CBN set to regulate Nigerian fintech space
The Central Bank of Nigeria (CBN) has expressed its readiness to regulate how new products and services are launched by mobile money operators and digital payment service providers operating in the Nigerian fintech space. The plan is to ensure that every new fintech product obtains regulatory approval prior to being launched.
Recall that in 2018, the apex bank had taken a major step by announcing the minimum capital for mobile money operators in Nigeria.
According to the apex bank, its current move is designed to adequately keep up with the latest innovations by banks and fintechs, whilst ultimately engendering a reliable, safe, and efficient payment system in the country.
The CBN has, in a statement, listed the following as the full breakdown of the regulatory sandbox operation:
To increase the potential for innovative business models that advance financial inclusion
To reduce time-to-market for innovative products, services, and business models
To increase competition, widen consumers’ choice and lower costs
To ensure appropriate consumer protection safeguards in innovative products
To clearly define the roles and responsibilities of stakeholders and the operations of the Sandbox for the Nigerian Payments System industry
To ensure adequate provisions in regulations to create an enabling environment for innovation without compromising on safety for consumers and the overall payments system
To provide an avenue for regulatory engagement with fintech firms in the payment space, while contributing to economic growth.
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