James Edeh on Compliance's Role in Nigeria's Banking Trust

Compliance is essential for building trust in tech-enabled banking, as it underpins customer interactions such as transfers, account openings, and loan approvals. In Nigeria, compliance is evolving from merely meeting regulatory requirements to being integral to consumer protection.

The 2023 Access to Financial Services Survey by EFInA shows that formal financial inclusion among Nigerian adults rose from 56 percent in 2020 to 64 percent in 2023, although 26 percent remain financially excluded. As financial services become more digital, customer expectations for safeguarding funds and handling personal information responsibly are increasing.

Nigeria's consumer protection framework is developing, particularly in regulating digital and non-traditional lending, reflecting demands for transparency, fairness, and data protection. Fintechs and microfinance banks face the dual challenge of addressing access and convenience while managing risks.

A strong compliance culture is necessary for these institutions to ensure consumer protection is prioritized in product development and service delivery.