By Christopher Ajewole 
The Securities and Exchange Commission (SEC) has highlighted the necessity for Artificial Intelligence (AI)-based surveillance systems to enhance the resilience and sustainability of Nigeria’s capital market. As stated by SEC Director-General Dr. Emomotimi Agama, this technology will facilitate real-time monitoring of the market and allow for more efficient responses to fraud and systemic risks.
The implementation of AI-driven surveillance is anticipated to improve market stability and bolster investor confidence by transitioning from reactive oversight to predictive, technology-enabled regulation. This method has proven effective in nations such as the United States, where the SEC operates a consolidated audit trail supported by technology. Through AI-driven surveillance, Nigerian regulators will be able to observe market activities in real-time, respond more adeptly to fraud and systemic risks, and strengthen market stability and investor confidence.
Obstacles in Nigeria’s Capital Market
Notwithstanding the reforms introduced by the Investment and Securities Act (ISA 2025), Nigeria’s capital market continues to encounter structural inefficiencies. Insufficient coordination between the SEC and the CBN, fragmented oversight, and a lack of adequate data-sharing frameworks impede market development. Restrictions on pension fund investments limit opportunities for growth, while inadequate data-sharing frameworks obstruct effective regulation and supervision. Dr. Agama suggests that Nigeria should take cues from nations such as the United Kingdom, which have effectively utilized regulatory innovation to foster fintech development. Nigeria has the opportunity to investigate phased licensing and sandboxed crypto-fiat transactions to facilitate experimentation and innovation within the financial sector.
Collaboration and Implementation
The SEC DG highlights that the execution of these reforms necessitates cooperation among regulators, policymakers, and participants from the private sector. Through collaborative efforts, Nigeria can establish a capital market that embodies innovation, efficiency, and investor trust, thereby attracting long-term, sustainable investments. The SEC’s advocacy for AI-driven surveillance in Nigeria’s capital market represents a significant move towards modernizing the nation’s regulatory framework and encouraging sustainable growth. By adopting innovative technologies and global best practices, Nigeria can develop a more resilient and appealing capital market, ultimately enhancing economic development and investor confidence.
Valentine Alexander
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