The Nigerian Communications Commission (NCC) once again pledged that it would continue to stimulate the development and growth of the Fintech sector through the regulatory roles it carries out in the country.
The Executive Vice Chairnan of NCC Dr Aminu Maida who spoke during in a keynote address, at the 2023 NITRA Financial Technology (Fintech) Forum which has the theme “Harnessing Nigeria’s Fintech Potentials: Challenges and Opportunities” held on Thursday, October 26, 2023 at CitiHeight Hotel, Ikeja, Lagos,
said that Fintech which is an emerging industry that leverages on technology to support several financial services such as mobile banking, borrowing, investment, cryptocurrency among others, is gradually revolutionizing Nigeria’s financial ecosystem as it poses a great disruption to the conventional financial system.
Dr Maida, was represented by Mr. Henry Ojiokpota, NCC Lagos Zonal Controller,
He said, “The Nigerian Communications Commission, as the apex regulatory agency of the communications industry, will continue to support the Fintech sector in harnessing its enormous potential as well as overcoming the challenges identified. This can be achieved through adequate provision of secure infrastructure and USSD channels that enable the delivery of Digital Financial Services delivery in efficient ways”
According to him the NCC is also keen on maintaining minimum standards of Quality of Service (QOS), for an uninterrupted network that will boost the sector and in support of this objective, the Commission has Nigeria executed the Memorandum of Understanding with CBN on driving payment systems and financial inclusion, which is in line with the Nigeria Payments System Vision 2025.
“Furthermore, the Commission is playing an important role in harnessing the potentials of Fintech through maximum support for Fintech policies, enforcing regulations, and strengthening collaborations with relevant authorities such as the CBN and other stakeholders.
“Beyond this, the NCC is also promoting incubation and sound practices of Fintech firms and highly secured platforms to further enhance the development of the Fintech ecosystem as well as the digital economy space in general.
“These measures would ultimately enable the attainment of the objectives of the Nigerian Startup Bill, particularly in the Financial Services sector, and maximize the benefits of Fintech while mitigating the risks involved”, the EVC explained.
Maida observed the significant roles the Fintech sector has been playing in boosting financial inclusion initiatives, and job creation, among others.
“Fintech comes with a lot of business opportunities in terms of innovation, job creation and investment. Therefore, Fintech has the potential to deepen the existing payment and financial system infrastructure to reach unserved and underserved areas and further stimulate economic growth.
“Fintech applications such as robo-advisors, payment apps, peer-to-peer (P2P) lending apps, investment apps, and crypto apps, among others, create business opportunities for individuals. With the youth population accounting for an estimated 70per per cent of Nigeria’s population, the digitally savvy, young, and middle-aged individuals adopting these Fintech applications for socioeconomic gains will add value to the economy”, he added.
Recent industry statistics have shown that active subscriptions across mobile networks in Nigeria rose to 220.7 million in August 2023 (NCC).
Dr Maina continued, “Similarly, the increasing rate of smartphone penetration, internet access, and focused regulatory drive have continued to create a favourable atmosphere for Fintech to thrive. Furthermore, greater accessibility to customers, convenience, and low-cost access to short-term loans will further deepen the acceptability of Fintech products and services. Records have shown that the Fintech sector has benefitted a lot from external investment, amounting to over US$I billion investment since 2018.”
Earlier in his welcome address, Mr Chike Onwuegbuchi, the National Chairman of the Nigeria Information Technology Reporters’ Association (NITRA), noted that Financial Technology (Fintech) has become perhaps the most exciting sector in the ICT industry, and in Nigeria as a whole.
“The Fintech sector is seen as the engine of financial dealings, economic growth and transactional unification, and is touted to present and aid various other sectors from the grassroots to international business/trade. In spite of the significant relevance of this sub-sector, Nigeria saw a slowdown in Fintech funding in the past few years. According to Partech Africa’s tech Venture Capital Report, Nigeria recorded $798 million in 2022 from $1.3 billion recorded in 2021,” Onwuegbuchi noted.
The event, organised by the Nigeria Information Technology Reporters Association (NITRA), the umbrella body for ICT reporters and editors, also had representatives of Moniepoint, Nigeria Internet Registration Association (NiRA) and other major stakeholders in attendance
