Reps hold hearing on Fintech Regulatory Commission Bill

2026-03-02 - 12:28

By Gift ChapiOdekina, Abuja The House of Representatives on Monday took a major step toward overhauling Nigeria’s fast-growing financial technology sector as lawmakers and stakeholders converged for a public hearing on a bill seeking to establish the Nigerian Fintech Regulatory Commission (NFRC). The proposed legislation, sponsored by Rep. Fuad Kayode Laguda, aims to create a single, independent body to license, supervise, and regulate fintech companies, technologies, and service providers across the country, replacing what lawmakers described as a fragmented multi-agency framework. Declaring the hearing open, Speaker of the House, Tajudeen Abbas, said the initiative was critical to positioning Nigeria as Africa’s leading fintech hub while addressing persistent regulatory inconsistencies. “It is an honour to be here and to welcome you all to this important public hearing on a Bill for an Act to provide for the establishment of the Nigerian Fintech Regulatory Commission and for related matters (HB.2389),” the Speaker said. He explained that public hearings were a “time-honoured tradition of the legislature” designed to ensure that laws passed by the National Assembly are “enforceable, relevant, and consistent with the Constitution of the Federal Republic of Nigeria.” Tackling Fragmented Regulation In his lead debate, Rep. Laguda said the absence of a single regulatory authority for fintech operations had created compliance challenges and threatened investor confidence. “I sponsor this bill to establish the NFRC to enhance the business and operational activities of fintech operators and service providers in Nigeria,” he said. “I discovered that Nigeria has no single regulatory authority regulating the businesses, practices, and operations of fintech operators and service providers despite their impact on national growth and development.” Currently, Nigeria’s fintech ecosystem is regulated by multiple agencies, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), National Information Technology Development Agency (NITDA), National Office for Technology Acquisition and Promotion (NOTAP), and the Federal Inland Revenue Service (FIRS). According to Laguda, this “fragmented regulatory framework” forces operators to interface with several institutions, increasing costs and uncertainty. “Rather than interfacing with multiple regulators, fintech stakeholders will only interface with the NFRC, thereby enabling ease of doing business for them,” he stated. Lawmakers underscored the economic significance of the sector, citing rapid expansion in funding, company numbers, and transaction volumes. Laguda referenced reports from the African Development Bank, BusinessDay, Statista, and the Financial Times showing that Nigeria’s fintech industry was valued at over $500 million between 2020 and 2021, with more than 103 registered startups during the COVID-19 lockdown period. He added that Daily Trust reported on February 24, 2026, that Nigerian fintech startups raised over $520 million in equity funding in 2024. “As of January 2024, Nigeria has 250 fintech companies, while the market value of the industry was projected at around $230 billion,” he said, citing a McKinsey & Company report. “As of January 2026, nine fintech firms have a combined valuation of $10.6 billion, with over 430 fintech firms recorded in 2025.” He further disclosed that Nigeria recorded over 108 billion mobile money transactions amounting to more than $1.6 billion in 2024. Protecting Investors and Consumers Both the Speaker and the bill’s sponsor stressed that consumer protection and cybersecurity would be central to the proposed Commission’s mandate. “The proposed Nigerian Fintech Regulatory Commission is expected to act as a statutory body that will oversee licensing, regulate, and supervise fintech services, and replace the existing multi-regulatory approach with a one-stop model,” Abbas said. He noted that fintech had become a “major tool for advancing financial inclusion” in a country with one of the largest unbanked populations globally, creating thousands of jobs and supporting small businesses in line with President Bola Tinubu’s Renewed Hope Agenda. “Sadly, regulation has not been able to keep pace with the speed of innovation in the sector,” Abbas observed. “The absence of a single coordinated framework for fintech oversight has led to fragmented regulations, compliance difficulties, and general uncertainties for investors and consumers alike.” The Speaker also clarified that the new Commission would not undermine existing regulators. “The Commission is not in competition with existing institutions nor is it meant to replace them,” Abbas said. “Its work must not undermine the work of the Central Bank of Nigeria, the Securities and Exchange Commission, the National Information Technology Development Agency of Nigeria, or the Nigeria Deposit Insurance Corporation. Rather, it is supposed to operate as a complementary mechanism.” He warned against regulatory proliferation, stressing that the new body “is not intended to expand bureaucracy but to reduce regulatory barriers, cut costs, and improve efficiency.” Laguda added that the NFRC would “enforce standards, rules, and codes of practice for operators and investors” and “adequately protect customers from digital fraud and build their trust in digital platforms.” He pointed to international examples where independent fintech regulators operate alongside central banks, citing Sweden, Norway, Japan, Denmark, Uganda, and Taiwan as countries with dedicated supervisory authorities overseeing fintech operations while central banks focus on broader monetary policies. “In these countries, independent regulators of fintechs have been successfully established while their central banks focus on broader monetary and financial policies,” he said, noting that Finland and Malta restrict their central banks to oversight roles rather than day-to-day regulation. Laguda expressed confidence that Nigeria could replicate such models to safeguard investors and customers from digital threats, scams, and online fraud.