Nigeria’s Fintech Commission Bill Clears Second Reading

Nigeria is taking bold steps to simplify how its booming fintech industry is governed, and the result could reshape the entire digital finance landscape.

On October 28, 2025, the House of Representatives advanced the Nigerian Fintech Regulatory Commission Bill (HB.2389) to its second reading, setting the stage for what could become the most significant regulatory overhaul in the nation’s tech-driven financial sector.

Sponsored by Hon. Fuad Kayode Laguda of Lagos, the bill proposes the creation of a Nigerian Fintech Regulatory Commission, a central body that would license, supervise, and enforce compliance across payments, lending, digital assets, crowdfunding, and other fintech activities. Lawmakers say the goal is to replace confusion with clarity in a market where millions rely on fintech for everyday transactions.

For years, Nigerian fintech companies have had to navigate a maze of overlapping regulators. The Central Bank of Nigeria (CBN) controls banking and payments, the Securities and Exchange Commission (SEC) oversees capital markets and crypto assets, and the National Information Technology Development Agency (NITDA) handles digital infrastructure and data. Add the Nigeria Data Protection Commission (NDPC) and the Federal Competition and Consumer Protection Commission (FCCPC) to the mix, and startups often find themselves juggling circulars, directives, and compliance rules that don’t always align.

This fragmented oversight, lawmakers argue, stifles growth and innovation while leaving room for consumer abuse and regulatory loopholes. The proposed commission promises a single rulebook and consistent supervision, reducing the guesswork for startups and investors alike.

Under the draft proposal, the Fintech Regulatory Commission would issue individual or class licenses for each firm’s core activities, payments, lending, crypto, crowdfunding, or even regulatory technology. It would have powers to suspend or revoke licenses for non-compliance, impose fines, and enforce corrective actions. It would also set binding standards on consumer protection, service quality, dispute resolution, data usage, and technology performance. Instead of interpreting scattered memos from multiple agencies, fintechs would now answer to one regulator that understands the full picture of digital finance. Supporters say this clarity would make it harder for bad actors to exploit jurisdictional gaps and easier for compliant companies to scale with confidence.

Beyond licensing, the bill raises the compliance bar for operators. Startups will need to show internal readiness, from dedicated compliance teams and in-house legal counsel to recurring tech audits and transparent governance structures that include Nigerian participation. Foreign-backed ventures may also have to rethink ownership and leadership models, ensuring that Nigerian representation is embedded early on. For founders, that means compliance won’t just be a box to tick, it becomes part of the DNA of building a fintech in Nigeria. For investors, it promises greater transparency and lower regulatory risk in a market that’s been notorious for gray areas.

The bill also emphasizes market stability and fairness. The commission would have authority to conduct investigations, mediate disputes between fintechs, banks, and telecoms, enforce interoperability across platforms, and intervene on issues like predatory lending and digital credit collection abuse. Lawmakers say these powers are crucial as Nigeria’s shift to mobile payments and digital credit has outpaced the ability of current watchdogs to respond to emerging risks such as fraud and consumer exploitation. If effectively implemented, the commission could act as both referee and shield, protecting consumers while ensuring healthy competition.

With its second reading cleared, the bill now moves to the House Committees on Banking Regulations and Communication for further review before heading to a third reading and eventual reconciliation with the Senate. If it becomes law, Nigeria would have its first dedicated fintech regulator,  a single body to replace the current patchwork of oversight agencies and circular-driven rules. Supporters believe it could mark the beginning of a new chapter for Africa’s largest fintech ecosystem, one built on clarity, accountability, and trust.

The Nigerian Fintech Regulatory Commission Bill isn’t just another piece of legislation. It’s a turning point that could define how innovation, regulation, and consumer protection coexist in one of the world’s fastest-growing digital economies.