Comparative Analysis of the Legal and Policy Framework for Financial Technology in Nigeria and Selected Jurisdictions

Abstract

The rapid growth of financial technology (FINTECH) has transformed the global financial landscape, presenting new vistas and innovations in traditional banking and financial systems. This research undertakes a comparative analysis of the legal and policy frameworks governing Fintech in Nigeria and selected jurisdictions, with a view to assessing their effectiveness, identifying gaps, and making best practice propositions. It discusses the steps Nigeria has taken to create a Fintech ecosystem through both the Central Bank of Nigeria and the Securities and Exchange Commission, while also covering regulatory uncertainty, enforcement challenges, and weak infrastructural capacity. Comparisons are made to jurisdictions like the United States of America, South Africa, and Canada, and there is a demonstration of various approaches being taken to implement regulatory sandboxes, innovation hubs, and stakeholder engagement. The research is underpinned by a doctrinal methodology, which analyzes primary legal instruments, regulatory policies, and judicial precedents, supplemented by a comparative analysis to draw upon lessons from other jurisdictions. Results indicated that while Nigeria has been doing well, there is a need for further alignment of its legal and policy framework with the best practices in order to foster investor confidence, innovation, and consumer protection. It concludes by recommending harmonization of Fintech regulations, improved cross-border collaboration, and adaptive legal frameworks as means to keep up with rapid technological evolution. This way, Nigeria, like other emerging markets, could close the regulatory gaps and further create an enabling environment for itself to become a leading global Fintech hub in using technology toward economic growth and financial inclusion.

Keywords: Fintech, Financial System, Regulation, Legal System