Renewed Advocacy in Nigeria for the Establishment of a Technology and Business Development Bank

Members of the Association of Telecommunications, Information Technology, Cable Satellite Network Operators and Allied Services Employers' of Nigeria (ATICEN) have once again called on the Governor of the Central Bank of Nigeria (CBN), Dr. Olayemi Micheal Cardoso, to expedite the establishment of both the Technology Development Bank of Nigeria and the Business Development Bank of Nigeria. This initiative, which was proposed to the apex bank in the past, is viewed as a vital step toward bolstering support for startups and entrepreneurs who require financial assistance to scale their businesses effectively.

In a recent correspondence addressed to the CBN, ATICEN President Adede John Williams articulated the urgent necessity of these financial institutions, emphasizing their transformative potential in providing direct support and funding across various sectors, particularly for startups, micro, small, and medium enterprises (MSMEs). He noted that such institutions could significantly enhance the economic landscape by facilitating access to critical financial resources, thereby empowering business owners to innovate and expand their operations. "The establishment of these banks will not only benefit entrepreneurs but also create a conducive environment for sustainable economic growth and job creation," Williams asserted.

Furthermore, Williams urged the CBN governor to convene an inclusive stakeholders' engagement meeting aimed at discussing the regulatory framework necessary for the development of the fintech sector. He stressed the importance of considering the downward review of operational license fees for fintech service providers, a move he believes would lower the barriers to entry and promote a more vibrant and competitive market. "This meeting will provide a platform for various stakeholders to collaborate, share insights, and formulate policies that will unlock the potential of the fintech subsector, enhancing regulatory focus through well-defined policy frameworks," he stated.

The ATICEN president highlighted the potential benefits of such collaborative discussions, noting that they would contribute to fostering transparency and accountability within the fintech ecosystem. "By encouraging open dialogue among industry players and regulators, we can ensure better monitoring and supervision of fintech activities, thereby protecting end users and maintaining overall financial stability," Williams elaborated.

In addition to addressing regulatory concerns, Williams pinpointed the accessibility of capital as a significant challenge currently facing the fintech subsector. He emphasized that without sufficient funding, many fintech startups struggle to thrive in a competitive environment. "I urge the Governor of the CBN to develop industry-centric policies that can facilitate capital raising and attract both local and international investors to fintech startups operating in Nigeria," he remarked. He further advocated for the creation of a Financial Technology Regulation Committee (FTRC) to oversee stakeholder contributions and develop a comprehensive legal framework aimed at harnessing the growth of the digital economy and enhancing financial inclusion throughout the country.

Moreover, Williams underscored the importance of incorporating stakeholder perspectives into the formulation and implementation of economic recovery policies. "The voice of the stakeholders is crucial; therefore, regulators must engage them in a meaningful dialogue to understand the unique challenges and opportunities present in the fintech landscape," he stressed. This collaborative approach would require the implementation of innovative strategies designed to leverage new technologies while promoting a strong partnership between the public and private sectors.

Ultimately, Williams emphasized that establishing these development banks and fostering a supportive regulatory environment would not only empower individual entrepreneurs but also contribute to the broader economic recovery and growth of Nigeria. By enabling startups and MSMEs to access the necessary resources for innovation and expansion, the CBN can play a pivotal role in nurturing a dynamic and resilient fintech ecosystem capable of driving sustainable economic development in the country.