CBN, NCC, others not encouraging –Fintech Nigeria
Despite recording some achievements in the fintech ecosystem in 2018, the unfriendly environment created by the Central Bank of Nigeria and Nigeria Communications Commission slowed down fintechs in 2018, says Seun Folorunso, Executive Secretary, Fintech Nigeria.
Folorunso decried the creation of payment system guidelines and regulation in 2018 that stipulate that Fintechs should capitalize with N5 billion, describing it as draconian.
He said, ”One of the highlights is the fact that anybody who wants to operate a payment system and all that will be granted license will have to capitalize with N5 billion, N1 billion.
According to him, “where will a fintech get N5 billion, and N1 billion to capitalize? It still boils down to the fact that the guys are not sitting with Fintech to look at things amicably.” Folorunso, however, wants regulators to borrow a leaf from Israel, Malaysia, Singapore and other countries where Fintech is thriving if the present narrative must change.” If you look at Israel, Malaysia, and Singapore where fintech is thriving, their Central Banks sit with Fintechs. How can we further encourage what you are doing? What kind of regulation can we bring on board to drive what you are doing? But in African countries, the majority of the regulators are working in isolation. They are not engaging. He, nevertheless, described the creation of African Fintech Network which had subscriptions from twenty countries as a significant positive in 2018. He said some of the regulators were becoming responsive, especially the Security and Exchange Commission. Folorunso says an internal department of Fintech was created and a committee that is working on Fintech adoption. As another financial year begins, stakeholders in the ICT sector have called on governments at all levels to jettison obnoxious taxes, relax unfriendly laws that stifle the growth of the sector to providing a viable alternative to converting dependent economy to a digital economy in the shortest possible time.
Ladesope Ladelokun
According to him, “where will a fintech get N5 billion, and N1 billion to capitalize? It still boils down to the fact that the guys are not sitting with Fintech to look at things amicably.” Folorunso, however, wants regulators to borrow a leaf from Israel, Malaysia, Singapore and other countries where Fintech is thriving if the present narrative must change.” If you look at Israel, Malaysia, and Singapore where fintech is thriving, their Central Banks sit with Fintechs. How can we further encourage what you are doing? What kind of regulation can we bring on board to drive what you are doing? But in African countries, the majority of the regulators are working in isolation. They are not engaging. He, nevertheless, described the creation of African Fintech Network which had subscriptions from twenty countries as a significant positive in 2018. He said some of the regulators were becoming responsive, especially the Security and Exchange Commission. Folorunso says an internal department of Fintech was created and a committee that is working on Fintech adoption. As another financial year begins, stakeholders in the ICT sector have called on governments at all levels to jettison obnoxious taxes, relax unfriendly laws that stifle the growth of the sector to providing a viable alternative to converting dependent economy to a digital economy in the shortest possible time.
Ladesope Ladelokun
