The Central Bank of Nigeria (CBN) has announced tighter rules designed to prevent systemic dominance, protect consumer choice and enforce strict local data handling.
The Central Bank of Nigeria (CBN) has reaffirmed its commitment to curbing excessive market dominance within the country’s rapidly expanding fintech and digital payments sector. Speaking at the 3rd Business Journal Fintech and Financial Inclusion Roundtable in Lagos CBN Governor Olayemi Cardoso warned that no financial institution or conglomerate will be allowed to leverage its market power to stifle competition or restrict consumer choice.
Delivered on his behalf by Dr. Rakiya Opemi Yusuf, Director of the Payment System Supervision Department, the apex bank emphasized that while business growth is welcomed, expansion must not compromise financial stability or accountability.
To enforce a level playing field across traditional banks, fintech startups and payment service providers (PSPs) the CBN highlighted several pivotal policy measures currently being deployed.
The CBN has rolled out revised market structure guidelines targeting consumer issuing and merchant acquiring. These rules are designed to prevent large financial groups from utilizing dominance in one vertical to unfairly monopolize another.
Financial institutions and fintechs must now provide clear disclosures regarding their ultimate beneficial owners. This requirement aims to eliminate hidden conflicts of interest and prevent regulatory arbitrage across complex corporate holding structures.
The apex bank mandated that all payment transaction data generated within Nigeria must be processed and stored domestically. The policy seeks to enhance data sovereignty, boost cyber resilience, and lower dependence on foreign cloud infrastructure.
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Governor Cardoso reiterated that the regulator will maintain a risk-based approach to oversight meaning similar activities carrying similar risks will receive identical regulatory treatment regardless of an institution’s tech stack or business model.
However, entities possessing systemic market influence will be held to significantly higher governance standards. The overall message signals a clear shift in Nigeria’s fintech ecosystem: the era of unchecked growth through regulatory loopholes is officially over, giving way to a tightly monitored competition-first operating environment.
