The 360-member lower chamber of Nigeria’s National Assembly, the House of Representatives, has proposed a bill—sponsored by Honorable Fuad Kayode Laguda—to establish a single regulatory body, the Nigerian Fintech Regulatory Commission (NFRC), to oversee fintechs in the country.
Honorable Fuad Kayode Laguda—a Lagos State representative—noted that Nigeria’s fintech sector is expanding rapidly with “millions of Nigerians depending on digital payment systems—such as mobile-money platforms and other fintech services—to manage their personal and business money.
He emphasized that existing regulators are not keeping pace and the fact that Fintechs are overseen by different agencies—including the Central Bank of Nigeria (CBN), Securities and Exchange Commission, National Information Technology Development Agency (NITDA), Nigeria Deposit Insurance Corporation (NDIC) and others for digital and data governance—makes the regulatory environment fragmented because the overlapping mandates and conflicting directives often create confusion.
When passed, the proposed bill will supersede existing regulators to replace the current patchwork of oversight bodies, thereby enhancing consumer protection, financial stability, and innovation within the fintech ecosystem. The proposed Commission will also ensure that operators are properly licensed, adhere to clear regulations, and provide consumers with avenues for redress in cases of abuse.
This is not the first time fintechs have lobbied for a single regulatory system in the country. Now, Hon. Fuad Kayode Laguda is sponsoring this NFRC bill to make it happen, providing a coherent legal and regulatory framework for fintechs—so Nigeria can attract both local and foreign investment, support the industry’s growth, and reduce compliance complexity.
Nigerian Fintech Regulatory Commission (NFRC) Licensing
The Nigerian Fintech Regulatory Commission will issue two licenses to fintechs: Individual License and Class Licence depending on Fintechs activities—such as regtech, lending, crowdfunding, and payments. However, any fintech that fail to comply with the licencing policies or renewal requirements may result in suspension, revocation, or substantial penalties—including heavy fines.
Meanwhile, we can say that the proposed bill introduces a more structured regulatory environment for fintechs, but there are heavier compliance the bill is proposing as well. When passed, fintechs will be required to maintain dedicated compliance teams and legal advisers, undergo regular technology audits, and demonstrate significant Nigerian participation in both ownership and management.
NFRC is not just issuing rules—it is also setting clear performance benchmarks, consumer protection codes, data usage standards, and dispute resolution processes to eliminate ambiguity and establish consistent operational standards across the fintech ecosystem.
The NFRC will have wide-ranging investigative and enforcement powers, including conducting inquiries, compelling information disclosure, and publishing compliance reports. These measures mean that startups will need to budget for legal and compliance costs from the beginning. On the other hand, established firms must align their existing operations with the new regulatory structure to avoid penalties or reputational risks.
To safeguard consumers, the Commission will be able to monitor and curb anti-competitive practices like predatory pricing or collusion. It will also promote open banking by enforcing interoperability and fair access to payment and data systems.
