Nigerian regulators have declared open season on business. It’s already causing chaos
- The Central Bank of Nigeria (CBN) has mandated financial institutions to collect ID cards before creating financial accounts.
- The Nigerian Inter-Bank Settlement System (NIBSS) has taken action against fintechs that collect deposits without a license.
- The CBN has lifted a two-year restriction on crypto-related transactions, but with limitations.
The regulatory actions implemented by the Central Bank of Nigeria (CBN) and the Corporate Affairs Commission (CAC) in the past month have created mixed reactions. While some actions, such as mandating ID card collection and cracking down on fraud, are seen as positive steps to protect the financial sector, the lack of clarity and sudden reversals have caused confusion and frustration among businesses and entrepreneurs. There is a need for better communication and consistency in regulatory decisions to foster a more conducive business environment.
