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A bill seeking to establish the Fintech Regulatory Commission has passed its second reading at the House of Representatives. The proposed legislation, sponsored by Fuad Laguda, an All Progressives Congress (APC) lawmaker representing Surulere I Federal Constituency of Lagos State, advanced during Tuesday’s plenary session.
Leading the debate, Laguda explained that the commission would be responsible for overseeing and regulating Nigeria’s rapidly expanding fintech industry. “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.
He noted that the absence of a clear regulatory framework has raised concerns about consumer protection, financial stability, and the prevention of financial crimes. According to him, the proposed commission will provide a structured and transparent regulatory framework for the fintech ecosystem, ensuring that operators comply with established standards and guidelines.
Laguda added that the commission would safeguard consumers by ensuring that fintech companies operate fairly, transparently, and securely while encouraging innovation and minimising risks to the financial system.
The surge in digital transactions has prompted existing regulators such as the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), and the National Information Technology Development Agency (NITDA) to explore new ways to manage the rapidly evolving fintech landscape.
In October 2024, SEC announced plans to tighten regulations within the fintech sector to prevent fund mismanagement and ensure compliance with established rules. Emomotimi Agama, director-general of SEC, emphasised that a conducive regulatory environment is vital for fostering innovation and advancing Nigeria’s digital transformation.
