Governor Babajide Sanwo-Olu of Lagos, alongside the Director-General of the Securities and Exchange Commission (SEC), Dr Emomotimi Agama, has called for better investor education.
This to enhance market confidence and promote a healthy financial environment.
They made the call on Monday at the opening of the 2024 International Organisation of Securities Commissions (IOSCO) World Investor Week (WIW) in Lagos.
The theme of the event is: ‘Technology and Digital Assets, Cryptocurrency and Sustainable Finance.’
The governor said that the role of IOSCO in advancing investor education, regulation and market integrity was crucial.
Sanwo-Olu, represented by his Deputy Chief of Staff, Mr Samuel Egube, called for investments in green technologies, renewable energy and socially responsible businesses for economic growth.
According to him, such investments are not only the right thing to do, but are also sound business strategies for long-term value creation.
The governor explained that the emergence of digital assets and the increasing role of technology in finance, presented both unprecedented opportunities and challenges.
He added that cryptocurrencies, blockchain and digital assets were transforming how people understood value, transaction mechanisms, and investments.
“While the potential of these instruments to democratise finance is significant, we must also be mindful of the risks they introduce, particularly in areas of regulation, security, and investor protection.
“As we seek to address global challenges such as climate change, inequality, and economic instability, it is clear that finance must be a force for good.
“It is imperative that we engage thoughtfully and strategically with these developments.
“In Lagos, we are committed to fostering an environment that supports sustainable development, encourages responsible investments, and promotes the well-being of both current and future generations,” he said.
Agama, on his part, noted that investor education was a prerequisite to build investor’s confidence and a healthy market.
He added that a well-informed investor base was crucial for the stability and growth of any capital market.
According to him, investor education empowers individuals to make informed decisions and safeguard themselves against fraud, Ponzi schemes, misinformation, and excessive risk.
Agama, represented by the Executive Commissioner Operations of SEC, Mr Bola Ajomale, stated that Nigeria had witnessed increasing participation in the capital market, with more retail investors entering the fold.
The director-general highlighted the need to strengthen educational efforts, especially in an era of digital finance.
“As financial products become more complex and technology-driven, from fintech innovations to cryptocurrency trading.
“It is critical and responsible for stakeholders to commit to equipping investors with the knowledge to navigate these markets confidently and responsibly.
“World Investor Week provides a platform for us to reinforce this commitment.
“Throughout this week, we will engage with investors, discuss best practices, and focus on improving transparency and accountability in financial markets.
“I encourage all participants to take these opportunities to learn and share knowledge, so that we can continue building a robust, investor-friendly ecosystem,” he said.
According to him, the focus for the 2024 WIW is apt, as it covers technology and digital finance, crypto assets and sustainable finance.
Agama noted that the three critical areas were expected to shape the future of global capital markets, adding that while their rewards were potentially unimaginable, their risks were equally enormous.
“The rise of technology in finance is reshaping the way capital markets function, creating opportunities for greater efficiency, transparency, and inclusion.
“Fintech solutions are democratising access to financial services, reducing transaction costs, and enabling faster, more secure operations across the market.
“In Nigeria, the rapid adoption of mobile technology and digital payments demonstrates the immense potential for growth in digital finance.
“As we embrace these innovations, SEC assures the capital market that we will work assiduously with other regulators to adopt frameworks that protect investors.
“Our desire is to ensure that technological advancements are deployed responsibly and that market participants understand the risks associated with digital finance, such as cybersecurity threats and data privacy concerns,” he said. (NAN).
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