In a bid to protect consumer interests and ensure quality of service in fintech transactions, the House of Representatives has begun the process to establish a regulatory commission that will oversight the activities of fintech companies in the country.
This is as work on a Bill for an Act to provide for the establishment of Nigerian Fintech Regulatory Commission in Nigeria and for related matters, 2025 have reached advance stage.
Sponsored by Hon. Fuad Kayode Laguda, the bill seeks to establish a legal framework for the Nigerian fintech industry – oversee the licensing, regulation, and supervision of the services in Nigeria.
According to its ‘Explanatory Memorandum’, the bill seeks to establish a legal framework for the fintech industry. It proposes a commission that will oversee the licensing, regulation, and supervision of fintech services in Nigeria.
The proposed legislation which had passed through second reading is slated for public hearing at the National Assembly Complex in Abuja on Monday.
When passed, the planned law will
promote the implementation of the national fintech policy, establish regulatory authority and protect consumer rights. An offshoot agency will be empowered to conduct inquiries, publish findings, and maintain registers of licences and agreements related to fintech operations.
The Commission, when established will be mandated to facilitate investments, ensure fair competition and develop performance standards for fintech services. It also have the authority to resolve disputes within the fintech sector effectively.
The bill further proposed that the Commission will be granted financial authority to establish a fund from various sources, including appropriations by the National Assembly and fees from licensing. Annual financial reports will also be submitted to the National Assembly for approval.
According to the bill, the minister of finance will be responsible for formulating and monitoring general policies for the fintech sector in consultation with the Commission for public input before policy changes.
The proposed “Act encompasses provisions aimed at protecting consumer interests and ensuring quality of service in fintech transactions.
“It mandates the establishment of consumer codes and addresses complaint resolution processes in alignment with regulatory objectives.”
