Nigerian House of Representatives Advances Bill for Single Fintech Regulatory Commission

Bill Seeks to Unify Fragmented Fintech Oversight

Abuja, Nigeria – The Nigerian House of Representatives has taken a significant step towards consolidating the regulation of its burgeoning financial technology (fintech) sector. On Tuesday, October 28, 2025, the House approved the Nigerian Fintech Regulatory Commission Bill (HB.2389) for its second reading. This legislative move aims to establish a single, specialized statutory body to provide comprehensive oversight for all fintech activities within the country.

The bill, sponsored by Hon. Fuad Kayode Laguda, representing Surulere I Federal Constituency of Lagos State, seeks to address the current fragmented regulatory landscape. Nigeria's fintech industry is presently supervised by a multitude of agencies, including the Central Bank of Nigeria (CBN), the Securities and Exchange Commission (SEC), the National Information Technology Development Agency (NITDA), the Nigeria Data Protection Commission (NDPC), and the Federal Competition and Consumer Protection Commission (FCCPC).

Addressing Regulatory Gaps and Promoting Innovation

The primary objective of the proposed Nigerian Fintech Regulatory Commission (NFRC) is to unify oversight and streamline regulations, which lawmakers argue will simplify the current regulatory environment and ensure more consistent and efficient governance. Hon. Laguda emphasized that the bill would 'provide a clear regulatory framework' for the fintech sector, which has become central to everyday financial transactions in Nigeria. He noted that the 'need for this regulation has grown exponentially in recent years, with millions of Nigerians now depending on digital payment platforms, mobile money services, and other fintech products.'

The establishment of the NFRC is expected to foster innovation, attract investment, improve consumer protection, enhance financial stability, and prevent financial crimes. The current multi-agency approach has often led to overlapping mandates, conflicting directives, and regulatory gaps, creating uncertainty for fintech operators.

Mandate and Future Steps

If enacted, the NFRC would be empowered to:

• License, supervise, and enforce rules across various fintech activities, including payments, lending, digital assets, crowdfunding, and regulatory technology.
• Set binding standards on consumer protection, service quality, dispute resolution, data usage, and technology performance.
• Compel information, conduct investigations, and mediate disputes between fintechs, banks, and telecom operators.
• Enforce local content provisions, requiring Nigerian participation in ownership and management for fintechs.

Following its passage for a second reading, the bill has been referred to several House Committees for further legislative consideration. These include the Committees on Banking Regulations, Digital & Electronic Banking, Science & Technology, and Communications. This referral marks the next phase in the legislative process, where the bill will undergo detailed scrutiny and stakeholder engagement before potentially proceeding to a third reading and reconciliation with the Senate.