A bill proposing the creation of a Fintech Regulatory Commission has passed its second reading in the House of Representatives. The legislation, sponsored by Fuad Laguda, an All Progressives Congress (APC) lawmaker representing Surulere I Federal Constituency in Lagos State, progressed during Tuesday’s plenary session.
Leading the debate, Laguda highlighted that the commission would oversee and regulate Nigeria’s rapidly growing fintech sector. “The need for this regulation has increased significantly in recent years, with millions of Nigerians relying on digital payment platforms, mobile money services, and other fintech products for their financial transactions,” he said.
He stressed that the lack of a clear regulatory framework has raised concerns regarding consumer protection, financial stability, and the prevention of financial crimes. The proposed commission, he explained, would provide a structured and transparent framework for the fintech ecosystem, ensuring operators adhere to established standards and guidelines.
Laguda further noted that the commission would protect consumers by ensuring fintech companies operate fairly, transparently, and securely, while also fostering innovation and minimizing risks to the broader financial system.
The surge in digital transactions has prompted existing regulators, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and National Information Technology Development Agency (NITDA), to explore new strategies for managing the rapidly evolving fintech landscape.
In October 2024, the SEC announced plans to tighten regulations within the fintech sector to prevent fund mismanagement and ensure compliance. Emomotimi Agama, SEC’s Director-General, emphasized that a robust regulatory environment is essential for promoting innovation and advancing Nigeria’s digital transformation.
0 Comments