The Central Bank of Nigeria (CBN) has reaffirmed its commitment to tackling cybersecurity challenges and fostering innovation to ensure the stability and integrity of the financial system.
This announcement was made by the Deputy Governor of Financial Systems Stability at CBN, Mr. Philip Ikeazor, during the Financial Institutions Training Centre (FITC) Fintech Conference held in Lagos.
The two-day conference, themed “Building Trust in the Digital Age: Balancing Performance with Compliance,” brought together industry leaders to address the critical issues facing the fintech sector.
New Regulations on the Horizon
In his address, Ikeazor emphasized the persistent threats of cybersecurity breaches, data theft, and digital fraud, which pose significant risks to consumer confidence in the financial system.
He revealed that the apex bank is developing new regulations to enhance performance and compliance, with a focus on corporate governance and licensing requirements.
“The new regulation is crucial to mitigate the risks of the digital era,” Ikeazor stated.
He added that these regulations aim to improve compliance and corporate governance practices among fintech companies operating in Nigeria.
Digitalisation and Its Challenges
Ikeazor acknowledged that digital banking platforms have significantly increased financial accessibility for millions of Nigerians, promoting financial inclusion and convenience.
However, he noted that digitalisation also brings challenges that could erode trust if not properly managed.
“Every organisation should conduct its business processes in compliance with the law and the various regulations. Financial institutions need to take the compliance function as extremely important,” he said.
“Corporate governance is also very critical. Organisations need to have the right structure and be effective, transparent, and accountable in the administration of their affairs.”
The Fintech Revolution
Mrs. Chizor Malize, Chief Convener and CEO of FITC, highlighted the transformative impact of fintech on financial services globally.
She pointed out that the rise of companies like PayPal and Square, alongside innovations such as blockchain technology and mobile payment systems, has demonstrated fintech’s potential to disrupt traditional banking models and enhance consumer convenience.
“Africa stands at the forefront of this fintech revolution, with companies like Interswitch, Flutterwave, Moniepoint, and others leading the charge,” Malize said.
She added that Nigerian banks, including Providus Bank, GTBank, and Stanbic IBTC, are embracing fintech innovations to meet evolving consumer demands.
Driving Financial Inclusion
Malize emphasized that these fintech initiatives showcase Africa’s potential to drive financial inclusion and economic growth through digital innovation.
“With widespread mobile technology adoption and a growing demand for financial services, these platforms have transformed digital payments, financial inclusion, and banking services, contributing significantly to Africa’s fintech revolution,” she stated.
Ensuring Stability Through Compliance
Malize concluded by underscoring the importance of strong regulation and compliance to ensure financial system stability, which was a primary focus of the conference.
“As we strive for peak performance and efficiency, we must uphold the highest standards of compliance and integrity,” she said.
About FITC
The News Agency of Nigeria (NAN) reports that FITC is a not-for-profit professional organisation that includes the CBN, the Nigeria Deposit Insurance Corporation, and all licensed banks in Nigeria as members.
The organisation aims to provide training and development in the financial sector, contributing to its overall stability and growth.
As the CBN continues to implement policies to address cybersecurity and compliance issues, the fintech sector in Nigeria is poised for further innovation and growth, ensuring a secure and stable financial system for all Nigerians.
