Nigeria’s fintech sector, recognized for its innovation and role in promoting financial inclusion, faces significant challenges that threaten its growth. Despite its importance for economic development, industry leaders are increasingly concerned about rising obstacles.
To address these issues, a legal expert, Davidson Oturu has written a book, “Fintech Law and Practice in Nigeria,” a comprehensive guide aimed at helping fintech companies navigate the intricate regulatory environment which addresses various challenges, including escalating cybercrime, poor internet infrastructure, financial illiteracy and regulatory uncertainty.
“Fintech’s potential is vast, but navigating regulatory complexities is crucial,” Oturu stated, adding that “my book will empower stakeholders to overcome hurdles and drive sustainable growth.”
Oturu highlighted several impediments to fintech innovation, such as inadequate internet access, high data costs, user experience challenges, limited rural financial services, and a general lack of trust. Compounding these issues are regulatory uncertainties, frequent policy changes, and the increasing threat of fraud and cybercrime.
The lawyer’s book aims to clarify Nigeria’s fintech regulatory landscape by providing practical compliance advice, showcasing success stories, and exploring future trends. It also examines the roles of key regulatory bodies, including the Central Bank of Nigeria (CBN), the Nigerian Data Protection Bureau (NDPB), the Federal Competition and Consumer Protection Commission (FCCPC), and the Economic and Financial Crimes Commission (EFCC) in ensuring consumer protection and sector stability.
A critical focus of “Fintech Law and Practice in Nigeria” is data privacy, particularly concerns about fintech misusing customer data without proper consent.
The book discussed interim regulations from the FCCPC and regulatory actions taken by NITDA, FCCPC, and EFCC to address these issues.
Additionally, it addressed key legal challenges, such as difficulties depositors face in accessing funds and the obligations of banks and fintech to protect customer accounts from fraud. It also critiques controversial practices among digital lending platforms, such as unauthorized sharing of customer data during loan defaults.
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