Reps move to establish fintech regulatory commission

A bill seeking to establish the fintech regulatory commission has passed the second reading at the house of representatives.

Sponsored by Fuad Laguda, an All Progressives Congress (APC) lawmaker representing Surulere I federal constituency of Lagos state, scaled the second reading during Tuesday’s plenary.

Leading the debate on the bill, Laguda said the commisison will oversee and regulate the rapid-growing fintech industry in Nigeria.

“The need for this regulation has grown exponentially 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.

“However, the lack of a clear regulatory framework has led to concern about commercial protection, financial stability, and the prevention of financial crimes.

The legislator said the commission will provide a “clear regulatory framework” for the fintech industry, ensuring that operators comply with established standards and guidelines.

The commissioner is expected to protect consumers by ensuring that fintech companies operate fairly, transparently, and securely, while promoting innovation in the fintech sector and minimising risk to financial stability.

The rapid rise in digital transactions has prompted regulators, including the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and National Information Technology Development Agency (NITDA), to explore new measures to address the rapidly evolving fintech environment.

In October 2024, SEC said that it will enforce regulations in the fintech ecosystem to curb the mismanagement of funds and align operators with existing rules.

Emomotimi Agama, director-general of SEC, said a regulatory environment that is conducive to the innovative use of technology is essential in the drive to transform Nigeria.