The Director General of the Securities and Exchange Commission, Emomotimi Agama, has urged capital market operators to embrace green bonds and exchange-traded funds as pivotal instruments for fostering growth and sustainability in Nigeria’s capital market.

He said this in a statement issued by the SEC on Tuesday, indicating that these financial instruments are crucial tools that can drive investment towards environmentally sustainable projects while also enhancing market liquidity and investor participation.

Agama said, “From green bonds to social impact investing, from derivatives to exchange-traded funds, both from the conventional and the non-interest prisms, the spectrum of financial instruments available to investors is vast and diverse.

“The world of financial instruments is constantly evolving, presenting both opportunities and challenges, and Nigeria must seize the opportunities presented by these advancements. Embracing technology, therefore, is paramount. Fintech solutions offer increased access to the capital market, streamlined transactions and enhanced transparency. By fostering a regulatory environment that encourages responsible adoption of these technologies, we can unlock their full potential and, indeed, the potential of our nation.”

Agama stressed the importance of technology, particularly fintech solutions, in enhancing access to the capital market, streamlining transactions, and improving transparency, stating, “The SEC aims to ensure that innovations in the capital market are guided by principles of sustainability, inclusivity, and ethical conduct, promoting not only wealth generation but also social and environmental responsibility.”

The SEC DG called upon stakeholders in the capital market to prioritise sustainability and ethical practices while embracing financial innovation.

He reiterated the SEC’s commitment to maintaining market integrity, efficiency, and investor protection, emphasising that these foundational principles must accompany any advancements in the market.