By Newsshelve Correspondent.
In a bid to boost trust and transparency in the Nigerian capital market, the Securities and Exchange Commission (SEC) is exploring the application of blockchain technology.
This development was announced by the Director-General of the SEC, Dr. Emomotimi Agama, at the 2024 annual CAMCAN Workshop in Lagos.
Speaking on the theme “Banks Recapitalisation: Bridging the Gap Between Investors and Issues in the Nigerian Capital Market,” Agama, represented by John Achile, Divisional Head, Legal, and Enforcement, Lagos Zone Office, emphasized the importance of harnessing innovation for inclusive growth.
He noted that digital platforms have enhanced market accessibility, enabling retail investors in remote areas to participate in recapitalisation exercises.
Blockchain, a decentralized digital ledger, is globally recognized as a secure system for storing records across a network of computers in real-time.
This technology is transparent, immutable, and resistant to tampering, making it an ideal solution for enhancing trust and transparency in the capital market.
According to Agama, “The SEC is exploring the integration of blockchain technology for secure and transparent transaction processing, a step that will redefine trust in the market.”
This move is expected to enhance disclosure standards and corporate governance practices, ultimately democratizing access to the capital market.
The SEC DG highlighted that the oversubscription of most recapitalisation offers in the Nigerian market in 2024 reflects strong investor confidence.
To sustain this momentum, he added, the SEC has intensified efforts to enhance regulatory oversight, protect investors, and promote market integrity.
Agama emphasized that collaboration among regulators, issuers, and investors is crucial to the success of recapitalisation efforts.
He also highlighted the importance of developing innovative financial products, such as green bonds and sukuk, to attract diverse investor segments.
The SEC’s move to explore the application of blockchain technology is a significant step towards enhancing transparency and trust in the Nigerian capital market.
As the commission continues to innovate and collaborate with stakeholders, the Nigerian capital market is poised for growth and development.
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