The event served as a demonstration of the leading payments technology company’s ongoing commitment to the growth and development of the fintech landscape.

Fast becoming one of the industry’s most anticipated tech gatherings, the forum brought together key representatives from the fintech community, commercial banks, microfinance banks, processors, investors, regulators, and the government, to discuss critical developments and trends in the Nigerian fintech landscape, delve into Mastercard’s strides in facilitating the ecosystem’s growth, and identify potential opportunities within the industry.

Fintech companies have been at the forefront of revolutionizing various industries, serving as powerful vehicles for locally relevant solutions, financial inclusion, and innovative partnerships between financial institutions, governments, merchants, and small and medium-sized enterprises (SMEs), both globally and locally.

This transformative role is underscored by the sustained investment in the industry, with the Nigerian fintech sector witnessing a remarkable surge, receiving over $1 billion in the last two years alone – more than triple the industry’s total figure and accounting for more than one-third of the $2.7 billion invested in African fintech since July 2021.

“Mastercard’s Fintech Forum has become an avenue to advance discussions on the development of the industry in Nigeria, and we are proud to be the vehicles of this change. The discussions this year underscored the pivotal role of collaboration and innovation in shaping the future of Nigeria’s fintech landscape. Mastercard remains unwavering in our commitment to power this positive change, offer support, and lead the evolution of the industry,” said Folasade Femi-Lawal, the country manager and area business head for West Africa at Mastercard.

The event also featured a fireside chat titled “Mastercard’s Role in Fintech Ecosystem Collaboration”. During this discussion, Dimitrios Dosis, President of Eastern Europe, Middle East, and Africa (EEMEA) at Mastercard, said: “Fintechs continue to stand as the trailblazers, pushing boundaries and reshaping industries. Their penchant for innovation is not just transformative, it is integral to the very fabric of our industry and the broader economy. Mastercard, as a driving force, is proud to champion the pivotal role of fintechs, recognizing their significance in fostering economic progress. As a leading technology provider, we will continue to innovate, and support and collaborate with them to drive locally relevant solutions and initiatives for maximized impact. We’re committed to being the catalyst that propels the ecosystem forward, facilitating a future where technology empowers individuals, businesses, and economies to participate in the global economy.”

The fireside chat was followed by a panel session titled “Digitization and Its Role in Nigeria’s Economic Development”, during which speakers delved into digitization, its role in enhancing efficiency across all sectors, opportunities, and the importance of balancing innovation and inclusivity to maximize its impact on Nigeria’s economic development.

During the session, Nasir Yammama, senior special assistant to the President, Innovation, said:

“Nigeria’s digital transformation and ever-evolving fintech and banking landscape presents exciting possibilities. The ongoing innovation boom acts as the cornerstone for advancing digital public infrastructure, fostering financial inclusion, and propelling economic growth. As always, the government remains committed to creating an enabling environment and collaborating with key industry players to drive more impactful innovations and pave the way for a future where every individual and business can thrive in a digital-first global environment through well-informed, inclusive policies and initiatives.”

Mark Elliott, division president, Mastercard Sub-Saharan Africa, closed the event and offered insights into the fintech landscape.

He emphasised the importance of the fintech industry and highlighted the significance of inclusive innovation and collaboration in driving sustained economic development.

“Mastercard is providing fintechs with the tools, resources, and support they need to thrive in the ever-evolving digital economy. Whether it’s through innovative solutions or strategic partnerships with key players in the industry, Mastercard has demonstrated its commitment to shaping the future of fintech and contributing to the growth and success of the broader ecosystem,” said Mark Elliott, Division President, Mastercard Sub-Saharan Africa.

The Mastercard Fintech Forum not only celebrated the achievements and advancements in Nigeria’s fintech sector, but also revealed a shared vision among industry leaders, which encompassed a future where strategic collaboration continues to be a driving force for positive change, innovation, and widespread financial inclusion, not only in Nigeria but on a global scale.

Among other criteria, applicants are expected to meet the capitalization of their target categories and show readiness to comply with the codes of conduct.

The regulatory guide, signed by Chibuzo Efobi, Director of the Financial Policy and Regulation Department, also applies to merchant, non-interest, and payment service banks seeking a change of business line from the CBN.

Operators who have applied for license category conversion are prohibited from expanding, reducing their current banking network, launching new products, or engaging in new strategic banking activities while the application is being processed, according to the documents.

The applicants are also prohibited from taking any new business decisions after the conversion process has commenced “except in line with the bank’s conversion strategy submitted to the CBN”.

Perhaps, owing to the increasing importance of digital payment support, an applicant for a change of license, irrespective of the category, is required to show proof of IT infrastructure as a requirement for considering an entry.

Bank customers have faced Herculean tasks settling transactions through digital media in the past weeks, while the CBN scaled up cashless policy implementation amid the naira redesign. Thousands of depositors continue to visit banking halls ostensibly to sort out failed transactions, which have increased due to poor IT support.

In its requirement, the bank stated: “Any bank or OFI seeking to change its license type shall communicate its desire in writing to the Director of its current supervisory department.” The application shall be accompanied by a business plan duly approved by the financial institution’s shareholders at an annual general meeting or extraordinary general meeting and by the Board of Directors. It shall contain detailed processes, procedures, timelines, and milestones regarding the proposed change.”

Applications are to be supported with documents showing the following: board resolution, the rationale for the change, business case, vision/mission, and strategy, governance structure, evidence of Shariah compliance (where applicable), and risk management framework. Other subject matters to be covered are financial projections and CBN approvals for any change(s) in management/board/shareholding since the issuance of the existing license.

“As a requirement to the grant of final approval, the CBN shall inspect the premises and facilities to ascertain their suitability or otherwise and confirm the authenticity of all relevant documents submitted by the bank or OFI (where applicable).

“A bank or OFI that converted to another license type shall, through a letter, inform the relevant supervisory department of the CBN of its readiness to commence operations, and such information shall be accompanied by one copy each of the following: an opening statement of affairs signed by external auditors and at least two directors with their names and designations, and minutes of a pre-commencement board meeting,” the bank said.

The Nigerian Senate had also appealed for an extension but the apex bank has underlined emphatically that the deadline would not be extended.

“There is a sufficient supply of the new notes for commercial bank ATMs,” according to Godwin Emefiele, the CBN Governor, who was present in Jos through Musa Jimoh, Director of the Payment System Management Department of the bank.

He urged banks to stop withholding cash from ATMs.

”The CBN has massively supplied the new notes to commercial banks to dispense both at counters and ATMs.

”This is to enable quick circulation and we want to advise commercial banks to desist from keeping the cash away from the public or face the stiffer sanction.”

The CBN Governor claimed that the decision to redesign the currency was made by international standards. He added that currencies are supposed to be updated every five years, but Nigeria took nine years between redesigns.

To raise awareness about the employment of agents to circulate cash in underbanked communities, Emefiele noted that the Monitoring and Sensitization program was intended to address issues with cash circulation.

“The Monitoring and Sensitisation project was activated by the apex bank for investigation of the attitude of banks toward the spread of the new currencies.

”We are equally using it to create awareness on the use of agents to circulate the cash in communities with few or no bank branches available.”