Stakeholders in Nigeria’s financial technology (fintech) sector have raised concerns over a bill seeking to establish a fintech regulatory commission.
The reservations were raised on Monday at a public hearing organised by the house of representatives joint committees on digital and electronic banking, banking regulations, science and technology, communications, and capital market and institutions.
Representatives of fintech firms said the commission would duplicate functions currently performed by the Central Bank of Nigeria (CBN).
Maxwell Loko, vice-president of public and government affairs at OPay digital services, said the company supports the objective of strengthening regulatory oversight in the fintech space but cautioned against creating a parallel authority that could overlap with existing agencies.
“The industry’s growth demands clarity, structure, and coordinated supervision. However, the effectiveness of regulation depends not only on good intentions, but on design, structure, and coordination,” he said.
Loko noted that the CBN currently exercises primary regulatory authority over mobile money operators, payment service providers and digital banking platforms, while other agencies such as the Nigeria Data Protection Commission (NDPC), and the Federal Competition and Consumer Protection Commission (FCCPC) handle data governance and consumer protection issues respectively.
“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 said.
Loko warned that Nigeria’s fintech sector “thrives on speed, clarity and predictable rules” and that fragmented supervision could slow innovation.
He recommended strengthening the existing framework under the apex bank while formalising structured inter-agency coordination mechanisms.
Loko said a single lead regulator model anchored by the CBN would ensure “clear accountability, reduced duplication, coordinated enforcement and regulatory certainty”.
He added that this approach aligns with global best practice, where central banks typically anchor payments and digital banking supervision while collaborating with specialised agencies.
Henry Obiekea, managing director of FairMoney Microfinance Bank, also raised concerns about dual oversight under the proposed framework.
He said while the CBN would continue to regulate microfinance banks’ prudential and monetary aspects, the proposed commission would supervise consumer-facing digital lending conduct.
Obiekea said this would create a situation where CBN determines what the bank can charge, while the commission ensures how those charges are communicated and justified to consumers.
He said this introduces regulatory duplication and complex compliance coordination, adding that tech-enabled services such as loan applications, digital KYC and mobile channels may require additional licensing or registration.
Obiekea described the bill as both a challenge and an opportunity.
He said the proposed law poses a challenge due to increased compliance complexity and the risk of dual regulation, but also presents an opportunity as the formal recognition of digital finance as a distinct sector could boost investor confidence and strengthen consumer trust.
However, the Association of Telecommunications, Information, Technology, Cable Satellite Network Operators and Allied Services Employers of Nigeria (ATICEN) expressed support for the bill.
Adede Williams, ATICEN’s president, said Nigeria hosts nearly 400 fintech firms and that the absence of an independent regulator with a statutory mandate to oversee fintech activities has led to fragmented and inconsistent oversight.
“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,” Williams said.
He argued that overlapping policies and fragmented responsibilities impose negative regulatory impacts and recommended a unified oversight body to consolidate responsibilities into a single statutory authority.
Williams said a separate regulator with explicit and progressive policy guidelines would provide the certainty needed for technological innovation and sustainable growth.
Obioha Otti, acting president of the Association of Mobile Money and Bank Agents in Nigeria (AMBAN), also endorsed the bill, saying he represents over two million point of sale (POS) and mobile money agents operating across the 36 states and the federal capital territory.
Otti said as the fintech ecosystem expands rapidly, regulation must evolve to match global standards, describing AMBAN members as the “last mile” of Nigeria’s digital financial system, operating in villages, markets and underserved communities where traditional banks have limited presence.
“As the commission is being established, AMBAN and registered POS agents should be formally integrated into the regulatory framework,” he said.
Fuad Laguda, the bill’s sponsor, said 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.
The lawmaker said the creation of this regulatory commission will enhance the profitability of fintech businesses and the security of fintech users.
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