Executive Vice Chairman/CEO
Nigerian Communications Commission, Dr. Aminu Maida has said the Commission will continue to ensure that the regulatory environment supports the growth and success of Fintech in Nigeria.
He was speaking at the 2023 NITRA Financial Technology (Fintech) Forum
On the theme Harnessing Nigeria’s Fintech Potentials: Challenges and Opportunities on Thursday in Lagos.
He said the theme is topical in the financial industry considering the significant rise in Digital Financial Services.
“Commission, within its statutory mandate, will continue to ensure that the regulatory environment supports the growth and success of Fintech in Nigeria for the overall development of our digital economy.”
He noted that the Commission is playing an important role in hamessing the potentials of Fintech through maximum support for Fintech policies, enforcing regulations, and strengthening collaborations with relevant authorities such as the CBN and other stakeholders. Beyond this, the NCC is also promoting incubation and sound practices of Fintech firms and highly secured platforms to further enhance the development of the Fintech ecosystem as well as the digital economy space in general. These measures would ultimately enable the attainment of the objectives of the Nigerian Startup Bill, particularly in the Financial Services sector, and maximize the benefits of Fintech while mitigating the risks involved.
The Nigerian Fintech ecosystem offers a full array of financial services, which has prompted consumer protection concems over predatory pricing and regulatory challenges in the sector. Similarly, telecommunications infrastructure, which is an enabler for Fintech services, remains an issue of concern. Statistics indicate that Broadband penetration stood at 45.57 per cent as of August 2023, which is a fair progression towards the mid-term broadband target to be met in 2023. The Commission has begun implementing new strategies to meet the new target of 70 percent Broadband penetration by year 2025 as contained in the Nigerian National Broadband Plan 2020 — 2025 which will equally explore the potentials in the Fintech sector.
Digital financial services will continue to have a significant impact on Nigeria’s financial inclusion and the digital economy at large. This is because of the optimal utilization of digital technologies in the provision of financial services to rural communities and underserved segments of the population by leveraging on high mobile phone penetration in Nigeria. In a nutshell, such measures extend financial services coverage and create avenues for affordable solutions. Therefore, coming up with new digital financial business models and initiatives as well as huge investrnent in digital infrastructure and e-commerce that will open the market and further stimulate development in the Fintech sector.
The Nigerian Communications Commission, as the apex regulatory agency of the communications industry, will continue to support the Fintech sector in hamessing its enormous potentials as well as overcoming the challenges identified. This can be achieved through adequate provision of secure infrastructure and USSD channels that enable delivery of Digital Financial Services delivery in efficient ways. The NCC is also keen on maintaining minimum standards Quality of Service (QOS), for an uninterrupted network that will boost the sector. In support of this objective, the Commission has executed the Memorandum of Understanding with CBN on driving payment systems and financial inclusion, which is in line with the Nigeria Payments System Vision 2025.
He noted that the Commission is playing an important role in hamessing the potentials of Fintech through maximum support for Fintech policies, enforcing regulations, and strengthening collaborations with relevant authorities such as the CBN and other stakeholders. Beyond this, the NCC is also promoting incubation and sound practices of Fintech firms and highly secured platforms to further enhance the development of the Fintech ecosystem as well as the digital economy space in general. These measures would ultimately enable the attainment of the objectives of the Nigerian Startup Bill, particularly in the Financial Services sector, and maximize the benefits of Fintech while mitigating the risks involved
Chike Onwuegbuchi, Chairman, Nigeria Information Technology Reporters’ Association (NITRA) said the Financial Technology Forum with the theme: “Harnessing Nigeria’s Fintech Potentials: Challenges And Opportunities” is most timely.
He noted that Financial Technology (Fintech) has become perhaps the most exciting sector in the ICT industry, and in Nigeria as a whole. This focus on a sector that is seen as the engine of financial dealings, economic growth and transactional unification, is touted to present and aid various other sectors from the grassroots to international business/trade.
Nigeria saw a slowdown in Fintech funding in the past few years according to a Partech Africa’s tech Venture Capital Report. The report noted that Nigeria recorded $798 million in 2022 from $1.3 billion recorded in 2021.
