Fintech License Costs and Processing Time in Nigeria

In 2020, the Central Bank of Nigeria (CBN) introduced a new set of rules that affected fintech companies operating under a broad payment service license. The CBN released a circular stating that it had approved new license categorizations for payment systems. These new rules aimed to streamline fintech startups according to their capabilities and limitations, effectively assigning them to specific fields of operation. As a result, four new groups were established: switching and processing payment service providers, payment service providers involved in mobile money (MMOs), payment service providers involved in payment solutions (PSSs), and payment service providers under the regulatory sandbox.

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Nigeria’s New Finance Act of 2023: Key Changes and Implications

Under the Nigeria Finance Act of 2023, a capital gains tax of 10% has been introduced for digital assets. This tax is applicable when selling or disposing of valuable digital items that result in a profit. The tax calculation involves deducting allowable deductions from the total earnings in a specific assessment year. It applies to a wide range of property types, including options, debts, and intangible assets, regardless of their physical location. The tax also covers foreign currencies, except for the Nigerian currency. Any property that is created or acquired without purchase is considered an asset for tax purposes. However, the Act does not provide a clear definition of what constitutes a digital asset, leading to controversies regarding its scope and intentions.

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Simplified Approach to Solving the New Code of Corporate Governance for Financial Holding Companies in Nigeria

If a director intends to resign from the Board, they must submit a written notice of resignation to the Chairman of the Board ninety (90) days before the effective date of resignation. In the case of an Independent Non-Executive Director (INED), if their resignation would result in non-compliance with the minimum required number of INEDs, the Board must appoint a replacement within the notice period. Resigning directors can submit a written statement of concerns to the Chairman, and a copy must be forwarded to the CBN. If a Non-Executive Director resigns and the resignation results in a majority of Non-Executive Directors not being present, a replacement must be appointed within ninety (90) days. If the Chairman of the Board intends to resign, the notices of resignation should be forwarded to the Chairman of the Board Nomination and Governance Committee (BNGC) and circulated to the Board and the CBN within seven days.

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Practical Steps: How to Give Consent and Control Your Personal Data under Nigeria Data Protection Act 2023

Consent plays a crucial role in the processing of personal data under the Act. Data subjects have the right to control their personal data and must give their consent freely and intentionally. It is important to note that silence or inactivity cannot be considered as consent. To give valid consent, data subjects should follow these practical steps…

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Nigeria New Data Protection Act, 2023: An In-depth Look into Key Provisions

The Act outlines the principles and lawful basis for processing personal data. Personal data must be processed in a fair, lawful, and transparent manner. It should be collected for specified, legitimate purposes and not further processed in a manner incompatible with those purposes. The processing should be limited to the minimum necessary data and retained for a duration aligned with the lawful bases for processing. Accuracy, completeness, and relevance of personal data must be maintained, and appropriate security measures should be implemented to protect against unauthorized or unlawful processing, access, loss, destruction, or data breaches…

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What Does a Payment Service Bank License Allow in Nigeria?

According to the regulations set forth by the Nigerian central bank, subsidiaries of mobile network operators (telcos), mobile money operators, retail chains (supermarkets), and banking agents are eligible to apply for the PSB license, provided they meet specific requirements. These prerequisites include a capital base of 5 billion naira ($12 million) and a combined application and license fee amounting to 2.5 million naira ($6,400), which are non-refundable.

The issuance of these new banking licenses to Nigeria’s leading telcos follows the release of updated guidelines for the licensing and regulation of payment service banks by the CBN on August 27, 2020.

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