The Nigerian Fintech Regulatory Commission Bill, 2025, passed its second reading during Tuesday’s plenary session. This significant piece of legislation, sponsored by Fuad Laguda, member representing Surulere I Federal Constituency of Lagos State under the All Progressives Congress (APC), seeks to establish a comprehensive regulatory framework for the fintech sector in Nigeria.
The bill, comprising 124 sections, is designed to apply to all fintech-related services offered within Nigeria, or provided through any facility or device operating within its jurisdiction. This scope extends to services provided on Nigerian-registered ships and aircraft.
A central proposal of the bill is the creation of the Nigerian Fintech Regulatory Commission. This new body will be empowered with the authority to regulate, supervise, license, and enforce standards across the entire fintech industry.
Functions of the Nigerian Fintech Regulatory Commission
The proposed Commission will undertake several key functions:
- •Ensure that fintech services are accessible to all citizens on terms that are fair, reasonable, and non-discriminatory.
- •Safeguard the rights and interests of both users and operators within the fintech ecosystem.
- •Promote local and foreign investments, and foster the development of new technologies and services that align with national interests.
- •Facilitate the inclusion of elderly citizens and individuals with disabilities in accessing fintech services.
- •Possess the authority to grant, renew, modify, suspend, or revoke licences. Crucially, no operator will be permitted to provide services without obtaining an appropriate licence. Operating without a licence will be considered a criminal offense, subject to penalties including fines, imprisonment, or both.
- •Operate as an independent entity, with the legal capacity to sue and be sued.
Details of the Proposed Commission Structure and Operations
The bill outlines two primary categories for operating permissions: individual licences and class licences. The Commission will be responsible for maintaining detailed registers of every licence issued, suspended, revoked, surrendered, or amended.
A governing board will oversee the Commission. This board will comprise a chairman, a Director-General, executive and non-executive commissioners, and other members. These appointments will be made by the President, subject to confirmation by the National Assembly.
The Commission is planned to have offices in all geopolitical zones and will develop its own staff structure, conditions of service, and administrative systems. Its funding will be derived from appropriations by the National Assembly, as well as other sources such as fees, charges, fines, and gifts. The proposed commission will also be exempt from income taxes.
The National Fintech Management Council
The bill also provides for the establishment of a National Fintech Management Council. This council will serve in an advisory capacity, offering input and ensuring coordination between the Commission and relevant government bodies.
The composition of the National Fintech Management Council will include the Minister supervising the Commission as Chair. Other members will include representatives from the Central Bank of Nigeria, the Securities and Exchange Commission, the Nigerian Communications Commission, the National Information Technology Development Agency, the Nigeria Data Protection Commission, and other entities with responsibilities in fintech, finance, competition policy, or national digital infrastructure.
Implications for Fintech Companies
The introduction of this bill carries significant implications for fintech companies operating in Nigeria. Key aspects include:
- •Companies are mandated to obtain a licence before commencing operations, with no exceptions.
- •Any proposed tariffs, fees, and charges will require prior approval from the Commission.
- •Non-compliance with the regulator's instructions can lead to the suspension or shutdown of operations.
- •Fintech companies will be required to supply all reports and data demanded by the regulator accurately and within stipulated timelines.
- •Competition practices will be subject to close monitoring, prohibiting activities such as price-fixing and market manipulation.
- •Customer complaints can now trigger direct regulatory action.
- •Any attempt to conceal information, mislead inspectors, or operate covertly can result in criminal consequences.
In essence, fintech companies will only be permitted to operate in Nigeria if they fully and consistently adhere to the rulebook established by the Commission.
Actions That Could Trigger Penalties Under the Bill
Several actions could lead to penalties for fintech operators under the new regulatory framework:
- •Operating a service without the necessary licence.
- •Making changes to fees or charges without obtaining prior approval.
- •Refusing to cooperate with an investigation initiated by the Commission.
- •Providing false or misleading information to the regulator.
- •Obstructing or threatening Commission inspectors.
- •Concealing or altering records that the regulator has requested.
- •Failing to comply with licence conditions or established rules.
The penalties for violations can range from fines and licence suspension to the seizure of equipment and imprisonment, with the severity of the penalty depending on the seriousness of the infraction.