By ERICJAMES OCHIGBO

Some stakeholders in the digital financial sub-sector have supported the establishment of Nigerian Fintech Regulatory Commission (NFRC) to license, supervise and regulate fintech companies, technologies and service providers across Nigeria.

The stakeholders expressed their support at a public hearing on the bill for an Act to establish NFRC and for Other Related Matters, on Monday in Abuja.

The hearing was organised by the House of Representatives Joint Committee on Banking and Technology.

Mr Obioha Oti, the Acting National Chairman, Association of Mobile Money and Bank Agents in Nigeria (AMMBAN) said that the association was fully in support of the bill.

“We believe it is a welcome development that will strengthen transparency, consumer protection and financial stability,” he said.

Oti said that as the fintech market expanded and technology evolved, it was also important for legislation to evolve as well.

He said, however, that AMMBAN and registered POS agents should be integrated into the regulatory framework as the last line for financial inclusion, especially in underserved areas.

In her remarks, the Chief Compliance Officer of Hydrogen Payment Services Company Ltd., Ms Mojisola Ologe, commended the National Assembly for formally recognising fintech as a strategic sector of Nigeria’s economy.

According to her, this statutory recognition alone sends a powerful signal to investors and innovators.

Ologe said that the bill emphasised consumer protection, market conduct, and a structured enforcement and compliance framework.

“These are strong foundations that if properly harmonised, this legislation can position Nigeria as Africa’s most structured digital finance jurisdiction,” she said.

Ologe, however said that the bill risked overlapping with existing regulators such as the CBN and SEC.

She explained that fintech companies were already licensed and supervised under existing financial statutes.

“Without a clear non-derogation clause and defined scope boundaries, there can be dual licensing, conflicting compliance obligations, increased regulatory cost and investor uncertainty.

“Clause 31 of the bill imposes immediate heavy fines, imprisonment, and forfeiture for unlicensed activity.

“While deterrence is important, over-criminalisation in emerging industries can discourage innovation and foreign investment.

“We recommend an initial administrative compliance window, a cease-and-desist orders where systemic risk exists and criminal sanctions reserved for fraud, wilful misconduct, or persistent refusal to comply,” she said.

According to her, Clauses 64–66 grant broad document production powers, but lack clear data protection safeguards and judicial challenge mechanisms.

“We propose explicit alignment with the Nigeria Data Protection Act 2023, protection of legally privileged information and a defined window to challenge production orders before the Federal High Court.

“To enhance credibility and investor confidence, we recommend the establishment of a Fintech Regulatory Appeals Tribunal,” Ologe said. (NAN)