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Torkwase Nyiekaa
The House of Representatives on Monday assured key financial regulators, including the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), that the proposed Nigeria Fintech Regulatory Commission will not undermine their statutory mandates as lawmakers push forward a bill to reform oversight of the country’s fast-growing digital finance sector.
The assurance was given during a public hearing on a bill seeking to establish the Nigeria Fintech Regulatory Commission, organised by the House Joint Committee on Banking and Technology.
Speaker of the House, Tajudeen Abbas, said while fintech has become a critical driver of financial inclusion and innovation in Nigeria, the proposed commission is not intended to compete with or replace existing regulators.
He stressed that the new body, if established, would function as a complementary mechanism, deferring to primary regulators in their core areas of responsibility as already defined by law.
Abbas noted that Nigeria has witnessed rapid growth in digital payments, blockchain technology, digital assets, crowdfunding and other emerging financial services in recent years, creating thousands of jobs and attracting significant investment. However, he observed that regulation has struggled to keep pace with innovation, leading to fragmented oversight, compliance challenges and uncertainty for investors and consumers.
“The absence of a single coordinated framework for fintech oversight has resulted in duplication and inconsistencies,” he said. “The Commission is not meant to expand bureaucracy, but to streamline processes, eliminate regulatory overlap and reduce barriers that stifle innovation.”
According to the Speaker, the public hearing was convened to gather input from regulators, operators, investors and consumer protection groups in order to define the appropriate scope, powers and limitations of the proposed commission and ensure alignment with existing laws.
He emphasized the need to avoid regulatory proliferation, noting that there must be no duplication of licensing processes or conflicting compliance obligations.
Sponsor of the bill, Hon. Fuad Laguda, said the proposed commission would serve as a one-stop regulatory interface for fintech operators, replacing the current multi-regulatory framework under which companies deal with multiple agencies, including the CBN, SEC and the National Information Technology Development Agency.
Laguda argued that the fragmented regulatory structure threatens stakeholder confidence and increases operational costs, adding that a unified framework would enhance ease of doing business, improve investor protection and strengthen consumer confidence.
He cited industry data indicating that Nigeria’s fintech ecosystem has grown significantly in recent years, attracting hundreds of millions of dollars in funding and expanding the number of registered firms across the country.
Stakeholders at the hearing largely expressed support for the bill but called for clarity in defining the commission’s jurisdiction to prevent dual licensing and regulatory conflicts.
The Acting National Chairman of the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), Obioha Otto, commended existing regulators for their work and said evolving technology requires corresponding legislative reform.
Similarly, Chief Compliance Officer of Hydrogen Payment Services Company Limited, Mojisola Ologe, welcomed the move to formally recognise fintech as a strategic sector but urged lawmakers to clearly delineate the commission’s powers.
She warned that without a defined scope and non-derogation clauses, operators could face conflicting compliance obligations and higher regulatory costs. She also recommended alignment with the Nigeria Data Protection Act 2023 and proposed the establishment of a Fintech Regulatory Appeals Tribunal to strengthen investor confidence.
If passed, the bill will establish the Nigeria Fintech Regulatory Commission as an independent statutory body responsible for licensing, supervising and regulating fintech companies and emerging financial technologies, while working in coordination with existing financial authorities.
Lawmakers said deliberations on the bill would continue after reviewing submissions from stakeholders.
