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The Central Bank of Nigeria (CBN) has reaffirmed its commitment to strengthening regulatory oversight of the fintech and digital payments ecosystem, stating that it will not allow excessive market concentration that could undermine competition, consumer protection or financial system stability.
The apex bank said its regulatory approach is designed to promote a level playing field for banks, fintech companies and other payment service providers while ensuring that innovation continues to support financial inclusion without creating unfair competitive advantages.
Speaking at the 3rd Business Journal Fintech and Financial Inclusion Roundtable 2026 in Lagos, CBN Governor Olayemi Cardoso said no financial institution or group of related entities would be permitted to use market dominance to suppress competition or weaken consumer interests.
Represented by the Director of the Payment System Supervision Department, Dr Rakiya Opemi Yusuf, the governor said business growth should be encouraged but must not come at the expense of customer choice, market fairness or financial system resilience.
According to him, the CBN’s responsibility is to create a transparent regulatory framework that enables qualified financial institutions and payment service providers to compete fairly while maintaining high standards of regulatory compliance and consumer protection.
He noted that innovation remains essential for expanding financial inclusion and improving payment services but warned that technological advancement must not compromise accountability or distort competition.
New market rules to address concentration risks
Cardoso disclosed that the CBN has introduced new market structure requirements for Nigeria’s payment ecosystem to reduce excessive concentration in consumer issuing and merchant acquiring activities.
He explained that the measures are intended to prevent any institution or group of related companies from leveraging a dominant position in one area of the payments value chain to gain an unfair advantage in another.
According to the governor, the objective is not to restrict legitimate business expansion but to ensure that market growth does not reduce competition, limit consumer choice or introduce risks capable of affecting financial stability.
The initiative forms part of the apex bank’s broader efforts to strengthen competition, improve compliance management and promote a resilient digital financial services ecosystem.
CBN strengthens governance and data oversight
Cardoso also announced measures aimed at improving transparency in the ownership structures of regulated financial institutions.
He said the CBN now requires clearer disclosure of ultimate beneficial ownership to reduce the risk of hidden conflicts of interest and prevent the misuse of complex corporate structures.
The governor further disclosed that payment transaction data generated within Nigeria must be stored and managed domestically in accordance with applicable data protection requirements.
According to him, the policy will strengthen data security, enhance regulatory monitoring and reduce dependence on foreign data infrastructure.
The CBN has also continued to expand Nigeria’s digital payments ecosystem by licensing additional categories of operators, supporting innovative payment channels and working closely with banks, fintech companies and other industry stakeholders to deepen financial inclusion.
Cardoso emphasised that regulation should encourage innovation while ensuring that institutions handling public funds, processing financial transactions or managing sensitive customer information operate in line with sound governance standards and regulatory requirements.
He reiterated that financial institutions undertaking similar activities and facing comparable risks would continue to receive consistent regulatory treatment regardless of their ownership structure, technology platform or business model.
However, he noted that institutions with greater market influence would be expected to meet higher standards of governance, risk management and regulatory oversight to safeguard the integrity, stability and competitiveness of Nigeria’s financial system.
The CBN’s position underscores the increasing importance of regulatory compliance, compliance management, data privacy and effective regulatory frameworks in supporting innovation while ensuring sustainable growth across Nigeria’s rapidly evolving fintech industry.
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