Manny Ita –
A public hearing at the House of Representatives has generated divided opinions over a bill seeking to establish a Nigerian FinTech Regulatory Commission (NFRC), with lawmakers defending the proposal as a necessary reform while industry operators warn of potential regulatory overlap.
The bill, which was considered over two days, proposes the creation of an independent body to regulate financial technology companies in Nigeria, a space currently supervised by multiple agencies including the Central Bank of Nigeria, the Securities and Exchange Commission, and the National Information Technology Development Agency.
Sponsors of the legislation argued that the present structure has resulted in what they described as a “fragmented” regulatory environment, with overlapping mandates that create compliance uncertainties for operators.
A lawmaker who spoke during the hearing said the proposed commission would “streamline oversight, reduce regulatory confusion, and provide a single window for fintech supervision.” According to him, the rapid growth of digital financial services in Nigeria demands a specialized regulator with the technical capacity to respond to emerging risks and innovations.
Another supporter of the bill maintained that a unified commission would strengthen consumer protection and enhance investor confidence. “Fintech is no longer a sub-sector that can be managed in bits and pieces. We need a coordinated framework that matches the scale and complexity of the industry,” he said.
However, several stakeholders in attendance expressed reservations about the proposed body, cautioning that it may duplicate existing functions rather than simplify the system.
Representatives of OPay warned that establishing another regulator could increase compliance burdens for companies already subject to multiple reporting requirements. A company executive at the hearing stated that “the concern is duplication of roles. If the mandates of the CBN, SEC, and NITDA remain intact, adding another layer may create more red tape instead of reducing it.”
Other industry players echoed similar concerns, arguing that what is required is clearer inter-agency coordination rather than the creation of a new commission. One stakeholder noted that “regulatory clarity can be achieved through harmonization of existing frameworks without necessarily setting up a new bureaucracy.”
Some experts also questioned how the proposed NFRC would interface with established financial regulators, particularly in areas such as payments, digital lending, crowdfunding, and crypto-related services, where jurisdictional lines are often sensitive.
In response, proponents of the bill assured stakeholders that the legislation would clearly define the commission’s scope to avoid conflict with existing agencies. A member of the committee handling the bill said lawmakers were open to amendments that would “eliminate ambiguities and ensure synergy, not rivalry, among regulators.”
The fintech sector has become one of Nigeria’s fastest-growing industries, attracting significant local and foreign investment in recent years. Analysts say the outcome of the legislative process could have far-reaching implications for innovation, capital inflows, and regulatory stability in the digital finance ecosystem.
The public hearing is expected to inform further revisions to the bill before it proceeds to the next stage of legislative consideration.
