CBN moves to curb fintech monopoly, protect consumers

The Central Bank of Nigeria (CBN) says it is introducing stricter regulations for fintech companies and digital payment providers to ensure fair competition in the financial sector.

Speaking at the 3rd Business Journal Fintech and Financial Inclusion Roundtable 2026 in Lagos, CBN Governor Olayemi Cardoso said no financial institution would be allowed to dominate the market in a way that limits competition or harms consumers.

He was represented by the Director of the Payment System Supervision Department, Dr Rakiya Opemi Yusuf.

Cardoso said the CBN wants to create a level playing field where banks, fintech companies and other payment service providers can compete fairly under transparent rules while protecting customers.

According to him, innovation remains important for improving financial inclusion and payment services, but it should not be used to gain unfair market advantages or avoid accountability.

The CBN has introduced new market structure rules aimed at reducing excessive dominance in payment services, especially in consumer issuing and merchant acquiring.

The measures are designed to prevent any institution from using its strength in one area to unfairly control another part of the market.

Cardoso explained that the new policy is not meant to stop businesses from growing. Instead, it is intended to ensure that growth does not reduce competition, limit customer choice or threaten the stability of Nigeria’s financial system.

He also announced that the CBN is increasing transparency by requiring financial institutions to clearly disclose their ultimate beneficial owners.

This is aimed at preventing hidden ownership arrangements and conflicts of interest.

In addition, Cardoso said all payment transaction data generated in Nigeria must now be stored and managed within the country.

He noted that this will improve data security, strengthen regulatory oversight and reduce dependence on foreign systems.

The CBN governor added that the bank will continue to improve the regulatory environment by licensing new operators, supporting digital payment channels and working with banks, fintech companies and other stakeholders to expand financial inclusion.

He stressed that regulation should encourage innovation while ensuring that institutions handling public funds, processing payments or managing customer data operate responsibly.

Cardoso said the CBN will continue to apply the same regulatory standards to institutions carrying similar risks, regardless of their size, ownership or technology.

However, organisations with greater market influence will be expected to meet higher standards of governance and regulatory compliance.