Securities and Exchange Commission (SEC) said it has engaged more than 500 financial technology firms as part of efforts to align innovation in the digital finance space with investor protection in the nation’s capital market.

Director general of the Securities and Exchange Commission, Emomotimi Agama, disclosed this during the Commission’s inaugural Regulator FinTech Clinic held with fintech operators, regulators and other market stakeholders.

Agama explained that the initiative was designed to create a platform for dialogue on emerging digital financial products and the regulatory frameworks required to effectively govern them as Nigeria’s technology driven financial services ecosystem continues to expand.

According to him, while the growth of financial technology has improved financial inclusion and broadened access to investment opportunities, innovation must operate within clear regulatory boundaries that protect investors and safeguard market integrity.

He noted that the rapid rise of digital financial services has created opportunities for innovation but has also introduced risks, particularly with the emergence of unregistered investment platforms. “As we launch this inaugural clinic, our goal is to align innovation with integrity, growth with governance and technology with trust,” Agama said.

Also speaking, executive commissioner for operations at the SEC, Bola Ajomale, said the Commission had engaged more than 500 firms in order to understand their business models and the products they are introducing into the market.

“We have taken more than 500 firms to understand how they are evolving and what they are bringing to the market. That is why we are engaging the players to understand what they are bringing and then set up a framework where we can regulate them,” Ajomale said.

The Commission explained that the FinTech Clinic would provide an avenue for clarifying regulatory expectations under the recently enacted Investments and Securities Act 2025, which expands the regulator’s powers to oversee digital investment platforms and products.

According to the SEC, the engagement will help fintech operators better understand their compliance obligations while enabling the regulator to monitor emerging technologies within the capital market more effectively.

Agama stressed that responsible innovation requires regulatory frameworks that are both protective and adaptable. “Early dialogue prevents costly missteps, and compliance embedded at the design stage is far more effective than corrective measures after market entry,” he said.

He added that the Commission’s core mandate of protecting investors, ensuring fair and transparent markets and facilitating capital formation remains fully compatible with technological innovation when supported by responsive regulation.

The SEC further noted that the FinTech Clinic is intended as a collaborative engagement platform rather than a compliance enforcement exercise, encouraging operators to view regulatory dialogue as an opportunity to strengthen their business models and ensure alignment with capital market rules.