The Association of Telecommunications, Information Technology, Cable Satellite Network Operators and Allied Services Employers of Nigeria (ATICEN) has called on the Central Bank of Nigeria (CBN) to review operational licence fees for tech start-ups and digital banking service providers.
In a chat with New Telegraph, the Association’s President, Comrade Adede John Williams, said the apex bank should see the need to implement a flexible regulatory policy and a benchmark by way of a downward review of the operational licence fees for the tech start-ups, digital banking service providers and entrepreneurs. This is to test business ideas on viability, as well as getting easy access to funds as a way of supporting the start-up ecosystem, as this will be in line with this current administration’s mantra to keep supporting the start-up ecosystem.
He said: “This could further provide an enabling environment that will deepen technology growth and unlock opportunities through credit guarantee scheme and credit facility (long-term loans) with viable regulations in place for more innovations, start-up technology-driven system and ICT ecosystem to thrive in the country.”
According to him, the central vank needs to consider putting an industry-centric policy in place while promulgating and promoting policy in the cashless and digital economy of President Bola Ahmed Tinubu’s administration.
He said the Governor of the apex bank, Olayemi Cardoso, must have a full understanding that some of his policies affect the digital economy if care is not taken while formulating such policies. According to him, “he must know for a fact that for him to achieve any technological industry-driven policy that doesn’t guarantee a business-friendly environment will not move the in dustry or sector forward.
Therefore, the governor of CBN as the policymaker has to be mindful of the policies he formulates, which must be business-friendly, and nothing else.” He said formulating overlapping policies would not give a level playing field that should be accorded to the fintech service providers operating in Nigeria, urging him to study the fintech ecosystem before making policy regulations on fintech-related activities in the country.
He said: “As a matter of fact, the Governor of CBN has to call for a critical stakeholders engagement meeting with the Fintech and ICT industry stakeholders to achieve his said goal. “And he should focus more on promoting financial inclusion for the financially underserved, rather than feeder policies that are capable of bringing down the wonderful and laudable digital financial inclusion initiative of President Bola Ahmed Tinubu promised to the electronic and digital financial service providers.
“Let me use this medium to professionally advise the CBN Governor to look inward, beyond unfriendly regulation for fintech and place a focal point on how to formulate policy that would promote long-term loans and encourage institutional partnership with the commercial and microfinance banks and make policies that could be of benefits to the Fintech and ICT service providers.
“That will boost the financial digital technology ecosystem space and help the next stage of growth in the technological environment for all.” Williams reiterated that fintechs were having challenges due to the corporate governance policy structure of the CBN. In 2023, there were 217 fintech startups in Nigeria. However, some of them shut down due to a lack of working capital.
“The CBN governor must understand that some of the fintech start-up service providers are small businesses, and they don’t have strong corporate structures that can match up with the commercial banks. “So, we all must understand that fintech start-ups cannot be compared with commercial banks, and therefore, fintech should be given special attention regarding the financial inclusion support initiatives of the Federal Government.”
