Reps advance bill to create new commission for fintech regulation

A bill seeking to establish the Fintech Regulatory Commission has passed its second reading at the House of Representatives.

The bill, sponsored by Fuad Laguda, an All Progressives Congress (APC) lawmaker from Lagos, scaled the second reading during Tuesday’s plenary.

Leading the debate, Laguda said the commission is needed to oversee and regulate Nigeria’s rapidly growing fintech industry.

“The need for this regulation has grown exponentially in recent years, with millions of Nigerians relying on digital payment platforms, mobile money services, and other fintech products for their financial transactions.

“However, the lack of a clear regulatory framework has led to concern about commercial protection, financial stability, and the prevention of financial crimes,” he said.

The legislator said the proposed commission will provide a “clear regulatory framework” for the industry, ensuring operators “comply with established standards and guidelines.”

It is also expected to protect consumers by ensuring fintech companies “operate fairly, transparently, and securely,” while promoting innovation and minimising risk to financial stability.

The move comes as other regulators, including the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC), explore new measures to address the evolving fintech environment.

In October 2024, SEC Director-General Emomotimi Agama said “a regulatory environment that is conducive to the innovative use of technology is essential in the drive to transform Nigeria.”