The House of Representatives has passed for second reading a Bill to establish the Nigeria Fintech Regulatory Commission in Nigeria.
Leading the debate on the Bill at the plenary on Tuesday, the sponsor, Hon. Fuad Laguda said the regulatory body will oversee and regulate the rapidly growing fintech industry in Nigeria.
He added that the bill has the potential to revolutionise the financial landscape of the nation.
The lawmaker argued that the fintech industry 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, Laguda explained that the lack of a clear regulatory framework has led to concerns about consumer protection, financial stability, and the prevention of financial crimes.
He emphasised that the Bill aims to provide a clear regulatory framework for the fintech industry, ensuring that operators comply with established standards and guidelines.
The lawmaker noted that the Bill seeks to protect consumers by ensuring that fintech companies operate fairly, transparently, and securely.
He added that the Bill seeks to promote innovation in the fintech sector, while minimising risks to financial stability and security.
Laguda stressed that the Bill seeks to enhance collaboration between regulatory agencies, fintech companies, and other stakeholders to drive growth and development in the industry.
Highlighting the key provisions of the Bill, the lawmaker said the Commission would be responsible for licensing and registration of fintech companies.
It would also be responsible for oversight and supervision of fintech companies to ensure compliance with regulatory requirements.
Laguda said the commission would ensure enforcement of regulations and imposition of sanctions for non-compliance and also ensure consumer protection and redress mechanisms.
On the benefits of the bill, he said the commission would increased confidence in the fintech industry, driving growth and investment.
He added: “Improved consumer protection, reducing the risk of financial loss and promoting trust in digital financial services.
“Enhanced financial stability, by ensuring that fintech companies operate in a safe and sound manner. Increased competition, driving innovation and better services for consumers.”
Buttressing his point, Laguda said the Bill would provide a clear regulatory framework for the fintech industry, protect consumers, and promote innovation.