…says with 430 operators, fintech sector now ‘systemically important’
The Central Bank of Nigeria (CBN) is actively developing a comprehensive regulatory framework for digital assets, governor Olayemi Cardoso said Tuesday, in a move to harness innovation while managing financial stability risks.
Cardoso emphasised that the initiative is part of a global trend, with countries around the world grappling with the rapid evolution of digital finance. He said the CBN is taking a “thoughtful and proportionate” approach, engaging domestic and international stakeholders to ensure the framework is transparent and resilient. The central bank aims to support innovation that can expand financial inclusion while mitigating the potential risks associated with new technologies.
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Cardoso made the remarks during a press briefing on the outcome of the two-day Monetary Policy Committee (MPC) meeting in Abuja. “..this is topical not just in Nigeria, but the world over, because so many things are happening and are changing in that space,” he said, highlighting the global relevance of digital assets regulation.
He noted that a well-designed system could “eventually bring out, in large numbers, a lot of people from poverty,” while cautioning that digital innovation carries risks, particularly to financial stability.
“It is very important that this happens,” Cardoso said. “As much as I know there’s a lot of discussion on the internet and in the open space about digital assets, I can assure you that the approach that the Central Bank of Nigeria is taking in ensuring that we are looking purposefully and thoughtfully at the future and managing the risks is not peculiar to Nigeria. It is one that countries the world over are facing.”
Cardoso stressed that the framework will be subject to extensive scrutiny, reflecting the CBN’s goal of achieving a careful balance between encouraging technological innovation and safeguarding the financial system.
The bank is consulting a wide range of stakeholders to ensure the final framework is robust, internationally informed, and practical for Nigeria’s economy.
The MPC meeting also reviewed domestic economic conditions, global developments, and the banking sector. While the committee’s primary focus was monetary policy, Cardoso highlighted digital assets as a strategic priority, reflecting Nigeria’s ambition to modernise its financial system and enhance financial inclusion.
The governor also explained the rationale behind the CBN’s recent broader FinTech oversight initiatives.
With over 430 licensed FinTech operators, the sector is “a systemically important segment,” spanning multiple geographies and offering significant innovation potential. He emphasised that supporting these firms while putting in place proper guardrails and supervisory capacity is critical.
“If you read that (FinTech) document, you will find that we put ourselves on the line. The execution phase is key, and it is true. We did that deliberately because we want to put ourselves on the line to ensure that the timelines are met. It isn’t just a nice document that will gather dust,” Cardoso said.
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He highlighted the work of the dedicated payment system supervision function, ongoing engagement with market players to understand pain points, and efforts to bring FinTechs to standards comparable to deposit money banks.
Cardoso noted that while the process will not happen overnight, the CBN is “very deliberate and committed to ensuring that we close that gap,” including addressing cyber threats and other risks to ensure FinTechs can operate at a respectable standard.
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