Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
FinTech
1.
Legal and enforcement framework
1.1
In broad terms, which legislative and regulatory provisions govern the fintech space in your jurisdiction?
Nigeria
  • The Mobile Money Guidelines 2015 apply to companies that provide mobile payment services.
  • The Guidelines on the Operation of Electronic Payments 2016 regulate payments from automated teller machines, point of sale machines and mobile point of sale devices, as well as those made via the Internet.
  • The Guidelines on International Money Transfers 2014 prohibit persons and institutions from providing international money transfer services without a licence from the Central Bank of Nigeria (CBN). It also sets out requirements for overseas partnerships.
  • The Regulatory Framework for the use of Unstructured Supplementary Service Data in Nigeria 2018 establishes rules to prevent the abuse/breach of unstructured supplementary service data financial services in Nigeria.
  • The objectives of the Data Protection Regulation 2019 include:
    • safeguarding the rights of natural persons to data privacy;
    • promoting the safe execution of transactions involving the exchange of personal data;
    • preventing the manipulation of personal data; and
    • ensuring the competitiveness of Nigerian businesses in international trade.
  • The scope of the regulation includes all transactions intended for the processing of personal data of natural persons in Nigeria; it also applies to natural persons residing in Nigeria and to those of Nigerian descent residing outside Nigeria.

    • The CBN Regulation for Bill Payments in Nigeria 2018 covers bill payments through various payment channels and any payment platform that seeks to integrate commercial payment activity and merchant aggregators in Nigeria. Payment methods include cheques, cards, direct debits, instant payments and automated clearing houses.
    • The CBN Guidelines for Licensing and Regulation of Payment Service Banks in Nigeria allow non-traditional banking institutions, including telecommunications company, to provide banking services. It sets the minimum capital requirement for payment service banks at NNG 5 billion.

    For more information about this answer please contact: Davidson Oturu from AELEX
    1.2
    Do any special regimes apply to specific areas of the fintech space?
    Nigeria

    Answer ... No.

    For more information about this answer please contact: Davidson Oturu from AELEX
    1.3
    Which bodies are responsible for enforcing the applicable laws and regulations? What powers do they have?
    Nigeria

    Answer ... The following authorities regulate the activities of fintech players in Nigeria:

    • The CBN is the apex monetary authority of Nigeria. It governs most fintech players in Nigeria, including venture-funded companies offering services and partnerships to traditional players in the financial ecosystem.
    • The Securities and Exchange Commission is the main regulatory institution of the Nigerian capital markets.
    • The Corporate Affairs Commission regulates and supervises the formation, incorporation, management and winding up of companies.
    • The Nigerian Communications Commission (NCC) regulates fintech companies that act as mobile network providers pursuant to the Licence Framework for Value Added Service issued by the NCC.

    For more information about this answer please contact: Davidson Oturu from AELEX
    1.4
    What is the regulators’ general approach to fintech?
    Nigeria

    Answer ... Policymakers and regulatory authorities have shown significant interest in the fintech industry. New regulations and initiatives to develop the industry are currently being contemplated.

    For more information about this answer please contact: Davidson Oturu from AELEX
    1.5
    Are there any trade associations for the fintech sector?
    Nigeria

    Answer ... No.

    For more information about this answer please contact: Davidson Oturu from AELEX
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    Topic
    FinTech