Musty Mustapha, managing director of Kuda Microfinance Bank, has called for a unified regulatory framework to unleash Nigeria’s fintech potential.
He highlighted the pressing need for a unified regulatory framework to create a level playing field between traditional banks and fintech startups, in a recent lecture at the Nigeria Deposit Insurance Corporation (NDIC).
“Nigeria’s fintechs are driving innovation, creating jobs, and expanding financial services to the underserved. As the industry continues to grow, there is an opportunity to refine regulatory processes to further support innovation and investment while maintaining financial system stability,” he stated.
The Nigerian financial technology (fintech) sector attracted over $2 billion in investments in 2024 and is significantly improving financial inclusion. As the industry evolves, Mustapha reiterated that there is a growing opportunity to enhance regulatory frameworks to support continued innovation.
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He noted that while fintech firms are navigating compliance requirements, setting up a framework that fosters both growth and financial inclusion will be key to unlocking the sector’s full potential.
To address this, he proposed a harmonised regulatory framework, where agencies such as the Central Bank of Nigeria (CBN), NDIC, and Securities and Exchange Commission (SEC) collaborate to simplify compliance.
He also called for fintech-bank regulatory forums to ensure fair access to critical financial infrastructure like settlement systems. He also disclosed that the call is timely, as Nigeria solidifies its position as Africa’s fintech hub, competing with global players in digital finance.
Mustapha further reiterated his belief that clear, predictable policies will not only attract more investment but also encourage local fintechs to thrive.
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