The Director General (DG) of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama has expressed confidence that the deployment of blockchain technology will help improve efficiency and aid the regulation of the capital market.
Agama, who said this during a session with a delegation from Algorand Foundation, in Abuja, noted that blockchain is a decentralized system that enhances trust and security by allowing multiple parties to independently verify and validate transactions without needing a central authority.
Agama said in Africa, where there are significant issues such as financial exclusion, lack of transparency, and inefficiencies in public and private sectors, blockchain presents an opportunity to build a future where the challenges can be addressed as blockchain is a digital ledger technology that securely records and verifies transactions across a network of computers.
He said the Commission is consistently aligning with international best practices by collaborating with global regulatory bodies such as the International Organization of Securities Commissions (IOSCO), adding that this ensures that the commission’s regulatory framework remains robust, adaptive, and aligns with global standards, enabling cross-border collaboration and fostering investor confidence.
The SEC, he continued has introduced several measures to ensure that these innovations are harnessed responsibly: Accelerated Regulatory Incubation Program (ARIP) and Regulatory Incubation (RI) Program: The ARIP and RI Program were designed to on-board firms operating in the digital asset space and provide a controlled environment to test new models, products, and services.
These programmes, he stated, foster innovation while ensuring that robust consumer safeguards are in place adding that the recent approval-in-principle granted to two digital asset exchanges and five firms participating in these programs is a testament to our commitment to enabling innovation.
According to him, in this era of technological innovation, the question is not whether Africa will adopt blockchain, but how it will shape its adoption to maximise its benefits for all the people.
“We want to activate the blockchain in our efficiency; we want to be able to use it to regulate our market. My dream is to have all of the information we need to do our work in a blockchain. We want to bring technology into our system for effectiveness where we can work seamlessly and everything that we do will be traceable.
“So wherever there is a toxin in the blockchain we will find it and deal with it. We will extend it to the point where a review of applications will be done on the blockchain so whoever drops the ball will be seen. Each transaction is grouped into a block, and these blocks are linked together in a chronological chain. This structure ensures that once information is added to the blockchain, it cannot be altered or deleted, providing a transparent and tamper-proof record.
“We want to leave a legacy that each one of us will be proud of when we leave this Commission. But in getting that to happen, we must all be educated enough to drive that course,” Agama said.
The DG disclosed that the Commission being the apex regulator of the capital market cannot be left out in technological advancement hence the need to engage Algorand Foundation to explore the Commission’s needs and potential application and benefits of blockchain technology.
“It is very interesting that we have this opportunity to do this for our organization, this is a knowledge-based institution and I am leading from the front. All our staff must begin to retool themselves because as regulators, we have to be on top of our game.
“As we begin our steps in moving the commission forward together, the foundation of everything that we do requires deep knowledge and understanding, without knowledge, we cannot get it done. No matter what I say, without you all being part of that train we cannot get the work done. There is no way I can do everyone’s job; we all have to be equipped to regulate this market,” he added.
Commenting, Global Head of Business Development Algorand Foundation, Mr. Eric Wragge said the team is in Nigeria to democratize technology and assist interested organizations and businesses take advantage of the numerous benefits of implementing blockchain technology in their operations.
“It is an honour to be here. We are here to tell you what blockchain is all about and how it can help your work. We are here to democratize the technology, it’s free to use, and anybody can use it. Our job is to go round the world, discover where the technology can be used and help people implement it,” he stated.