In relation to inhabitants Nigeria undoubtedly is the biggest country in the African continent, which in accordance with the Planet Bank is over one-hundred million individuals. Nigeria’s biggest city and financial hub is Lagos, which included that population, homes based on the National Population Commission of Nigeria at over twenty million individuals.
Considering its size and influence in the African continent, a recent study from the Fintech Times places the most significant city in the nation as a member of four emerging fintech hubs within the whole African continent – together with Nairobi, Johannesburg and Cape Town.
According to their site, the Securities and Exchange Commission (SEC) is working towards preparing a Regulatory Sandbox which will supply a ‘safe space’ where start-ups and other companies can examine advanced products, solutions, company models and delivery mechanisms about the funding market in a live environment without instantly satisfying all the required regulatory requirements.
OBJECTIVES OF THE REGULATORY SANDBOX OPERATION IN NIGERIA
Note that this is pending on final approval and statement of their committee members determining upon this issue.
- to raise the possibility of advanced company models that progress fiscal addition;
- To decrease time-to-market for advanced goods, solutions, and company models;
- To improve competition, expand consumers’ selection and reduced prices;
- To ensure proper consumer protection safeguards from advanced merchandise;
- To clearly specify the functions and obligations of stakeholders and also the operations of its Sandbox for the Nigerian Payments System sector;
- To guarantee sufficient provisions in regulations to create an enabling environment for innovation without compromising on security for customers and the general payments system; also
- To supply an avenue for regulatory involvement with Fintech companies in the payment area, while contributing to economic expansion.
RESPONSIBILITIES OF THE CENTRAL BANK OF NIGERIA (CBN) IN THE SANDBOX OPERATION
The Central Bank of Nigeria shall be accountable for:
- Issuance of the Regulatory Framework for Sandbox Operations;
- Admitting all qualified participants in the Sandbox procedure;
- Issuance of a Letter of Approval (LoA) for entrance to the sandbox;
- Issuance of an Approval-in-Principle (AIP) so as to deploy its electronic remedy to the current market, subject to the Innovator being in a position to meet CBN’s licensing demands;
- ensuring this objectives of the Sandbox are completely attained;
- Conducting supervision on Sandbox participants’ systems and operations; vii. Tracking different stakeholders to guarantee compliance;
- Issuing circulars to controlled associations on the operations of the Sandbox;
- Reviewing this frame for the operations of the Sandbox from time to time;
- Employ appropriate sanctions for non-compliance where required;
- The Manager, Payments System Management Department of the Central Bank of Nigeria shall review cases referred to it before issuance of an operating permit or an official clearance to a entity/participant with the aim of delisting in the Sandbox.
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