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On 14th January 2021, the Central Bank of Nigeria (the "CBN") released the long-awaited final framework for regulatory sandbox operations in Nigeria (the "Framework"). This Framework comes barely 7 (seven) months after the CBN released an exposure draft framework for regulatory sandbox operations in Nigeria (the "Draft"), on 23rd June 2020. Just like in the Draft, the CBN in this Framework emphasises its commitment to building a financial services sector that actively promotes innovation, effective service delivery, healthy competition, and financial inclusion.

The Central Bank of Nigeria (CBN) reportedly issued a Regulatory Framework for Open Banking in Nigeria on February 17. (I couldn't find it on the CBN website, but numerous law firms are reporting on it.) Prior to the issuance of the Framework, banks operated in a closed ecosystem, with exclusivity of access to customer information, locking out innovators; and forcing customers to rely solely on the digital channel offerings of their respective banks. With the issuance of the Framework, the financial services space in Nigeria will experience the simplification and integration of multiple and complicated financial services.

Some Nigerians are becoming reliant on using bitcoin as a way to trade internationally, and are finding bitcoin has significant benefits over legacy financial systems. Nigeria's economy is heavily import dependent and China is a major import partner to Nigeria. Nigerians have to struggle with this process, though. Access to FX for importation by Nigerian business owners is highly limited because the Central Bank of Nigeria has been rationing foreign exchange in efforts to protect the local currency amid the crash in oil prices and coronavirus outbreak. So importers typically rely on the black market for the additional FX needed and that comes at a very high price. But Chinese exporters have expressed willingness to accept bitcoin payments for their goods; hence, many business people in Nigeria find it more convenient to make such payments with bitcoin.

On November 12, 2020, Nigeria's President Muhammadu Buhari assented to the Banks and Other Financial Institutions Act 2020 (the "Act") which repealed the previous Banks and Other Financial Institutions Act 1991 (as amended) (the "Previous Act"). The Previous Act, which remained operational for over 16 years, dealt substantially with matters affecting traditional banking and financial services. Over time, there has been significant activity in technology-enabled financial transactions. These activities have heightened in the wake of the covid-19 pandemic which has necessitated digitisation across several sectors. In recognition of these facts, the Act introduces new provisions which are in line with current and modern financial services rendered by financial technology ("Fintech") companies in Nigeria. In this article we analyse the potential impact of the Act on Fintech companies and their services in Nigeria.

The purpose of this paper is to identify and examine the existing regulations in Nigeria's FinTech industry and to canvass for a cohesive and comprehensive legislation for Fintech in Nigeria.

On the 5th of February 2021, the Central Bank of Nigeria (CBN)1 released a letter addressed to banks and other financial institutions which stated that dealing in cryptocurrencies and facilitating payment for cryptocurrency exchanges are prohibited. The CBN further instructed all banks and other financial institutions to identify individuals or entities who transact in cryptocurrency or operate cryptocurrency exchanges and close the accounts of such persons or entities.

This paper identifies the benefits and risks of issuing CBDC drawing on Nigeria's eNaira experience. It notes that issuing a CBDC in Nigeria offers many benefits, including expanding financial inclusion, cash management cost-reduction, improving tax collection, boosting cross-border trade and remittances, and engendering economic growth. It also discusses some potential risks that policymakers must consider while highlighting some insightful lessons from the issuance and adoption of the eNaira in Nigeria.

Crunchfish and the Central Bank of Nigeria (CBN) have entered into a Development and Demonstration Agreement for a proof-of-concept of Crunchfish Digital Cash. Crunchfish will deliver Digital Cash for iOS and Android and support CBN throughout this process. The Proof-of-concept will integrate Digital Cash into the eNaira Wallet and backend to fully evaluate the user experience in a potential commercial deployment.

The Central Bank of Nigeria (CBN) has introduced the eNaira as a payment option for inbound remittances in an effort to help increase the adoption of the central bank digital currency (CBDC). It's part of the CBN's efforts to liberalize the payout of diaspora remittances and promote the adoption of the eNaira.  International money transfer operators (IMTOs) will need to apply for a one-time "no-objection" and open Merchant Wallets through the central bank to offer customers the possibility of using the eNaira for cross-border remittances. https://www.cbn.gov.ng/Out/2023/TED/TEDFEMPUBFPC001003.pdf

In March 2023, the Central Bank of Nigeria unveiled plans to assist local farmers with loans for farm tools using the eNaira digital wallet. The "Agro eNaira Wallet Engagement" project aims to provide Nigerian farmers with a "transparent, accountable, and efficient" platform to access government aid and lending programs. These funds will allow small farmers to obtain loans to purchase tools and equipment using the eNaira digital wallet and will likely be disbursed via local agro-dealers. https://www.cbn.gov.ng/out/2023/ccd/cbn%20update%202023%20march%20edition.pdf

The Central Bank of Nigeria (CBN) reasserted its confidence in its central bank digital currency (CBDC), in reaction to claims that an eNaira CBDC would pose a threat to Nigeria's financial stability. These false claims were based on misinterpretations of papers in a 300-page book published by the CBN in September 2023 that detailed the financial implications of adopting a CBDC. https://www.cbn.gov.ng/Out/2023/CCD/CBN%20Press%20Release%20%20eNaira%20(091023).pdf

The Central Bank of Nigeria (CBN) is in talks with potential technology partners to develop a new system to run and manage its eNaira central bank digital currency (CBDC). The CBN wants to develop its own CBDC software so that it can keep full control of the underlying technology. The CBN, in collaboration with Bermuda-based Bitt inc., launched the eNaira in October 2021 which, like other CBDC pilots and launches, has struggled to win wide adoption, although not necessarily because of the technology platform.

The IMF's Staff Report for the Nigeria 2022 Article IV Consultation noted that the uptake of the Central Bank of Nigeria's eNaira in the first year has been slow with retail wallet downloads amounting to 942,000 at end-November 2022-only 0.8 percent of active bank accounts. Also, the total number of eNaira retail transactions since the inception (around 802,000) is less than the number of eNaira wallets, which indicates that wallets are not actively used. The IMF report recommended that the eNaira be integrated into the existing mobile payment system to facilitate interoperability between mobile money operators, and optimize the last-mile delivery of social assistance.

"Nigeria will ban cash withdrawals from government accounts from March 1 to tackle illicit activity and push toward a cashless economy. "

The Central Bank of Nigeria (CBN) is incentivizing citizens to use licensed international money transfer operators (IMTOs) to send and receive money with its "Naira 4 Dollar Scheme". In effect, a typical recipient of diaspora remittances will, at the point of collection, receive not only the USD sent from abroad but also the additional 5 naira per USD received. https://www.cbn.gov.ng/Out/2021/CCD/naira4dollar.pdf

Three months after Nigeria's central bank restricted financial institutions from dealing with anything crypto-related, peer-to-peer (P2P) Bitcoin trading in the country is having a heyday. According to analytics platform UsefulTulips, Bitcoin P2P trading in Nigeria has surged by 27% since restrictions were introduced by the country's central bank (CBN).

The Central Bank of Nigeria (CBN) is reportedly planning to launch a central bank digital currency (CBDC) by the end of 2021. According to Rakiya Mohammed, the central bank's IT specialist, the CBN has been exploring the technology for the last two years and has made tremendous progress. One of the reasons the CBN is exploring CBDC is to make remittances travel easier from abroad to Nigeria.

The Central Bank of Nigeria is reportedly preparing to pilot a central bank digital currency (CBDC) by as early as the end of this year. The central bank's director of information technology Rakiya Mohammed said the project had been in the works for two years, and more announcements were likely in the coming weeks.

MTN, Nigeria's largest telecoms operator, with more than 60 million customers, has launched its MoMo Agent mobile money service. And, on the back of a $1.2 billion funding boost last year, Airtel Nigeria, Nigeria's third largest operator, is expected to follow suit. 9Mobile and Globacom, the country's two other major operators, have also reportedly been issued licenses to become payment service banks.

The Securities and Exchange Commission of Nigeria has officially defined digital assets under its regulatory umbrella. Crypto assets will be deemed securities, unless proven otherwise, with the burden of proving that the crypto-assets proposed to be offered are not securities and therefore not under the jurisdiction of the SEC, placed on the issuer or sponsor of the assets. https://sec.gov.ng/statement-on-digital-assets-and-their-classification-and-treatment/