Lawmakers Move To Create Fintech Regulatory Body Amid Rapid Industry Growth

A bill seeking to establish the Fintech Regulatory Commission has passed its second reading at the House of Representatives.

The proposed legislation, sponsored by member representing Surulere I Federal Constituency of Lagos State, Fuad Laguda aims to provide a comprehensive legal and regulatory framework for Nigeria’s rapidly expanding financial technology industry.

Leading the debate on the general Principles of the bill, Laguda noted that millions of Nigerians now depend on digital payment systems, mobile money platforms, and other fintech services for their daily financial transactions, making oversight both timely and necessary.

“The need for regulation has grown exponentially in recent years. The absence of a clear framework has raised concerns about consumer protection, financial stability, and the prevention of financial crimes,” Laguda said.

According to him, the proposed commission would be responsible for ensuring compliance with operational standards, protecting users’ interests, and promoting innovation within the fintech ecosystem.

He further stated that the agency would also help balance innovation with prudential oversight to minimise risks to the financial system.

The lawmaker explained that the new body would complement the efforts of existing regulators such as the Central Bank of Nigeria, CBN, the Securities and Exchange Commission, SEC, and the National Information Technology Development Agency, NITDA, which have all been grappling with the fast-evolving digital finance space.

“Nigeria’s fintech sector has experienced rapid growth in recent years, prompting regulatory agencies to strengthen supervision and enforcement. In October 2024, the SEC announced plans to tighten oversight of fintech operations to prevent fund mismanagement and ensure compliance with existing laws” he said.

The bill has been referred to the relevant House committees for further consideration and legislative input

Oduyemi Odumade, Edited By Grace Namiji