Lawmakers Consider Bill To Regulate Fintech, Digital Payments

The House of Representatives has begun considering a bill to establish a new regulatory body for the fast-growing financial technology sector in the country

The proposed legislation seeks to create the Nigerian Fintech Regulatory Commission, which would oversee licensing, supervision and regulation of fintech companies and digital payment operators.

Speaking at a public hearing organised by the House Joint Committee on Banking and Technology, Speaker Dr Abbas Tajudeen said financial technology had become a key driver of inclusion in a country with one of the world’s largest unbanked populations.

He noted that innovation in digital payments, blockchain technology, digital assets and crowdfunding had generated jobs and attracted investment, but warned that regulation had not kept pace with growth in the sector.

“The absence of a single coordinated framework for fintech oversight has led to fragmented regulations and compliance difficulties,” he said.

However, Mr Tajudeen stressed that the proposed commission must not undermine existing regulators, including the Central Bank of Nigeria, the Securities and Exchange Commission, the National Information Technology Development Agency, and the Nigeria Deposit Insurance Corporation. Instead, he said it should operate as a complementary body.

The bill’s sponsor, Fuad Kayode Laguda, argued that Nigeria currently lacks a single authority dedicated to regulating fintech operators despite their growing impact on the economy.

He cited industry reports indicating that Nigeria’s fintech sector has attracted hundreds of millions of dollars in investment in recent years and now includes hundreds of startups.

According to him, multiple regulatory frameworks have created uncertainty for investors and operators.

Under the proposal, fintech firms would interface primarily with the new commission rather than multiple agencies, a move lawmakers say would improve ease of doing business.

Stakeholders at the hearing expressed broad support for the bill but called for clear boundaries to prevent regulatory overlap.

They also recommended safeguards on data protection, judicial review of enforcement powers, and the creation of a specialised appeals tribunal.

Oduyemi Odumade, Edited By Grace Namiji