An Overview of the Regulatory Framework of FinTech in Nigeria
8 Pages Posted: 6 Nov 2019 Last revised: 8 May 2020
Date Written: July 23, 2019
Since the global financial crisis of 2007, several banking regulatory reforms have been instituted in a bid to increase trust in the Nigerian banking sector and maintain stability in the financial industry. These regulatory reforms, however, did not anticipate the intrusion of technology in the delivery of financial services.
The absence of a direct and unified regulation on FinTech in Nigeria has engendered the erroneous notion that the Nigerian FinTech industry is uncharted territory. However, notwithstanding the inexistence of a cohesive FinTech regulation, the Central Bank of Nigeria (CBN) has issued several guidelines, which impacts various aspects of the FinTech industry, especially the digital payments sub-sector which has witnessed the highest amount of activity in recent times. These regulations seek to improve financial inclusion while allowing for continuous innovation.
The purpose of this paper is to identify and examine the existing regulations in Nigeria’s FinTech industry and to canvass for a cohesive and comprehensive legislation for Fintech in Nigeria.
Keywords: FinTech, Regulation, FinTech Regulatory Sandbox, Central Bank of Nigeria
JEL Classification: G2
Suggested Citation: Suggested Citation