Nigerian fintech companies are calling for the creation of a National Fintech Committee to streamline regulation, encourage innovation, and deepen financial inclusion across the country.
This recommendation, highlighted in a recent Central Bank of Nigeria (CBN) report titled “Shaping the Future of Fintech in Nigeria,” stems from widespread challenges in the sector.
Why a National Fintech Committee?
- Bridging Gaps: The proposed committee would act like the existing Bankers’ Committee (which includes the CBN and bank CEOs). It would serve as a formal, high-trust platform for fintech operators and regulators to collaborate on policies, resolve systemic challenges, and ensure compliance.
- Willingness to Collaborate: The CBN report noted that 75 per cent of fintech respondents favour such a regular engagement forum, and 100 per cent are willing to collaborate through policy pilots and working groups.
Key Challenges Facing Fintechs
Fintechs identified several major obstacles to scaling their operations:
- High Compliance Costs: 87.5 per cent of firms believe compliance expenses significantly limit their capacity to innovate.
- Lengthy Approvals: 82.5 per cent reported that lengthy regulatory approval timelines—sometimes exceeding a year- delay their product launches.
- Infrastructure Gaps: Persistent issues like limited broadband, lack of universal digital ID verification, and weak open-data frameworks drive up the cost and reduce the reliability of operations.
CBN’s Proposed Solutions
To address these concerns, the CBN has proposed several frameworks to enhance its interaction with fintechs, including:
- Regulatory Engagement Platform (REP): A dedicated structure for organised dialogue, early feedback on proposals, and quarterly working groups.
- Smart Licensing and Supervisory Gateway (SLSG): A centralised digital portal for multi-agency licensing, onboarding, and reporting to simplify the regulatory process.
- Open Finance Lab (OFL): A regulatory sandbox where banks and fintechs can test open finance initiatives and data portability solutions under supervision.
- Fintech Credit Guarantee Window (FCGW): A blended-finance mechanism designed to de-risk lending to small businesses, particularly those led by youth and women.
These proposals aim to create a more supportive environment as fintechs, driven by AI and real-time payments, increasingly seek to expand across the African continent.
