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A bill before the House of Representatives seeking to establish a fintech regulatory commission has split organisations in the sector, with fintech operators warning against regulatory overlap while telecom and agent groups push for a single authority to oversee the industry.
The debate played out on Monday at a public hearing organised by the House joint committees on digital and electronic banking, banking regulations, science and technology, communications, and capital market and institutions.
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Leading support for the bill, the Association of Telecommunications, Information, Technology, Cable Satellite Network Operators and Allied Services Employers of Nigeria (ATICEN) argued that the absence of a standalone fintech regulator has resulted in fragmented supervision.
Adede Williams, the association’s president, said nearly 400 fintech firms operate in Nigeria without a single statutory authority focused exclusively on their activities. He maintained that overlapping mandates among regulators have created policy inconsistencies and regulatory gaps.
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“The absence of an independent regulatory body is a threat to consumers, investors, industry service providers, stakeholders, shareholders and the digital economic stability at large,” Mr Williams said.
According to him, a unified commission would consolidate responsibilities, reduce confusion and provide the certainty required for innovation and long-term investment.
Obioha Otti, acting president of the Association of Mobile Money and Bank Agents in Nigeria (AMBAN), also endorsed the proposal.
Representing more than two million point-of-sale and mobile money agents across the 36 states and the Federal Capital Territory, Mr Otti described agents as the backbone of financial inclusion, particularly in rural and underserved communities.
He urged lawmakers to formally incorporate registered POS agents into the proposed framework, noting that regulation must evolve to keep pace with the rapid expansion of the fintech ecosystem.
“As the commission is being established, AMBAN and registered POS agents should be formally integrated into the regulatory framework,” he said.
Fintech operators kick
However, fintech operators and digital lenders cautioned that the new commission could duplicate the Central Bank of Nigeria’s and other existing agencies’ responsibilities.
Maxwell Loko, vice-president for public and government affairs at OPay Digital Services, said while the company supports stronger oversight, regulatory effectiveness depends on clarity and coordination rather than multiplication of authorities.
He pointed out that the CBN already regulates mobile money operators, payment service providers and digital banks. In addition, the Nigeria Data Protection Commission (NDPC) oversees data governance, while the Federal Competition and Consumer Protection Commission (FCCPC) handles consumer protection matters.
“Without very precise delineation of roles, the establishment of a parallel regulator risks duplication of licensing processes, overlapping supervisory examinations, increased compliance costs, and regulatory uncertainty that may discourage investment,” he said.
Mr Loko warned that without precise delineation of roles, a new regulator could lead to parallel licensing processes, overlapping examinations and higher compliance costs, potentially discouraging investment in a sector that depends on speed and regulatory certainty.
He recommended strengthening the existing framework under the CBN and formalising structured inter-agency coordination, arguing that a single lead regulator model anchored by the bank would ensure accountability and reduce duplication, in line with global practice.
Henry Obiekea, managing director of FairMoney Microfinance Bank, shared similar concerns. He said the bill could introduce dual oversight for digital lenders, with the CBN retaining control over prudential matters while the proposed commission supervises consumer-facing conduct.
Such an arrangement, he explained, could create compliance complications, particularly where technology-driven services like digital loan applications and know-your-customer processes may require additional approvals.
Despite the risks, Mr Obiekea described the bill as both a challenge and an opportunity, noting that formal recognition of digital finance as a distinct sector could enhance investor confidence and strengthen consumer trust if properly structured.
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Lawmaker’s position
Fuad Laguda, sponsor of the bill, said Nigeria currently lacks a single authority dedicated to regulating fintech operators and service providers, despite their growing impact on national development.
He argued that establishing a fintech regulatory commission would improve user protection, enhance sector profitability and provide a clearer supervisory framework for the industry.
With stakeholders sharply divided, lawmakers now face the task of balancing the need for coordinated oversight with concerns about regulatory duplication in one of Nigeria’s fastest-growing sectors.
