Recently, the Securities and Exchange Commission (SEC) adopted a three-pronged approach to regulating innovation in the country. These include ensuring the safety of the investors and integrity of the capital market, providing market deepening opportunities through the introduction of new useful products and services and providing solutions to existing problems in the capital market in compliance with existing rules.

In that regard, on 16 June 2021, the SEC released the Regulatory Incubation Guidelines for Specific Category of FinTech Entrepreneurs (the Guidelines). The Guidelines introduces a Regulatory Incubation Program (the RI Program) which will commence in the third quarter of the year.

The Guidelines provide qualifying fintech entities with an opportunity to operate in the Nigerian Capital Market under the basic rules prescribed by the SEC to ensure the safety of the capital market and boosts investor confidence in the market and financial products pending the
consideration and determination of the suitability of the new operational models
within the Nigerian capital market.