The Nigerian Securities and Exchange Commission is exploring the use of blockchain technology to build trust in the capital markets.
Bridging the trust gap
The Nigerian Securities and Exchange Commission (SEC) is exploring the use of blockchain technology to build trust in the capital markets. According to Director General Emomotimi Agama, harnessing this technology is the key “to overcome the challenges [trust] gap between issuers and investors.”
Speaking at a conference of the Capital Market Correspondents Association of Nigeria, Agama explained how adoption of the technology will benefit all investors, including those in neglected parts 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,” Agama said.
The revelation that the SEC is considering the prospect of leveraging blockchain comes as the Nigerian government itself has taken steps to integrate the technology. As reported by Bitcoin.com News, Nigeria adopted a blockchain adoption policy in early May 2023 and reconstituted the blockchain policy steering committee a year later.
Additionally, the country’s National Information Technology Development Agency has committed to training 30,000 individuals in blockchain technology by 2022. Almost two years later, it was announced that the Nigerian Institute of Social and Economic Research (NISER) had entered into a partnership with Japanese technology company Soramitsu. The partnership aims to build Nigeria’s knowledge base and support its development through research and innovative blockchain projects.
Meanwhile, a Punch report quotes Agama as suggesting that the oversubscription of most recapitalization offers this year indicates strong investor confidence. To maintain this momentum, the SEC boss said the regulator has “intensified efforts to improve disclosure standards and corporate governance practices.”
Agama, widely seen as a pro-innovation figure, also suggested that the success of the recapitalization efforts will depend on collaboration between stakeholders.
“Developing innovative financial products, such as green bonds and sukuk, to attract diverse investor segments is crucial. The success of recapitalization efforts depends on cooperation among regulators, issuers and investors,” the SEC Director General said.