CBN Urged to Mandate Annual Financial Reporting for Fintechs and MFBs as Transparency Debate Intensifies in Nigeria
Finance experts have called on the Central Bank of Nigeria (CBN) to introduce mandatory annual financial reporting for deposit-taking fintech companies and microfinance banks (MFBs), arguing that stronger disclosure rules are necessary to improve transparency and protect customer funds in Nigeria’s fast-growing financial sector.
The discussion gained momentum during a recent episode of the Drinks and Mics Podcast hosted by Ugo Obi-Chukwu, where panellists examined the regulatory gap between traditional banks and newer fintech operators. They noted that while commercial banks are subject to strict disclosure and compliance standards, many fintech firms operating in deposit-taking roles are not held to the same public reporting obligations.
Obi-Chukwu stressed that any financial institution handling customer deposits should be required to publish its financial statements, arguing that public accountability is essential for trust in the system. Other experts on the panel supported the view, pointing out that similar disclosure standards already exist in markets like Kenya, where financial service providers are required to report regularly.
However, the proposal was not without opposition. Some stakeholders warned that imposing strict public reporting requirements on early-stage fintechs could discourage innovation and disrupt their growth cycle. They argued that startups often operate at a loss in their early years, and mandatory disclosure of such figures could negatively impact customer confidence and investor sentiment.
Despite the disagreement, the panel broadly agreed on one key point: deposit-taking institutions, regardless of whether they are traditional banks or fintech-backed microfinance banks, should be subject to clearer and more consistent regulatory oversight. The debate underscores growing pressure on the CBN to balance innovation in Nigeria’s fintech ecosystem with financial transparency and consumer protection.
source: nairametrics