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Stay ahead with our Regulatory Digest—your essential guide to the latest trends and insights shaping the tech and other sectors.
Introduction
This February edition, examines the latest regulatory directives from the NCC, NIMC, and NITDA’s evolving stance on data protection and cybersecurity compliance through the published data classification governance, CBN’s policy on stabilising the economy and curtailing the ever growing inflation, SEC’s regulatory updates on capital markets, and trade-related policies from the Ministry of Trade and Investment. Additionally, we provide insights into corporate governance reforms from the CAC, policy shifts in the ICT sector, and key judicial decisions that could set new precedents for business operations in Nigeria.
As regulatory frameworks continue to evolve, our goal is to keep you informed and prepared for the changes that matter most to your business. Let’s dive into this month’s most significant regulatory highlights.
A quick summary...
CBN retained the Monetary Policy Rate (MPR) at 27.5%
During the just concluded Monetary Policy Committee's 299th meeting, the Central Bank of Nigeria (CBN) maintained the Monetary Policy Rate (MPR) at 27.5%. This retention follows six consecutive rate hikes in 2024, and it is aimed at navigating ongoing inflationary pressures, exchange rate volatility, and concerns about economic growth.
Maintaining the rate can help stabilise inflation; the CBN's cautious approach reflects its commitment to ensuring financial stability while monitoring economic conditions closely, with potential adjustments anticipated later in the year based on inflation trends.
SEC Reduces Duration for Obtaining Approval for Offers
The Securities and Exchange Commission (SEC) has significantly reduced the approval time for companies seeking to raise capital in Nigeria's capital market, cutting the process from over a year to just two weeks. This move aims to enhance the efficiency of the capital market and support Nigeria's economic development by allowing businesses to access funding more swiftly.
The reduced timeline encourages companies to participate more actively in the capital market, leveraging technology such as the e-offering platform to expedite transactions. By streamlining the approval process, the SEC is facilitating quicker access to capital, which can accelerate business growth and contribute to overall economic expansion.
NITDA commences review of its 2019 National Cloud Policy
The Director-General of the National Information Technology Development Agency (NITDA) announced during the Africa Hyperscalers Digital Infrastructure Outlook 2025 event that the agency is reviewing the 2019 National Cloud Policy. Part of the revision will include modifications to the data classification provision that will require the mandatory localisation of some categories of data in the country. The revisions are to enhance cloud adoption, increase investment in cloud infrastructure, and increase data sovereignty in the country. Additionally, NITDA is collaborating with global hyperscalers, including Google Cloud, to expand cloud infrastructure in Nigeria
The potential impact of this move on the economy is significant, as it aligns with broader efforts to enhance Nigeria's digital infrastructure and capabilities. By driving cloud adoption and ensuring compliance with best practices in data protection, the framework can facilitate economic growth through improved efficiency in various sectors.
NITDA Inaugurated Technical Working Group on National Cloud Infrastructure
NITDA has inaugurated the Technical Working Group (TWG) on National Cloud Infrastructure to strengthen Nigeria's digital infrastructure and sovereignty. The TWG aims to attract increased investments and improve local cloud capabilities through accurate data and supportive regulatory frameworks.
By addressing the challenges of accurate data availability and regulatory compliance, the TWG will create an enabling environment for technological advancement and investment, ultimately contributing to Nigeria's digital transformation and economic resilience.
NITDA Signs MoU With Flutterwave, Alami, and SMEDAN to Enhance MSMEs Access to Financing
NITDA has partnered with Flutterwave, Alami, and SMEDAN to enhance the growth of small and medium-sized enterprises (MSMEs) through digitalisation and improved access to financing. This partnership aims to empower businesses by fostering fintech innovation and digital literacy, addressing barriers to economic growth.
The partnership is significant as it seeks to bridge the digital divide, enabling MSMEs to utilise secure financial solutions and innovative technologies. This initiative is expected to stimulate economic growth, create jobs, and enhance financial inclusion, positioning Nigeria competitively in the global digital economy.
NITDA to Implement the Nigeria-Google Partnership
The recent Nigeria-Google Partnership, which focuses on economic diversification through industrialisation and digital innovation will be implemented by NITDA and overseen by the Federal Ministry of Communications, and it aims to create a robust digital ecosystem emphasising infrastructure development, AI innovation, cloud adoption, and enhancing digital skills among citizens.
This partnership is significant as it positions Nigeria as a potential global technology hub, fostering economic growth and attracting investments. By leveraging local talent and resources, the initiative is expected to empower businesses, create job opportunities, and strengthen Nigeria's role in the global digital economy.
NIMC Holds Workshop for Enrolling the NIN of Vulnerable and Marginalised Persons
The National Identity Management Commission (NIMC) with the support of the Nigeria Digital Identification for Development (ID4D) project, organised a stakeholder workshop on NIN enrollment for vulnerable and marginalised persons. This initiative aims to address challenges such as funding, logistical issues, corruption, and accessibility barriers that hinder the widespread adoption of digital IDs in Nigeria.
By prioritising the enrollment of marginalised groups, NIMC is fostering a more inclusive digital infrastructure. This ensures that all citizens, regardless of socio-economic status, have access to essential services and benefits facilitated by digital identification.
NCC Partners with IPA to Establish a Consumer Lab
The Nigeria Communication Commission (NCC) has partnered with Innovations for Poverty Action (IPA) to establish a consumer lab to analyse emerging issues that will inform policy decisions. The partnership aims to improve Nigeria's consumer protection and complaint resolution for a better consumer experience.
NCC Signs Grant Agreement with SWEDFUND
NCC signed a grant agreement with SWEDFUND, Sweden's development finance institution, to fund a Crowdsourcing Quality of Experience (QoE) project. This initiative aims to enhance Nigeria's telecommunications services by leveraging real-time data from end-user devices to monitor and improve network performance, addressing issues such as dropped calls, slow internet speeds, and weak coverage.
The impact of this project on the economy is significant. By improving network quality and expanding connectivity, especially in underserved areas, it can boost economic activities, enhance digital inclusion, and support businesses reliant on telecommunications.
Nigeria’s Plans to Ratify the AfCFTA Protocol on Digital Trade
Nigeria, through the Ministry of Industry, Trade and Investment in positioning itself as Africa’s leader in digital trade through policy alignment, infrastructure development, cross-sector collaboration, and working towards ratifying the African Continental Free Trade Area (AfCFTA) Digital Trade Protocol, harmonising national regulations, and enhancing digital customs processes to facilitate cross-border e-commerce. This will ensure that investments made in broadband expansion and payment system interoperability further strengthens Nigeria’s digital economy.
Additionally, the government is promoting industrial growth through initiatives like the National Automotive Industry Development Plan, supporting local electric vehicle (EV) production, and advancing clean energy projects such as the Presidential Compressed Natural Gas Initiative (PCNGI). Programs like the National Talent Export Program (NATEP) and the Three Million Technology Talents Program (3MTT) are also driving Nigeria’s digital workforce development. These efforts are expected to boost Nigeria’s global competitiveness, attract investment, and position the country as a key player in Africa’s digital and industrial transformation.
Nigeria Sues Binance for Economic Losses and Back Taxes
The Nigerian government filed a lawsuit against cryptocurrency exchange Binance, seeking $79.5 Billion in economic damages and an additional $2 billion in back taxes. This legal action is part of a broader crackdown on the crypto industry, with authorities alleging that Binance's operations have contributed to the country's currency challenges. The lawsuit against Binance signals Nigeria’s tightening grip on crypto regulation, aiming to enforce tax compliance and stabilise the naira, but it may also deter fintech investments and drive crypto trading underground.
Partnership: XTransfer Partners with Ecobank Group on Cross-border Payment Solution
XTransfer partnered with Ecobank Group to enhance cross-border payment solutions for African SMEs, focusing on facilitating international trade and addressing challenges such as high transaction costs and foreign exchange complexities. This partnership will leverage Ecobank's extensive network across 35 African countries, allowing SMEs to collect and make payments in local currencies, thereby simplifying international transactions.
This partnership has the potential to empower African SMEs by improving their competitiveness in the global market. By streamlining payment processes and reducing operational costs, this initiative is expected to foster economic growth, enhance financial inclusion, and support the broader development of Africa's fintech ecosystem.
Partnership: Ghana and Rwanda Collaborate to Enhance Financial Cross-Border Operations
The Bank of Ghana and the National Bank of Rwanda have signed a Memorandum of Understanding (MoU) during the Inclusive Fintech Forum, to develop the continent's first-ever License Passporting Framework, making it a breeze for fintechs to operate across borders. They have also launched Africa's Next-Gen Digital Payment Infrastructure to facilitate real-time cross-border transactions and accelerate the continent's digital economy.
By simplifying cross-border transactions and reducing regulatory barriers, the partnership promotes financial inclusion for micro, small, and medium enterprises (MSMEs) and individuals, empowering them to participate in the digital economy. The initiative is expected to also drive economic growth by facilitating seamless trade and encouraging investment across borders. It aligns with the African Continental Free Trade Area (AfCFTA) goals of enhancing regional economic integration
In February, Nigeria's regulatory landscape reflected a strong push towards economic diversification, digital transformation, and enhanced financial stability. Key initiatives, from CBN's monetary policy to NITDA's data framework and NIMC's inclusion efforts, are designed to foster growth and innovation.
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