By Gloria Ikibah
Key players in Nigeria’s digital finance space have thrown their weight behind plans to establish a Nigerian Fintech Regulatory Commission (NFRC), a proposed body intended to license, supervise and regulate fintech firms, technologies and service providers nationwide.
Support for the initiative was voiced during a public hearing on the proposed legislation held in Abuja by the House of Representatives Joint Committee on Banking and Technology. The bill seeks to formally create the NFRC and outline its powers and responsibilities within the fast-growing sector. 
Representing the Association of Mobile Money and Bank Agents in Nigeria (AMMBAN), its acting National Chairman, Obioha Oti, described the proposal as a positive and timely development. He said the association strongly supports the establishment of the commission, noting that it would enhance transparency, strengthen consumer protection and bolster financial stability across the ecosystem.
He acknowledged the regulatory contributions already made by the Central Bank of Nigeria and the Securities and Exchange Commission, both of which have overseen various aspects of fintech operations over the years. However, he stressed that as digital finance continues to expand and technologies evolve, the legal and regulatory architecture must keep pace.
Oti also urged lawmakers to ensure that AMMBAN members and registered point-of-sale agents are fully integrated into the new regulatory framework. He described them as a crucial link in advancing financial inclusion, particularly in rural and underserved communities.
The Chief Compliance Officer at Hydrogen Payment Services Company Limited, Mojisola Ologe, welcomed the National Assembly’s move to formally recognise fintech as a strategic sector of the Nigerian economy. She observed that such statutory recognition sends a strong signal to investors and innovators, reinforcing confidence in the country’s digital finance landscape.
Ologe pointed to the bill’s focus on consumer protection, market conduct and a structured compliance and enforcement regime as important building blocks. If properly aligned, she suggested, the framework could help position Nigeria as one of Africa’s most organised and credible digital finance jurisdictions.
However, she cautioned that the draft legislation may create regulatory overlap with existing authorities, particularly the Central Bank and the Securities and Exchange Commission. Many fintech operators, she noted, are already licensed and supervised under current financial laws. Without clearly defined boundaries and safeguards to prevent duplication, the industry could face dual licensing requirements, conflicting compliance obligations, higher regulatory costs and potential uncertainty for investors.
She further raised concerns about enforcement provisions in the bill, including strict penalties such as substantial fines, imprisonment and asset forfeiture for unlicensed activities. While acknowledging the need for deterrence, she warned that overly punitive measures in a developing sector could dampen innovation and discourage foreign investment at a critical stage of growth.
“We recommend an initial administrative compliance window, a cease-and-desist orders where systemic risk exists and criminal sanctions reserved for fraud, wilful misconduct, or persistent refusal to comply.
“Clauses 64–66 grant broad document production powers but lack clear data protection safeguards and judicial challenge mechanisms.
“We propose explicit alignment with the Nigeria Data Protection Act 2023, protection of legally privileged information and a defined window to challenge production orders before the Federal High Court.
“To enhance credibility and investor confidence, we recommend the establishment of a Fintech Regulatory Appeals Tribunal,” she said.
