For any fintech firm to work or perform its operations in Nigeria, it must have been assessed and permitted by the Central Bank of Nigeria and the success of this assessment usually leads to fintech firms being licensed. This means that many fintechs running currently in Nigeria are CBN licensed. However, recently, the Central Bank of Nigeria revealed its plan to reassess its licensing framework for all banking transactions.
The governor of CBN, Olayemi Cardoso mentioned at the Chartered Institute of Bankers of Nigeria’s annual dinner in Lagos, saying that the CBN may create new rules, and because of this, Fintechs may have to reapply for a license.
He hinted that although technology is vital for providing financial services and improving financial inclusion, the CBN is worried about the recent changes in this field. Hence, the reason for the reassessment. “Technology will continue to play a critical role in delivering financial services and enhancing financial inclusion. However, recent developments in the payment services landscape have raised concerns regarding the use of technology and the existing licensing and regulatory framework.” He admitted.
Furthermore, Olayemi Cardoso pointed out that the central bank had noticed certain license holders exceeding their authorized operations, breaking the set boundaries. “Intentional or unintentional failure to comply will face penalties, as operators are accountable for conducting only the activities permitted by their licenses.” He stated.
The central bank thinks this is the best thing to do to ensure rightness and fairness within the finance industry. And, this is even more like the right time for Nigerian fintechs to skim through their operations and ensure that they are in check before the review commences.
