A bill seeking to establish the Nigerian Fintech Regulatory Commission passed its second reading on Tuesday in the House of Representatives following deliberations on its key provisions during plenary session by the federal lawmakers.
The draft legislation, sponsored by Hon. Fuad Kayode Laguda, aims to create a comprehensive legal and regulatory framework for Nigeria’s growing financial technology industry.
During the plenary session on Tuesday, the sponsor harped on the need for a dedicated regulatory body to address the complexities within the emerging fintech sector, noting that the current regulatory environment is fragmented, with multiple agencies overseeing different aspects of fintech operations, leading to inefficiencies and overlaps.
Specifically, the draft bill, if passed by the National Assembly, provided that the proposed commission would centralize the regulation of fintech activities, ensuring consistent policies and enforcement across the industry. Its mandate will cover areas such as digital payments, mobile banking, and cryptocurrency transactions, providing a unified approach that supports innovation and safeguards consumer interests.
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Hon. Laguda and other lawmakers supporting the passage of the bill maintained that establishing the commission would modernize Nigeria’s financial infrastructure and align it with global best practices, boost investor confidence, promote transparency, and facilitate the growth of fintech startups in the country.
Following its sailing through the second reading, the bill will now be referred to relevant House committees for further deliberation and possible amendments before the third reading.
If the draft legislation is enacted into law, the commission is expected to play a pivotal role in shaping the future of Nigeria’s fintech ecosystem.
The lawmakers supporting the passage of the bill expressed their optimism that a dedicated regulatory body remained crucial for sustainable growth and to address emerging challenges in the nation’s rapidly evolving digital industry.
