Insider-Driven Fraud Biggest Challenge Facing Nigeria’s Finance Industry, Experts Say

Oluchi Chibuzor

Experts at the Prembly’s breakfast Compliance dialogue meeting have identified insider-driven fraud as the biggest challenges facing Nigeria’s financial industry.

The event brought together experts from across the industry to discuss challenges and opportunities facing fintech companies as they navigate the regulatory landscape in Nigeria.

Making his presentation, the Director, Risk Management Department & Chief Risk Officer, Central Bank of Nigeria, Dr. Blaise Ijebor, said regulation and compliance were necessary given global trends in other to position the nations’s financial sector.

He explained that issues around compliance are not negotiable in the financial sector considering the rate at which technology was disrupting the sector.

He acknowledged that no fintech operators should think compliance was not necessary.

He maintained that, “the new people who are coming into the market today don’t play by the rules and I can tell you this, the biggest problem with fraud today is insider-fraud.”

According to him, “So, we just have to come up with new ways to guide those working in high-tech areas and you are going to see new rules around climate change, environmental and social justice, the cost of compliance- because compliance is going to be more inclusive.

“If you have a great idea, bring it and we will put the ideas in a sandbox; we will operate it for you for a few months, see how it operates and the risk involved.  We decide whether you need a licence or not and what type of licence and regulation you need. “Because a lot of the ideas you are bringing now are not in our regulations, we did not foresee them and so this sandbox is a great tool for us to work together.”

Also sharing his ideas, the Head, Broker Dealer Regulation, NGX, Olufemi Shobanjo, said they would continue to work with relevant regulators to synchronise compliance.

According to him, “By way of regulation we interact with the SEC and the investing public to explain our ideas, changes and rules we are bringing.”

The breakfast dialogue with theme, ‘Sufficient or Extant: Compliance Policies in the Nigerian Finance Sector’ was well-attended, with representatives from NIBBS, NGX, over 50 fintech companies, and other relevant organisations.

Speaking at the event held in Lagos, the Head of Marketing, Prembly, Tosin Adisa, said the maiden edition of the breakfast dialogue on compliance centered around the fintech sector and to bring regulators closer to those they regulate.

She noted that Prembly as a compliance and security infrastructure firm was helping digital businesses across emerging markets safely acquire and onboard customers, whilst keeping the internet safe for them to transact globally without restrictions through its KYC/KYB solutions.

According to her, “Our solutions continue to enable us serve as an intermediary between MDAs and our customers, most of whom are in the finance industry, hence the need to lead these conversations.”