With the financial sector becoming more sophisticated as a result of deeper investment in technology, it has been noted that compliance and regulatory integrity will become the defining pillars of Nigeria’s banking industry.

Head of Compliance at FairMoney Microfinance Bank, James Edeh, who said this, noted that the traditional measure of banking strength, once defined largely by balance sheet size and physical capital, is shifting toward trust, transparency and regulatory adherence as financial transactions become more digital.

He noted that Nigeria’s financial system processed about 11.2 billion electronic transactions in 2024, according to data from the Nigeria Inter-Bank Settlement System (NIBSS), highlighting the growing reliance on digital platforms.

“In a market where digital fraud and systemic volatility can erode trust overnight, compliance is no longer a back-office function but a key driver of customer confidence,” Edeh stated.

He explained that the evolving regulatory framework from institutions such as the Central Bank of Nigeria (CBN) and the Federal Competition and Consumer Protection Commission (FCCPC) has pushed financial institutions to prioritise transparency and consumer protection.

According to him, the introduction of the Digital, Electronic, Online, or Non-traditional Consumer Lending Regulations 2025 underscores regulators’ determination to ensure that financial innovation is accompanied by strong ethical and compliance standards.

Edeh also pointed to Nigeria’s exit from the Financial Action Task Force (FATF) grey list in October 2025 as evidence of improvements in the country’s Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) frameworks.

He added that the integration of the Bank Verification Number (BVN) and National Identification Number (NIN) into banking operations has strengthened identity verification and reduced fraud.

According to NIBSS data cited by Edeh, identity-related fraud declined significantly from N52.26 billion in 2024 to N25.85 billion in 2025, following the broader adoption of these digital identification systems.

Edeh further noted that ongoing regulatory reforms such as the CBN’s 2024–2026 bank recapitalisation programme, which requires minimum capital thresholds of up to N500 billion for international banks, are designed to strengthen financial institutions against economic shocks.

He also highlighted new capital requirements introduced by the Securities and Exchange Commission (SEC) for fintechs and digital asset operators, which took effect in January 2026 with compliance deadlines set for June 30, 2027.

Under the revised rules, robo-advisers must maintain N100 million in capital, crowdfunding intermediaries N200 million, while digital asset exchanges are required to hold at least N2 billion.

Speaking on FairMoney’s approach, Edeh said the microfinance bank has embedded compliance structures across its operations to ensure strict adherence to regulatory standards.

He explained that responsible lending practices, transparency in pricing, and adherence to the Nigeria Data Protection Act (NDPA) and FCCPC digital lending guidelines are central to the bank’s operations.