Stakeholders Back Reps Move On Proposed Fintech Regulatory Commission Bill

By Alkassim Bala Tsakuwa, Abuja

Industry players in the digital finance sub-sector of the Nigerian economy have backed expressed the proposed bill for the establishment of the Nigerian Fintech Regulatory Commission (NFRC) as the regulator of activities in the sector.

They made their position known in their various submissions at the public hearing held by the House of Representatives Joint Committee on Banking and Technology on Monday.

The bill was titled ” A Bill For An Act To Provide For The Establishment Of Nigerians Fintech Regulatory Commission In Nigeria And For Related Matters, 2025″.

In her submission, the Chief Compliance Officer of Hydrogen Payment Services Company Limited, Ms Mojisola Ologe said, the recognition offintech as a strategic sector of Nigeria’s economy by the National Assembly was commendable because it will enhance investors confidence and encourage innovators.

Ms Ologe said that emphasis on consumer protection and a structured enforcement and compliance framework contained in the proposed bill, will create a strong foundations that can position Nigeria as Africa’s most structured digital finance jurisdiction if properly harmonised.

She however cautioned that, overlapping with existing regulators such as the CBN and SEC in the draft bill must be taken care of to make it workable.

According to her, licenced fintech companies are currently being supervised under existing financial statutes adding that, without a clear non-derogation clause and defined scope boundaries, there could be dual licensing, conflicting compliance obligations, increased regulatory cost and investor uncertainty.

She cited clause 31 of the bill which imposes immediate heavy fines, imprisonment, and forfeiture for unlicensed activity.

She said, “While deterrence is important, over-criminalisation in emerging industries can discourage innovation and foreign investment. We recommend an initial administrative compliance window, a cease-and-desist orders where systemic risk exists and criminal sanctions reserved for fraud, wilful misconduct, or persistent refusal to comply.

“Clauses 64–66 grant broad document production powers but lack clear data protection safeguards and judicial challenge mechanisms. We propose explicit alignment with the Nigeria Data Protection Act 2023, protection of legally privileged information and a defined window to challenge production orders before the Federal High Court.

She therefore added they have recommended the establishment of a Fintech Regulatory Appeals Tribunal to enhance credibility and investor confidence.

Similarly, the acting National Chairman of Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), Mr Obioha Oti, said the association is also fully in support of the proposed bill.

He said, “We wish to states that we are fully in support of the establishment Nigerian Fintech Regulatory Commission (NFRC). We believe it is a welcome developments that will strengthen transparency , consumer protection and financial stability”.

He commended the CBN and SEC for the regulatory work done over the years and for their contribution to the sector adding that, as the fintech market expands and technology evolves, hence the need for legislations that will also evolve with the dynamics of the fintech industry.

He therefore noted that AMMBAN and registered POS agents should integrated into the regulatory framework for financial inclusion especially in underserved areas.

In his address earlier, Chairman of the Joint Committee, who is the Chairman, House Committee on Digital and Electronic Banking, Hon. Emmanuel Ukpong-Udo said, the engagement with the stakeholders reflects the commitment of the House of Representatives to build a responsive and forward-looking legal framework that keeps pace with the rapid evolution of financial technology in Nigeria.

He said, “Nigeria has emerged as one of Africa’s leading fintech hubs, attracting significant domestic and foreign investment, driving digital payments adoption, and expanding access to credit and financial services. However, this rapid growth has also exposed regulatory fragmentation, compliance uncertainties, consumer protection gaps, and supervisory overlaps. HB. 2389 seeks to address these challenges in a structured and comprehensive manner.

“The Bill before us today is designed to establish the Nigerian Fintech Regulatory Commission as a specialised and independent regulatory authority with the mandate to provide coherent oversight of fintech activities”.

On his part, the sponsor of the bill, Hon. Fuad Kayode Laguda said, he sponsored the Bill to establish the NFRC after he discovered that Nigeria has no single regulatory authority regulating businesses, practices, and operations of fintech operators and service providers despite their impact on national growth and development.