The Central Bank of Nigeria (CBN) said it would not allow excessive market dominance in the fintech and digital payments sector.

The CBN said it is committed to promoting fair competition, strengthening consumer protection and safeguarding the stability of the financial system.

Addressing participants at the 3rd Business Journal Fintech and Financial Inclusion Roundtable 2026 held in Lagos at the weekend, Governor of the Central Bank of Nigeria, Olayemi Cardoso, said no financial institution or group of related institutions would be allowed to use its market power to stifle competition or undermine consumer protection, warning that while successful businesses should continue to grow, such growth must not weaken competition, reduce customer choice or create risks for the wider financial system.

Represented by the Director of the Payment System Supervision Department, Dr Rakiya Opemi Yusuf, Cardoso said the regulator’s responsibility is to create a level playing field for banks, fintech companies and other payment service providers by ensuring that every qualified operator has a fair opportunity to compete under clear and transparent rules while protecting consumers.

He said although innovation remains critical to expanding financial inclusion and improving payment services, it must not be used to weaken accountability or create unfair market advantages.

According to him, the CBN recently introduced new market structure requirements for Nigeria’s payment system to reduce excessive concentration in consumer issuing and merchant acquiring activities.

He explained that the measures are designed to stop any institution or group of related institutions from leveraging dominance in one segment of the market to gain unfair control over another.

He stressed that the policy is not intended to restrict legitimate business growth but to ensure that expansion does not reduce competition, limit customer choice or create risks capable of threatening the stability of the financial system.

Cardoso also disclosed that the CBN is strengthening transparency in the ownership of financial institutions by requiring clearer disclosure of ultimate beneficial ownership to prevent hidden conflicts of interest and abuse of complex corporate structures.

Cardoso stressed that the apex bank has equally directed that payment transaction data generated in Nigeria must be stored and managed within the country in line with applicable data protection requirements. According to him, the measure will strengthen data security, improve regulatory oversight and reduce dependence on foreign systems.

The CBN governor said the bank has continued to improve the regulatory environment by licensing new categories of operators, supporting digital payment channels, and expanding financial inclusion through collaboration with banks, fintech firms, and other stakeholders.

He noted that regulation should encourage innovation rather than discourage it, adding that every institution handling public funds, processing payments or managing sensitive customer information must operate responsibly.

Cardoso maintained that similar activities carrying similar risks would continue to receive equal regulatory treatment irrespective of an institution’s size, ownership structure, technology or business model. However, he said operators with greater market influence would be expected to meet higher standards of governance and regulatory oversight.