Central Bank of Nigeria to Regulate Financial Technology Companies’ Operations

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The Central Bank of Nigeria (CBN) is currently drafting guidelines that entail the regulation and supervision of the operations of Financial Technology Companies (FinTechs) in the country.

Mr. Dipo Fatokun, the Director of Banking and Payments System Department of CBN revealed this in Lagos, during the Annual General Meeting of Nigeria Electronic Fraud Forum (NEFF) on the theme, ‘Tightening the BELT of E-fraud Prevention: a 4-sided approach’.

Emphasizing the role of CBN in monitoring the operations of FinTechs, Fatokun disclosed the fear in some quarters that FinTechs would take over the role of banks. “There is this fear, probably in some quarters that FinTechs will take over the role of banks but we believe that will not happen. Owing to the importance of these FinTechs, CBN is drafting guidelines that would enable their regulation and supervision to be put in place.”

Dr. Fatokun reiterated the aim of the forum to tighten the engagement of all stakeholders, to increase knowledge and information sharing and deepen the payment system capacity for success in the fight against electronic fraud. “The issue of stability, trust in the payment system is very close to the heart of the management of CBN, so each time the governors come together they discuss it and issue guidelines and that is a continuous process,” he stated.

Mr. Adebayo Adelabu, Deputy Governor Operations of CBN, in proxy noted that even though technology in the industry is just improving, collaboration in the financial industry has improved.