By Chinenye Anuforo
In a collaborative effort to propel Nigeria’s burgeoning fintech sector, prominent industry leaders gathered for a pivotal engagement session centred on the theme “Regulatory Compliance and Governance: A Catalyst for Fintech Innovation,” recently.
The event, jointly hosted by the Chartered Institute of Bankers of Nigeria (CIBN), The Nest, The Trusted Advisors, and the Fintech CEO Forum, took place at The Nest technology hub in Yaba, Lagos.
The discussions transcended the ordinary, urging fintech enterprises to consider regulations as an ongoing journey, embracing them as partners in continuous innovation. In a profound shift of perspective, regulatory compliance emerged as a requirement and as an enabler of growth.
Indeed, there is no gainsaying the fact that today, Nigeria’s fintech sector has experienced rapid growth, with new FinTech products being introduced at unprecedented rates. The fintech sector can be an important catalyst for further economic development, financial inclusion, innovation, and international investment in Nigeria, but experts believe regulation and compliance are key elements to sustaining the tempo.
A notable highlight of the event was the engaging chat session, fostering a spirited exchange of thoughts and queries. The interactive nature of the discourse provided a platform for startups to voice concerns, seek clarifications, and articulate the aspirations of the dynamic fintech landscape.
Noteworthy was the shared acknowledgment that government and regulators play a pivotal role in steering Nigeria’s Fintech sector towards success. Integral initiatives, such as the regulatory sandbox and the development of the NFS by the Central Bank of Nigeria, stand testament to the commitment to a balanced ecosystem.
Leading the discourse, Mr. Akin Morakinyo, Registrar/Chief Executive, CIBN, aptly summarized the shift from competition to co-opetition, emphasizing the need for collaborative problem-solving to fuel progress. He highlighted the importance of mentorship, urging Fintechs to seek knowledge and guidance.
The value of compliance, presented as the cornerstone of responsible innovation, was championed by Mr. Taye Awofiranye, Managing Partner of The Trusted Advisors. He underscored that regulations define the boundaries within which Fintechs thrive, ensuring growth through adherence. Awofiranye added that regulation is the box in which they are kept, “it can inhibit growth or otherwise, depending on understanding and compliance.”
Prominent voices echoed the sentiment that regulations should empower rather than hinder innovation. Collaboration emerged as a prevailing theme, with Mr. Olaoluwa Awojoodu, President of the Fintech CEOs Forum, emphasizing that partnerships are intrinsic to Fintech progress.
Stressing the importance of regulation, CEO, of Bankly, Tomilola Majekodunmi, said Fintechs should have an active board, noting that regulations help protect from losses and solidify the foundation of any organization. Though, Majekodunmi said compliance to regulation oftentimes could be costly, coupled with the rigor of running a regulatory entity, “they are essentials to the success of the firm.”
She also mentioned that regulators define a level playing field, businesses compete within those bounds, and consumers benefit from a system that encourages both innovation and stability.
On his part, Akinpelu Akinola, also of CIBN, said that no system is perfect when it comes to regulation, however, “regulation and compliance are for the common good of the people. It becomes bad when it is retrogressive.” He emphasized that collaboration between stakeholders and regulators fuels sectoral growth and sustainability.
This strategic convergence of influential players underscores an overarching mission to empower startups. The Fintech sector’s thriving future hinges on innovative solutions that honor regulations while stimulating growth. As the Fintech landscape evolves, these industry leaders stand united in their commitment to nurturing startups and amplifying their impact on the Nigerian economy.
As Co-Founder at The Nest, Oluwajoba Oloba eloquently puts it, “This forum reflects our unwavering dedication to fostering an enabling environment for startups. This strategic collaboration paves the way for sustainable growth and amplifies the potential for startups to thrive within a balanced regulatory framework.”