NCC reiterates support for fintech to enhance digital economy

AJAGBE ADEYEMI TESLIM

SPONSORED BY: H&H

The Nigerian Communications Commission (NCC) has pledged to continue to ensure that the regulatory environment supports the growth and success of financial technology (Fintech) in Nigeria for the overall development of the digital economy.

The Commission’s Executive Vice Chairman/CEO, Dr. Aminu Maida said this while addressing the stakeholders at the 2023 NITRA Financial Technology (Fintech) Forum organised by the Nigerian Information Technology Reporters Association.

Speaking on the theme of the Forum theme ‘Harnessing Nigeria’s Fintech Potentials: Challenges and Opportunities’, Maida said the Commission is playing an important role in harnessing the potential 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.”

Maida, who was represented by NCC Zonal Controller, Mr. Henry Ijiokpota, noted that the Nigerian Fintech ecosystem offers a full array of financial services, which has prompted consumer protection concerns over predatory pricing and regulatory challenges in the sector.

According to him, digital financial services will continue to have a significant impact on Nigeria’s financial inclusion and the digital economy at large.

“This is because of the optimal utilization of digital technologies in the provision of financial services to rural communities and underserved segments of the population by leveraging on high mobile phone penetration in Nigeria. In a nutshell, such measures extend financial services coverage and create avenues for affordable solutions. Therefore, coming up with new digital financial business models and initiatives as well as huge investments in digital infrastructure and e-commerce will open the market and further stimulate development in the Fintech sector.

“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. The NCC is also keen on maintaining minimum standards of Quality of Service (QOS), for an uninterrupted network that will boost the sector. In support of this objective, the Commission has 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,” he said.

The Chairman of NITRA, Mr. Chike Onwuegbuchi said the fintech sector has become most exciting in Nigeria.

According to him, the sector is seen as the engine of financial dealings, economic growth, and transactional unification, touted to present and aid various other sectors from the grassroots to international business and trade.

He, however, noted that Nigeria saw a slowdown in Fintech funding in the past few years.

Quoting Partech Africa’s Tech Venture Capital Report, Onwuegbuchi said Nigeria recorded $798 million in 2022 from $1.3 billion recorded in 2021.