A invoice earlier than the House of Representatives in search of to establish a fintech regulatory commission has break up organisations within the sector, with fintech operators warning towards regulatory overlap whereas telecom and agent teams push for a single authority to oversee the trade.
The debate performed out on Monday at a public listening to organised by the House joint committees on digital and digital banking, banking rules, science and expertise, communications, and capital market and establishments.
Leading assist for the invoice, the Association of Telecommunications, Information, Technology, Cable Satellite Network Operators and Allied Services Employers of Nigeria (ATICEN) argued that the absence of a standalone fintech regulator has resulted in fragmented supervision.
Adede Williams, the affiliation’s president, mentioned almost 400 fintech corporations function in Nigeria with out a single statutory authority targeted solely on their actions. He maintained that overlapping mandates amongst regulators have created coverage inconsistencies and regulatory gaps.
“The absence of an independent regulatory body is a threat to consumers, investors, industry service providers, stakeholders, shareholders and the digital economic stability at large,” Mr Williams mentioned.
According to him, a unified commission would consolidate obligations, cut back confusion and supply the understanding required for innovation and long-term funding.
Obioha Otti, performing president of the Association of Mobile Money and Bank Agents in Nigeria (AMBAN), additionally endorsed the proposal.
Representing greater than two million point-of-sale and cellular cash brokers throughout the 36 states and the Federal Capital Territory, Mr Otti described brokers because the spine of monetary inclusion, notably in rural and underserved communities.
He urged lawmakers to formally incorporate registered POS brokers into the proposed framework, noting that regulation should evolve to maintain tempo with the speedy enlargement of the fintech ecosystem.
“As the commission is being established, AMBAN and registered POS agents should be formally integrated into the regulatory framework,” he mentioned.
Fintech operators kick
However, fintech operators and digital lenders cautioned that the brand new commission might duplicate the Central Bank of Nigeria’s and different present businesses’ obligations.
Maxwell Loko, vice-president for public and authorities affairs at OPay Digital Services, mentioned whereas the corporate helps stronger oversight, regulatory effectiveness depends upon readability and coordination relatively than multiplication of authorities.
He identified that the CBN already regulates cellular cash operators, fee service suppliers and digital banks. In addition, the Nigeria Data Protection Commission (NDPC) oversees information governance, whereas the Federal Competition and Consumer Protection Commission (FCCPC) handles client safety issues.
“Without very precise delineation of roles, the establishment of a parallel regulator risks duplication of licensing processes, overlapping supervisory examinations, increased compliance costs, and regulatory uncertainty that may discourage investment,” he mentioned.
Mr Loko warned that with out exact delineation of roles, a brand new regulator may lead to parallel licensing processes, overlapping examinations and better compliance prices, probably discouraging funding in a sector that depends upon velocity and regulatory certainty.
He advisable strengthening the present framework underneath the CBN and formalising structured inter-agency coordination, arguing {that a} single lead regulator mannequin anchored by the financial institution would guarantee accountability and cut back duplication, in step with world observe.
Henry Obiekea, managing director of HonestMoney Microfinance Bank, shared related considerations. He mentioned the invoice might introduce twin oversight for digital lenders, with the CBN retaining management over prudential issues whereas the proposed commission supervises consumer-facing conduct.
Such an association, he defined, might create compliance issues, notably the place technology-driven providers like digital mortgage functions and know-your-customer processes could require further approvals.
Despite the dangers, Mr Obiekea described the invoice as each a problem and a possibility, noting that formal recognition of digital finance as a definite sector might improve investor confidence and strengthen client belief if correctly structured.
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Fuad Laguda, sponsor of the invoice, mentioned Nigeria at the moment lacks a single authority devoted to regulating fintech operators and repair suppliers, regardless of their rising impression on nationwide growth.
He argued that establishing a fintech regulatory commission would enhance consumer safety, improve sector profitability and supply a clearer supervisory framework for the trade.
With stakeholders sharply divided, lawmakers now face the duty of balancing the necessity for coordinated oversight with considerations about regulatory duplication in considered one of Nigeria’s fastest-growing sectors.