If you’re a fintech founder in Nigeria, to whom do you answer? Is it the Central Bank of Nigeria (CBN), which governs all things payments and banking? Is it the Securities and Exchange Commission (SEC) that oversees digital investments and assets? Or is it the Data Protection Commission (NDPC), or the Federal Competition and Consumer Protection Commission (FCCPC)?
The answer, confusingly, is: “All of the above.”
For years, Nigeria’s world-class fintech industry, one of the most vibrant on the continent, has navigated a complex, overlapping, and often confusing “turf war” of different regulators. Now, a new bill in the House of Representatives is trying to end that chaos. The Nigerian Fintech Regulatory Commission Bill (HB.2389), sponsored by Lagos-based lawmaker Hon. Fuad Laguda, has just passed its second reading.
This is a big deal. Here’s the story of what this bill is, what it’s really trying to do, and the central power struggle it’s about to unleash. First, let’s clear up the political jargon. A bill passing its “second reading” doesn’t mean it’s about to become law tomorrow.
- First Reading: This is just a formal introduction.
- Second Reading: This is the most critical debate stage. The entire House debates the “general principles” of the bill—the core idea behind it.
- Committee Stage: After passing the second reading, the bill goes to a smaller, specialised committee (like “Banking” or “Digital Economy”) to be torn apart, line by line, and amended.
- Third Reading: The final, amended version is voted on.
By passing its second reading, the House of Representatives has looked at the chaotic state of fintech regulation and agreed, in principle, that the core idea of creating a single, dedicated regulator is a good one.
So, what is this Bill proposing?
It’s not just “another government agency.” It’s an attempt to create a “one-stop shop” to replace the many-headed hydra (trouble that a single effort cannot overcome because of its many aspects) that currently exists.
The bill’s primary goal is to create the Nigerian Fintech Regulatory Commission (NFRC) as a single, independent “body corporate.”
- What’s a “Body Corporate”? In simple terms, it means the NFRC would be its own legal entity. It’s not just a department within the CBN or the Ministry of Finance. It would be a standalone commission with “perpetual succession”—meaning it can own property, enter into contracts, and sue or be sued in its own name.
This new commission would take over all the key functions that are currently scattered across different agencies:
- Licensing: It would be the only body responsible for granting, renewing, and revoking licenses for all fintech businesses in Nigeria.
- Supervision: It would set the rules and monitor all fintech operators to ensure they are stable and not playing fast and loose with people’s money.
- Consumer Protection: It would become the primary watchdog for protecting the rights of fintech users, a job the FCCPC has been handling, especially with digital lenders.
- National Policy: It would be in charge of implementing a national fintech policy, attracting foreign investment, and promoting fair competition.
Significantly, this bill is sponsored by a lawmaker from Lagos. Hon. Fuad Laguda’s constituency (Surulere I) is in the backyard of Yaba, the heart of Nigeria’s tech ecosystem. This isn’t just an abstract idea from Abuja; it’s a proposal coming directly from the center of the industry itself.
The Real Story: A Power Struggle with the CBN
This all sounds logical, right? One industry, one regulator. But this is where the real story begins. This bill is not a simple regulatory cleanup. It is a direct, fundamental challenge to the power of the Central Bank of Nigeria.
For decades, the CBN has been the undisputed king of all things “fintech,” because “fintech” is, at its core, “financial.” The CBN’s power comes from the fact that it controls the rails of the entire banking system. It single-handedly created the regulatory sandboxes, issued the Payment Service Bank (PSB) licenses, and has the power to freeze accounts.
This bill seeks to carve out that authority and give it to the new, independent NFRC.
The proposed 14-member board, appointed by the President, would be a mix of specialists in finance, law, ICT, and engineering. It’s designed to be a hybrid body that understands that fintech is 50% “fin” and 50% “tech.”
But you can be sure that the CBN, and likely the SEC as well, will not give up this turf without a serious fight. The real battle for this bill won’t be on the floor of the House. It will be in the closed-door meetings and lobbying efforts against the powerful, existing agencies whose authority it seeks to absorb.
The journey of this bill from its second reading to becoming law will be the story of Nigeria’s decision: is fintech just a part of banking, or has it become a new, robust industry that deserves a dedicated regulator of its own?
