What Are New Rules For Operating A Fintech In Nigeria?

The rules for starting and operating a Fintech in Nigeria have recently changed. Between 2020 & 2021, the Central Bank of Nigeria (CBN) made significant changes to the legal and regulatory framework around the establishment and operation of Fintech companies in Nigeria. While a wave of reactions has trailed the recent changes by the CBN, we think it is equally important to pay some attention to the regulatory priorities of the CBN and not to view the changes solely from the point of view of a "crackdown" by the CBN on Fintechs. Nigerian Fintechs have, no doubt, evolved to become systemically important stakeholders in Nigeria's financial system. It is therefore prudent, in our view, for the CBN, being the entity primarily responsible for monetary policy and banking supervision, to bring Fintechs under its regulatory purview and to take steps to clarify the regulatory framework for Fintechs. Undoubtedly, the CBN is also increasingly concerned about the activities of