Nigeria: fintech & payments regulation

Who regulates

• Central Bank of Nigeria (CBN)

  Primary supervisor for banks, payment service providers, remittance operators, and financial holding companies.

  ^[1][2][3]

• Securities and Exchange Commission (SEC)

  Regulator for capital market operators, VASPs, and investment service providers; administers the ARIP sandbox.

  ^[4][5][6]

Core laws & rules

• Banks and Other Financial Institutions Act (BOFIA) (2020)

  The primary legislation governing the licensing, operation, and supervision of banks and other financial institutions, including provisions for suspension of payment obligations and regulatory oversight.

  ^[1]

• Investments and Securities Act (ISA) (2007)

  Establishes the SEC's mandate to regulate capital market operators and protect investors; unregistered entities operating under this act are subject to enforcement actions.

  ^[7]

Licensing & registration

• Payment Service Provider (PSP) / Bank

  Requires CBN licensing; operators must comply with market structure requirements, data localisation, and UBO disclosure. Integration with NRS TMS is mandatory.

  ^[2][8]

• Virtual Asset Service Provider (VASP)

  VASPs must obtain Approval-in-Principle (AIP) for admission into the SEC's Accelerated Regulatory Incubation Programme (ARIP) to operate in a controlled sandbox.

  ^[4][5]

• Capital Market Operator (CMO)

  Requires SEC registration and pre-registration training/examination. Revised minimum capital requirements are in effect with a compliance deadline of June 30, 2027. Capital: Revised thresholds apply (specific amounts not listed in source) Timeline: Compliance by June 30, 2027

  ^[6][9]

Restrictions & warnings

• Mandatory data localisation and Ultimate Beneficial Ownership disclosure for all licensed payment operators. Cross-border transaction caps may apply under market structure requirements.

  ^[2]

• Strict enforcement against unregistered entities; the SEC and CBN regularly issue alerts against fraudulent or unregistered platforms (e.g., CBEX, AfriquantumX).

  ^[10][11]

• International Money Transfer Operators (IMTOs) must use designated Naira settlement accounts with Authorized Dealer Banks and align pricing with real-time Bloomberg rates.

  ^[12][13]

Direction of travel

• Regulators are deepening oversight through mandatory integration with tax monitoring systems (NRS TMS) and enhanced cybersecurity frameworks, including specific guidelines for Authorised Push Payment fraud.

  ^[8]

• The SEC is actively expanding the ARIP sandbox to onboard more fintechs and VASPs, indicating a structured path to formal regulation for digital asset firms.

  ^[4][5]

Sources

1. Interpretative Guidance on the Practical Operation of Sections 34(2)(B) and 40(2) of the Banks and Other Financial Institutions Act, 2020 · 2026-07-01
2. Introduction of Market Structure Requirements, Data Localisation, Ultimate Beneficial Ownership Disclosure, and Systemic Oversight Measures In The Nigeria Payments System · 2026-06-15
3. Exposure Draft of The Revised Guidelines for Licensing and Regulating Financial Holding Companies In Nigeria · 2026-06-11
4. SEC Nigeria Clears Two Additional VASPs for Admission into ARIP · 2026-07-03
5. SEC Clears Seven New Fintech Firms for Admission into the Accelerated Regulatory Incubation Programme (ARIP) · 2026-07-02
6. Guidelines on Revised Minimum Capital for Regulated Entities · 2026-03-18
7. Disclaimer on Activity of Alpha Trust Investment Club (ATIC) · 2024-06-26
8. Mandatory Integration with the Nigeria Revenue Service Transaction Monitoring System (TMS) · 2026-03-16
9. Guidelines On Revised Minimum Capital For Regulated Entities The objectives of these Guidelines are to: a. Promote investor protection by ensuring that CMOs maintain adequate financial resources to absorb operational and market-related losses; b. Enhance the resilience, integrity, and stability of the Nigerian capital market; c. Establish a risk-sensitive and proportionate capital framework aligned with the nature, scale, and complexity of regulated activities; d. Support effective supervision and early regulatory intervention through clear capital adequacy standards; and e. Reinforce domestic and international confidence in the prudential soundness of the Nigerian capital market, consistent with IOSCO principles. · 2026-03-18
10. Exposure of The Draft Guidelines on the Operations of Automated Teller Machines (ATMs) in Nigeria · 2025-10-09
11. Public Notice - AFRIQUANTUMX · 2025-10-07
12. Measures to Further Deepen Diaspora Remittances and Compliance · 2026-03-30
13. MEASURES TO FURTHER DEEPEN DIASPORA REMITTANCES AND COMPLIANCE · 2026-03-24