to law enforcement agencies or the nearest CBN branch.
“The Central Bank remains committed to safeguarding the financial interests of the Nigerian public and continues to work closely with security agencies to investigate and curb fraudulent activities,” the statement added.
This advisory, the CBN spokesperson noted, comes as part of the regulator’s wider mandate to ensure transparency, financial integrity and public trust in Nigeria’s financial system.
Securities and Exchange Commission (SEC) has ramped up its fight against Ponzi schemes in Nigeria, vowing to take decisive action against illegal fund operators while educating the public to prevent further victimisation.
At an awareness campaign held in Abuja, the SEC emphasized its commitment to saturating public spaces with information about illegal investment schemes before enforcing the law on perpetrators.
Speaking at the event, Ms Frana Chukwuogor, executive commissioner Legal and Enforcement, Securities and Exchange Commission, warned of the dangers of patronising illegal fund operators known as Ponzi schemes.
She said that the Commission deemed it crucial to sensitize traders, empowering them to make informed decisions when approached with investment requests.
She explained that the campaign is a proactive step to combat the surge in fraudulent investment schemes in Nigeria, aligning with the Commission’s broader strategy to educate the public about Ponzi scheme risks and unregistered investment platforms before enforcing regulatory action.
“Our approach is simple but firm. We are not just a regulator that barks and does not bite. We believe in engaging, enlightening, and empowering the Nigerian people before enforcing the law. We will sensitize before barking and biting,” she stated.
She explained that too many Nigerians, especially those at the grassroots, fall victim to Ponzi schemes due to lack of information or false promises of quick, unrealistic returns, emphasizing that many of these schemes are not registered or regulated by the SEC, making them dangerous and illegal.
“We have seen people lose their life savings, their businesses, and their peace of mind.
That is why we are taking this message to the markets, motor parks, online platforms, anywhere Nigerians are making financial decisions. Prevention through education is our first line of defense,” she added.
Mr Abdusalam Khalid, head of Enforcement Department, Securities and Exchange Commission, warned that while education is the first step, it will not hesitate to prosecute illegal operators who refuse to cease their fraudulent activities
He urged the public to verify all investment opportunities through official channels and report suspicious activities through the SEC helpline.
Some bank users in Abuja have declared they will opt for electronic mail alerts from their banks to cut costs and reduce charges on their accounts.
Some of them who spoke to the News Agency of Nigeria (NAN) on Sunday said they would deactivate the Short Message Services transaction alert linked to their accounts.
Mrs Dorathy Azinge, a customer of GTCO, described the increase in SMS charges as exploitative.
Azinge said that in spite of various transaction charges debited from her bank account on a daily basis, the bank still increased SMS charges.
”This move of increasing SMS charges is very exploitative even though they cited telecommunication charge.
”What about all the numerous unwarranted debits that I get from my account, and they are using telecommunication increase as yardstick to increase theirs.
”GT will remove different charges from my account until they give me minus balance,” she said.
Another customer, Ms Elizabeth Abu, said she would visit her bank to opt for her transaction alerts to be sent to only her e-mail address.
Abu who complained about the reduction in her capitalised interest on her account, said the numerous debits were becoming frustrating.
” It does not make sense for the bank to charge me for a transaction I did and also charge me for the alert they sent.
” It means that customers are the ones paying heavily for all these services.
” These charges are reflecting on the profits declared by these banks, and we are the ones paying for this,” she said.
Mr Clement Arubu, a customer with First HoldCo Plc, said he received various transaction debit alerts from his bank totalling N1, 050 monthly.
Arubu said the debits were huge, especially when calculated between 10,000 customers of the bank.
” Most customers receive these alerts and neglect them because to them, the money is small but when you debit the same money from about 10,000 customers then, you can be sure that the money is huge,” he said.
Mrs Catherine Itoha,, said a bank had yet to reverse over N20,000 debited from her account through various failed Point of Sale transaction since about 11 months.
Itoha urged some banks and their staff to adopt principles of fair practice in handling their customers.
” Customers are the reason why banks are in existence so, we deserve to be treated fairly.
”GTB debited me in about four different transactions that I did but up till now, they did not reverse any of these monies.
”I visited the bank, filled forms, spoke to their staff personally but still the issue was not resolved since last year.
”If this money did not go to a staff, it means it is part of their profit,” she alleged.
Mrs Esther Arthur, a Fidelity Bank customer alleged that some of the banks were making profits from charges on customers for their transactions.
Arthur described the situation as sad and frustrating, recounting,”I withdrew N10,000 from a First Bank Automated Teller Machine and the machine showed me that I will be charged N100 because it wasn’t my bank.
”When I finished the transaction, to my greatest surprise an alert came into my phone and when I checked it, it was an alert of N630.00 against the N100 on-site ATM charges that the Central Bank of Nigeria instituted.
”This is so sad,” she said.
Mr Augustine Ode, a Zenith Bank customer, appealed to the CBN to check excesses of some banks that were allegedly defrauding customers.
The News Agency of Nigeria (NAN) reports that GTCO had informed its customers of the SMS transaction alert fee increase from N4 to N6 per message.
The bank had said that the adjustment was due to a recent increase in telecom rates.
Credit: NAN
Nigeria to Receive $3Bn Telecoms Infrastructure in June – Minister
NIPOST Partners KLM on Global Mail Delivery
CBN Issues Advisory on Scammers Flaunting Fake Contracts
Airtel Money Plans IPO to Compete in Fintech Space
Legend Internet Debuts Nigeria’s First Fibre-to-the-room Service
E-Business2 days agoNIN: FG Increases DoB Update Fee by 75Percent to N28,574
Broadcasting2 days agoAfreximbank Unveils Third Edition of Short Film Competition ‘Creative Africa Nexus’
General News2 days agoNIMASA Embraces Technology to Strengthen Regulatory Mandate
Telecom2 days agoMTN Commits $10Bn to Nigeria’s Digital Infrastructure
E-Business2 days ago10 Percent of Nigerians Affected by Data Breaches since 2004
E-Financial2 days agoSEC Intensifies Fight Against Ponzi Schemes With Market
News2 days agoSERAP Challenges CBN to Publish Local Government Allocations
News2 days agoCFUIS Expands to Nigeria, Boosting U.S. Immigration and Business Opportunities