Nigeria’s Central Bank could hamstring local fintech startups with costly new regulation
By Yomi Kazeem
New regulation requirements by the Central Bank of Nigeria (CBN) could make it difficult for some fintech companies to operate.
In a draft policy document, CBN recognized products by fintech companies are “gaining acceptance” but argued their emergence would heighten existing risks in the financial system.
To “address the emerging issues” such as risk management and capital adequacy, the policy proposal will require fintech startups to have minimum shareholder funds ranging from $275,000 to $14 million before obtaining licenses for their operations.
Photo courtesy of Rob Tinworth.