The Nigerian Communications Commission (NCC) has underscored the significant opportunity for fintech growth in Nigeria, spurred by the remarkable growth in mobile subscriptions, which reached a staggering 220.7 million in August. Dr. Aminu Maida, the Executive Vice Chairman and Chief Executive Officer (EVC/CEO) of NCC, highlighted this opportunity during his keynote address at the 2023 edition of the annual Nigeria Information Technology Reporters Association (NITRA) FinTech Forum.
The theme of the forum was “Harnessing Nigeria’s Fintech Potential: Challenges and Opportunities.”
Dr. Maida emphasized that the vast subscriber base in the telecommunications sector presents an extensive market for fintech companies to provide a diverse range of financial services. In line with NCC’s vision, the Commission has executed a Memorandum of Understanding with the Central Bank of Nigeria (CBN) to enhance payment systems and financial inclusion. This collaboration aligns with the Nigeria Payments System Vision 2025, reflecting their commitment to facilitating financial innovation and accessibility.
Furthermore, Dr. Maida affirmed NCC’s dedication to advancing the fintech industry by actively supporting fintech policies, enforcing regulations, and fostering collaborations with relevant authorities. NCC acknowledges the transformative impact fintech is having on Nigeria’s financial ecosystem and aims to play a pivotal role in its growth.
Fintech Revolutionizing the Financial Landscape
Representing Dr. Maida at the event, Mr. Henry Ojiokpota, the Controller of NCC Lagos Zonal Office, expounded on the fintech revolution’s significance in Nigeria. Fintech, he noted, is reshaping the country’s financial landscape and introducing positive disruptions to the traditional financial system.
Fintech leverages technology to enhance various financial services, including mobile banking, borrowing, investment, and cryptocurrency. This technological innovation acts as a catalyst for business opportunities, job creation, and investments, thereby stimulating economic growth. Fintech applications such as robo-advisors, payment apps, peer-to-peer (P2P) lending apps, investment apps, and cryptocurrency apps have opened up new avenues for individuals to explore.
Mr. Ojiokpota emphasized the substantial impact fintech can have on Nigeria’s economy, especially considering that approximately 70% of the population comprises youth. The adoption of fintech applications by the youth can significantly contribute to socioeconomic development and add value to the nation’s economy.
He added, “Fintech has the potential to deepen the existing payment and financial system infrastructure, extending its reach to unserved and underserved areas, further catalyzing economic growth.”
NCC’s Commitment to Fintech
Dr. Maida reiterated NCC’s commitment to supporting the fintech industry in harnessing its vast potential. The Commission is resolute in addressing the challenges faced by the sector and intends to improve the provision of secure infrastructure to facilitate the efficient delivery of digital financial services.
Moreover, NCC remains focused on maintaining minimum Quality of Service (QOS) standards to ensure uninterrupted connectivity. This commitment aims to enhance the sector’s contribution to Nigeria’s economy and provide a robust foundation for the continued growth of fintech.
In conclusion, the NCC recognizes the symbiotic relationship between the burgeoning telecommunications sector and the fintech industry. The impressive growth in mobile subscriptions not only presents an extensive market for fintech services but also underlines the importance of supporting the fintech ecosystem to harness its potential for economic growth and financial inclusion.
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