Reps move to establish fintech regulatory commission

Reps move to establish fintech regulatory commission

 A bill seeking to establish the fintech regulatory
commission has passed the second reading at the house of representatives.

 

Sponsored by Fuad Laguda, an All Progressives Congress (APC)
lawmaker representing Surulere I federal constituency of Lagos state, scaled
the second reading during Tuesday’s plenary.

 

Leading the debate on the bill, Laguda said the commisison
will oversee and regulate the rapid-growing fintech industry in Nigeria.

 

“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,” he said.

 

 

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

 

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

 

The commissioner is expected to protect consumers by
ensuring that fintech companies operate fairly, transparently, and securely,
while promoting innovation in the fintech sector and minimising risk to
financial stability.

 

 

The rapid rise in digital transactions has prompted
regulators, including the Central Bank of Nigeria (CBN), Securities and
Exchange Commission (SEC), and National Information Technology Development
Agency (NITDA), to explore new measures to address the rapidly evolving fintech
environment.

 

In October 2024, SEC said that it will enforce regulations
in the fintech ecosystem to curb the mismanagement of funds and align operators
with existing rules.

 

Emomotimi Agama, director-general of SEC, said a regulatory
environment that is conducive to the innovative use of technology is essential
in the drive to transform Nigeria.

Source: Reps move to establish fintech regulatory commission

 - NigerianEye

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