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Stakeholders Backs Creation of Nigerian Fintech Regulatory Commission
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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.
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Court orders EFCC to pay N10m fine for defaming ex-Power Minister, Agunloye
A High Court of the Federal Capital Territory (FCT) sitting at Maitama has ordered the Economic and Financial Crimes Commission (EFCC) to pay a fine of N10million for defaming a former Minister of Power, Dr. Olu Agunloye, through a libelous publication on its social media handles.
The court, in a judgment delivered by Justice Peter Kekemeke, found that the anti-graft agency damaged the claimant’s reputation.
Agunloye, in a N10billion defamation claim he filed before the court, insisted that the publication the EFCC carried on its website and X (formerly Twitter) handle, titled: “EFCC arraigns Agunloye over $6billion fraud,” tarnished his image and occasioned reputational damage against him.
In the writ of summons marked FCT/HC/CV/1199/2024, which he filed through his team of lawyers led by Mr. Adeola Adedipe, SAN, he claimed that the agency dented his good name and dragged his integrity into the mud.
He told the court that the commission accused him of being a corrupt and fraudulent individual through the defamatory post it shared on its official website and other allied online platforms.
He prayed the court to declare that the post was false and defamatory.
Besides, he sought an order for EFCC to retract the publication against him and tender an unreserved apology.
He equally sought the award of N1billion to him as general and exemplary damages.
Delivering judgment in the matter on Wednesday, Justice Kekemeke held that the publication the claimant complained about had all the ingredients of defamation.
He held that the publication made by the EFCC was in permanent form with the name of the claimant mentioned.
The court further held that EFCC’s sole witness in the case, an Assistant Commissioner of Police, Umar Hussain Babangida, despite initially denying knowledge of the said publication, later admitted that it was from the defendant’s media department.
According to the judge, the case did not challenge EFCC’s power to investigate economic and financial crimes as claimed by the defendant.
He noted that having gone through the charge in the criminal case against the claimant before the Apo Division of the FCT High Court, there is nowhere in it that alleges fraud, contrary to the EFCC’s publication.
The court added that the issue of fraud is not in any of the exhibits tendered before it in the course of hearing the case, as stated in what it described as a “sensational headline” in the publication.
The judge held that EFCC failed to prove the truth of the said publication.
Stressing that the EFCC is not a news outlet but an investigative agency, Justice Kekemeke held that the commission knew that Agunloye was not involved in a fraud of $6billion.
The court held that the claimant successfully proved that the publication against him was accentuated by malice, and resolved issues one and two in favour of the former minister.
The court declared that the contentious publication on EFCC’s official website and X handle was false and defamatory.
It ordered the commission to retract the publication and offer a public apology to the claimant on its website and in two other national dailies.
The court further issued an order of perpetual injunction restraining EFCC from defaming the former minister.
Meantime, reacting to the judgment on Wednesday, counsel for EFCC, Dr. Wahab Shittu, SAN, said the commission would file an appeal to challenge it.
Shittu, SAN, contended that the case was premature, as the claimant’s criminal charge had yet to be concluded and judgment delivered.
“Though the court has delivered its judgment, we are definitely going to appeal the court’s decision,” he added.
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Defence minister orders troops to shoot bandits on sight
Christopher Musa, minister of defence, has ordered security personnel deployed to combat banditry and terrorism to take immediate action against armed criminals.
He warned that any operative who fails to engage bandits or terrorists under the guise of awaiting orders would be regarded as an accomplice.
Musa issued the directive on Wednesday in Sokoto during the commissioning of 62 operational vehicles and security equipment valued at N27.127 billion, procured by the Sokoto State government to strengthen security operations across the state.
Addressing troops and other security personnel, the defence minister stressed that operatives already deployed to conflict zones have the authority to confront armed criminals without waiting for further directives.
“Once you are deployed, do not wait for any order from anybody to shoot any bandit or any terrorist.
“Anybody who refuses to shoot or kill any bandit or terrorist in the name of waiting for an order, we will treat you like a bandit,” Musa said.
His remarks come amid renewed efforts by the federal government to intensify military operations against armed bandits and terrorist groups operating across the North-West and other parts of the country.
Musa described the commissioning of the security assets as more than the unveiling of equipment, saying it reflected strategic leadership and a shared commitment to strengthening Nigeria’s security architecture.
“This event is not merely the unveiling of security assets. It is a demonstration of strategic leadership, responsible governance and our collective determination to strengthen the security architecture of Sokoto State and Nigeria as a whole,” he said.
The minister commended Ahmed Aliyu, the governor, for sustaining logistical support to security agencies, describing the governor’s investment in security as a model worthy of emulation.
Identifying himself as “a proud son of Sokoto”, Musa said the state had remained relatively peaceful because of strong collaboration among the government, security agencies and local communities.
He noted that the newly commissioned armoured vehicles and tactical equipment would enhance operational mobility, intelligence gathering and force protection in the ongoing campaign against banditry, terrorism and kidnapping.
The defence minister also urged security agencies to ensure proper maintenance and effective deployment of the newly acquired assets.
“This equipment costs billions of naira. We don’t want to hand them over and then you throw them away or mishandle them. They must serve the purpose for which they were procured,” he said.
While calling for decisive action against criminal groups, Musa reminded security personnel to uphold professionalism and respect the rights of law-abiding citizens.
“You are not to go there and extort or harass the people. You are there to protect them and work with them to eliminate bandits and terrorists operating within your area,” he added.
Earlier, Aliyu said the latest procurement formed part of his administration’s sustained investment in improving security since assuming office.
According to him, the state purchased bulletproof vehicles, Buffalo Armoured Personnel Carriers (APCs), 320 motorcycles, 3,200 security gadgets, 2,000 bulletproof helmets and protective vests, 200 night-vision goggles, thermal devices and other tactical equipment.
“In all, we are distributing 62 vehicles and the security equipment highlighted above. These vehicles and security equipment cost the Sokoto State Government N27.127 billion,” the governor said.
Aliyu disclosed that his administration had already committed more than N36 billion to security interventions, including the construction of military and police barracks, procurement of operational vehicles and motorcycles, establishment of the Sokoto State Community Guard Corps and support for the Nigerian Air Force Base in the state.
The governor also revealed that his administration had transmitted a bill to the Sokoto State House of Assembly seeking tougher penalties for informants who aid bandits and other criminal elements.
“The bill is currently before the State House of Assembly, and once it is passed, we will sign it without any further delay,” he said.
He further announced the approval of a Command and Control Centre aimed at strengthening surveillance, intelligence sharing and coordination of security operations across Sokoto.
Aliyu appealed to residents to continue providing credible intelligence to security agencies, stressing that defeating insecurity requires active collaboration between the government, security forces and the public.
“Security is a collective responsibility, and together we shall overcome every security challenge confronting our state,” he said.
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