CBN Considers Single Regulatory Window To Unlock Fintech Growth

The Central Bank of Nigeria (CBN) is looking at regulatory reforms aimed at easing compliance burdens on fintech firms, supporting regional expansion, and deepening financial inclusion, as pressure mounts on operators grappling with rising costs and delayed approvals.

In its 2025 Fintech Report, the apex bank disclosed plans to operationalise a Single Regulatory Window to streamline licensing and supervisory processes across multiple agencies, a move expected to significantly reduce time-to-market for new digital financial products.

According to the report, 62.5 per cent of fintech firms surveyed said regulatory timelines materially affect product rollouts, while over one-third noted that it takes more than 12 months to bring a new product to market, largely due to compliance bottlenecks.

“Stakeholders cited delays in approvals and ambiguity in regulatory guidelines as their most pressing concerns,” the report stated, adding that these challenges continue to inflate costs and slow innovation across the ecosystem.

The CBN report acknowledged that compliance costs remain a major drag on fintech growth, with 87.5 per cent of respondents reporting that the cost of meeting regulatory and risk requirements significantly impacts their capacity to innovate.

“These obligations stem from internationally benchmarked AML, cybersecurity and risk management frameworks,” the report said, noting that while the rules are necessary to protect system integrity, they have placed disproportionate strain on smaller and fast scaling firms.

To address this, the apex bank said it is considering shared regulatory infrastructure, including a Compliance-as-a-Service model, which would reduce duplicative reporting, ease the burden on regulated fintechs, and enhance supervisory visibility.

The report cited as potential pathways,” establishing a permanent CBN–Fintech Engagement Forum to enable candid and constructive dialogue as well as timely coordination on market developments, innovation pilots, and supervisory concerns.

“Exploring models for a Single Regulatory Window to simplify multi-agency compliance processes and reduce time-to-market” as well as “reviewing approval timelines and operational guidelines to address industry feedback on delays and ambiguity.”

It would be recalled that at the last World Bank/ International Monetary Fund (IMF) annual meetings in Washington, DC, Last October, the CBN governor, Olayemi Cardoso, had meet with operators and stakeholders in the Nigerian fintech space behind closed doors in a no holds barred session to ensure that they are fully and formally incorporated within the Nigerian financial regulatory framework.

Beyond domestic regulation, the CBN revealed that it is exploring regulatory passport arrangements to support cross-border expansion, as Nigerian fintech firms increasingly look beyond the country for scale.

The report showed that 62.5 per cent of surveyed fintechs currently operate or plan to expand into other African markets, with strong support for mutual recognition of licences among peer regulators.

“Stakeholders proposed piloting this model with peer regulators in Ghana, Kenya, South Africa, Uganda and Senegal,” the report said, describing bilateral pilots as a more realistic short term pathway to regional integration.

On digital assets, the CBN signalled a shift towards a more nuanced regulatory framework for cryptocurrency, balancing innovation with financial integrity rather than imposing blanket restrictions.

The fintechs surveyed also acknowledged crypto’s potential to drive cost-effective cross-border transactions and strengthen remittance channels, while also warning of risks linked to illicit flows and consumer protection.

“There was broad agreement on the need for a risk-based, activity-focused regulatory framework,” the report stated, adding that regulators must avoid equating all crypto activity with criminality, especially as many scams originate offshore.

The report further highlighted growing pressure to revisit the operational scope of Payment Service Banks, particularly restrictions that prevent them from extending credit, despite their reach into underserved communities.

Stakeholders urged the CBN to either review the PSB framework or introduce a dedicated digital banking licence that would enable inclusive lending under stronger prudential oversight.

“A dedicated digital bank licence may be a more effective pathway for inclusive lending than expanding the PSB mandate,” the report noted, while stressing the need for close coordination between the CBN and the Nigerian Communications Commission.

In the foreword, the CBN Governor said the central bank is committed to fostering innovation without compromising financial stability. “For the CBN, innovation is a strategic imperative. We are committed to creating an environment where new ideas can flourish under prudent oversight, and where inclusion is at the heart of our endeavours.”

He added that fintech must help deliver financial services to the last mile, “from the bustling cities to the rural villages, so that no Nigerian is left behind in the digital economy.”

The central bank said it will continue to collaborate closely with industry stakeholders as it refines policies aimed at positioning Nigeria not just as a fintech frontrunner, but as a regulatory reference point for emerging markets globally.