CBN Tightens Oversight of Digital Finance Platforms as Nigeria Expands Virtual Asset Regulation
The Central Bank of Nigeria (CBN) has stepped up efforts to regulate the fast-growing digital finance sector, introducing stronger oversight measures for virtual asset service providers and fintech platforms. The move is aimed at balancing innovation with financial system stability as digital transactions continue to reshape how Nigerians send, receive, and invest money.
Under Governor Olayemi Cardoso, the apex bank is focusing on strengthening confidence in the financial system while ensuring that digital finance operates within a secure and transparent framework. With mobile apps, online payment systems, and cryptocurrencies becoming increasingly popular—especially among young Nigerians and small businesses—the regulator says it must keep pace with rapid technological change.
Digital finance has grown significantly across Nigeria, with platforms like fintech apps and cryptocurrency services enabling faster transactions, cross-border payments, and improved access to global markets. Small business owners in cities like Lagos now receive international payments within minutes, while freelancers rely heavily on digital platforms to work with global clients.
However, the CBN warns that the same convenience driving adoption also creates risks, including money laundering, fraud, and other financial crimes. Because many digital transactions cross borders and operate outside traditional banking systems, regulators say stronger monitoring tools are necessary to protect the financial ecosystem.
To address these concerns, the CBN has launched a pilot Anti-Money Laundering, Counter-Financing of Terrorism, and Counter-Proliferation Financing programme for selected Virtual Asset Service Providers. Companies including Flutterwave, Paystack, KuCoin, and others will participate in structured supervision designed to improve compliance and deepen regulatory understanding, without granting licensing approval. The bank says the initiative will help shape future regulations while ensuring Nigeria’s fintech growth remains secure, inclusive, and globally competitive.
source: punch