Reasons Behind Regulatory Challenges for Nigerian Fintech Firms – Segun Aina

Dr. Segun Aina, President of the Africa Fintech Network (AFN), highlighted some of the regulatory challenges faced by Nigerian fintech firms. 

He noted that the regulatory challenges encountered by fintechs in Nigeria stem from the rapidly evolving nature of their technology-driven business models.

During an interview session, Dr. Aina discussed the recent crackdown on certain fintechs by the Central Bank of Nigeria (CBN), emphasizing that governments and regulators worldwide are grappling with the regulation of technology due to its swift pace of advancement.

Acknowledging that regulations might pose initial obstacles for fintechs, he emphasized that ultimately, they would prove beneficial for both fintechs and the financial system. However, he cautioned against policies that could stifle innovation.

Furthermore, Dr. Aina highlighted that fintechs face challenges related to corporate governance, mainly due to their status as small businesses lacking comparable structures to commercial banks. However, said that as fintechs mature, they will gradually establish appropriate governance frameworks. 

Lastly, he pointed out that Nigerian fintechs expanding into other markets prioritize implementing robust corporate governance practices. He emphasized that corporate governance has become a central concern for all fintech stakeholders in Nigeria, marking a crucial phase in the country’s fintech growth trajectory.