Compliance Institute of Nigeria (CIN) has emphasized the critical role of credit registries in mitigating lending risks and the urgent need for robust regulations to govern the burgeoning fintech industry in Nigeria.
Speaking at the recent CIN Strategy Retreat, the body highlighted the importance of establishing a strong regulatory framework, similar to Singapore’s, to ensure the sustainable growth of the fintech sector. This includes setting up infrastructure and regulations that protect consumer interests, maintain financial stability, and foster innovation.
“We need to ensure that our regulatory bodies, such as the Central Bank of Nigeria, play a crucial role in shaping the future of fintech,” CIN said. “Moreover, strong data protection laws are essential to safeguard user privacy and build trust in the digital economy.”
CIN expressed optimism about Nigeria’s potential to become a global economic powerhouse, particularly given its large youth population. She emphasized the need to empower young people with the necessary skills and knowledge to drive innovation and economic growth.
“By empowering our youth with the right skills and knowledge, we can unlock their potential and drive economic growth.
“We need to invest in education, training, and mentorship programs to nurture the next generation of leaders.”
Addressing Challenges Faced by Small Businesses
The meeting also addressed the challenges faced by small businesses in Nigeria, highlighting the need for nurturing and support. Issues such as identity theft, fraud, and the importance of regulation and compliance were discussed. CIN expressed concern about the potential disruptive impact of foreign companies on the local market.
To address these challenges, CIN proposed innovative solutions such as integrating biometric technology into credit bureau platforms and developing a financial ID solution.
“We need to create a supportive ecosystem for small businesses to thrive. This includes providing access to affordable credit, mentorship, and technical assistance.’
She also emphasized the importance of collaboration among industry stakeholders and the need for initiatives like Nigeria Fintech Week to connect and accelerate the fintech ecosystem.
Building a Strong Compliance Culture
The meeting also delved into the importance of ethics and integrity in the compliance profession. CIN stressed the need for compliance professionals to uphold high standards of professionalism and to maintain trust and credibility.
The Compliance Institute, however, faces challenges such as limited public awareness and a limited physical presence in major Nigerian cities. To address these issues, CIN suggested the need for more public awareness campaigns and professional events to increase visibility and impact.
“We need to increase public awareness of the Compliance Institute and its role in promoting good governance. “We also need to expand our reach by establishing regional offices and organizing more professional events.”
The meeting concluded with a discussion on measuring compliance levels, aligning stakeholders, and sourcing expertise to assess risks and meet regulatory requirements. CIN reiterated the institute’s mission to promote ethical practices, governance, and adherence to regulations in Nigerian organizations.
By addressing these challenges and embracing innovation, the Nigerian fintech industry can continue to thrive and contribute to the nation’s economic growth.
