RI is designed to enable the Commission gain clearer understanding of new innovations in the Capital Market to ensure that it provides the necessary regulations that will both facilitate innovation and enhance investor protection and Market integrity. It entails the provision of basic requirements that allow potential operators (Fintech Firms) to operate under some prescribed but limited provisions for a specified period.
Frequently Asked Questions
on the SEC Regulatory Incubation (RI) Program
Regulatory Incubation (RI) is opening new pathways for fintech firms to test and scale innovative capital-market solutions in Nigeria—but understanding eligibility, application steps, fees, timelines and exit conditions can be daunting. This FAQ demystifies the SEC’s Regulatory Incubation (RI) program by providing concise answers on its objectives, who qualifies, where and how to apply, associated costs, duration, and post-incubation obligations—helping fintech entrepreneurs and stakeholders navigate the process with confidence and clarity.
Q1: What is the Objective of RI?
Q2: Who can apply for SEC Regulatory Incubation?
Any Company incorporated in Nigeria or licensed by a Securities Market Regulator in an equivalent jurisdiction offering or intending to offer innovative product, solutions or service or applying technology in an innovative way to provide investment and securities business in the Nigerian Capital Market.
Q3: Where should an application be submitted to?
All applications are completed and submitted online on the SEC Fintech and Innovation Hub. Access is granted based on pre-eligibility assessment.
Q4: Is there a specific period for RI Application?
There is a specific period for applications which will be announced periodically. However, interested applicants need to complete an initial assessment form to first ascertain eligibility prior to each announcement.
Q5: Would application to be in the Regulatory Incubation incur any administrative fee(s)?
Applicants are required to pay a filing fee of ₦50,000 at the submission of the initial assessment form and ₦200,000 at the submission of the RI application.
Q6: What happens to an application assessed ineligible for Regulatory Incubation?
Firms found not to be eligible for RI will be advised by the Commission on the next course of action.
Q7: Are unsuccessful applicants refunded?
Both initial eligibility assessment and RI application fees are non-refundable.
Q8: How long is the Regulatory Incubation Process?
The RI process is for a period of one year. However, this period may be extended if the Commission determines the need for it.
Q9: Can a FinTech Firm be asked to exit the RI before the expiration period?
A FinTech Firm may be asked to exit the RI if it is deemed ineligible to continue or when substantive rules are issued for regulation of the specific innovation.
Q10: What happens if a Firm does not contact the Commission for eligibility assessment?
Firms operating illegally in the SEC regulatory sphere without a SEC registration or admittance into the RI process will face enforcement actions.
Q11: How long will an assessment of an RI application take?
The process of assessment and admittance into the RI program spans a period not exceeding 60 days.
Q12: Are FinTech Firms admitted into RI program recognised as SEC Registered Capital Market Operators (CMOs)?
Approval into SEC RI is not SEC Registration as a CMO. Successful FinTech entrepreneurs at the end of the RI process are required to apply for full SEC registration.
Q14: If I have made a submission already via the FinTech Assessment Form, do I need to make another submission to determine my eligibility for the RI program?
Yes. You will have to complete and submit a new FinTech Assessment form.