Nigeria CBN Initiates Overhaul of Fintech Licensing Framework in Response to Evolving Landscape

The Central Bank of Nigeria (CBN) has announced its intention to conduct a comprehensive review of its licensing framework for payment services. CBN Governor, Olayemi Cardoso, highlighted concerns about recent developments in the payment services sector, emphasizing the need for a regulatory and compliance framework suitable for the technology-driven landscape. Cardoso cautioned against non-compliance, stating that intentional or unintended violations would face sanctions.

The current licensing framework, established in a circular dated December 9, 2020, encompasses categories such as switching and processing, mobile money operations, payment solution services, and regulatory sandbox. The move aims to address the evolving nature of fintech and ensure alignment with technology advancements while fostering a conducive environment for economic growth