(Ecofin Agency) - Nigerian financial technology companies, including Opay, Palmpay, and Moniepoint, are grappling with compliance costs nearing $1 million. These expenses stem from new anti-fraud requirements implemented by the Central Bank of Nigeria in 2023. The measures aim to bolster consumer protection and combat money laundering and terrorism financing.
Fintechs must now adhere to strict obligations, such as verifying customer identities and collecting detailed financial activity information. According to the Nigerian Inter-Bank Settlement System (NIBSS), financial sector fraud losses in Nigeria fell to 3 billion naira (about $6.5 million) in the first quarter of 2024. This marks a significant decrease from previous quarters, which saw much higher losses.
Analysts credit the improved security measures by financial institutions and regulatory bodies for this positive trend. The NIBSS, overseeing electronic payments and interbank transfers, has intensified efforts to combat fraud and raise consumer awareness. Campaigns have highlighted the importance of protecting personal information and remaining vigilant against scams.
While this decline in fraud is encouraging, experts stress that combating fraud must remain a top priority for Nigeria's financial sector. The increasing digitization of banking services and the popularity of mobile payments create new opportunities for fraudsters, necessitating continuous updates to security measures.
Regulatory developments in Nigeria are closely monitored by other African countries. As fintechs play a crucial role in enhancing financial inclusion, analysts predict that transactions in the sector could reach $65 billion by 2030. Although not the largest market compared to other regions, compliance costs will be scrutinized by investors, especially if they impact margins and returns.
• The NCC now requires telecom operators to publish details of major service outages.• Operators mus...
• The African Solidarity Fund has provided CFA225 billion ($390 million) in guarantees to support Ni...
• UBA Group expands asset management arm to Abidjan with UCAMWAL• Subsidiary to offer diversified in...
While Small-Scale Businesses (SSBs) or businesses in the so-called "informal sector" represent a sig...
AXIAN Energy has officially broken ground on the NEA Kolda solar power plant, marking the start of c...
Roads in Kenge, Kikwit, Tshikapa, Kamuensha, and Mbuji-Mayi have been completely rehabilitated, new stretches of road built, and urban roads modernized....
• IFC to guarantee 50% of FirstRand’s $100M SME lending program• Focus on women-led and climate-related businesses under 60M rand turnover•...
• Mali secures majority ownership in refinery built with Russia’s Yadran• Facility to process up to 200 tons of gold per year• Project aims to boost local...
• CcHub and Mastercard Foundation launch third EdTech Fellowship cohort• 12 startups selected, including 6 led by women, receive up to $100,000...
Located in the vibrant coastal city of Durban, on South Africa’s eastern seaboard, uShaka Marine World is far more than just a theme park. It stands as a...
The Osun-Oshogbo Sacred Grove, located in the city of Oshogbo in southwestern Nigeria, holds significant cultural and religious meaning for the Yoruba...