Nigeria wants bigger fintech companies to face tougher regulation

Nigeria's fintech companies have spent years building payment platforms, mobile wallets and digital financial services that millions of people now use. Some have become so large that a problem with their systems can affect businesses well beyond their own customer base. The Central Bank of Nigeria (CBN) wants to have more control over these operators, particularly those handling large transaction volumes or playing an important role in the country's financial system.

On 10 November 2026, Nigeria's Senate passed a proposed amendment to the Banks and Other Financial Institutions Act (BOFIA) of 2020. The bill would allow the CBN to classify certain fintech companies and other non-bank financial institutions as Systemically Important Institutions. It has passed its third reading in the Senate, but still needs to complete the remaining legislative process before becoming law.

Which fintech companies could be affected?

The proposal is aimed at larger operators rather than every business offering a digital financial service.

The CBN would consider factors such as the number of customers a company serves, its transaction volumes, market position and connections with other financial institutions. Large payment providers, mobile money operators, digital lenders and switching companies could fall within this category. The concern is easy to understand. A payment company that handles transactions for thousands of merchants cannot afford prolonged system failures. Retailers may struggle to collect money, customers may be unable to make payments and businesses could experience delays in settling their accounts. The bigger these platforms become, the wider the impact of an operational problem can be.

Running a fintech business could become more expensive

Companies classified as systemically important would face additional requirements covering financial reporting, cybersecurity, technology risk and corporate governance. The proposed rules also include stress testing, data integrity assessments and greater regulatory access to company operations. For fintech operators, this means more money going into compliance, security and technology.

Larger companies may be better equipped to handle the additional requirements. Smaller operators, particularly those still trying to build their customer base, may find the costs harder to manage. Investors will also want to know how much these requirements could affect a company's operating expenses and growth plans.

Smaller operators have a reason to pay attention

One issue that needs clarity is where the CBN will draw the line between an ordinary fintech business and one considered important to the financial system. A company processing millions of transactions daily carries different risks from a startup serving a few thousand customers.

If the requirements are too broad, smaller businesses could end up spending heavily on compliance before they have reached a size that justifies it. There is also the risk that established operators become harder to challenge because they have the resources to meet requirements that younger competitors cannot afford. The details of how the CBN applies the classification will therefore matter to the wider fintech industry.

Who takes responsibility when regulators overlap?

Another issue is the relationship between the CBN and other regulators. The Federal Competition and Consumer Protection Commission (FCCPC) has called for clearer boundaries between financial regulation, competition matters and consumer protection. This is relevant because fintech companies often operate across several areas. A business might offer payments, provide digital credit and work with telecommunications companies. Companies need to understand which authority is responsible for each part of their operations. Dealing with overlapping requirements can add costs and make expansion more difficult.

The industry will be watching what happens next

Nigeria's fintech companies are no longer just competing with one another for payment transactions. Some have become important service providers for retailers, banks and other businesses. That growth has made the reliability of their systems a bigger concern. The proposed legislation is an attempt to give the CBN more oversight of the companies that have reached this level of importance. But the industry will want to see how the rules are applied, which businesses are affected and what compliance will cost. For fintech founders, the concern is not simply having another regulator to answer to. It is knowing what will be expected of their businesses and whether those requirements will leave enough room to compete and grow. The Senate has taken its position. The next steps in the legislative process, followed by the CBN's implementation approach, will determine what changes fintech companies actually have to make.