The Central Bank of Nigeria (CBN) is set to introduce new regulations aimed at enhancing compliance and corporate governance among fintech companies in the country. This announcement was made by Mr. Philip Ikeazor, the Deputy Governor of Financial Systems Stability at CBN, during the FITC Fintech (TechNnovation) Conference held in Lagos.
In his keynote address titled “Building Trust in the Digital Age: Balancing Performance with Compliance,” Mr. Ikeazor emphasized the importance of these new regulations. He stated that while digital banking platforms have significantly improved financial inclusion and convenience for millions of Nigerians, they also present challenges that could undermine consumer trust if not properly managed.
Mr. Ikeazor pointed out that cybersecurity threats, data breaches, and digital fraud are ongoing concerns that need to be addressed to maintain consumer confidence. To tackle these issues, the CBN is developing regulations that will focus on corporate governance and licensing requirements. These measures are expected to foster innovation while ensuring the stability and integrity of the financial system.
“Corporate governance is critical,” Mr. Ikeazor said. “Organizations need to have the right structures, be transparent, and accountable in their operations. This era of compliance will see effective and dissuasive sanctions for non-compliance.”
Mrs. Chizor Malize, CEO of FITC, highlighted the transformative impact of fintech on global financial services. She noted that fintech companies like PayPal, Square, and those in Africa, such as Interswitch and Flutterwave, are revolutionizing banking by making financial services more accessible and convenient. Nigerian banks are also adopting fintech innovations to meet changing consumer demands.
Mrs. Malize emphasized that Africa, particularly Nigeria, is at the forefront of the fintech revolution. She mentioned that the adoption of mobile technology and the increasing demand for financial services are driving significant changes in digital payments, financial inclusion, and banking services across the continent.
The CBN’s new regulations aim to strengthen the fintech sector in Nigeria by improving compliance and corporate governance. As digital financial services continue to grow, these measures will help ensure that the sector remains trustworthy and stable, fostering further innovation and financial inclusion.
