A unified authority to license, regulate, and supervise all fintech operations in Nigeria. Issue Date: October 28, 2025.
The Nigerian House of Representatives has advanced a landmark bill to its second reading, proposing the establishment of the Nigerian Fintech Regulatory Commission (NFRC). Sponsored by Hon. Fuad Kayode Laguda (member representing Surulere I Federal Constituency), the proposed Commission would be a single, independent authority responsible for licensing, regulating, and supervising all fintech operations in Nigeria. Its core objectives include enhancing transparency, protecting consumers, and fostering innovation in the fintech sector.
The Shift to a Unified Framework?
Currently, Nigeria’s rapidly expanding fintech ecosystem is regulated in a piecemeal fashion by multiple agencies. Oversight is spread across:
- Central Bank of Nigeria (CBN): For banking and payments.
- Securities and Exchange Commission (SEC): For capital markets and virtual assets.
- Nigeria Data Protection Commission (NDPC): For digital and data governance.
- Federal Competition and Consumer Protection Commission (FCCPC): For consumer protection in lending and financial services.
- National Information Technology Development Agency (NITDA).
This fragmented regulatory structure has led to overlapping licences, uncertainty, and inefficiency.
The NFRC’s Mandate and Importance
It was argued by the sponsor that millions of Nigerians now rely on digital payment platforms, mobile money, and other fintech services and the absence of a coherent regulatory framework has raised serious concerns around consumer protection, financial stability, and fraud prevention. By consolidating oversight under the NFRC, the bill is expected to:
- Streamline licensing and compliance processes: Create a more efficient environment for innovation and investment by improving regulatory clarity and reducing compliance complexity.
- Provide clearer regulatory rules for fintech service providers: Properly regulate the business and operational activities of fintech operators to promote transparency, innovation, and, critically, consumer protection.
- Strengthen consumer safeguards
- Increase investor confidence
For existing financial institutions, fintech firms, and investors, this marks a shift toward more focused regulation, potentially stricter enforcement, and higher compliance demands. The bill is still currently under further review, and stakeholder consultations and public input are expected. Once amended, the bill will proceed to a third reading before being passed or rejected.
Recommended Actions for Businesses
Regulatory Monitoring:Businesses should actively monitor official communications from relevant regulatory bodies to ensure they are immediately aware once the proposed bill becomes publicly accessible. This includes following announcements, subscribing to regulatory circulars, and maintaining communication channels with industry associations that may receive early insights.
Internal Compliance Review: Even without access to the bill, companies can begin reviewing their existing compliance structures. Areas such as governance, reporting obligations, customer protection standards, and data management should be identified to determine the organisation’s current compliance posture and potential vulnerabilities.
Stakeholder and Advisory Engagement: Engaging legal advisers, compliance professionals, and sector-specific associations will help businesses stay informed about the likely direction of the bill. Early conversations with experts can guide organisations on the possible regulatory changes and how these changes may affect their operations.
Risk Assessment: Businesses should conduct internal assessments to identify possible risks or operational gaps that may be impacted once the bill is released. This forward-looking evaluation enables organisations to prepare scenarios and adopt mitigation in preparation.
In conclusion, the passage of the second reading of the Bill for the establishment of the NFRC is a significant development for Nigeria’s fintech and payments ecosystem. It signals the government’s intent to modernise regulatory oversight, improve consumer protection and provide a more coherent regulatory framework for fintech businesses. Businesses that proactively prepare by reviewing compliance posture, aligning their product portfolio and operational models, and engaging with the legislative/regulatory process will be better positioned to thrive in the forthcoming regime.
We will also continue to monitor the Bill’s progress, the draft regulations once issued, and provide updates and actionable guidance.
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