The Central Bank of Nigeria, CBN, has explained their constant interactions with, and regulations for, financial technology companies, fintechs.
The CBN Governor, Olayemi Cardoso, gave the explanation yesterday in Abuja while announcing the new interest rate.
Citing the need to rein in inflation and achieve price stability, the CBN raised its benchmark interest rate, the Monetary Policy Rate, MPR, by 150 basis points to 26.25 percent from 24.75 percent. It is the third raise less than three months.
However, the CBN Governor, Mr. Olayemi Cardoso, added that there was no magic wand to tackling the inflationary challenges.
But he expressed optimism that the various tools deployed by the bank to tame inflation and create a stable foreign exchange market would yield the needed results in the coming months.
These were announced yesterday, Tuesday, during the press briefing of the 295th monetary policy committee (MPC) meeting in Abuja.
Inflation had sustained upswing for over 13 months hitting 33.69 percent Year-on- Year, YoY, fueled by food inflation.
Fintechs…
On Fintech companies, the CBN Governor explained that the move to tighten regulations around their operations.
He noted that it was not aimed at putting them out of business but to ensure that the Nigerian public obtains the maximum benefit from the sector.
“The Fintechs have definitely not been singled out for any exceptional kind of treatment.
“On the contrary we are very proud of what the Fintechs, over the years, have been able to do for the country and the positive impact it has been having not just in the country but worldwide.
“It is for us to support them and help them to strengthen what they have been able to accomplish,” he stated.
However, he noted, the CBN was concerned about illicit flows and money laundering through the sector.
He said these crimes created the need for heightened surveillance of the sector.
Cardoso stated that despite the increase in regulatory guidelines, no Fintech organization has had its licence revoked by the CBN.
“We have had conversations with a number of them. And we have explained the need for them take another look at what they are doing and the need to strengthen them,” Cardoso, the CBN boss explained.