Omolabake Fasogbon.
Emma Okonji
Given the global shift to digital services, just as financial services and payments are now powered by mobile phones, providing access to new data, embracing technological innovations, and changing mindsets of users, the Nigerian Communications Commission (NCC), the telecoms industry regulator, has said it will regulate Nigeria’s digital space.
NCC, however, said it would be mindful of protecting the consumers and meeting the needs of the robust operating environment that the digital economy has created, while considering regulation.
Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta made this known during the NCC’s Day at the just concluded Nigerian Fintech Week in Lagos, with the theme: ‘Navigating the Next Normal-Sustainable Impacts in FinTech, e-Government and Emerging Technologies.’
Danbatta who was represented by the Director, Digital Economy at NCC, Mr. Austin Nwaulune, said the backbone of the FinTech and any emerging technology, remained hyper connectivity, which means growing interconnectedness of people, organisations, and machines that result from the internet, mobile technology and the Internet of Things (IoT).
According to Danbatta, “It is therefore imperative to note that NCC, being the regulator of the communications sector, is responsible for ensuring that regulation is innovative, technology neutral, competitively neutral, protects the consumers and meets the needs of the robust operating environment that the digital economy has created.
“The digital economy is taking shape and changing conventional notions about how businesses are designed; how firms network; and how consumers obtain services, information, and goods. It is in recognition of the impacts of the digital economy that Nigeria developed its guiding Policy and Strategy document known as the National Digital Economy Policy and Strategy (NDEPS) and the NCC has positioned itself to ensure full implementation of its responsibilities as communicated in the NDEPS.”
During the panel session, discussants who are technology experts, also stressed need for regulation of Decentralised Financial services (DeFi), According to them, regulation, especially from the consumer point of view, is one key area that will make DeFi more inclusive.
Regulation gives a strong backing that will make online financing and trading more secure, stable and trusted. The second key area that will make DeFi more inclusive is to open up the financial market and expand it beyond collateral for all levels of interested players, so that those without collateral, who are interested in the financing business, can be part of it. The third area is to incorporate the Central Bank Digital Currency (CBDC) into DeFi, to boost the trust of people who want to trade on crypto currencies online for the purchase of financial assets, the panelists said.
Danbatta who also saw the need to regulate decentralised financial services in the country, said: “The role of the NCC can be summarised as, providing an enabling environment for the deployment of digital infrastructure, development of human capacity to innovate and create digital businesses and services and develop digital skills of Nigerians to be able to use the digital services provided by the innovators and entrepreneurs. Collaborations between the NCC and other stakeholders is very vital. NCC has continuously shown a willingness to work with regulators and other stakeholders to promote the development of Fintech sector. We remain open to collaborative engagements in light of the launching of the 5G network and the services it will produce for the Fintech ecosystem.”
