Players in Nigeria’s Fintech sector are at crossroads over the proposed creation of a Nigerian Fintech Regulatory Commission.

While some support the move, others warn it could create overlapping mandates and duplicate the roles of existing regulators.

The public hearing, organised by the National Assembly’s joint committees on Digital and Electronic Banking, Banking Regulations, Science and Technology, Communications, and Capital Market and Institutions, aimed to gather input from leading fintech operators on the proposed bill.

Lawmakers, however, stressed the importance of the proposed body in safeguarding citizens’ hard-earned funds and closing regulatory gaps while maintaining harmony within the sector.

During presentations, fintech operators warned that a parallel regulator could raise compliance costs, reduce investor confidence, and slow innovation.

They recommended retaining the Central Bank of Nigeria., CBN, as the lead regulator, with stronger coordination among the Nigerian Data Protection Commission, Federal Competition and Consumer Protection Commission, and the Securities and Exchange Commission.

At the close of the hearing, the committee acknowledged the recommendations and promised to consider them carefully.

The bill seeks to establish the Nigerian Fintech Regulatory Commission, with powers to impose penalties for corporate offences, fines of up to ₦1 million or imprisonment for first-time offenders, and up to ₦5 million or three years for repeat offences.

It also empowers the commission to appoint officials or inspectors to monitor compliance, inspect premises, and request relevant documents with proper authorization.