New Commission Aims to Protect Consumers and Foster Innovation in Nigeria’s Growing Digital Finance Sector….
The House of Representatives has passed the second reading of a bill to establish a Fintech Regulatory Commission, aimed at overseeing Nigeria’s rapidly growing digital finance sector.
The bill, sponsored by Fuad Laguda, an APC lawmaker representing Surulere I Federal Constituency, Lagos State, was scaled during Tuesday’s plenary session. Laguda led the debate, emphasizing the need for a dedicated regulatory framework to manage the expanding fintech ecosystem.
“The need for 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,” Laguda said.
He noted that the absence of clear regulation has raised concerns about commercial protection, financial stability, and the prevention of financial crimes.
The proposed commission will ensure that fintech operators comply with established standards, promoting fairness, transparency, and security while supporting innovation. It will also protect consumers and mitigate risks to the broader financial system.
The rise in digital transactions has prompted regulators such as the Central Bank of Nigeria (CBN), Securities and Exchange Commission (SEC), and National Information Technology Development Agency (NITDA) to explore measures addressing the evolving fintech landscape.
In October 2024, SEC announced plans to enforce fintech regulations to curb mismanagement of funds and ensure alignment with existing financial rules. SEC Director-General Emomotimi Agama stressed that a regulatory environment conducive to technology-driven innovation is critical for transforming Nigeria’s financial sector.
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